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New York Central Hudson River Railroad Company To THIRTIETH ANNUAL REPORT OF THE BOARD OF DIRECTORS OF THE NEW YORK CENTRAL AND HUDSON RIVER RAILROAD COMPANY AND ITS LEASED LINES TO THE STOCKHOLDERS FOB THE YEAR ENDED JUNE 30 1899 1 OFFICE OF THE COMPTROLLER 1899 NEW YORK CENTRAL HUDSON RIVER RAILROAD. 1899. Q ) TJ E B E \C Proprietary lines. Red New York and Putnam R. R Pink West Shore Railroad system Dark blue New York and Harlem R. R Green Rome Watertown and Brown Leased lines ) Ogdensburg system v.. Mohawk and Malone R. R Yellow Fall Brook system Orange Beech Creek R. R. Light blue Dotted green to V o N Dunkirk, Allegheny Valley and Pittsburg R. R. Lake Shore system j Lines controlled New York, Chicago and St. Louis R. R. ( through Ownership of stock Michigan Central R. R. Pittsburg and Lake Erie R. R. # E O & T A # \\ Si Soutli Hnvi » oirester /lis VWu„K,k Lit, f-f/ilt* KHODI t m '* 3$*kSr, mm- "i N/ o yi #W o HV A M I /S S I O U R I 3 ORGANIZATION OF THE NEW YORK CENTRAL AND HUDSON RIVER RAILROAD COMPANY CORPORATE OFFICERS Chairman of the Board of Directors CHAUNCEY M. DEPEW President SAMUEL E. CALLAWAY First Vice President CHARLES C. CLARKE Second Vice President HORACE J. HAYDEN Secretary EDWIN D. WORCESTER Treasurer EDWARD Y. W. ROSSITER DIRECTORS Elected at the annual meeting of stockholders held at Albany, New York, April 1!), 189!) CORNELIUS VANDERBILT HAMILTON McK. TWOMBLY WILLIAM K. VANDERBILT SAMUEL R. CALLAWAY FREDERICK W. VANDERBILT CHARLES C. CLARKE CHAUNCEY M. DEPEW HORACE .1. HAYDEN SAMUEL F. BARGE 1! WILLIAM BLISS J. PIERPONT MORGAN SAMUEL I). BABCOCK GEORGE S. BOWDOIN EXECUTIVE COMMITTEE CHAUNCEY M. DEPEW, Chairman of the hoard of Directors* SAMUEL R. CALLAWAY, President* CORNELIUS VANDERBILT J. PIERPONT MORGAN WILLIAM K. VANDERBILT SAMUEL F. BARGEE FREDERICK W. VANDERBILT HAMILTON MCK. TWOMBLY The annual meeting of stockholders, for the election of directors, is held in the city of Albany, on the third Wednesday in April. Total number of stockholders at. last election, 10,188. 'Members ex-ojjieio REPORT To the stockholders of the NEW YORK CENTRAL AND HUDSON RIVER RAILROAD COMPANY : The Board of Directors herewith submits its report for the year ended June 30, 1899, with statements showing the results for the year and the financial condition of the company. The report covers the operations of the system cast of Buffalo, including the following pro• prietary and leased lines: New York Central & Hudson River Railroad Niagara Falls Branch Railroad New York & Harlem Railroad Utiea & Black River Railroad Troy & Greenoush Railroad Carthage Watertown & Sackets Harbor Railroad Spuyten Dtiyvil & Port Morris Railroad Mohawk & Malone Railway West Shore Railroad Carthage & Adirondack Railway New Jersey Junction Railroad Gouverneur & Oswegatchie Railroad Rome Watertown & Ogdensburg Railroad New York & Putnam Railroad Oswego & Rome Railroad The following roads are also leased by this company, but their mileage and operations are not included in this report, as separate accounts have been kept and independent reports pre• pared in their behalf: Syracuse Geneva & Corning Railway Beech Creek Railroad Fall Brook Railway Dunkirk Allegheny Valley & Pittsburg Railroad Pine Creek Railway Wallkill Valley Railroad In the next fiscal year, and thereafter, the operations of all of these roads, excepting the Dunkirk Allegheny Valley & Pittsburg, will be included as part of the New York Central & Hudson River Railroad system. The gross earnings from the operation of the system east of Buffalo were $46,184,657.81, an increase of $410,417.38 over the preceding year. The year 1897-98 had the advantage of a very unusual grain movement, while the year just closed suffered from an abnormal decrease in grain shipments in its first quarter, when gross earnings fell off $884,000. During the remainder of the year this large decrease has been more than overcome, despite the snow blockades in February, the loss of lake traffic in April, and the Buffalo labor troubles in May and June. 1A 6 The expenses were $29,128,981.35 — a decrease of $382,032.63 from those of 1897-98. They include $1,552,047.39 of extraordinary disbursements, representing substantial additions to the company's property. The net earnings from operation were $17,055,676.46, or $792,450.01 in excess of those of the previous year. The income from investments includes $3,810,874.09 dividends on the stock of the Lake Shore & Michigan Southern Railway Company and the Michigan Central Railroad Company owned by this company, and is an offset to a like amount of interest on the collateral bonds issued for the purchase of the same. In no other way do the operations of those two roads affect this report. The first charges, combining interest, rentals and taxes of every kind, were $15,465,296.33, or $1,905,069.70 more than in 1897-98. This large increase is accounted for by the inclusion of a full year's charges on the Lake Shore and Michigan Central collateral bonds as compared with five months' proportion taken up in the preceding year. The saving in interest through the refunding plan was $437,341.99 for the year. Taxes, $2,038,358.74, equaled 2% on the entire capital of the company, or $852 per mile of road operated; and required for their payment 12% of the year's net earnings. The profit for the past year was $5,615,051.68, and the surplus, after payment of four per cent in dividends, $1,615,051.68, as against $054,471.10 in the year previous, and $51,866.80 in 1896-97. Further comment upon the earnings and expenses will be found upon pages 14 and 15. The mileage of the system was increased on May 1,1899, by the lease of the following lines: Syracuse Geneva & Corning Railway; from Geneva, N. Y., to Corning, N. Y., and its branch line G4'82 miles Fall Brook Railway; from Corning, N. Y., to Antrim, Pa., and its branches 10P34 " Pine Creek Railway ; from Stokesdale Junction, Pa., to Newberry Junction, Pa. 74"80 " Wallkill Valley Railroad; from Kingston, N. Y., to Montgomery, N. Y. 32'88 " A total addition of 273*84 " Under the terms of these leases, this company guarantees the following annual payments, as rental for the properties named: Syracuse Geneva & Corning Railway, in cash $ 46,375 and interest on outstanding bonds (i8,f)35 $114,910 Pall Brook Railway (which has no bonded debt), in cash 175,000 Pine Creek Railway, in cash and interest on outstanding bonds Wallkill Valley Railroad, in cash and interest on outstanding bonds The surplus of the Fall Brook system for the year ended April 30, 1899, was $378,738.39 after payment of all charges and dividends. The profit of the Wallkill Valley Railroad for the same period was $27,666.41 after paying interest on all its bonds. 7 The total mileage owned and controlled by this company is now 6,744.69 miles. On June 30, 1899, the directors voted to lease the Boston & Albany Railroad and its branches, on a guarantee of eight per cent per annum on its capital stock. Corresponding action was taken by the directors of the Boston & Albany Railroad Company at the same time, and the matter is soon to be submitted to the respective stockholders for ratification. In the year ended June 30, 1899, the funded debt was increased by the issue of the following securities: Zh% GOLD MORTGAGE BONDS : For the enlargement of the Grand Central Station $840,000 00 For construction at Rochester, Amsterdam and Albany 154,000 00 $1,000,000 00 As premiums in the retirement of old securities bearing higher rates of interest 711,858 33 $1,711,858 33 LAKE SHOBE COLLATERAL BONDS : In exchange for stock of the Lake Shore & Michigan Southern Railway Company 600,575 00 MICHIGAN CENTRAL COLLATEBAL BONDS : In exchange for stock of the Michigan Central Railroad Company 1,409,210 00 $3,721,043 33 The purchase and retirement of $300,000 of 4% gold debentures of 1890, as contemplated by the resolution of the Board adopted May 13, 1890, not having proved feasible during the past year, that amount was invested in 3J% Michigan Central collateral bonds of this company, making a total investment of $750,110 for the gold debenture sinking fund. During the period covered by this report, the enlargement of the general offices in the Grand Central Station has been completed, the structure having boon rebuilt from the second floor and three new stories added. To meet the requirements of the greatly increased passenger traffic at the Grand Central Station, it has been determined to remodel the entire lower part of the station, including the waiting-rooms, baggage-rooms, tracks and train-shed. The plans contemplate one commo• dious handsomely appointed union waiting-room for the joint use of this company and the New York New Haveu & Hartford Railroad Company, with ample facilities and every convenience for the 12,500,000 passengers who use the station yearly. 8 During the year several changes have taken place in the executive force. The Hon. Ashbel Green, the company's General Counsel, died, much regretted, on Septem• ber 4, 1898, and was succeeded on October 1st by the Hon. Samuel E. Williamson, who had for many years been General Counsel of the New York Chicago & St. Louis Railroad. The resignations of Mr. William Buchanan, Superintendent of Motive Power and Rolling Stock; Mr. Walter Katte, Chief Engineer; Mr. Alfred Skitt, Manager of the Marine Depart• ment; and Mr. James D. Layng, General Manager of the West Shore Railroad, took effect during the year.
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