FORTY-FOURTH ANNUAL REPORT OF THE BOARD OF DIRECTORS OF THE NEW YORK CENTRAL AND HUDSON RIVER RAILROAD COMPANY TO THE STOCKHOLDERS FOR THE YEAR ENDED DECEMBER 31 1912 I GRAND CENTRAL TERMINAL NEW YORK ORGANIZATION OF THE NEW YORK CENTRAL AND HUDSON RIVER RAILROAD COMPANY DECEMBER 31, 1912 DIRECTORS Elected ;it the annua] meeting of stockholders held at Albany, New York, April 17, 1912 CHAUNCEY M. DEPEW, Chairman WILLIAM K. VANDERBILT WILLIAM H. NEWMAN FREDERICK W. VANDERBILT GEORGE F. BAKER WILLIAM C. BROWN GEORGE S. BOWDOIN J. PIERPONT MORGAN WILLIAM ROCKEFELLER JAMES STILLMAN MARVIN HI'GIUTT WILLIAM K. VANDERBILT, JR LEWIS CASS LEDYARD FINANCE COMMITTEE WILLIAM K. VANDERBILT WILLIAM ROCKEFELLER J. PIERPONT MORGAN GEORGE F. BAKER LEWIS CASS LLDYAED on mats President WILLIAM C. BBOWN New York Vice President WILLIAM K. VANDERBILT, JK New York Vice President JOHN' CARSTEXSEN New York Vice President ALFRED H. SMITH New York Vice President IRA A. PLACE New York Vice President CHARLES F, DALY New. York Vice President JAMES H. HUSTIS Boston Assistant Vice President ABRAHAM T. HARDIN New York [Secretary DwiGHT W. PARDEE New York Treasurer EDWARD L. ROSSITER New York General Auditor RICHARD A. WHITE New York Auditor CHARLES H. CHAMBERS New York General Counsel ALBERT H. HARRIS New York General Solicitor CLYDE BROWN New York General Attorney ALEXANDER S. LYMAN New York General Claims Attorney FRANK V. WHITING New York General Land and Tax Agent OSCAR G. GETZEN-DANNER New York Genera] Manager PATRICK E. CROWLEY New York Chief Engineer GEORGE W. KITTREDGE New York Superintendent Motive Power JOHN HOWARD New York Superintendent Rolling Stock FREDERICK W. BRAZIER New York Superintendent Electric Equipment CHARLES H. QUEREAU New York Chief Mechanical Engineer ROSCOE B. KENDIG New York Manager Marine Department WALTER B. POLLOCK New York General Purchasing Agent SYDNEY B. WIGHT New York Purchasing Agent WILLIAM C. BOWER New York Freight Traffic Manager FRANCIS LA BAU New York General Freight Agent IRA H. HUBBEL New York Coal Traffic Manager FRANK E. HERRIMAN New York General Passenger Agent LOREN F. VOSBURGH New York REPORT To the Stockholders of THE NEW YOKE CENTRAL AND HUDSON RIVER RAILROAD COMPANY: The Board of Directors herewith submits its report for the year ended December 31, 1912, with statements showing the results for the year and the financial condition of the company. The mileage embraced in the operation of the road is as follows: .Main line and brandies owned 80549 Proprietary lines 3-06 Lines leased* 2,026 13 Lines operated under contract 8L70 Trackage rights 274'27 Total road operated 3,790'65 Of the total road operated,, 290'7J miles arc operated in freight service only and 14'96 miles arc operated in passenger service only. The decrease of mileage of leased lines is due to abandonment of part of the Pardee branch of the Beech Creek Railroad and a change of alinement of the main line of the same railroad. The difference in the reported mileage of road operated under trackage rights is caused by a careful revision of previously reported figures by the engineering authorities of the various railroads interested. A statement showing the total miles of road and track operated will be found on another page. The standard form of income account promulgated by the Interstate Commerce Com• mission was adopted by this company on July 1, 1912. No revision of figures for the previous year nor for the first six months of the year covered by this report has been made and, therefore, some of the comparisons between the years 1911 and 1912 are somewhat distorted. The accounts principally affected by this change of form are "taxes accrued," part of the taxes which were previously charged to this account being now shown in 'miscellaneous tax accruals" in the "deductions from gross corporate income" and •'miscellaneous income" from which have been transferred to "miscellaneous rents" the amounts receivable as rental of property not used in the operation of the road. •The Dunkirk Allegheny Valley am! l'ittsburgh Railroad, 1HV51 miles, is also leased by this company, but in mileage and operations are not included in this report. Separate accounts arc kept and independent return-* prepared in LIS behalf 3 1 Annual Report The capital stock authorized is $250,000,000 00 of which there is issued and outstanding 222,729,300 00 leaving a balance authorized but not issued of $27,270,700 00 The mortgage, bonded and secured debt outstanding on December 31, 1911 was $299,870,008 18 This has been added to as follows: Gold mortgage bonds, bearing interest at the rate of three and one-half per cent per annum $5,000,000 00 Gold debentures of 1912, bearing interest at the rate of four per cent per annum 9,150,000 00 Three year gold notes due May 1, 1915, bearing interest at the rate of four and one-half per i-enl per annum 20,000,000 00 This company's pro rata liability in connection with the equipment trust certificates of J 912, bearing interest at (lie rate of four and one-half per cent per annum 7,150,711 50 Equipment trust certificates on account of the Boston & Albany Railroad, bearing interest at the rate of four and one-half per cent per annum (see page 10) 5,220,000 00 Mortgage on real estate in the city of New York, bearing interest at the rate of three and one-half per cent pet- annum 1,000,000 00 Mortgage on real estate in the city of Utica, bearing interest at the rate of six per cent per annum 2,500 00 47,535,241 50 $347,405,849 08 and has been decreased as follows: Payments of installments falling due during the year on this company's pro rata liability in connection with the certificates issued under equip• ment trust agreements, as follows: Trust of 1907, installment due November, 1912 $793,000 12 Trust of 1910, installment due January, 1912 433,964 42 Payment of mortgage on real estate in the city of New York 150,000 00 1,377,024 54 Outstanding, as shown on the balance sheet of December 31, 1912 $346,028,225 14 In accordance with the consent of the Public Service Commission of the Second District of the State of New York, there have been acquired out of the proceeds of the issue of securities specially authorized for the purpose, 100,786 shares of common stock and 22,181 shares of preferred stock of the New York and Harlem Railroad Company of a par value of $6,148,350, at a cost of $21,493,053.10; 80,081 shares of stock of the Rome Watertown and Ogdensburg Railroad Company of a par value of $8,008,100, at a Cost of $10,250,368; and 9,322 shares of the stock of the Utica and Black River Railroad Company of a par value of $932,200, at a cost of $1,077,960. 5 The New York Central and Hudson Bilker Railroad Company SUMMARY OF FINANCIAL OPERATIONS AFFECTING INCOME OPERATING INCOME 1912 1911 INCREASE 3,790-23 miles operated 0-42 mile* Revenues $109,900,016 57 1103,954,862 81 $5,945,152 70 Expenses 81,311,153 31 7... 7011.2112 78t 5,610,950 53 188,888,862 26 §2s.25i,ooo 03 " $334,202 23 (73-99%) (1-17%) AUXILIARY OPERATIONS Revenues $5,202,572 62 $376,511 27 Expenses 5,255,057 55 4,881,090 79 373,960 70 NET REVENUE I-'li [ MI TSIDH H'EKATIuNS $324,026~34 $321,475 83 §2,550 51 FROM ALL IPRRATIONS (28,912,888 60 §28,570.135 86 §330,752 7 1 5,902,521 17 5,447,759 13 151,702 111 H'I;I;AI i M; IXITIMK $23,010,307 43 $23,128,376 73 si 18,009 30 OTHER Joint facilities rents $1 929 498 22 81,754,125 34 $175,372 8S Miscellaneous rents 406,368 82 309,679 61 90,789 21 Net profit from in vestmei •Gical property 62,073 02 02,073 02 Divider 12.791.SS9 '.HI 11,049,589 23 1,142,300 117 Interest on fu 508,829 12 189,986 73 18,842 39 1,785,987 82 1,010,730 54 109,251 28 Miscellaneous income TOTAL OTHER INCOME rjROSB CORPORATE INCOME 139,364,556 08 $1,520,403 36 DEDUCTIONS FROM i Rentals of leased lines §10,055,192 32 §10,030,832 20 $18,300 12 Hire of equipment 1,980,095 34 1,151,064 87 829,030 47 Joint facilities rents 824,602 85 556,020 51 08,570 34 Miscellaneous rents 838,920 77 565,593 90 273,320 SI Miscellaneous tax accruals 15,901 73 15,901 73 Separately operated properties—loss 340,012 72 210,093 02 135,919 70 Interest on bonds 9,001,003 05 9,102,019 58 4 99,583 17 Interest on three year gold notes of 1911 and 1912 1,903,125 00 1,085,039 99 818,085 01 Interest on equipment trust certificates 1,031,538 04 * 742,979 81 288,658 83 Otlier interest 337,420 34^ 76,749 90 260,676 38 Transfer of income to other companies 35,800 80 35,800 80 St L & A Railway: interest, rental, etc 74,000 00 138,000 00 $04,000 00 N Y it Ottawa Railway: interest on bonds 58,240 no 58,240 00 Other deductions 48.003 13 276.267 74 228.264 Gl TOTAL DEDUCTIONS FROM GROSS CORPORATE INCOME $27,011,122 69 $24,060,107 64+ 82.951.015 05 NOT CORPORATE INCOME $13,879,837 35 §15.304,440 01 $1,424,011 09 DIVIDENDS, four each year at five per cent per annum 11,130.405 00 11,130,405 INI SURPLUS FOR THE TEAR $2,743,372 35 §4,107,984 04 $1,424,011 09 Appropriation to cover replacement value of abandoned property including buildings at Grand Central Terminal, etc 2,500,000 00 2.51111.01111 110 BALANCE Fon YEAR CARRIED TO PROFIT AND LOSS $2,743,372 35 $1,667,984 04 §1.075.3S8 31 Balance to credit of profit and loss (free surplus) December 31, 1911 §13.