New York, Jan. 20, 1898.

To the Shareholders of

THE EDISON ELECTRIC ILLUMINATING CO. OF NEW YORK.

The business of your Company during the year that has
passed, has continued to show a steady increase, with gratifying
financial results, as will appear from the following :

1897.                                  1896.

Gross Station earnings,        .    $2,466,255.71                   $2,222,737.06
General and technical expense,

including taxes,    .        .        .        349,916.21                          311,838.77

Station operating expense,   .        .   875,222.64                          840,85021

Depreciation charges,        .        .       144,000.00                          127,830.00
 

Total expenses,          .        .         1,369,138.85                   1,280,518.98

Net Station earnings,   .        .      1,097,116.86                     942,218.08

Earnings from other sources,         20,380.18                       24,162 05

Total net income,          .        .   $1,117,497.04                  $966,380.13
 

The interest on bonds in 1897 was $324,950.00, the dividends
$476,224.50, a total of $801,174.50.

The station earnings show an increase in gross of ii^J and
in net of 16^. The ratio of operating expenses, including both
station and general expenses but not depreciation charges, to
gross station earnings, is 493^^, as against 52^ for the previous
year.

The net earnings, it should be noted, are shown less the de¬
preciation charges which have been charged off month by month.

The following are the installations, central station service
only, using the rating of arc lamps and motors adopted by the
leading Edison companies for calculating the 16 c. p. equivalent,
/. e., 10 per standard arc lamp and 15 per horse-power;