Physical Condition

The physical condition of your property is excellent; no effort has been spared to keep it
perfectly maintained in all departments.

Summit Avenue Station

On April 14th, 1912, temporary station facilities at Summit Avenue, Jersey City, were op^ed
to the public. The completed structure was opened for public use during February, 1913, The
Public Service Corporation of New Jersey has installed adequate terminal facilities adjacent to the
Summit Avenue Station, and operates a large number of surface cars to that point, thus affording the
people of that section of Jersey City convenient and frequent service to New York in connection with
the Hudson Tubes.    The traffic at this station has doubled since it was first opened.

Erie Station

During the year an additional platform was installed at the Erie Station, with a stairway to the
main passageway leading to the Erie Railroad's Jersey City terminal. This increased facility has
greatly relieved the congestion of traffic at this point. The new platform, being on the east side, is
used exclusively for northbound passengers, leaving the older platform for the use of south¬
bound traffic.

The block of real estate in Jersey City bounded by Henderson, Provost, Thirteenth and
Fourteenth Streets, which was formerly occupied as the Company's general store yard, was sold in
August at a price considerably in advance of its cost. The proceeds of this sale have been deposited
with the Guaranty Trust Company, Trustee   of the   New York  and  Jersey   5%   First   Mortgage.

Hudson Terminal

In May, 1912, the Company took over the additions to the Hudson Terminal buildings, and
both the original buildings and the additions are fully rented at advantageous rates, to a high class of
tenants.
 

Financial Plans

Since the close of the fiscal year, the Directors of your Company have approved a Plan
formulated by Messrs. Kuhn, Loeb & Company of New York, Robert Fleming & Company
of London, and Harvey Fisk & Sons of New York, for the Re-adjustment of the debt of the
Company. The various security holders have already been advised of the details of the proposed
Plan, and their almost unanimous consent thereto has been most gratifying. It is expected that its
successful consummation can be announced in the near future.
 

Amortization Reserves

As of March 31st, 1912, there had been accumulated a reserve for the amortization of capital
in the amount of $512,794.14. During ten months since that date no further accruals have been
made as, in the judgment of the Directors of your Company, the amount already reserved was
sufficient for all reasonable current requirements, and it was, therefore, justifiable to temporarily
discontinue   further  accretions to  the  reserve   account.    During the said period of ten months to