Annual report of Hudson & Manhattan Railroad Company

(New York, N.Y. :  Hudson and Manhattan Railroad Company  )

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  1925: Page 5  



New York, N. Y., March 16, 1926.
 

To THE Stockholders of the

HUDSON & MANHATTAN RAILROAD COMPANY

The foUowing report for the year ending December 31, 1925, is submitted:

During the year the regular declarations of semi-annual interest on the Company's
Adjustment Income Mortgage 5% Bonds were made, as well as the regular declarations
of semi-annual dividends at the rate of 5% per annum on the Preferred Capital Stock.

On April 9, 1925, the Board of Directors declared an initial dividend of one and
one-fourth (1^) per cent, on the Common Capital Stock, payable June 1, 1925, and on
October 22, 1925, a similar dividend was declared, payable December 1, 1925.

In the reports for the years 1920 and 1922 reference was made to the large in¬
creases in taxes. This burden continues to grow heavier. In the year 1920 taxes on the
railroad property amounted to S415,353.70; in 1921 to S585,560.U; in 1922 to $672,892.36;
in 1923 to $739,287.57; in 1924 to S856,702.70; and in 1925 they reached $936,618.26.
Thus this item of expense has increased $521,264.56, or more than 125% in the past five
years. To illustrate the extent of the tax burden, it will be seen that in 1925 taxes equalled
10.79% of the gross revenue from railroad operations.

The net return from railroad operations in 1925 Increased but the rate of return
is much below 5.75%, the rate established by the Interstate Commerce Commission as a
fair return upon the value of the property as defined in Section 15-A of the Interstate
Commerce Act.

The Journal Square Station in Jersey City, and the tracks, yard, and other appur¬
tenances, are owned by the Pennsylvania Railroad Company and used jointly by the two
companies under an agreement made in 1906. The steady increase in traffic to and from
that station, as well as to and from points west thereof, has necessitated correspondingly
increased train service, which has reached a stage requiring enlarged station, yard, and
track facilities at Journal Square. The portion of the cost chargeable to the Hudson
& Manhattan Railroad Company is estimated at $1,030,000. Of this amount, about
$420,000 will be paid as the work proceeds. The remainder will be capitalized by the
Pennsylvania Railroad and the Interest charged to the Hudson & Manhattan Railroad.
When these improvements are completed and put in service, the operating conditions will
be materially improved.

There has been no change in the policy of maintaining the property at the highest
standard. In consequence, the tunnel, station and other structures, and all plant and
equipment, are in a safe, efficient, and satisfactory condition.
 

By order of the Board of Directors,
 

OREN ROOT,

President.
  1925: Page 5