New York, N. Y., March 24, 1927.
 

To THE Stockholders of the

HUDSON & MANHATTAN RAILROAD COMPANY

The following report for the year ending December 31, 1926, is submitted:

During the year the usual dividend at the rate of 5% per annum on the preferred capi¬
tal stock was paid, as well as semi-annual dividends at the rate of 2^ % per annum on the
common capital stock.

As shown in the report for the year 1925, taxes on railroad property increased from
$415,353.70 in 1920 to $936,618.26 in 1925, an increase in excess of 125% in the five-year
period. In 1926 taxes reached $1,005,612.17, equivalent to 11.4% of gross revenue from
railroad operations.

Work on the enlarged station, yard and track facilities at Journal Square Station, Jer¬
sey City, the necessity for which was set forth in the previous report, is proceeding. A new
westbound main track through the station was placed in partial operation during the year, and
while the full benefit of it will not be realized until the other yard and track improvements
are further advanced, even in its present stage the effect of the new track has been a material
reduction in the congestion of train movement through the station, and from time to time as
other sections of the work are completed and placed in operation, the advantages will become
more manifest.

Journal Square Station has become the hub of a rapidly growing residential and busi¬
ness section of Jersey City. In 1920 the traffic through that station was 15,900,000; in 1926
it reached 26,500,000, an increase of about 67%. The public authorities have recognized the
growing importance of this station, and during the year a large public plaza adjacent to the
station was completed and put in use, and several of the main thoroughfares leading to the
plaza have been widened to care for the growing traffic. In addition, the county authorities
completed a massive reinforced concrete bridge, having a width of more than 200 feet, re¬
placing a smaller steel structure over our station. This new bridge and the plaza furnish
terminal facilities for the various independently owned bus lines that serve as feeders of your
road.

Traffic during the year 1926 was the heaviest in the Company's history, but due to con¬
tinued adherence to the policy of maintaining the tunnels, stations and other structures, and
all plant and equipment in the highest state of efficiency, the business was expeditiously
handled.

Your Board records with deep sorrow the death, on October 5, 1926, of one of its most
valued members, Mr. William M. Barnum. Mr. Barnum was closely identified with this
Company from its inception and on account of his great personal charm and exceptional
ability his loss will be long felt by all his associates.

By order of the Board of Directors,

OREN ROOT,

President.