EXHIBIT No. 3

DECEMBER 31, 1936
 

LIABILITIES
Capital Stock:

Common Stock...............................................    $ 39,995,385.00

Preferred Stock...............................................           5,242,938.75

Stock liability for conversion...................................               11,626.25
 

Total Capital Stock.................................                                  $ 45,249,950.00

Funded Debt:

First Mortgage 4^% bonds......................   $67,148,000.00

Less pledged as collateral under the first lien and
refunding mortgage and the adjustment income
mortgage..................................    66,204,000.00    $      944,000.00

First lien and refunding mortgage 5% bonds.....................        35,819,733.66

Adjustment income mortgage 5% bonds.........................        33,102,000.00
 

Total funded debt..................................                                      69,865,733.66

Current Liabilities:

Audited accounts and wages payable.............................    $      220,738.14

Miscellaneous accounts payable.................................               11,125.19

Matured interest and dividends payable.........................               89,173.06

Interest on adjustment income bonds outstanding in hands of the

public.  1H% declared February 25, 1937, payable April 1, 1937             560,000.00

Accrued interest and rents payable..............................              761,059.75

Other current liabilities........................................                56,285.25

Total current liabilities..............................                                        1,698,381.39

Deferred Liabilities;

Interest on adjustment income bonds outstanding in hands of the

public, 3M% deferred.......................................    $   1,120,000.00

Other deferred liabilities.......................................                 1,109.34

Total deferred liabilities.............................                                        1,121,109.34

Unadjusted Credits:

Tax liability..................................................     $        65,727.85

Operating reserves............................................               33,317.70

Accrued depreciation—Road and equipment......................          4,828,244.71

Accrued depreciation—Miscellaneous physical property............           5,671,819.30

Other unadjusted credits.......................................             395,552.84
 

Total unadjusted credits.............................                                      10,994,662.40

Corporate Surplus:

Funded debt retired through surplus...........................       $   4,924,382.73

Miscellaneous fund reserves....................................             537,095.12

Profit and loss—Balance.......................................           1,025,154.25
 

Total corporate surplus..............................                                        4,436,323.60
 

TOTAL...................................                                  $133,366,160.39
 

Contingent upon the outcome of a case now pending in the Internal Revenue Bureau, there is a possible tax
liability of approximately $150,000.00 or a possible refund of approximately $100,000.00.

Under the act imposing taxes to provide revenues for the Railroad Retirement Act of 1935, the Company has a
possible liability of approximately $70,000.00, the accrual of which has been deferred pending a judicial deter¬
mination of the constitutionality of said act and the status of the Hudson & Manhattan Railroad Com¬
pany as an electric interurban thereunder.

Contingent upon the final decision in cases now pending before the Comptroller of the City of New York, there is a
possible tax liability of approximately $100,000.00 for taxes largely upon the revenues of the Hudson Tennina!
Buildings under local laws imposing excise taxes upon the gross earnings of public utilities doing business in the
City of New York.