Hudson & Manhattan  Railroad Company
 

1948 Annual Report
 

Coin Counting Operations
in the Coin Room at
Hudson Terminal.
 

10-13, 1949); however, service continued at
near-normal levels throughout this strike and
the net loss to the Company was negligible.
The Company now looks forward to firm but
more peaceful labor relations for the years ahead.
Since September 1948 collective bargaining
and rules agreements have been completed with
the representatives of a majority of the Com¬
pany's   employees,   such   agreements   and   wage
 

Increases  following closely the pattern of the
industry.

Mutual trust and cooperation—so lacking in
labor relations in the past—have been restored
to a great degree; and It is felt that the Manage¬
ment has made long strides toward its goal of
restoring confidence and respect for its policies
on the part of the employees and their repre¬
sentatives.
 

Legal  Matters
 

In   August,   1947,   an   action   was   brought
against the Company on behalf of Its Adjust¬
ment Income Bondholders,  alleging that sub¬
stantial   sums  of  money   had   been
The             diverted    by   the    Company   from

Callahan     moneys properly payable as interest
Suit            to the bondholders, and demanding

that these sums, claimed to amount
to several millions of dollars, be distributed to
the bondholders.
 

The Company, contending that there was no
merit in the action, filed its answer on December
3, 1947, and demanded that the complaint be
dismissed.

The plaintiff^s, in the interim, moved for the
appointment of an operating trustee of all of
the Company's properties and assets, which
application was opposed on behalf of the Com¬
pany. When this motion came on to be heard
before Mr. Justice Null in the Supreme Court,