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THE   IS[p:W    YORK   AIR   BRAKE   CO.

165   BROADWAY

New York, January 27, 1911
 

To the Stockholders:-

Referring to the report of the Company's operatiolT^^oT^
the past year, which is hereto attached, it is only proper to call
your attention to the general conditions of business during the past
year, which were a complete reversal of the preceding year.  Thai is-
in the year 1909 the profits of the Company were made during the last
four months of that year, whereas in the year 1910, the profits were
derived largely from the first six months of 1910.

The explanation briefly is that at the close of 1909
the indications of business seemed to promise 1910 would be one of the
best for Railroad Equipmemt Companies.  These indications bade fair
promise of fulfillment until the latter part of May, when the agita¬
tion in railroad rates began.  If orders had continued to come in aa
they did up to May, the business for the year would have been
most satisfactory; but aa the results of this agitation on railroad
rates and the continued deference of a decision of that matter, the
railroads were compelled to immediately adopt a policy of retrenchment,
which resulted in the cancellation or suspension of orders already
placed and withholding all contemplated orders.

It is only fair to assume now that a decision on the
rate question will soon be reached, and, if favorable to the
railroads a resumption of activity will result.

During the past year the Company has built and completed
on its East Plant at Watertown a thoroughly fire-proof new Machine Shop
200x360 feet in size, and added considerable new machinery, which
will result in an annual saving of a large amount of money.

The Company has also made great improvements in its
Engineering Department; has brought out many new devices and taken
valuable patents on same in this country and in Europe, and is now
in fine physical condition to handle a greatly increased volume of
business.

C. A. STARBUCK,

President.
 

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