•Jm 2 0 1952

The  Ne:w  York Air   Brake  Company
165 broadway
 

New York, February 14, 1912.
 

To THE Stockholders:

In our report to you last year (January 27, 1911), we explained the abnormal
decrease in railway equipment companies' business, ours especially, as being the result
of the endeavor of the railroads to get an advance in freight rates, and expressed the
opinion that with a decision favorable to the railroads, which was at that time mo¬
mentarily expected, there would be an immediate resumption of activity. Unfortu¬
nately, as you are aware, the decision of the Interstate Commerce Commission on an
advance in railroad freight rates was adverse to the increase. The result was to
compel a far more rigid exercise of economy by the railroads than ever before. In
consequence, the business of your Company suffered, and we regret to say the year's
business has been unsatisfactory.

The dividends of the Company were continued until July, in the hope and confi¬
dent expectation that each month would show an improvement, but such improvement
did not appear until November. The Company in the last two months in the year
booked more orders than they had received in the whole ten months previous, and we
are encouraged to believe such resumption of business may continue and the coming
year's business be large and profitable. The ph3^sical condition of the Company, as
well as the financial, was never in better shape, and we are in position to handle all
the business that we may be favored with.

C. A. STARBUCK,

President.