The  New  York  Air  Brake  Company
165  broadway
 

New York,  February 19,   1913.

To THK Stockholders :

In submitting to you the report of the Company's business for the past fiscal year
ending the 31st of December, 1912, we take pleasure in stating that the business for
the year shows an increase of ninety-one and one-half per cent, over the preceding
year. As the statement will show, the Company made a net profit of $572,380.38,
which was sufficient to wipe out the deficit of last year ($245,952.96), pay one
quarterly dividend of $150,000.00 in December, and leave a surplus at the end of the
year of $176,541.42.

The increased business of the year, from which the largest proportion of the
profits was made, covered only the last quarter. While but 2,27% was made on the
first nine months' business, the last three months showed a net profit of 3.45%, or an
average of i.iS^J? per month.

During the past year your Company entered into an agreement with the Westing-
house Company, whereby the New York Air Brake Company is licensed to manu¬
facture under the Westinghouse patents all parts of their equipment, thereby enabling
both Companies to manufacture and sell one standard equijiment, which is greatly to
the benefit and advantage of the different Railroads and indirectly a benefit to the
Brake Companies, as leading to economy in manufacture and a large saving in the
termination of expensive patent litigation.

The Company's financial and physical condition was never better, and we enter

upon the present year with large orders in hand and an assurance of the continuance

of a most prosperous business.

C.  A. STARBUCK,

President.