Staplcton, Boroug:h of Richmond, City of New York.
Fcfaraary 4, 1907.
 

To the Stockholders of the

New York and Richmond Qas Co.

Your Directors beg to submit herewith the  following: report, and  the annexed financial statement
for the year ended December 3Jst, J906.

The Gross Earning:s for the year show an increase of J 1.9 per cent over the previous year, there was an
increase in expenses of operation, maintenance, taxes and insurance of 22.J per cent, an increase in volume of g:as
manufactured and sold of J6.2 per cent.

Higher Costs of Labor, of raw materials and supplies and extra work upon distribution system, together
with the onerous features of the new law regulating the business, are accountable for the increased operating
and maintenance account.

During the year there was no increase in the capital stock, or bond account. The depreciation. Sinking
Fund reserve and surplus accounts were increased 20.25 per cent.

The extensive improvements, extensions and additions to the Company^s system, including completion of
New Coal Gas Plant, has brought the property to a most modern and efficient standard capable of not only
supplying the present demands satisfactorily, but of being further extended to meet whatever growth of business
the territory may offer.

The uses of gas for both fuel and lighting purposes have been extended.

The relations of the Company with its employees and the public are most cordial and satisfactory, and the
outlook for improving these conditions and further extending and increasing the business is most encouraging.

It has not been deemed advisable to increase the past dividend rate of 2 per cent.

Respectfully submitted,

THOS. O. HORTON,

Secretary-

By order of the Board of Directors.