The New York Central and Hudson River Railroad Company

was not increased except by the ■ convertible value of the stocks of the consolidating
companies in the hands of the public at the date of the consolidation, nor was the surplus
of the new company affected by the merger or consolidation.

It should be borne in mind that the interest on all bonds assumed in connection with
the merger and consolidation was formerly paid by The New York Central and Hudson
River Railroad Company as rental of the properties covered by the various mortgages,
with the exception of $300,000 of bonds issued by the Carthage Watertown & Sackets
Harbor Railroad Company on which interest was paid out of that company's income.

The mileage embraced in the operation of the road is tabulated as follows:

Miles

Main line and branches owned                                              1,827'66

Proprietary line                                                                               '18

*Leased lines                                                                             1,580-86

Lines operated under contract                                                    7r28

Trackage rights                                                                          273T4

Total road operated                                                    3,753T2

These figures show a decrease of 37*53 miles as compared with the mileage reported
December 31, 1912, which is accounted for as follows:

DECREASES DURING THE TEAR                                                                Miies

By elimination, from the report, of the mileage of the Ottawa & New
York Railway', which is entirely in the Dominion of Canada, in¬
cluding the mileage operated by it under trackage rights                           58'84

Mileage formerly reported as main line now classified as side track:
Buffalo Erie Basin Railroad                                                                '25

New York Central Niagara River Railroad                                     2-81        3-06

By remeasurement and change of alinement at various places                          Tl       62*01

INCREASES during THE YEAR

Mileage owned, classified as main line, formerly reported as side track:
Hoffmans Connection Branch                                                           2*50

Schenectady Detour Branch                                                             4'65        7'15

Mileage added by consolidation:

Little Falls & Dolgeville Railroad, now named the

Dolgeville Branch                                                                         10-08

Dolgeville  &   Salisbury Railway, formerly operated under
contract by the Little Falls & Dolgeville Railroad Company        3'89      13-97

By extension:

Port Morris Branch, New York & Harlem Railroad                         '02

Boardman Branch, Beech Creek Extension Railroad                      2-09        2-11

By remeasurement or changes of connection at various places                          '44

By additional trackage rights over various railroads                                          '81       24*48

Making a net decrease of                                                                       37*53