14

Annual Report

As indicated in last year's report this company together with other New York Central
Lines entered into an equipment trust agreement, dated January 1, 1913, under which
$24,000,000 of equipment trust certificates, bearing interest at the rate of 4)^ per cent
per annum, were to be executed to cover 90 per cent of the cost of equipment to be
acquired. Out of these $24,000,000 of certificates authorized there was issued 'during
the year an aggregate of $15,494,000. The cost of the equipment assigned to this
company in connection with the issue of these certificates is approximately $6,697,792.16
and its pro rata amount of certificates representing an amount not to C-xceed 90 per
cent of the cost is $6,028,012.95.

During the year 1913 practically all of the railroads in the eastern section of the
United States, operating in the territory east of the Mississippi and north of the Ohio and
Potomac Rivers, were parties to arbitrations, first with the Brotherhood of Locomotive
Firemen and Enginemen and later with the Order of Railway Conductors and Brother¬
hood of Railroad Trainmen, acting jointly.

The concerted movement of the firemen demanded standardization of pay and
working conditions, involving an increase in the wages of firemen employed by this
company of approximately 43 per cent, and resulted in arbitration under the Erdman Act.
The railroads selected Mr. William W. Atterbury, Vice President of the Pennsylvania
Railroad Company and the firemen designated Mr. Albert Phillips, Vice President of the
Brotherhood of Locomotive Firemen and Enginemen. The third member of the Board
(appointed by the federal authorities) was the Honorable William L. Chambers of
Washington, D. C, who was selected chairman.

The arbitration proceedings were held in New York from March 10th to April 5th
and on April 23rd an award was handed down which provided for an increase in the wages
paid to firemen on the New York Central & Hudson River Railroad of 9'2 per cent, or
approximately $250,000 per annum.

While the Conference Committee of Managers was engaged in preparation for the
firemen's arbitration proceedings, a petition approved October 19, 1912, by the Eastern
Association of General Committees, Order of Railway Conductors and Brotherhood of
Railroad Trainmen, for standardization of rates of pay, involving an increase in the pay¬
rolls of this company estimated at $1,769,000, or 24 per cent per annum, was presented
to all roads east of Chicago and north of the Chesapeake & Ohio Railway, and to the
Conference Committee of Managers as well, with a view to ascertaining whether the
matter would be handled by the several roads individually or in concert. United action
was determined upon by the roads concerned and an Arbitration Board consisting of six
members was agreed to under the terms of the Newlands Amendment of the Erdman
Act. The railroads were represented upon this Board by Mr. W. W. Atterbury, Vice
President of the Pennsylvania Railroad Company and Mr. A. H. Smith, Senior Vice
President, New York Central Lines.

The conductors' and trainmen's organizations designated as their representatives
Mr. L. E. Sheppard, Senior Vice President, Order of Railway Conductors and Mr. D. L.
Cease, Editor and Manager of "The Railroad Trainman"; and the four members so
selected met and completed their Board by choosing the Honorable Seth Low and Dr.
John H. Finley, President of the College of the City of New York.