15

The New York Central and Hudson River Railroad Company

The Board so constituted, having chosen Mr. Seth Low as its chairman, heard
testimony between September 11th and October 15th and on November 10th handed
down its award, which provided for an increase in the wages of conductors and trainmen
employed by this company of approximately $553,000 per annum, or 7*4 per cent.

Section 19-A of the Act to Regulate Commerce, which became a law on the first day
of March, 1913, provides that the Interstate Commerce Commission shall investigate
and ascertain the value of all the property owned or used by all railroad companies. The
Commission is required to ascertain and report in detail as to each piece of property owned
or used, the original cost to date, cost of reproduction new, cost of reproduction less
depreciation; also all other values and elements of value, if any, of such property. It is
also required to investigate and report upon the history and organization of the present and
of any previous corporation operating the property; upon moneys received by reason of any
issue of stocks, bonds or other securities; upon the syndicating, banking and other financial
arrangements under which such issues were made and the expense thereof, together
with a large number of other matters unnecessary to specify in detail. The companies
are required to cooperate with and aid in the work of the valuation of their properties
in such particulars and to such extent as the Commission may require and direct. It is
impossible even to approximate at this time the expense which will thereby be incurred.

Shortly after the passage of the Act, the principal carriers of the country, including
this company, organized an association known as The Presidents' Conference Committee.
This committee in an informal conference with the Commission pledged its hearty co¬
operation in the work. It has appointed an Engineering Committee consisting of fifteen
members, which for several months past has been engaged in discussing with the Board
of Engineers appointed by the Commission, the maps, profiles and schedules which shall
be furnished by the carriers to the Commission for its use in inspecting, listing and valuing
the property of the carriers. The questions involved have been of great importance and
difficulty and as a result the conferences have necessarily taken a very considerable
time and no active work has been undertaken by the Commission upon the property of
this company.    It is expected, however, that progress will be made during the year 1914.

The performance of the work for this company has been undertaken by a Valuation
Committee appointed by the Board of Directors. The committee is engaged in the
preliminary inquiries essential to the proper organization of the necessary forces and in
making the preparations necessary to comply with the requirements of the Commission.

In May, 1913, The New York Central and Hudson River Railroad Company
joined with other roads, operating in the official classification territory, in an application
to the Interstate Commerce Commission tor a change in the tariffs which would produce an
increase of approximately five per cent in freight rates. The Commission has the matter
under advisement; at the present time there is no definite indication of the date when a
conclusion will be reached by the Commission nor of the character of its decision.

During the year covered by this report, The New York Central and Hudson River
Railroad Company has been authorized to execute three mortgages, two of which, known
as the extension mortgage, dated April 16, 1913, and the consolidation mortgage, dated
June 20, 1913, have actually been executed.