Report of the board of directors to the stockholders

(New York :  [s.n.],  1913-)

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  1914: Page 7  



The New York Central and Hudson River Railroad Company

ment has not yet undertaken the actual work of valuation of your property and this
expenditure represents what has been done to organize for the work and assemble the
large amount of records and data which will be required by the authorities when they
start the work.

The Pension Department retired and placed upon the pension rolls 186 employees
during the year; 104 of these were authorized because of the attainment of seventy years
of age and 82 because of total and permanent physical disability; 94 pensioners died
during 1914.    The total amount paid in pension allowances was $238,011.51.

Operating income shows a decrease of only $368,970.28. Non-operating income
shows a decrease of $2,537,760.46, due to less dividends having been received on some of
the company's investments, principally in Lake Shore & Michigan Southern Railway
Company and Michigan Central Railroad Company.

Deductions from corporate income show an increase of $1,648,155.30, due to in¬
creased carrying charges on the company's unfunded debt, resulting from the financial
conditions which existed at the time when unfunded obligations had to be issued or
extended.

During the year there was expended for additions and improvements to the property
$7,555,914.69 and for similar items on lines of-leased railroad companies, $4,761,835.28.
These represent the continuance or completion of work authorized and commenced in
previous years. There was expended for additional equipment $7,886,284.04, mainly for
new deliveries of trust equipment.

During the year additional equipment trust certificates were issued under the
New York Central Lines Equipment Trust agreement of January 1, 1913, to the amount
of $6,944,000, so there is now outstanding a total of $21,602,000 of these certificates. Of
the equipment bought with those certificates there has been allotted to the New York
Central and Hudson River Railroad $8,628,836.92.

Under the refunding and improvement mortgage described in last year's report, the
Public Service Commission of the State of New York has authorized the issue of
$70,000,000, of which $40,000,000 has been issued and sold. The proceeds have been
used to retire the three-year gold notes of 1911 and some of the notes maturing in 1914
which had been theretofore issued to pay for additions to the property. The balance of
the amount authorized, 130,000,000, has been deferred because of the radical changes in
the money situation which have developed since the authority was obtained.

The agreement between this company and the New York New Haven & Hartford
Railroad Company, for the estabUshment of through routes, etc, via the Boston & Albany
Railroad, was cancelled by the New York New Haven & Hartford Railroad Company as
of January 31, 1914, with the consent of the directors of your company, because of orders
issued by the Government.

In May, 1913, this company joined in the application to the Interstate Commerce
Commission for an increase of about five per cent in freight rates. The decision of the
Commission at first gave no relief, but on account of the unusual business conditions which
arose subsequent to this decision, the case was reopened, and on December 16th the Com¬
mission granted an increase of not more than five per cent with specified commodities
  1914: Page 7