THE NEW YORK CENTRAL RAILROAD COMPANY

Income Account

RAILWAY OPERATING REVENUES:                                                                                       1942                      1941

Freight.....................      $428,254,134        $336,878,403

Passenger       ....................        112,259,031            66,609,863

Mail......................          11,999,746            12,224,781

Express      .     .    .....................          11,132,496              6,911,242

All Other....................          30,020,689            25,165,366
 

Total...................$593,666,096        $447,789,655
 

RAILWAY OPERATING EXPENSES:

Maintenance of Way and Structures (Note A)........      $ 68,547,071        $ 53,156,074

Maintenanance of Equipment (Note B)...........        109,096,315            92,454,568

Traffic.....................            7,143,584              6,667,758

Transportation...................        197,544,216          162,457,180

General and All Other................          20,338,412            16,702,531
 

Total...................$402,669,598        $331,438,111
 

NET REVENUE FROM RAILWAY OPERATIONS..........      $190,996,498        $116,351,544

Operating Ratio.................                  67.83                    74.02

Tax Accruals...................          82,890,104            43,411,829

Net Debits for Equipment and Joint Facility Rents          ......          17,706,899            15,520,955
 

NET RAILWAY OPERATING INCOME.............$ 90,399,495        $ 57,418,760
 

Other Income:

Miscellaneous Rent Income.............      $   3,349,927        $    3,246,714

Separately Operated Properties............            2,216,517              1,734,936

Dividend Income (Note C)..............            6,919,987              7,513,672

Income from Funded Securities (Note C).........            4,109,322              4,229,668

Miscellaneous..................            1,682,837              2,358,798
 

Total...................$ 18,278,590        $ 19,083,788
 

TOTAL INCOME....................$108,678,085        $ 76,502,548

Miscellaneous Deductions from Income...........          11,082,453              1,451,214
 

Income Available for Fixed Charges............$ 97,595,632       $ 75,051,334
 

Fixed Charges:

Rent for Leased Roads and Equipment (Note C).......      $ 22,392,182        $ 22,077,464

Interest on Funded Debt..............          24,533,511            25,409,166

Interest on Unfunded Debt.............            1,587,756              1,319,142
 

Total...................$ 48,513,449        $ 48,805,772
 

NET INCOME TRANSFERRED TO PROFIT AND LOSS........$ 49,082,183        $ 26,245,562
 

Note A—Includes amortization and depreciation on roadway property.......              $8,842,087                $4,506,911

Note B—Includes amortization and depreciation of equipment.........            $24,476,159              $18,871,476

Also includes depreciation of power-plant machinery.........                 $805,344                   $254,133

Note C—Included in other income and rent for leased roads are certain inter-company transactions

representing credits and corresponding debits amounting to........              $3,979,537                $4,160,093

Other   income  also   includes   items   representing  interest   and   dividends   amounting   to              $1,492,940                $1,503,643

received on securities of and advances to terminal and other railroad companies
whose properties are jointly used by this Company, as to the major portion of which
a like amount was paid to those companies as rental and included in joint facility rents.