Net Income and Dividends

Net income, after all deductions, amounted
to $35,789,939. The Board of Directors, on
May 10, 1944, declared a dividend of fifty
cents per share upon the capital stock of the
Company, payable July 15, 1944, to stock¬
holders of record May 27, 1944, and on
November 8, 1944, a dividend of one dollar
per share, payable January 15, 1945, to
stockholders of record November 25, 1944.

Net Working Capital

Current Assets and Liabilities are set forth
in the Condensed General Balance Sheet and
show Net Working Capital at the end of the
year of $118,991,157, an increase of
$11,878,336 over the amount at the end
of the preceding year.

Capital Obligations

During the year a gross reduction of
$49,358,524 was effected in the amount of
capital obligations of the Company and its
lessor companies outstanding in the hands
of the public. This includes amounts pay¬
able to the State of New York on account of
grade crossing eliminations. Partially off¬
setting this reduction, the Company issued
and sold $15,500,000 of equipment trust
certificates in connection with the acquisition
of new equipment, and $71,750 of New York
and Harlem Railroad Company 4% Mort¬
gage Bonds were exchanged for capital stock
of that company. At the end of the year
total capital obligations outstanding were
$858,180,288, compared with $891,967,062
at the end of 1943, a net reduction of
$33,786,774.

Since 1932 there has been a net reduction
of $250,627,664, or 22.6%, in the total
amount of such obligations.   Interest, com¬
 

puted on an annual basis, on the obligations
outstanding at the end of 1944, was
$13,608,883 less thaij on the obligations out¬
standing at the end of 1932, a reduction of

28.7%.

Equipment

To meet the requirements of continued
heavy wartime traffic, the following ad¬
ditional equipment was placed in service
during the year:

4 Combination   freight   or   passenger
steam locomotives.
52 Diesel-electric switching locomotives.
2 Diesel-electric   freight   locomotives,

5400 horse-power each.
17 Large-capacity locomotive tenders.
1396 Freight train cars having an aggre¬
gate carrying capacity of 76,780
tons.

The Company now has on order for future
delivery the following additional equipment:

27 Combination   freight   or   passenger

steam locomotives.
33 Diesel-electric switchinglocomotives.
4 Diesel-electric    passenger    locomo¬
tives, 6000 horsepower each.
43 Large-capacity locomotive tenders.
7604 Freight train cars having an aggre¬
gate carrying capacity of 418,220
tons.
300 Lightweight, streamlined passenger
train cars.

Satisfactory results were obtained in the
continued maintenance of a low ratio of "bad
order" revenue freight cars, thus contribut¬
ing to the maximum utilization of equip¬
ment. The percentage of such cars requiring
heavy and medium repairs at the end of the
year was 2.6 of ownership. At the end of
1943, the percentage was 2.9.