12
 

Pensions

There were 720 retired officers and employees receiving supplementary pensions under
the Company's supplementary pension system at the close of the year, payments by the
Company in these cases representing the amount by which the pension computed under the
Company plan exceeded the maximum of $120.00 per month allowable under the Railroad
Retirement Act. The total amount paid by the Company in supplementary pensions during
the year was 3463,120.78.

Stocl(tiolders

At the end of the year 1944, the capital stock of the Company was registered in the
names of 61,460 holders (an average holding of 104.89 shares), a decrease of 1,540 as com¬
pared with December 31, 1943.

New Yori( Central Railroad Equipment Trust of 1944

This trust was established by agreement dated September 1, 1944, and there were
issued thereunder $15,500,000, par value, of 1^% Equipment Trust Certificates maturing
in equal annual installments of $1,550,000 each on September 1, in the years 1945 to 1954,
inclusive, representing approximately 75% of the cost of the equipment included and to be
included in the trust, consisting of 4,000 box cars, 1,000 hopper cars, 50 large locomotive
tenders, 30 Diesel switching locomotives, 1 Diesel road passenger locomotive and 1 steam
road freight and passenger locomotive, to cost approximately $21,067,000. These certificates
are guaranteed as to payment of par value and dividends by endorsement by this Company.

Termination of New York Central Railroad Equipment Trust of 1929

The New York Central Railroad Equipment Trust of 1929 expired on April 15, 1944,
and title to the equipment was transferred by the Trustee to this Company and leased lines
as follows: to this Company, 100 Mohawk freight locomotives, 1492 box and auto box cars,
1536 gondola cars, 500 hopper cars, 299 flat cars, 1 passenger car, 10 passenger-baggage cars,
20 baggage cars and 30 milk cars; to The Cleveland, Cincinnati, Chicago and St. Louis Rail¬
way Company, 25 Mohawk freight locomotives and 10 Hudson passenger locomotives;
and to The Michigan Central Railroad Company, 698 box and auto box cars.

Termination of New York Central Railroad Second Equipment Trust of 1929

The New York Central Railroad Second Equipment Trust of 1929 expired on December
1, 1944, and title to the equipment was transferred by the Trustee to this Company and
leased lines as follows: to this Company, 40 Hudson passenger locomotives, 50 Mohawk
freight locomotives, 997 box and auto box cars, 459 gondola cars and 6 dining cars; to The
Cleveland, Cincinnati, Chicago and St. Louis Railway Company, 10 Hudson passenger
locomotives; and to The Michigan Central Railroad Company, 15 Hudson passenger loco¬
motives, 299 box and auto box cars and 4 dining cars.

Redemption of Fifteen-Year Secured 3%% Bonds, due May 1,1952

The Company called for redemption on December 27, 1944, at 102>^% of their princi¬
pal amount together with accrued interest, all of its outstanding Fifteen-Year Secured 2>%%
Bonds, due May 1, 1952. This was an issue of convertible bonds aggregating $40,033,200
issued in 1937, of which $15,695,400 had been reacquired by the Company as of November
6, 1944. In connection with the call for redemption, the Company gave the bondholders the
option to surrender their bonds in advance of the redemption date and receive the full
redemption price together with accrued interest to such date. At the close of the year
$2,516,200 of the bonds remained outstanding, not having been presented for payment.