Fixed Charges

Fixed charges were lower than in 1944 by $2,111,966,
or 4.6%. Rent for leased roads and equipment de¬
creased $1,011,518; interest on funded debt, $907,339,
and on unfunded debt, $220,381. Amortization of
discount on funded debt increased $27,272.
 

1336 '37    '38     '39   '40    '41     '42    '43    '44    '45
 

senting a part of the purchase price of new equip¬
ment, and further advances of $1,636,439 by New
York State in connection with elimination of grade
crossings. Thus, at the year's end total debt repre¬
sented by capital obligations outstanding of the Com¬
pany and its lessor companies, was $855,406,532,
compared with $858,180,288 at the end of 1944, a net
reduction of $2,773,756. Not reflected in these figures,
however, is an advance in the sum of $4,500,000 made
by the Company to the Louisville & JeffersonviUe
Bridge and Railroad Company, a wholly owned sub¬
sidiary, to enable that Company to pay and retire its
outstanding first mortgage 4% bonds which matured
on March 1, 1945.

Since 1932 there has been a net reduction of
$253,401,420, or 22.9%, in the total outstanding
amount of capital obligations of the Company and its
lessor companies. Interest, computed on an annual
basis, on such obligations outstanding at the end of
1945, was $14,141,486 less than on those outstanding
at the end of 1932, a reduction of 29.8%.
 

Dividends

Dividends on capital stock continued at the same
rate as in 1944. On May 9, 1945, the Board of Di¬
rectors declared a dividend of fifty cents per share
upon the capital stock of the Company, payable
July 16, 1945, to stockholders of record May 26, 1945,
and on November 14, 1945, a dividend of one dollar
per share, payable January 15, 1946, to stockholders
of record December 1, 1945.

Net Working Capital

As set forth in the condensed balance sheet, Current
Assets exceeded Current Liabilities at the end of the
year by the amount of $149,784,642. During the year
certain changes were made in the accounts classified
as Current Assets and Current Liabilities in order to
conform to the present Interstate Commerce Com¬
mission regulations. For comparative purposes, the
1944 accounts have been re-stated and, as shown.
Current Assets at the close of 1944 exceeded Current
Liabilities by $99,549,291. The ratio of Current As¬
sets to Current Liabilities at the close of 1945 was
2.21 as against 1.51 in 1944.

Capital Obligations

The steady reduction of the outstanding debt of the
Company and its lessor companies continued in 1945,
despite the necessity of financing sizeable acquisitions
of new equipment and further expenditures in con¬
nection with the grade crossing elimination program
in New York State. The gross reduction in bonds,
equipment trust certificates and other capital obliga¬
tions in the hands of the public and in amounts
payable to the State of New York on account of
grade crossing elimination, totaled $22,065,060.
Partially offsetting this reduction were the issue and
sale of obligations amounting to $17,654,240, repre-
 

H  1280
i   1000
 

-
 


 


 


 


 


 

50
 

Z    880
 


 


 


 


 


 

-
 

40
 

MILLION
 


 


 


 


 


 

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30
20
 

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ID
 


 

1932
 

1345
 

1932
 

1945
 


 

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Employes

At the end of the year, employes of the Company and
its leased lines numbered 115,564 men and 8,898
women, a total of 124,462. To date, of the 30,402 em¬
ployes of the Company and its affiliated System lines
who were furloughed to enter the armed forces, 7,879
have been welcomed back to their posts. In addition,
6,682 war veterans, not formerly railroad men, have
been employed by the Company.

Held in honored memory are the 524 employes who
died in the service of the nation.

The Company continued to honor, as well, those
who showed outstanding heroism at home. Valor
Medals were awarded during 1945 to three employes
who, at the risk of their own lives, saved others:

Giacoma Mazzoli

Section Laborer, Canastota, N. Y.

John Henry Crane

Signal Foreman, Utica, N. Y.

Samuel Leonard Rifkin
Conductor, Buffalo, N. Y.