Notes to Financial Statements

The NEW YORK CENTRAL RAILROAD COMPANY
 

'Note A —Reclassified for comparative purposes.
Note B —Includes achauccs aud certain securities tor wliicli
market quotalions are not a\ ailable. The other securities, car¬
ried on the books on December 31, 1948 at §31,964,887, had
a. total quoted market \ahie at that date of $30,680,000.
Note C —Not including items of funded debt and deferred
liabilities,  principally etjuipment obligations,   maturing  by
their terms in 1949, aggregating $19,192,302.
Note D —Represents principally liabilities to lessor companies
for equipment and materials taken o\'er by New York Cen¬
tral under the terms of the leases.

Note E —Represents mainly recorded depreciation on prop¬
erties of lessor companies operated by New York Central.
Note F—The accompanying balance sheet does not include
the assets or liabilities of lessor and affiliated companies, nor
New York Central's contingent liability, either .sole or joint
with other companies, as guarantor or under leases or other¬
wise with respect to the securities or obligations of otiier
companies outstanding at December 31, 1948, in (he prin¬
cipal amount of $387,000,000.
 

The eompanj's tax liabilities for 1940 and subse(|uent
years ha\e not been finally determined by the Treasury
Department. No provision has been made in the accounts
for additional federal income and excess profits taxes, if any,
for these years.

Note G —During 1948 railway operating revenues were bene¬
fited to the extent of approximately $3,100,000 and railway
operating expenses were reduced to the extent of approxi¬
mately $4,600,000, resulting from extraordinary adjustments
of certain accruals relating to the income of 1946 and prior
years.

Note H —Includes depreciation amounting to $10,356,297
in 1948 and $10,208,066 in 1947.

Note I —Includes depreciation and amortization amounting
to $24,204,559 in 1948 and $22,867,307 in 1947.
Note / — Certain dividend and interest income is substantially
offset by charges included in rent for leased roads and equip¬
ment to the extent of $3,494,518 in 1948 and $3,251,961 in
1947, and in joint facility rents to the extent of $1,455,455
in 1948 and $1,456,715 in 1947.
 

Opinion of Independent Public Accountants

To the Board of Directors and Stocklioldem of

The New Yohk Central Railhoad Compaw:

We have examined the balance sheet of The New York Central Railroad Company as at
December 31, 1948 and the related statements of income and earned surplus lor the year then
ended. Our examination was made in accordance with generally accepted auditing standards and
accordingly included such tests of the accounting records and such other auditing procedures as
we considered necessaiy in the circumstances.

In our opinion, the accompanying balance sheet and statements of income and earned surplus
togetlier with the notes thereto present fairly the financial position of The New York Central
Railroad Company at December 31, 1948 and the results of its operations for the year then ended,
in conformity with principles of accounting prescribed by the Interstate Commerce Commission.
 

PiticE, Waterhouse & Co.
 

New York, March 10, 1949
 

Maturing Obligations
 

Of the total funded debt of The New York Central Rail¬
road Company and its lessor companies outstanding on
December 31,  1948, the following amounts, including
 

amounts due the State of New York In connection with
certain grade crossing eliminations, mature within the
succeeding ten years.

Equi
 

Year
 

Obligations
 

Misc.lloneous
 

Talal
 

Year
 

Obligations
 

Miscelloneous
 

Total
 

1949
 

$ 17,325,280
 

$        650,807
 

$ 17,976,087
 

1955
 

$    10,260,000
 

S       650,169
 

$ 10,910,169
 

1950
 

16,425,280
 

4.649,806
 

21,075,086
 

1956
 

8.630,000
 

17,943,169
 

26,573,169
 

1951
 

15,385,280
 

5,924,806
 

21,310,086
 

1957
 

6,860.000
 

2.096,036
 

8,956,036
 

1952
 

12,795,280
 

14.022,806
 

26,818,086
 

1958
 

3,920,000
 

,594,516
 

4,514,518
 

1953
 

12,424,640
11,810,000
 

3,395,806
650,806
 

15.820.446
12,460.806
 

Total
 


 


 


 

1954
 

$115,835,760
 

$50,578,727
 

$166,414,487