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Purchase of Shares of Stock of Beech Creek Railroad Company

Under authority of the Interstate Commerce Commission's order dated May 21, 1948,
the Company purchased on June 1, 1948, from Harold S. Vanderbilt, as surviving Trustee
under a deed of trust dated November 6,1895, 50,000 shares of capital stock of beech creek.
RAILROAD COMPANY, at pricc of $33 per share, with adjustment for accrued dividends, and
made an offer on June 15, 1948, to purchase all of the outstanding shares of such stock
tendered before October 1, 1948, at the same price, subject to dividend adjustment. This
offer resulted in the purchase by this Company of 3,540 shares of the stock and after
September 30, 1948, 448 additional shares were purchased at $33 per share, bringing the
Company's holdings (with 25 shares owned prior to June 1, 1948) to 54,013 shares at the
close of the year, or approximately 45% of the total of 120,000 shares outstanding.
 

The Lakefront Dock and Railroad Terminal Company

The new coal and ore transfer facilities on the lake front, on the outskirts of Toledo,
Ohio, near the mouth of the Maumee River, were placed in service at the beginning of the lake
season, March 19, 1948, and the old separate terminals of the new york central railroad
COMPANY and the Baltimore and ohio railroad company located up the Maumee River
were abandoned. During the 1948 season the Central handled 6,012,969 tons of coal over
the new facilities as compared to 4,566,753 tons during the 1947 season at the old dock
on the Maumee River, or an increase of 31.7%.
 

Guaranty of Bonds of The Lakefront Dock and Railroad Terminal Company-
Additional Stock Issued by that Company

During the year the Company, jointly and severally with the Baltimore and ohio
railroad company, guaranteed by endorsement, pursuant to Guaranty Agreement dated
June 1, 1948, the payment of the principal of, the interest on, and the sinking fund pay¬
ments provided for, $9,250,000, principal amount, of the lakefront dock and railroad
terminal company's First Mortgage Sinking Fund Bonds, Series A, 3J^%, due June 1,
1968. These bonds were issued on August 3, 1948, by the Lakefront Company under its
First Mortgage dated June 1, 1948, and the proceeds were used to reimburse the guarantor
companies for approximately 50% of their advances to the Lakefront Company to provide
for the cost of construction of its union coal and ore terminal and facilities.

The guarantor companies were further reimbursed in respect of $9,240,000 of such
advances by the issue on August 25, 1948, by the Lakefront Company to them, m equal
shares, of $9,240,(X)0, par value, of its capital stock. Each of the guarantor, or proprietor,
companies now owns one-half or $4,625,000, par value, of the stock of the Lakefront
Company.
 

The Cleveland Union Terminals Company

The Interstate Commerce Commission granted permission to the erie railroad
company to abandon its station at Cleveland, Ohio, and use the facilities of the Cleveland
union terminals company. Agreement has been consummated between the erie rail¬
road company and the Cleveland union terminals company, subject to final approval
of the proprietary companies.