The New York Central Railroad Company

The New York Central Railroad Company

A N N U A L R E P O R T

1941

Report of the Board of Directors

to the Stockholders of


for the year ended December 31, 1941

230 P A R K A V E N U E N E W Y O R K C I T Y

Organization of The New York Central Railroad Company

December 31', 1941

W I L L I A M K . V A N D E R B I L T

H A R O L D S. V A N D E R B I L T

B E R T R A M C U T L E R

J A C K S O N E . R E Y N O L D S

M Y R O N C . T A Y L O R

D I R E C T O R S

F R E D E R I C K E . W I L L I A M S O N

R O B E R T F . L O R E E

E D W A R D B . G R E E N E

G E O R G E W H I T N E Y

T . J E F F E R S O N COOLIDGE

W I L L I A M E . L E V I S

G E O R G E A . R A N N E Y

M A L C O L M P. A L D R I C H

R A Y M O N D D. S T A R B U C K

J A M E S A . F A R L E Y

The annual meeting of the stockholders for the election of directors is held at Albany, New York, on the fourth Wednesday in May

E X E C U T I V E C O M M I T T E E

W I L L I A M K . V A N D E R B I L T F R E D E R I C K E . W I L L I A M S O N

H A R O L D S. V A N D E R B I L T R O B E R T F . L O R E E

J A C K S O N E . R E Y N O L D S G E O R G E W H I T N E Y

E D W A R D B . G R E E N E

O F F I C E R S

President F R E D E R I C K E . W I L L I A M S O N New York Executive Vice-President R A Y M O N D D. S T A R B U C K New York Vice-President, Law JACOB A R O N S O N New York Vice-President, Improvements and Development R I C H A R D E . D O U G H E R T Y New York Vice-President, Purchases and Stores W I L L I A M C. B O W E R New York Vice-President, Traffic M A R T I N J . A L G E R New York Vice-President, Freight Traffic C H A R L E S J . BRISTER New York Vice-President, Finance W I L L A R D F. P L A C E New York Vice-President and Comptroller L E R O Y V. P O R T E R New York Vice-President W I L L I A M F. SCHAFF Chicago Vice-President and General Manager A L F R E D H . W R I G H T New York Vice-President and General Manager C H A R L E S S. M I L L A R D Cincinnati Assistant Vice-President and General Manager J E S S E L . M C K E E Detroit Assistant Vice-President and General Manager F R E D O L I N F. R I E F E L Cleveland Assistant Vice-President G U S T A V M E T Z M A N Chicago Secretary JOSEPH M . O ' M A H O N E Y New York Treasurer R U D O L P H P. A H R E N S New York

Treasurer, 466 Lexington Avenue, New York, transfers stock; pays dividends on stock; transfers registered bonds; pays interest on coupon and registered bonds

Central Hanover Bank and Trust Co., New York, registers stock

A N N U A L REPORT

To T H E STOCKHOLDERS OF T H E N E W Y O R K C E N T R A L RAILROAD C O M P A N Y :

The business of the Company during 1941 continued to be influenced largely by the expanding program of National Defense. Total operating revenues were $447,789,655, exceeding those of 1940 by $77,243,780—or 20.85 per cent.

Throughout the year it was again demonstrated that, despite the development of other facilities, the railroads remain the country's chief agency of transportation.

Additional and improved facilities and equipment have made it possible for the Company to handle efficiently the largely increased traffic occasioned by the war economy.

The balance sheet, detailed statements of the income and profit and loss accounts, and other statistical tables appear herein commencing on page 12.

Income account

The principal items of the income account, with dollar and percentage increase over 1940, were—

Increase-Freight revenue $336,878,403 $66,604,375 24.64% Passenger revenue 66,609,863 7,287,718 12.28 Total operating revenues 447,789,655 77,243,780 20.85 Operating expenses 331,438,111 52,763,131 18.93 Railway tax accruals 43,411,829 9,935,810 29.68 Equip, and joint fac. rents—net debit 15,520,955 1,178,516 8.22 Net railway operating income 57,418,760 13,366,323 30.34 Other income 19,083,788 900,672 4.95 Fixed charges 48,805,772 177,082 D .36 D Net income 26,245,562 14,980,478 132.98

D—Decrease.

Operating results Freight

The transportation of revenue freight increased 25,316,777 tons—18.54 per cent—to a total of 161,865,972 tons.

Measured in ton mile units (one ton carried one mile), all freight transported, both revenue and non-revenue, was greater by 23.97 per cent, with an increase of only 15.43 per cent in freight train miles.

Automobile traffic amounted to 2,967,145 tons, a gain of 460,100 tons, or 18.35 per cent, over 1940, with gross revenue of $19,763,114, an increase of $2,433,749—14.04 per

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cent. Except for the curtailment of passenger automobile production during the latter part of 1941, the increase would probably have been greater.

The ex-lake movement of grain from Buffalo to the various North Atlantic ports amounted to 12,273,427 bushels, compared with 4,461,774 bushels during 1940, indicating a material increase of grain exportation.

Bituminous coal traffic for the year was 62,317,794 tons, exceeding 1940 by 5,042,418 tons—8.80 per cent, and gross revenue was $71,704,286, an increase of $6,506,648—9.98 per cent.

The iron ore handled for the year amounted to 9,671,539 tons compared with 8,107,992 tons handled in 1940, an increase of 1,563,547 tons, or 19.28 per cent. Tonnage handled from Lake Erie ports was 8,090,506 gross tons, compared with 6,848,837 gross tons in 1940, an increase of 1,241,669 gross tons, or 18.13 per cent.

Iron and steel traffic totaled 10,251,149 tons, which was above the 1940 figure by 2,844,411 tons—38.40 per cent, and gross revenue was $34,161,927, an increase of $9,817,308 —40.33 per cent.

Less-than-carload freight handled totaled 2,402,679 tons, and exceeded 1940 by 686,599 tons, or 40.01 per cent, with revenue of $24,228,464, an increase of $7,100,507, or 41.46 per cent.

By classes, compared with 1940, the tonnage and the revenues before deduction for absorbed switching, overcharges, etc., of all commodities, were:

Tons

handled Increase Revenue Increase

Products of agriculture 9,880,552 1,598,162 $23,476,681 $4,311,109 Animals and products 2,520,232 144,953 18,560,381 866,290 Products of mines 92,704,434 10,108,917 103,750,675 12,731,533 Products of forests 4,186,671 1,248,829 9,942,631 3,064,700 Manufactures and miscellaneous 50,171,404 11,529,317 172,533,164 42,461,860 A l l less than carload traffic 2,402,679 686,599 24,228,464 7,100,507

T O T A L 161,865,972 25,316,777 1352,491,996 $70,535,999

Passenger

The total number of passengers carried was 49,324,576, an increase of 1,792,854, or 3.77 per cent. Interline and local passengers were above the previous year's figure by 890,019—33.46 per cent, and 1,876,186—11.45 per cent, respectively. Commutation passengers decreased compared with 1940, by 973,351, or 3.42 per cent. Passengers carried one mile totaled 3,508,301,326, exceeding the 1940 figure by 461,006,671, or 15.13 per cent.

The increased passenger traffic was largely due to the expanded industrial activity and movement of military personnel.

An outstanding improvement in our passenger service was the inauguration of the stainless steel streamlined Empire State Express on December 7, 1941, operating between New York, Buffalo, Cleveland, and Detroit. In addition, 66 new streamlined coaches were placed in service on the principal through trains.

Operating expenses

The continuation of an enlarged maintenance program and larger force required to handle the greater volume of traffic, accompanied by higher wages and material costs,

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resulted in increased expenses of $52,763,131, or 18.93 per cent, over the previous year. The advance in rates of pay of employees, effective during the last four months of the year, amounted to $7,788,915.

By groups, expenses for 1941, compared with 1940, were as follows:

Maintenance of way and structures Maintenance of equipment Traffic Transportation Miscellaneous operations General

Transportation for investment—credit

T O T A L

Amount

$53,156,074 92,454,568

6,667,758 162,457,180

6,351,038 10,462,528

111,035

1331,438,111

Increase or Decrease

Amount Per Cent

$13,701,479 I 34.73 I 14,464,835 I 18.55 I

71,168 I 1.08 I 22,958,870 I 16.46 I

840,510 I 15.25 I 782,203 I 8.08 I

55,934 D 101.51 D

$52,763,131 I 18.93 I

The maintenance of way and structures group reflects increases in most of the accounts, due mainly to the enlarged maintenance program and increased material costs. Higher wages amounting to $1,456,877, were also a contributing factor. The number of crossties installed exceeded the number in the previous year by about 25 per cent, while track miles of new and relayer rail laid increased about 22 per cent and 32 per cent, respectively. The comparatively mild winter resulted in decreased expenditures for removal of snow, ice, and sand of $798,951.

Total locomotive and car miles increased 12,791,397, or 11.16 per cent, and 373,784,400, or 15.94 per cent, respectively, over 1940. In keeping with the greater demand for locomotives and cars during 1941 and the expected increased demand during 1942, the expenditures in the maintenance of equipment group show substantial increases for the majority of accounts. Higher wages account for $1,681,021, and increased material costs for approximately $1,629,165. The number of locomotives which received classified repairs was 1,427, compared with 1,030 during the preceding year; and 27,599 freight cars were given medium and heavy repairs, as compared with 20,681 in 1940.

Traffic expenses were higher than in the previous year by $71,168, due primarily to increased wages.

In the transportation group most of the accounts show increases, largely because of the expanded volume of traffic handled and the wage adjustment, which latter item amounted to $4,087,007. Net ton miles of all freight handled in freight trains increased 7,789,831,213, or 23.97 per cent. Higher fuel costs accounted for an increase of approximately $1,407,886.

Charges for miscellaneous operations exceeded the previous year by $840,510. Most of this is represented in the cost of operating dining and buffet service, which increased $740,748, with food costs approximately 23 per cent higher. The cost of operating grain elevators was above the year 1940 by $81,232. The wage increase for this group amounts to $181,946.

General expenses were above the 1940 charge by $782,203, increased wage rates accounting for $264,725.

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The outstanding operating performance during 1941 is reflected in the following: Gross ton miles per freight train hour (the unit of performance indicating both train

load and speed) were 39,544, the highest on record, while net ton miles per freight train hour set a new high of 16,962. Average miles per freight car day (a measure of car use) increased approximately 17.88 per cent over the previous year. Average revenue train load increased 7.52 per cent over 1940. Fuel consumed during the year per 1,000 gross ton miles in freight train service was 100 pounds, or a reduction of 1.96 per cent compared with 1940.

Wage negotiations

As a result of demands made on the railroads by the various labor organizations for wage increases, including vacations with pay for certain of the non-operating employees, and the failure to reach a satisfactory agreement following protracted negotiations by the representatives of railroads and employees, the former invoked the services of the National Mediation Board pursuant to the Railway Labor Act. Conferences held by the Board came to an end when the employees declined to accept the Board's proposal to arbitrate. On September 10, 1941, the President of the United States appointed an Emergency Board which conducted hearings between September 16 and October 22, and on November 5, 1941, reported to the President recommending temporary wage increases. The recommendations of that Board were accepted by the railroads, but declined by the employees. On November 27 the President reconvened the Board, and the latter acting in the capacity of mediators effected an agreement on December 5, confirming increases originally awarded effective between September 1 and November 30, with further permanent increases effective December 1, including vacations with pay for non-operating groups.

The estimated annual increased cost to the Company on the basis of the 1941 payrolls includes wage increases, $27,268,400; vacations (effective January 1, 1942), $2,500,000; additional payroll taxes (unemployment and retirement), $1,729,200; a total of $31,497,600 —or 15.1 per cent.

Freight and passenger rates

The Company joined with substantially all railroads of the United States in an application filed December 13, 1941, with the Interstate Commerce Commission for authority to increase freight rates and accessorial charges and passenger fares by ten per cent, with certain exceptions. At the close of the year this application was still pending before that Commission.

Railway tax accruals

Railway taxes for the year (a schedule of which will be found on pages 30-31) aggregated $43,411,829, an increase of $9,935,810, or 29.68 per cent compared with 1940. Taxes amounted to 9.7 cents for each dollar of operating revenue, or $6.73 per share of stock.

The increase of $6,699,751 in the items of Federal and Canadian income, surtax and excess profits taxes was caused by greater earnings and higher tax rates. The increase in Federal tax on capital stock was due to a higher declared value and increased rate. The charges for unemployment insurance tax and retirement excise tax were above the 1940

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figure by $1,937,226, by reason of the larger number of employees and the higher compensation paid during the year. The decrease of $1,089,563 shown for taxes on real and personal property was brought about by an adjustment of over-accruals in prior years.

Other income

Other income increased $900,672 over the previous year. Income from separately operated properties, dividends, interest, and miscellaneous items increased by $2,076,730, partially offset by a decrease of $1,176,058 in rent and other income from non-operating physical properties and in miscellaneous items.

Fixed charges

The decrease of $177,082 in this item as compared with the preceding year is explained as follows:

Rent for leased roads and equipment was in excess of 1940 by $353,061. The major increases were in amounts payable to The Mahoning Coal Railroad Company, $342,399, and The Peoria and Eastern Railway Company, $359,315. Offsetting in part are decreases of $110,050 and $14,529 on account of the discontinuance, by agreement, of rental payments to the Lake Erie, Alliance & Wheeling and the Joliet and Northern Indiana railroad companies, respectively; $166,192 because of maturity and reacquirement of bonds of The Cleveland, Cincinnati, Chicago and St. Louis Railway Company; and $12,926 by reason of matured equipment trust certificates.

Interest on funded debt was above the previous year by $125,685. There was an increase in interest charges of $173,333 on the Company's secured notes held by several banks, due to change in classification when notes were renewed April 30, 1940; $22,688 on account of the lyi per cent equipment trust of 1939; $74,534 on account of the 2 per cent equipment trust of 1940, due to full year's interest in 1941 as compared to partial year's interest in 1940; $171,462 on account of the per cent equipment trust of February 15, 1941; and $147,187 on account of the I1/, per cent equipment trust of July 15, 1941. As a partial offset, there were the following decreases: $52,231 due to the acquisition of the Company's 4 per cent debenture bonds of 1912; $105,546 by reason of the retirement of $4,041,000 ten-year 3^4 per cent bonds through the operation of the sinking fund; $77,250 by the retirement of $3,000,000 of the Company's serial secured notes; $70,495 by the retirement on April 1 of $5,000,000 secured promissory 2 per cent notes due September 1; $144,695 from payment of maturing equipment obligations; and $13,302 from other minor items.

Interest on unfunded debt was less by $655,828, accounted for largely by the inclusion under this head during a portion of 1940 of interest on bank loans which were carried as current liabilities prior to the renewal and extension of $16,000,000 thereof during 1940, after which they were classified as funded debt.

Net income

The net income for the year as indicated by the foregoing summary of the income account, was $26,245,562, which was transferred to the profit and loss account.

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Depreciation of Boston and Albany Railroad property

In order to properly adjust the accounts to reflect a ruling by the Department of Public Utilities of the Commonwealth of Massachusetts in respect to depreciation on property leased from the Boston and Albany Railroad Company, $4,506,911 was included in expenses for maintenance of way and structures representing depreciation accrued from July 1,1927, to December 31,1941, on certain leased property of that company and $254,133 in expenses for maintenance of equipment representing depreciation accrued during the same period on certain power plant machinery. In addition, a net amount of $2,526,075 previously carried in other investments—advances, was charged to profit and loss in order to provide for the amount of depreciation, as found by the Department of Public Utilities, which had accrued from the date of the lease to July 1, 1927. Current depreciation to be charged to operating expenses will approximate $300,000 per year.

Liquidation of The Securities Corporation of the New York Central Railroad

The assets of The Securities Corporation of the New York Central Railroad, a wholly owned subsidiary, were in November, 1941, transferred to the Company. These assets> which were held in the interest of the Company, consisted principally of shares of stock of The Delaware, Lackawanna and Western Railroad Company which had been acquired in 1929-1931 at an aggregate cost of $17,294,882 in connection with the so-called four-party plan of consolidation of Eastern railroads under which the Lackawanna Railroad was assigned to the New York Central System; and advances in connection with the acquisition of stock of the United States Freight Company, a large freight forwarding company, acquired in 1929-1931 at an aggregate cost of $14,843,248. Following such transfers, the Securities Corporation was dissolved.

The difference between the Company's investment in the Securities Corporation and the current estimated market value of the assets taken over, amounting to $26,842,643, was charged to profit and loss.

Stockholders

At the end of 1941 the capital stock of the Company was owned by 61,501 holders (an average holding of 104.83 shares), a decrease of 844 holders compared with December 31, 1940.

Funded debt

Changes in the funded debt of the Company, in detail, were as follows:

The amount outstanding on December 31, 1940 $648,732,200

was increased by issue of:

New York Central Railroad Equipment Trust of 1941, \"}4, per cent equipment

trust certificates 10,900,000

New York Central Railroad Second Equipment Trust of 1941, T% per cent

equipment trust certificates 15,000,000

Carried forward $674,632,200

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Brought forward ?674,632,200 and was reduced by the retirement of:

2.6 per cent serial secured notes, due April 1, 1941 $3,000,000 2 per cent promissory secured notes, due September 12, 1941 5,000,000 Ten-year 3^4 per cent secured sinking fund bonds under the sinking fund

provisions 4,041,000 N Y C & H R R R Co 4 per cent gold debentures of 1912 344,000 Payments falling due during the year on the Company's liability for principal

installments under equipment trust agreements: N Y C R R Co Trust of 1929, April 13, 1941 1,100,000 N Y C R R Co Second Trust of 1929, November 30, 1941 745,000 N Y C R R Co Trust of 1930, M a y 14, 1941 952,000 N Y C R R Co Trust of 1937, March 14, 1941 286,000 N Y C R R Co Trust of 1939, November 30, 1941 900,000 N Y C R R Co Trust of 1940, May 30, 1941 1,040,000 17,408,000

$657,224,200

Bonds previously reacquired as investments, now transferred to "Securities issued or assumed," held by or for the Company.

N Y C R R Co A}4 per cent refunding and improvement mortgage bonds, Series " A " $587,000

N Y C R R Co 5 per cent refunding and improvement mortgage bonds, Series " C " 25,000

N Y C R R Co 4 per cent consolidation mortgage bonds, Series " A " 387,000 999,000

leaving the unmatured funded debt outstanding on December 31, 1941 $656,225,200

On December 31, 1941, there were also outstanding and carried as deferred liabilities, $27,957,140 payable over a period of years to the State of New York for the Company's proportion of the cost of grade crossing eliminations, and $2,572,763 due for equipment acquired under railroad equipment lease agreements assigned to banks.

Aggregate outstanding capital obligations of the Company, its lessors, and wholly owned subsidiaries

As of December 31, 1941, there was outstanding in the hands of the public, debt of the Company and its lessor companies in the aggregate amount of $969,056,103 (including the $27,957,140 payable to the State of New York and $2,572,763 to banks, referred to in the preceding paragraph, and also including $7,267,000 of the then outstanding N . Y . C. & H . R. R. Co. 4 per cent debentures of 1912 due January 1, 1942, for payment of which funds have been deposited), which compared with a total of $963,239,405 at the end of 1940, an increase of $5,816,698, due to issuance of $25,900,000 equipment trust certificates during 1941, not fully offset by retirements.

Of the total debt of the Company and its lessor companies outstanding in the hands of the public on December 31, 1941 (excluding the $7,267,000—4 per cent debentures of 1912, referred to in the preceding paragraph) $20,750,199 matures on or prior to December 31, 1942, including sinking fund payments and amounts due the State of New York and various banks.

There was outstanding on December 31, 1941, capital stock of lessor companies not owned by the Company or by lessor companies, in the aggregate par amount of $55,017,515.

s

There was also held by the public as of the same date, funded debt amounting to $11,541,000 of certain wholly owned subsidiaries of the Company or its lessor companies: viz., Clearfield Bituminous Coal Corporation, Louisville & Jeffersonville Bridge and Rai l road Company, Merchants Despatch Transportation Corporation, and New York State Realty and Terminal Company. Of this debt, $2,411,000 matures during 1942.

Reference is made to tables on pages 25-26 for detailed statements of funded debt of the Company, and on pages 47-49 for capital stock and funded debt of its lessor companies, funded debt of subsidiary companies, and on page 54 for other liabilities, etc., as of December 31, 1941.

New York Central Railroad Equipment Trust of 1941

This trust was established by agreement dated February 15, 1941, and there was issued thereunder $10,900,000, par value, of 1)4 per cent equipment trust certificates maturing in equal annual installments of $1,090,000 each on February 15 in the years 1942-1951, inclusive, representing approximately 90 per cent of the cost of equipment leased by the trustee to this Company. These certificates are guaranteed, as to payment of par value and dividends, by endorsement by this Company. The equipment included in the trust, costing approximately $12,173,885, consists of 36 oil-electric switching locomotives, 1,045 freight cars, and 127 passenger train cars, among which are the 32 stainless steel cars comprising the 2 new Empire State Express trains.

New York Central Railroad Second Equipment Trust of 1941

This trust was established by agreement dated July 15, 1941, and there was issued thereunder $15,000,000, par value, of 2)4 per cent equipment trust certificates maturing in equal annual installments of $1,500,000 each on July 15 in the years 1942-1951, inclusive, and representing approximately 90 per cent of the cost of equipment leased by the trustee to this Company. These certificates are guaranteed, as to payment of par value and dividends, by endorsement by this Company. The equipment included in the trust, costing approximately $16,808,333, consists of 5,000 freight cars, 15 oil-electric switching locomotives, and 15 Mohawk type freight locomotives.

Property investment accounts

Changes for the year, as shown in detail on pages 21-24, were as follows Road Equipment Improvements on leased property Miscellaneous physical property

Net increase

Important improvements

Equipment The Company installed the following new equipment in 1941: 98 passenger train cars,

including 2 complete trains of stainless steel cars for operation as the Empire State Express; 10 high-speed steam locomotives for use in fast freight service; 36 oil-electric switching locomotives for use in yard service; and 2,324 freight cars of various types having a carrying capacity aggregating 133,048 tons.

$2,167,270 Inc. 14,827,704 Inc.

1,474,897 Inc. 806,570 Dec.

$17,663,301 Inc.

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Equipment on order for future delivery includes 30 new lightweight streamlined passenger train cars; 40 high-speed steam locomotives for use in fast freight service; 2 highspeed oil-electric locomotives for through passenger trains; 45 oil-electric switching locomotives for use in yard service; 4,100 fifty-five ton, 40'6" box cars; 1,400 seventy-ton, 52'6" gondola cars; 100 seventy-ton, 65'6" gondola cars; 500 fifty-five ton hopper cars; 300 seventy-ton, 52'6" flat cars, and 3 one hundred and twenty-three ton transformer cars for handling machinery shipments of unusual size and weight.

During the year an additional 101 passenger-carrying cars and 11 dining cars were air-conditioned. The air-conditioning of 160 additional passenger-carrying cars during the year 1942 has been authorized.

West Side, New York City With the completion of the reconstruction of the yard easterly of Eleventh Avenue

between 30th and 33rd Streets, the entire improvement started in 1929 between Spuyten Duyvil and St. John's Park, including the elimination of 105 grade crossings and the longitudinal occupation of city streets, is now finished.

Grand Central Terminal Area New Travel Bureaus were installed adjacent to the ticket offices fronting on the

waiting room in the terminal for the purpose of affording more convenient and commodious facilities to the traveling public.

Grade Crossing Eliminations and Reconstruction of Bridges The program for the elimination of grade crossings of highways and reconstruction of

existing highway bridges with funds supplied mostly by the Federal Government and involving relatively small contributions on the part of the railroad company, has been continued, and 11 eliminations and 7 reconstruction projects have been completed, and 9 eliminations and 1 reconstruction project are under way.

Under the grade crossing laws of the State of New York, 28 crossings on this Company's line have been eliminated, including the completion of the major grade crossing project on the main line at Dunkirk, and the work of eliminating 12 grade crossings, including a major grade separation on the main line at Herkimer, is under way. Under an arrangement with the State of Michigan and the City of Dearborn, the elimination of the grade crossings at Military Avenue was completed.

Construction of Industrial Tracks Industrial or spur tracks were constructed during the year at a number of different

points in order to serve large and important plants and facilities established as a part of the National Defense program.

Mileage operated

The mileage operated by the Company at the end of the year, compared with the previous year, was as follows:

1941 1940 Miles Miles Miles

Main line and branches 3,634.00 3,653.88 19.88 Dec. Leased lines and lines operated under contract 6,465.62 6,464.96 .66 Inc. Trackage rights 818.14 822.05 3.91 Dec.

Total 10,917.76 10,940.89 23.13 Dec.

The changes indicated in the foregoing table are due principally to the abandonment

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of unprofitable mileage and the reclassification of certain other trackage. Abandonments included 6.61 miles of the Fayette Branch in Michigan and Ohio, and 10.22 miles of the Canada Southern from Niagara Junction to Chippawa, Ontario.

Pensions

There were 539 retired officers and employees receiving 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 exceeds the maximum of $120 per month allowable under the Railroad Retirement Act. The total amount paid by the Company in supplementary pensions during the year was $359,735.

Valor medals

Since 1926 the Company has awarded medals in recognition of outstanding valor by employees who, at the risk of their lives, saved others. During the year medals were presented to:

Lester L . Ziler, Brakeman, Ansonia, Ohio, and Verne C. Frizzell, Fireman, 11226 E . Michigan Avenue, Jackson, Michigan.

Changes in organization Loss by death

September 28, C. F. Smith, Manager, Passenger Transportation.

Retirements January 31, P. V . D . Lockwood, Advertising Manager. May 31, J . L . Truden, General Manager. June 30, F. O. Stafford, Freight Traffic Manager.

R. Van Ummersen, Freight Traffic Manager. August 31, W. C. Wishart, Vice-President, Accounting. October 31, B. R. Brenan, Assistant Freight Traffic Manager. November30, J . G. Walber, Vice-President, Personnel.

Appointments January 1, A. H . Wright, Vice-President and General Manager, Line Buffalo and

East, New York. J . J . Brinkworth, Assistant General Manager, Line Buffalo and East,

Syracuse. W. A . Jackson, General Superintendent, Telegraph and Telephone,

New York. January 15, J . P. Patterson, Senior Assistant to Vice-President, Freight Traffic,

New York. M . R. Garrison, Assistant to Vice-President, Freight Traffic, New York. D . E . Gelatt, Assistant to Vice-President, Freight Traffic, New York. J . P. Dervin, Freight Traffic Manager, New York. G. H . Clark, Assistant Freight Traffic Manager, New York. J . M . Breen, General Freight Agent, New York.

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April 1, R. E . Shineman, Assistant to Vice-President, Traffic, New York. June 1, G. A. Kirley, General Manager, Boston. July 1, J . E . Anderson, Freight Traffic Manager, Cleveland.

R. G. Henderson, Freight Traffic Manager, Boston. E . P. Gardiner, Assistant Freight Traffic Manager, Boston. J . A . Keegan, Freight Traffic Manager, Cincinnati. L . Blue, General Freight Agent, Chicago. S. Lancaster, General Freight Agent, Boston.

September 1, L . V. Porter, Vice-President and Comptroller, New York. G. H . Albach, Assistant Comptroller, New York.

October 1, L . C. Anderson, Manager, Passenger Transportation, New York. G. H . Baker, General Superintendent, Passenger Transportation, New

York. December 1, L . W. Horning, Manager, Personnel, New York.

The war calls for the utmost in the way of effort and cooperation on the part of the transportation industry and, so far as the personnel of the New York Central System is concerned, we are confident that it will fully discharge its responsibility. The improvement of facilities, and additions to equipment made during the year, with the additional equipment ordered for future delivery, will, it is believed, enable the Company to do its part in meeting the transportation needs of the Country.

The Board records its appreciation of the whole-hearted and efficient manner in which the officers and employees have carried out the duties assigned to them.

For the Board of Directors,

President.

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Annual Report

COMPARATIVE CONDENSED GENERAL BALANCE

ASSETS 1940

3701,056,154 47

84,203,010 76 307,814,044 41 148,562,398 13

109,190 62 60,754 28

51,011,180 14

418,376,311 22

INVESTMENTS Investment in road Investment in equipment

Trust Owned

Improvements on leased property Sinking funds Deposits in lieu of mortgaged property sold Miscellaneous physical property Investments in affiliated companies (Note A)

$159,505,839 45 Stocks 50,584,227 38 Bonds 34,579,182 48 Notes

173,707,061 91 Advances

$159,354,890 45 49,'864,570 59 34,579,182 48

141,243,158 74

TOTAL INVESTMENTS I N AFFILIATED COMPANIES Other investments (Note A)

$27,234,906 48 Stocks 7,730,176 52 Bonds

216,143 61 Notes 4,749,975 46 Advances

72,594 22 Miscellaneous

$27,949,644 62 8,386,097 59

157,687 27 915,457 01

1,694,287 28

40,003,796 29

$1,751,196,840 32

$29,275,107 28 45.000 00

3,380,179 58 61.001 38

6,338,749 25 7,471,723 79

28,229,557 76 2,038,075 05

682,682 67 573,910 74

$78,095,987 50

TOTAL OTHER INVESTMENTS

TOTAL INVESTMENTS

C U R R E N T ASSETS

Cash (Note B) Temporary cash investments Special deposits Loans and bills receivable Net balance receivable from agents and conductors (Note C) Miscellaneous accounts receivable Material and supplies Interest and dividends receivable Rents receivable Other current assets

TOTAL CURRENT ASSETS

D E F E R R E D ASSETS

$181,649 39 Working fund advances 1,672,599 69 Insurance and other funds 3,641,351 15 Other deferred assets

1941 $703,223,424 37

100,047,784 42 306,796,975 06 150,037,295 15

97,542 50 291,368 78

50,204,609 84

385,041,802 26

39,103,173 77

Comparison $2,167,269 90 Inn

15,844,773 66 Int 1,017,069 35Det 1,474,897 02 Int

11,648 12 Dd 230,614 50 Int 806,570 30Det

150,949 00 Dee 719,656 79 Dee

32,463,903 17 Dec

714,738 14 Int 655,921 07 Int 58,456 34 Dee

3,834,518 45Det 1,621,693 06Ine

$1,734,843,976 15 $16,352,864 17 Dee

$30,664 6,040

36,083 57

7,249 9,485

37,294 2,125

468! 990

498 23 000 00 296 70 221 20 819 74 137 48 864 40 174 42 080 44 064 72

$1,389,390 5,995,000

32,703,117 3,780

911,070 2,013,413 9,065,306

87,099 214,602 416,153

95 Int 00 Inc 12 Inc 18 Dee 49 Int 69 Int 64 Inc 37 Int 23 Dec 98 Int

$130,458,157 33 $52,362,169 83 Int

$174,431 91 1,078,113 36 3,156,217 91

$7,217 48 Dee 594,486 33 Dee 485,133 24 Dei

$5,495,600 23 TOTAL DEFERRED ASSETS $4,408,763 18 $1,086,837 05 Dee

$72,914 11 6,751,037 70

$6,823,951 81

$1,841,612,379 86

UNADJUSTED DEBITS

Rents and insurance premiums paid in advance Other unadjusted debits

TOTAL UNADJUSTED DEBITS

$80,601 60 12,091,800 19

$7,687 49 Inc 5,340,762 49lne

$12,172,401 79 $5,348,449 98 Int

$1,881,883,298 45 $40,270,918 59 IM

N O T E A.—Carried at cost, or less. N O T E B.—Includes $1,137,560.73 in Canadian funds. N O T E C.—Includes $331,936.40 collectible in Canadian funds. N O T E D.—As of December 31, 1941, comprises liability to lessor companies for which the New York Central is obligated to n

settlement on expiration of the leases: , Equipment ' $40,225,126 » Material and supplies 15.176,407 Si Miscellaneous i;B65,994 V

N O T E E.—Includes $205,221.70 payable in Canadian funds.

This balance sheet does not include the assets or liabilities of lessor, affiliated, terminal or other companies, nor the liability of The Ne»

13


SHEET, DECEMBER 31, 1941 and DECEMBER 31, 1940

1940 $562,332,642 40 Capital stock

STOCK LIABILITIES

GOVERNMENTAL GRANTS $6,149,119 83 Grants in aid of construction

$34,072,000 00 510,919,000 00 98,241,200 00

5,500,000 00

L O N G TERM DEBT Funded debt unmatured

Equipment obligations Mortgage bonds Collateral trust bonds Debenture bonds

$648,732,200 00 50,001,281 84 Non-negotiable debt to affiliated companies (Note D)

$4,340,690 68 17,793,317 15 1,045,850 07 2,582,545 82

149,901 42 5,370,604 84 2,333,028 58

18,515,244 79 6,858,039 33

$58,995,222 68

C U R R E N T LIABILITIES Traffic and car-service balances payable—Cr. Audited accounts and wages payable (Note E) Miscellaneous accounts payable Interest matured unpaid Dividends matured unpaid Unmatured interest accrued Unmatured rents accrued Accrued tax liability Other current liabilities

TOTAL CURRENT LIABILITIES

$5,209,271 73 35,985,967 82

$41,195,239 55

$37,808 04 5,904,806 22 2,426,852 19

192,905,132 27 3,476,087 51

75,700,536 07

$280,507,282 30

$7,918,893 46 1,701,054 96

178,079,442 84

$187,099,391 26

$1,841,612,379 86

D E F E R R E D LIABILITIES

Liability to lessor companies for equipment Other deferred liabilities (Note F)

TOTAL DEFERRED LIABILITIES

UNADJUSTED CREDITS Premium on funded debt Insurance and casualty reserves Accrued depreciation—road Accrued depreciation—equipment Accrued depreciation—miscellaneous physical property Other unadjusted credits (Note G)

TOTAL UNADJUSTED CREDITS

CORPORATE SURPLUS Additions to property through income and surplus Miscellaneous fund reserves Profit and loss-

TOTAL CORPORATE SURPLUS

1941 $562,332,642 40

$6,148,527 67

$54,949,000 00 509,576,000 00 86,200,200 00 5,500,000 00

$656,225,200 00 56,967,528 41

Comparison

$592 16 Dec

$20,877,000 00 Inc 1,343,000 00 Dec

12,041,000 00 Dec

$7,493,000 00 Inc 966,246 57 Inc

$704,733,481 84 TOTAL LONG TERM DEBT $713,192,728 41 $8,459,246 57 Inc $1,273,215,244 07 TOTAL CAPITALIZATION $1,281,673,898 48 $8,458,654 41 Inc

$5,282,424 00 25,824.615 48

1,943,676 21 2,691,048 96

149,821 67 5,499,014 87 2,913,692 93

23,242,401 00 6,766,969 15

$941,733 32 Inc 8,031,298 33 Inc

897,826 14 Inc 108,503 14 Inc

79 75 Dec 122.410 03 Inc 580,664 35 Inc

4,727,150 21 Inc 91,070 18 Dec

$74,313,664 27 $15,318,441 59 Inc

$4,216,763 42 35,302,256 09

$39,519,019 51

$139,212 66 6,081,368 10 2,429,051 70

204,301,070 09 3,476,599 12

85,811,265 22

$992,508 31 Dec 683,711 73 Dec

$1,676,220 04 Dec

$51,344 62 Inc 176,561 88 Inc

2,199 51 Inc 11,395,937 82 Inc

511 61 Inc 10,104,729 15 Inc

$302,238,566 89 $21,731,284 59 Inc

$7,968,673 23 1,701,054 96

174,468,421 11

$184,138,149 30

$49,779 77 Inc

3,611,021 73 Dec

$3,561,241 96 Dec

$1,881,883,298 45 $40,270,918 59 Inc

N O T E F.—As of December 31, 1941, includes: Amounts payable to New York State as the New York Central proportion of certain grade crossing eliminations $27,957,139 62 Amounts due under railroad equipment lease agreements 2,572,703 04

N O T E G.—As of December 31, 1941, includes: Depreciation accruals for equipment of lessor companies 55,732,694 43 Bills rendered and unpaid not credited to income but to be credited to Grand Central Terminal accounts upon collection 963,807 93 Accruals for injuries to persons and loss and damage—freight 8,352,534 12

York Central Railroad Company as guarantor or under leases or otherwise with respect to the securities or obligations of such companies

14

Annual Report

INCOME ACCOUNT

OPERATING INCOME

R A I L W A Y OPERATIONS

Year Ended Dec. 31 , 1941 10,917-76 miles

operated

Year Ended Dec. 31, 1940 10,940-89 miles

operated

Increase

Railway operating revenues $447,789,655 19 $370,545,874 82 $77,243,780 3 7 Railway operating expenses 331,438,111 25 278,674,979 67 52,763,131 58

N E T R E V E N U E FROM RAILWAY OPERATIONS $116,351,543 94 $91,870,895 15 $24,480,648 79

Percentage of expenses io revenues {Operating Ratio) ( 7 4 0 2 ) (75-21) (1-19) Railway tax accruals $43,411,828 76 $33,476,018 75 $9,935,810 01

R A I L W A Y OPERATING INCOME $72,939,715 18 $58,394,876 40 $14,544,838 78

Equipment rents, net debit $12,767,648 10 $11,636,287 87 $1,131,360 23 Joint facility rents, net debit 2,753,307 03 2,706,151 50 47,155 53

N E T RAILWAY OPERATING INCOME $57,418,760 05 $44,052,437 03 $13,366,323 02

O T H E R INCOME Revenues from miscellaneous operations $569,571 20 $596,740 75 $27,169 55 Income from lease of road and equipment 301,756 80 263,003 45 $38,753 35 Miscellaneous rent income 3,246,713 80 3,721,045 02 474,331 22 Miscellaneous non-operating physical property 1,299,468 27 1,877,441 03 577,972 76 Separately operated properties—profit 1,734,936 33 856,730 16 878,206 17 Dividend income 7,513,672 26 6,579,040 16 934,632 10 Income from funded securities 4,229,667 71 4,032,286 96 197,380 75 Income from unfunded securities and accounts 38,317 02 128,112 36 89,795 31 Income from sinking and other reserve funds 62,896 84 69,686 2 7 6,789 43 Miscellaneous income 86,787 63 59,029 82 27,757 81

T O T A L OTHER INCOME $19,083,787 86 $18,183,115 98 $900,671 88

T O T A L INCOME $76,502,547 91 $62,235,553 01 $14,266,994 90

M I S C E L L A N E O U S DEDUCTIONS FROM INCOME Expenses of miscellaneous operations $364,678 53 $443,882 67 $79,204 14 Taxes on miscellaneous operating property 107,435 21 76,963 84 $30,471 37 Miscellaneous rents 274,407 83 484,471 99 210,064 If Miscellaneous tax accruals 503,897 65 509,854 19 5,956 54 Separately operated properties—loss 4,312 51 22,775 67 18,463 16 Miscellaneous income charges 196,481 84 449,666 32 253,184 48

T O T A L M I S C E L L A N E O U S DEDUCTIONS $1,451,213 57 $1,987,614 68 $536,401 11

INCOME A V A I L A B L E FOR FIXED CHARGES $75,051,334 34 $60,247,938 33 $14,803,396 01

F I X E D CHARGES Rent for leased roads and equipment Interest on funded debt Interest on unfunded debt

T O T A L F I X E D CHARGES

N E T INCOME

Equipment depreciation charges included in expenses.... Road property and power plant machinery depreciation . Amortization of equipment Included in other income and rent for leased roads

and equipment are certain inter-company transactions representing credits and corresponding debits amounting to

Also included in other income are items representing interest and dividends amounting to

$22,077,464 04 25,409,166 70

1,319,141 80

$21,724,402 41 25,283,481 58

1,974,970 16

$353,061 63 125,685 12

$48,805,772 54 $48,982,854 15 $177,081 61

$26,245,561 80 $11,265,084 18 $14,980,477 62

$18,240,005 29 4,761,044 00

631,470 49

$15,989,969 39 $2,250,035 90 4,761,044 00

631,470 49

$4,160,093 38 $4,331,859 09 $171,765 71

1,503,642 99 1,443,271 94 $60,371 05

the major portion of which a like amount was paid by the company to those companies as rental and included in joint facility rent*'

1 5


Profit and loss account

B A L A N C E TO CREDIT OF PROFIT AND Loss, D E C E M B E R 31, 1940

ADDITIONS:

Net income for the year 1941 Credits from retired road property Delayed income credits Donations Miscellaneous credits

DEDUCTIONS:

Surplus appropriated for investment in physical property Debt discount extinguished through surplus Debits from retired road property (represents ledger value, less salvage recovered, of

roadway property not required for transportation service retired during the year) Miscellaneous debits

B A L A N C E TO CREDIT OF PROFIT AND Loss, D E C E M B E R 31, 1941

$178,079,442 84

$20,245,561 80 155,441 26

4,127,980 41 14,407 29

796,580 04 31,339,971 40

$209,419,414 24

$53,193 18 17,342 44

3,185,105 75 31,695,351 76 34,950,993 13

$174,468,421 11

Disposition of railway revenue

In 1941 railway operating revenues aggregated $447,789,655 and were required mainly to meet such expenses as:

Salaries and wages of employees $207,561,716 Fuel, materials, supplies, and services 100,875,346 Depreciation 23,001,049 Taxes 43,411,829 Kent for equipment and facilities of others in excess of rent due us 15,520,955 390,370,895

leaving net railway operating income of $57,418,760

which, with other income of $19,083,788, was available for leased line rentals, interest on debt, and other corporate purposes.

Based on average operating revenues per day of $1,226,821, the table below shows how many of the 365 operating days in the year were necessary to meet our expenses:

Days 365

Salaries and wages of employees 169

1941

Fuel, materials, supplies, and services 82

Depreciation 19

Taxes 35

Equipment and joint facility rents 13

Leaving for net railway operating income 47

Months 12

— 5 . 6

2 . 7

.6

1.2

.4

— 1.5

16

Annual Report

INVESTMENTS

D E C E M B E R 31, 1941

IMPROVEMENTS ON L E A S E D OR CONTROLLED PROPERTY

Amsterdam Chuctanunda and Northern Railroad $19,897 91 Beech Creek Railroad 3,213,409 18 Beech Creek Extension Railroad 1,285,878 60 Boston and Albany Railroad 4,034,237 09 Chicago Kalamazoo and Saginaw Railway 390,138 40* Cleveland Cincinnati Chicago and St. Louis Railway 10,204,512 22 Detroit Hillsdale and South Western Railroad 164,046 99 Detroit Toledo & Milwaukee Railroad 3,232 82 Erie and Kalamazoo Railroad 155,248 07 Fort Wayne and Jackson Railroad 392,201 44 Grand Central Terminal Improvements 50,851,457 43 Hudson River Connecting Railroad 506,918 42 Hudson River bridges at Albany 1,438,419 54 Improvement to piers—New York 803,429 91 Improvement to ticket office Chicago, 111. 98,331 15 Kalamazoo Allegan & Grand Rapids Railroad 86,251 99 Lake Erie Alliance & Wheeling Railroad 1,844,985 93 Mahoning Coal Railroad 77,081 36 Mahoning and Shenango Valley Railroad 602 41 * Michigan Central Railroad 17,446 50 Mt Gilead Short Line 11,532 82 New Jersey Junction Railroad 603,808 24 New York and Harlem Railroad 34,611,154 05 New York State Realty and Terminal Co 1,961,151 83 North Brookfield Railroad 978 34* Ottawa and New York Railway 263,868 37 Pittsfield and North Adams Railroad 34,571 80 Shenango Valley Railroad 3,458 04 St Lawrence & Adirondack Railway 566,139 88 Stewart Railroad 196 05* Stock Yards, New York—West Side 1,059,315 66 Toledo and Ohio Central Railway 8,287,866 85 Troy and Greenbush Railroad 208,833 60 Trustee Central Mfg District Chicago et al 94,987 11 Ware River Railroad 17,765 74* Wallkill Valley Railroad 214,966 14 West Shore Railroad < 27,328,335 15

Total $150,037,295 15

INVESTMENTS I N MISCELLANEOUS PHYSICAL PROPERTY

Land, Buildings, etc. New York Substructures Bui ld ings , etc. Total

230 Park Avenue (N. Y . C. Building) Offices $938,925 17 $13,482,742 31 $14,421,667 48 247 Park Avenue (Park-Lexington Building) Offices 210,397 44 — 210,397 44 250 Park Avenue Offices 305,254 63 — 305,254 63 270 Park Avenue Apartment 280,712 37 1,420,861 03 1,701,573 10 277 Park Avenue Apartment 388,196 43 — 388,196 43 290 Park Avenue Apartment 195,515 76 — 195,515 7i i 299 Park Avenue (Park Lane Hotel) 319,843 77 1,070,693 42 1,390,537 19 300 Park Avenue Apartment 225,470 16 1,173,948 59 1,399,418 75 301-315 Park Avenue (Waldorf Astoria Hotel) 211,554 30 6,760,058 35 6,971,612 65 320 Park Avenue Apartment 59,363 43 795,949 36 855,312 79 340-350 Park Avenue Apartment 36,121 50 209,609 39 305,730 89 420 Lexington Avenue (Graybar Building) Offices 640,361 36 — 640,361 36 379 Madison Avenue Offices 71,334 64 — 71,334 64 385 Madison Avenue Offices 123,413 41 415,366 93 538,780 31 109-129 East 42nd Street (Commodore Hotel) 267,297 27 2,520,641 08 2,787,938 35 33-55 East 43rd Street (Biltmore Hotel) — 3,302,337 12 3,302,337 12 35-59 East 45th Street (Roosevelt Hotel) 226,103 59 2,426,938 51 2,653,042 10 33 East 48th Street (Chatham Hotel) 115,348 76 273,512 42 388,861 IS 115 East 48th Street (Barclay Hotel) 111,833 75 1,653,541 18 1,765,374 93

Carried forward $4,727,047 74 $35,566,199 69 $40,293,247 43

Credi t

17


INVESTMENTS (continued)

I N V E S T M E N T S IN M I S C E L L A N E O U S P H Y S I C A L P R O P E R T Y (concluded) Substructures Buildings, etc. Tota l

Brought forward $4,727,047 74 $35,566,199 69 $40,293,247 43 50 Vanderbilt Avenue (Yale Club) 51,027 31 51,027 31 52 Vanderbilt Avenue (Vanderbilt Concourse) Offices 47,479 01 47,479 01 111 West End Avenue 115,471 75 115,471 75 West End Avenue 62nd to 64th Streets 296,302 44 296,302 44 Lerov, Morton & West Streets — 681,510 20 681,516 20 501-557 West 30th Street — 366,341 80 366,341 80 422 11th Avenue — 694,407 52 694,407 52 59th Street & 11th Avenue — 174,550 93 174,550 93 I'm nam Bridge across Harlem River — 250,000 00 250,000 00 Varick & Beach Streets — 1,002,598 00 1,002,598 00 Miscellaneous—Various Locations — 129,901 38 129,901 38

Total—at New York

Land, Buildings, etc., at Cleveland, Ohio Land, Buildings, etc., at Chicago, Illinois Land, Keating to Browns, Pennsylvania Land and Buildings, Tonawanda, New York Land and Buildings, Jersey City, New Jersey Land at Collimvood, Ohio Stockyards, Buffalo, New York Land and Buildings, Rockport, Ohio Land and Buildings, Holland, Ohio Track material leased to outside parties Special assessments for paving, etc., Various Locations Land, Buildings, etc.,—various Locations

Total

$5,237,328 25 $38,805,515 52 $44,102,843 77

777,342 37 777,342 37 — 932,430 24 932,430 24 — 609,978 55 609,978 55 — 389,890 56 389,890 56 — 285,995 75 285,995 75 — 71,859 75 71,859 75 — 1,379,494 68 1,379,494 68 — 465,202 29 465,202 29 — 210,545 33 210,545 33 — 77,239 13 77,239 13 — 161,968 68 161,968 68 — 739,818 74 739,818 74

$5,237,328 25 $44,967,281 59 $50,204,609 84

HELD BY THIS COMPANY

V E S T M E N T S IN A F F I L I A T E D C O M P A N I E S — S T O C K S Total outstanding Shares Par Valt ie Ledger Value

Battle Creek & Sturgis Railway Co $500,000 00 825 $82,500 00 $i 00 Beech Creek Railroad Co 6,000,000 00 25 1,250 00 1,125 00 Beech Creek Extension Railroad Co 5,179,000 00 51,790 5,179,000 00 488,277 51 Boston Terminal Company 500,000 00 1,000 100,000 00 1 00 Canadian Niagara Bridge Company 750,000 00 5,464 546,400 00* 54,640 00 Canadian Pacific Car and Passenger Transfer Co Ltd 400,000 00 2,000 200,000 00 200,000 00 Cherry Tree and Dixonville Railroad Co 500,000 00 5,000 250,000 00 250,000 00 Chicago Kalamazoo and Saginaw Railway Co 450,000 00 1,800 180,000 00 1,800 00 Chicago River and Indiana Railroad Co 500,000 00 5,000 500,000 00 750,000 00 Clearfield Bituminous Coal Corporation 825,000 00 16,500 825,000 00 82,200 00 Cleveland Cincinnati Chicago and St Louis Ry Co common 47,028,800 00 46c i,372 33 46,337,233 33 43,752,245 37 Cleveland Cincinnati Chicago and St Louis Ry Co preferred 9,998,500 00 85,166 8,516,600 00 8,514,980 52 Cleveland Union Terminals Company 10,000 00 71 7,100 00 7,100 00 Danville and Indiana Harbor Railroad Co 2,500 00 25 2,500 00 1 00 Despatch Shops, Incorporated 30,000 shares 30,000 No par value 3,000,000 00 Detroit Terminal Railroad Co 2,000,000 00 5,000 500,000 00 500,000 00 Detroit Toledo & Milwaukee Railroad Co 1,060,000 00 5,300 530,000 00 1 00 Federal Valley Railroad Co 447,800 00 4,478 447,800 00 163,672 32 Fort Wayne Union Railway Co 80,000 00 200 20,000 00 20,000 00 Hudson River Bridge Company at Albany 500,000 00 5,000 500,000 00 500,000 000 Hudson River Connecting Railroad Corporation 250,000 00 2,500 250,000 00 251,033 34 Indiana Harbor Belt Railroad Co 7,600,000 00 22,800 2,280,000 00 2,280,000 00 Jefferson Coal Company 1,500,000 00 7,650 765,000 00 115,468 40 Lake Erie Alliance & Wheeling Railroad Co 3,000,000 00 30,000 3,000,000 00 4,061,796 73 Lake Erie and Pittsburg Railway Co 4,300,000 00 21,500 2,150,000 00 2,150,000 00 Lansing Manufacturers Railroad 100,000 00 500 50,000 00 50,000 00 Lansing Transit Railway Co 2,000 00 10 1,000 00 1,000 00 Mahoning Coal Railroad Co common 1,500,000 00 18,532 926,600 00 826,685 00 Mahoning Coal Railroad Co preferred 661,367 00 10,453 522,650 00 524,272 50 Mahoning State Line Railroad Co 100,000 00 41 2,050 00 2,050 00 Merchants Despatch Transportation Corporation 52,500 shares 52,500 No par value 1,200,000 00

* First Installment of ten per cent paid 0 Includes §125.000 held for Boston and Albany R. R. Co.

Carried forward $74,672,683 33 $69,748,350 69

I S

Annual Report

INVESTMENTS (continued) HELD BY THIS COMPANY

Tota l outstanding Shares Par value Ledger value ESTMENTS IN AFFILIATED COMPANIES STOCKS (concluded) Brought forward $74,672,683 33 $69,748,350 69 Michigan Central Railroad Co $18,736,400 00 186,323 18,632,300 00 30,782,703 45 New Jersey Junction Railroad Co 100,000 00 1,000 100,000 00 100,000 00 New York and Fort Lee Railroad Co 1,000,000 00 10,000 1,000,000 00 100 OD New York and Harlem Railroad Co common 8,666,050 00 114,298 5,714,900 00 19,868,710 91 New York and Harlem Railroad Co preferred 1,343,950 00 23,112 1,155,600 00 4,038,703 00 New York State Realty and Terminal Company 100,000 00 1,000 100,000 00 100,000 00 Nicholas Fayette and Greenbrier Railroad Co 7,471,800 00 37,359 3,735,900 00 3,921,451 10 Ottawa and New York Railway Co 1,000,000 00 10,000 1,000,000 00 100 oo Owasco River Railway 30,000 00 150 15,000 00 37,500 00 Pittsburgh and Lake Erie Railroad Co 43,182,500 00 433,984 21,699,200 00 18,819,826 23 Pittsburgh McKeesport and Youghiogheny Railroad Co 3,959,650 00 39,596 1,979,800 00 2,443,414 89 Railway Express Agency, Inc 1,000 shares 96 No par value 9,600 00 St Lawrence & Adirondack Railway Co 1,615,000 00 16,150 1,615,000 00 1,213,662 00 Toledo and Ohio Central Railway Co common 5,846,300 00 58,463.8 * 5,846,380 00* 3,419,354 67 Toledo and Ohio Central Railway Co preferred 3,701,400 00 37,014 3,701,400 00 3,701,400 00 Toledo Terminal Railroad Co 4,000,000 00 3,872 387,200 00 1 OO Toronto, Hamilton and Buffalo Navigation Co 200,000 00 743'/ 74,300 00 63,603 00 Toronto Hamilton and Buffalo Railway Co 5,415,000 00 20,120 2,012,000 00 702,680 00 Trestle Realty Corporation 500,000 00 2,500 250,000 00 197,729 51 Troy Union Railroad Co 30,000 00 150 15,000 00 185,000 00 West Shore Railroad Co 10,000,000 00 100,000 10,000,000 00 1,000 00 * Includes $80. scrip

Total $153,706,663 33 $159,354,890 45

INVESTMENTS I N AFFILIATED COMPANIES—BONDS! Beech Creek Railroad Co first mortgage 4 %, matured July 1,1936 Beech Creek Railroad Co second mortgage 5%, matured July

1, 1936 Beech Creek Extension Railroad Co consolidated mortgage 4%,

due April 1, 1955 Cherry Tree and Dixonville Railroad Co first mortgage, series A

4J^%, due Aug. 1, 1966 Cleveland CincinnatiChicagoandSt. Louis Railwayrefundingand

improvement mortgage—series E , due Jan. 1,1977 Cleveland Cincinnati ChicagoandSt.LouisRailwayrefundingand

improvement mortgage—series F, 43^%, due Jan. 1,1964 Chicago Indianapolis andSt. Louis Short Line Railway Company,

first mortgage—4% bonds, due April 1, 1953 Fort Wayne Union Railway Co general mortgage 6%, due

Sept. 1, 1974 Lake Erie and Pittsburg Railway Co first mortgage 43^ and 5%,

due July 1, 1965 Louisville & Jeffersonville Bridge and Railroad Company

first mortgage 4% bonds, due March 1, 1945 Michigan Central Railroad Co refunding and improvement

mortgage, series A, 4J^%, due Jan. 1, 1947 Ottawa and New York Railway Co first mortgage 4%, matured

Nov. 1, 1917 Ottawa and New York Railway Co second mortgage 6%,

matured July 1, 1912 Peoria and Eastern Railway Co first consolidated mortgage

4%, due Apr. 1, 1960 Toledo and Ohio Central Railway refunding and improvement

mortgage—series A, 3 M % , due June 1, 1960 Toledo and Ohio Central Railway Co first mortgage St. Mary's

Division 4% bonds, due Feb. 1, 1951 Toledo and Ohio Central Railway Co first preference income,

St. Mary's Division 4%, due Feb. 1, 1951 Webster Coal & Coke Company consolidated first mortgage

5%, due Mar. 1, 1942 West Shore Railroad Co first mortgage 4% bonds, due Jan. 1,

2361

Total

INVESTMENTS IN AFFILIATED COMPANIES—NOTES Hudson River Connecting Railroad Corporation Lake Erie Alliance & Wheeling Railroad Co Lake Erie and Pittsburg Railway Co

$5,000,000 00 $5,000,000 00 $5,001,164 24

1,000,000 00 1,000,000 00 1,001,003 14

3,964,000 00 3,964,000 00 3,963,000 00

1,210,000 00 605,000 00 605,000 00

43,706,000 00 18,000 00 17,826 00

29,040,000 00 29,040,000 00 29,040,000 00

3,000,000 00 5,000 00 4,625 00

96,000 00 23,000 00 23,000 00

3,606,000 00 1,803,000 00 1,803,000 00

4,500,000 00 30,000 00 26,415 00

6,171,000 00 6,171,000 00 0,171,000 00

825,000 00 825,000 00 100 00

275,000 00 275,000 00 100 00

4,722,300 00 170,500 00 73,855 00

14,567,000 00 2,067,000 00 2,067,000 00

456,000 00 10,000 00 8,650 00

9,000 00 5,000 00 2,700 00

1,670,000 00 36,000 00 33,660 00

47,686,000 00 26,000 00 22,472 21

$51,073,500 00 $49,864,570 59

$24,550,100 42 $24,550,100 4¬490,168 95 1 » 25,000 0 0 25,000 00

t Does not include investments held in "Insurance and Other Funds" Carried forward $25,065,269 37 $24,575,101 ®

19


INVESTMENTS (continued)

INVESTMENTS IN AFFILIATED COMPANIES—NOTES—(concluded) New Jersey Junction Railroad Co New York and Harlem Railroad Co Pittsburgh McKeesport and Youghiogheny Railroad Co Toledo and Ohio Central Railway Co Troy Union Railroad Co

Brought forward

Total

HELD BY THIS COMPANY

Par Value $25,005,269 37

504,959 90 145,000 00 300,000 00

9,054,120 16 114,377 01

Ledger Value

824,575,101 42 504,959 90 145,000 00 300,000 00

9,054,120 16 1 00

$35,183,726 44 $34,579,182 48

INVESTMENT IN AFFILIATED COMPANIES—ADVANCES

Battle Creek and Sturgis Railway Co $1,400 00 Boston Terminal Company 56,067 27 Canadian Niagara Bridge Co 43,810 60 Cherry Tree and Dixonville Railroad Co 133,053 77 Chicago River and Indiana Railroad Co 100,000 00 Cincinnati Union Terminal Co 45,605 07 Clearfield Bituminous Coal Corporation 2,138,984 50 Cleveland Cincinnati Chicago and St. Louis Railway Co 46,816,747 25 Cleveland Union Terminals Co 30,489,344 92 Dayton Union Railway Co 51,305 14 Detroit Manufacturers Railroad 13,115 50 Federal Valley Railroad Co 25,896 75 I ludson River Connecting Railroad Corporation 70,722 28 Kankakee and Seneca Railroad Co 99 53 Lansing Manufacturers Railroad 194,833 64 Lansing Transit Railway Co 9,536 33 Lake Erie and Pittsburg Railway Co 173,094 42 Mackinac Transportation Co 362 91 Mahoning State Line Railroad Co 47 48 New York and Harlem Railroad Co 3,978,591 09 New York State Realty and Terminal Co 29,787,211 62 Nicholas Favette and Greenbrier Railroad Co 273,001 17 Owasco River Railway 6,222 57 Peoria and Eastern Railway Co 1,247,305 30 Pittsburgh McKeesport and Youghiogheny Railroad Co 14,086,132 75 Railroad Credit Corporation 1,480,634 38 Railway Express Agency Incorporated 2,462,549 41 Toledo and Ohio Central Railway Co 7,278,948 09 Trestle Realty Corporation 104,100 00 Union Depot Co (Columbus, Ohio) 174,435 00

Total $141,243,158 74

OTHER INVESTMENTS—STOCKS

Central Greyhound Lines, Incorporated Delaware Lackawanna and Western Railroad Co Pittsfield and North Adams Railroad Corporation Heading Company, common Reading Company, first preferred Reading Company, second preferred United States Cold Storage Corporation Sundry Companies

ShareB 90,000 No par $141,668 15

132,825 $6,641,250 00 564,506 25 722 72,200 00 72.200 00

262,900 13,145,000 00 10,073,149 42 136,800 6,840,000 00 5,491,471 90 300,300 15,015,000 00 10,348,452 22 41,000 230,000 00 1,241,850 00 2,751-9542 57,694 54 16,346 62

967,2989542 $42,001,144 54 $27,949,644 62

OTHEK INVESTMENTS—BONDS

Boston and Albany Railroad Company 12 year 6% refunding bonds of 1934, due May 1, 1946 Boston and Albany Railroad Company Main Line first mortgage 4J^% bonds, series B, due

July 1, 1948 Kalamazoo Allegan and Grand Rapids Railroad Company, 5% first mortgage bonds, due

July 1, 1968 New York Worlds Fair of 1939 (now 1940) 4% Debenture bonds Sundry ('mnpanies

$4,500,000 00 $4,500,000 00

3,015,000 00 3,015,000 00

840,000 00 840,000 00 405,000 00 11,753 10 23,417 52 19,344 49

Total $8,783,417 52 $8,386,097 59

2 0

Annual Report

INVESTMENTS (concluded) H E L D B Y THIS COMPANY

E R INVESTMENTS—NOTES P a r Va lue Ledger Value

Arnold Print Works $203 18 $203 18 Consolidated Cement Corporation 180 00 900 00 Martin Custom Made Tire Co 58 32 58 32 Moses Vigransky 2,652 00 2,652 00 Pratt Industries, Inc 5,000 00 5,000 00 Sahara Coal Co 100,000 00 100,000 00 Schenectady Coating Corporation 289 06 289 06 Schenectady Railway Co 264,150 00 1 00 Union Properties, Inc 46,303 44 46,303 44 Burhans and Black, Incorporated 31 95 31 95 Ward Stores, Incorporated 2,142 00 2,142 00 Nantucket—Boston Steamboat Co 106 32 106 32

Total $421,116 27 $157,687 27

O T H E R I N V E S T M E N T S — A D V A N C E S

New York New Haven & Hartford Railroad Co $915,457 01

Total $915,457 01

O T H E R I N V E S T M E N T S — M I S C E L L A N E O U S

Western Indiana Gravel Co $5,400 00 Skidmore—Land Contract 6,219 05 Lewis Levison 9,907 74 Memberships in commercial exchanges 6,565 00 The City Savings Holding Company (Alliance, Ohio) 17,424 69 St. Joseph Valley Bank, Elkhart, Indiana 4,960 67 Morrow Steel Co 2,889 43 Linden Securities Corporation 1,633,236 00 City of Schenectady—Certificate of indebtedness 1,613 33 Depositors and Creditors Trust—Detroit, Michigan 3,422 22 Other miscellaneous items 2,649 15

Total $1,694,287 28

Summary of Investments

Road and equipment $1,110,068,183 85 Improvements on leased or controlled property 150,037,295 15 Sinking Funds 97,542 50 Deposits in lieu of mortgaged property sold 291,368 78 Miscellaneous physical property 50,204,609 84 Investments in affiliated companies—Stocks, par value $153,706,663 33 ledger value $159,354,890 45

Bonds, par value 51,073,500 00 ledger value 49,864,570 59 Notes, par value 35,183,726 44 ledger value 34,579,182 48 Advances — ledger value 141,243,158 74 385,041,802 26

Other investments— Stocks, par value $42,001,144 54 ledger value $27,949,644 62 Bonds, par value 8,783,417 52 ledger value 8,386,097 59 Notes, par value 421,116 27 ledger value 157,687 27 Advances — ledger value 915,457 01 Miscellaneous — ledger value 1,694,287 28 39,103,173 77

Total investments

21


EXPENDITURES IN 1941 FOR ADDITIONS AND BETTERMENTS ON OWNED PROPERTY

R O A D EXPENDITURES RETIREMENTS NET DEBIT

Engineering $120,626 24 $39,967 92 $80,658 32 Land for transportation purposes 1,224,268 10 68,927 97 1,155,340 13 Other right-of-way expenditures 2,008 12 — 2,008 12 Grading 53,816 9 7 0 102,950 22 156,767 19* Tunnels and subways 195,461 44 — 195,461 44 Bridges, trestles and culverts 158,021 37 76,894 80 81,126 57 Elevated structures 61,586 420 — 61,586 42* Ties 94,524 79 140,901 68 46,376 89* Rails 173,753 46 130,645 59 43,107 87 Other track material 692,139 60 135,961 36 556,178 24 Ballast 22,264 13 48,816 21 26,552 08* Track laying and surfacing 156,569 73 105,429 40 51,140 33 Fences, snow sheds and signs 13,407 25 7,252 85 6,154 40 Crossings and signs 2,082 380 81,236 22 83,318 60* Station and office buildings 291,586 94 612,313 07 320,726 13* Roadway buildings 31,675 58 116,200 57 84,524 99* Water stations 79,519 10 93,261 10 13,742 00* Fuel stations 26,173 15 34,999 74 8,826 59* Shops and enginehouses 158,754 18 46,524 83 112,229 35 Wharves and docks 348 350 — 348 35* Coal and ore wharves 7,439 25 4,364 32 3,074 93 Telegraph and telephone lines 11,038 52 7,023 65 4,014 87 Signals and interlockers 617,381 87 336,548 72 280,833 15 Power plants 3,577 91 150 00 3,427 91 Power transmission systems 44,916 79 28,919 40 15,997 39 Miscellaneous structures 57,142 260 — 57,142 26* Roadway machines 94,950 99 70,951 76 23,999 23 Roadway small tools 13,200 19 180 00 13,020 19 Public improvements—construction 278,059 04 2,066 01 275,993 03 Shop machinery 212,349 92 133,400 92 78,949 00 Power plant machinery 97,614 95 23,358 42 74,256 53 Interest during construction 482 690 37,366 91 37,849 60* Other expenditures—General 8,060 00 — 8,060 00

Totals—Road $4,653,883 54 $2,486,613 64 $2,167,269 90

E Q U I P M E N T ! Steam locomotives $2,088,061 72 $622,319 14 $1,465,742 58 Other locomotives 2,227,840 27 14,215 16 2,213,625 11 Freight-train cars 7,052,081 72 2,027,459 60 5,024,622 12 Passenger-train cars 6,308,111 37 176,960 50 6,131,150 87 Floating equipment 60,647 89 238,313 64 177,665 75* Work equipment 221,688 39 92,961 86 128,726 53 Miscellaneous equipment 86,654 16 45,151 31 41,502 85

Totals—Equipment $18,045,085 52 $3,217,381 21 $14,827,704 31

Increase for the year $16,994,974 21 Investment in road and equipment as of December 31, 1940 1,093,073,209 64

Total investment in road and equipment as of December 31, 1941 $1,110,068,183 85

* Credit 0 Credit account transfers and adjustment f Including trust equipment

22

Annual Report

EXPENDITURES IN 1941 FOR ADDITIONS AND BETTERMENTS ON OWNED PROPERTY (continued)

Analysis of changes in Equipment Investment account

E Q U I P M E N T ADDED, including betterments

Steam locomotives Other locomotives Freight-train cars Passenger-train cars Floating equipment Work equipment Miscellaneous equipment

$1,661,139 44 2,214,441 11 6,553,548 37 5,477,765 69

OWNED

$426,922 28 13,399 16

498,533 35 830,345 68 60,647 89

221,688 39 86,654 16

$2,088,061 72 2,227,840 27 7,052,081 72 6,308,111 37

60,647 89 221,688 39

86,654 16

T O T A L S $15,906,894 61 $2,138,190 91 $18,045,085 52

E Q U I P M E N T RETIRED

Steam locomotives Other locomotives Freight-train cars Passenger-train cars Floating equipment Work equipment Miscellaneous equipment

TOTALS

$7,548 22

54,227 73 345 00

$62,120 95

$614,770 92 14,215 16

1,973,231 87 176,615 50 238,313 64 92,961 86 45,151 31

$3,155,260 26

Net increase in trust equipment Net decrease in owned equipment

$622,319 14 14,215 16

2,027,459 60 176,960 50 238,313 64 92,961 86 45,151 31

$3,217,381 21

$15,844,773 66 1,017,069 35

Net increase in equipment investment $14,827,704 31

EXPENDITURES IN 1941 FOR ADDITIONS AND BETTERMENTS ON LEASED PROPERTY

R O A D EXPENDITURES RETIREMENTS NET DEBIT

Engineering $42,187 51 $41,363 92 $823 59 Land for transportation purposes 48.086 87 9,921 10 38,165 77 Other right-of-way expenditures 659 99 — 659 99 Grading 102,752 00 414,469 73 311,717 73* Tunnels and subways 1,432 11 — 1,432 11 Bridges, trestles and culverts 425,099 62 51,036 44 374,063 18 Elevated structures 7 8 3 0 — 7 83* Ties 81,724 46 147,589 51 65,865 05* Rails 353,094 17 249,073 39 104,020 78 Other track material 747,397 20 263,087 74 484,309 46 Ballast 46,768 72 140,645 26 93,876 54* Track laying and surfacing 123,922 26 126,557 25 2,634 99* Fences, snow sheds and signs 2,106 92 3,710 66 1,603 74* Crossings and signs 46,813 71 0 21,036 64# 25,777 07*

Carried forward $1,928,410 29 $1,426,418 36 $501,991 93

* Credit f Debit adjustment

0 Credi t account transfers and adjustments

23


EXPENDITURES IN 1941 FOR ADDITIONS AND BETTERMENTS ON LEASED PROPERTY (continued)

ROAD (continued) EXPENDITURES RETIREMENTS NET DEBIT

Brought forward $1,928,410 29 $1,426,418 36 $501,991 93 Station and office buildings 134,938 500 102,211 57# 32,726 93* Roadway buildings 5,627 34 37,447 44# 43,074 78 Water stations 57,376 45 20,561 63 36,814 82 Fuel stations 17,763 49 1,858 84# 19,622 33 Shops and enginehouses 142,473 31 72,009 85# 214,483 16 Grain elevators 592 35 23,474 00# 24,066 35 Storage warehouses 131 91 85,620 25# 85,752 16 Wharves and docks 375,937 27 3,366 00 372,571 27 Coal and ore wharves 551 43 — 551 43 Telegraph and telephone lines 21,391 71 10,225 29 11,166 42 Signals and interlockers 388,141 10 55,637 34 332,503 76 Power plants 2,026 51 2,999 oot 5,025 51 Power transmission systems 79,648 04 40,019 60 39,628 44 Miscellaneous structures 88 9 6 0 218 68# 129 72 Roadway machines 58,851 31 74,986 15 16,134 84* Roadway small tools 1,053 76 — 1,053 76 Public improvements—construction 23,190 0 3 0 3,964 89 27,154 92* Other expenditures—road — 10 00 10 00* Shop machinery 99,080 48 327,369 62 228,289 14* Power plant machinery 70,632 69 38,929 44# 109,562 13 Unapplied construction material and supplies 2,909 950 — 2,909 95*

TOTAL ROAD $3,088,562 00 $1,597,789 81 $1,490,772 19

G E N E R A L EXPENDITURES Interest during construction $4,445 57 $20,320 74 $15,875 17*

Net increase in investment for improvements on leased property for 1941 $1,474,897 02 Investment for improvements on leased property as of December 31, 1940 148,562,398 13

Total investment for improvements on leased property as of December 31, 1941 $150,037,295 15

The expenditures for and retirements of improvements on leased or controlled property, tabulated by accounts on the preceding pages were made in connection with the following:

Beech Creek Railroad $45,323 56* Beech Creek Extension Railroad 73,003 13* Boston and Albany Railroad 1,477,420 13 Chicago, Kalamazoo and Saginaw Railway 14,753 08* Cleveland, Cincinnati, Chicago and St. Louis Railway 848,099 74 Detroit, Hillsdale and South Western Railroad 6,573 92 Detroit, Toledo & Milwaukee Railroad 777 28 Erie and Kalamazoo Railroad 361 24 Fort Wayne and Jackson Railroad 5,393 02 Grand Central Terminal Improvement 76,795 58

Carried forward $2,282,341 14

* Credit f Debit adjustment 0 Credit account transfers and adjustments

2 4

Annual Report

EXPENDITURES IN 1941 FOR ADDITIONS AND BETTERMENTS (concluded)

Brought forward $2,282,341 14 Hudson River Connecting Railroad 8,897 53* Hudson River bridges at Albany 281 79* Kalamazoo Allegan & Grand Rapids Railroad 13,532 52* Lake Erie Alliance & Wheeling Railroad 15,360 17 Mahoning Coal Railroad 18,344 00 Mahoning and Shenango Valley Railway 161 96 Michigan Central Railroad 17,446 50 New Jersey Junction Railroad 2,887 06 New York and Harlem Railroad 66,621 90* New York State Realty and Terminal Company 50,799 08* Ottawa and New York Railway 3,889 77* Pittsfield and North Adams Railroad 973 59 Shenango Valley Railroad 6 93* St. Lawrence & Adirondack Railway 2,104 86 Stock Yards, New York—West Side 305,842 82* Toledo and Ohio Central Railway 232,824 39 Troy and Greenbush Railroad 595 43 Wallkill Valley Railroad 1,212 69 Ware River Railroad 56 04* West Shore Railroad 649,426 39*

Net increase for year $1,474,897 02

* Credi t

Expenditures in 1941 on Miscellaneous Physical Properly

300 Park Avenue, Apartment, New York, N . Y . $1,173,948 59 35-59 East 45th Street, (Roosevelt Hotel) New York, N . Y . 49,053 84 59th Street and 11th Avenue, Land and Buildings, New York, N . Y . 174,550 93 Buildings, Rensselaer, N . Y . 55,135 04 Land and Buildings, Syracuse, N . Y . 24,838 63 Land, Holcomb to Caledonia, N Y . 23,738 66 Land and Buildings, Chicago, Illinois 146,494 71 Land, Rockport, Ohio 465,202 29 Land, Holland, Ohio 210,545 33 Buildings, Union City, N . J . 11,787 08 Land and Buildings, Clearfield, Pa. 10,940 86 Miscellaneous—Various Locations 31,155 33

$2,377,391 29

Less: 299 Park Avenue, (Park Lane Hotel) New York, N . Y . $177,279 09 115 East 48th Street, (Barclay Hotel) New York, N . Y . 158,472 11 11th Avenue and 41st Street, Land, New York, N . Y . 2,264,343 08 Rupel Gravel Pit Property, South Bend, Ind. 38,025 00 Elevator, Schneider, Ind. 110,962 83 Elevator, Indiana Harbor, Ind. 405,404 70 Miscellaneous—Various Locations 29,474 78 3,183,961 59

Decrease for the Year 1941 $806,570 30 Investment in Miscellaneous Physical Property as of December 31, 1940 51,011,180 14

Total Investment as of December 31, 1941 $50,204,609 84

25


CAPITALIZATION

D E C E M B E R 31, 1941

Capital stock

Number of shares of no par value authorized 10,000,000

Number of shares issued 6,447,055 Certificates of predecessor companies not converted 290 Consolidation certificates not issued 48'95 Scrip not issued nor converted 182625 Consolidation certificate and scrip held in treasury 1'1850

Total outstanding 6,447,4133975

Funded Debt

M O R T G A G E B O N D S Date of issue

Date of maturi ty

Amount of authorized issue

Amount issued and now outstanding

Rate of interest

Payable on the first day of

N Y C & H R R R Co gold debentures ®* 1912 Jan. 1, 1942 $9,188,000 00 $9,188,000 00 4% Jan and July Gouverneur & Oswegatchie R R Co first® 1892 June 1, 1942 300,000 00 300,000 00 5% June and Dec Indiana Illinois & Iowa R R Co first © 1900 July 1, 1950 4,850,000 00 4,850,000 00 4% Jan and July Chicago Indiana & Southern R R Co 50 year0 1906 Jan. 1, 1956 15,150,000 00 15,150,000 00 4% Jan and July Jamestown Franklin & Clearfield R R Co first© 1909 June 1, 1959 11,000,000 00 11,000,000 00 4% June and Dec NYC&HRRRCo—Spuyten Duyvil & Pt Morris

first® 1909 June 1, 1959 2,500,000 00 2,500,000 00 3'A% June and Dec Cleveland Short Line Railway Co first© 1911 Apr. 1, 1961 11,800,000 00 11,800,000 00 iV2% Apr and Oct Carthage & Adirondack Railway Co first® 1892 Dec. 1, 1981 1,100,000 00 1,100,000 00 4% June and Dec Sturgis Goshen & St Louis Railway Co first® 1889 Dec. 1, 1989 322,000 00 322,000 00 3% June and Dec Mohawk & Malone Railway Co first © 1892 Sept. 1, 1991 2,500,000 00 2,500,000 00 4% Mch and Sept New York & Putnam R R Co first consolidated ® 1894 Oct. 1, 1993 3,987,000 00 3,987,000 00 4% Apr and Oct Lake Shore & Michigan Southern Ry Co gold ® 1897 June 1, 1997 50,000,000 00 50,000,000 00 m% June and Dec N Y C & H R R R C o gold mortgage® 1897 July 1, 1997 100,000,000 00 100,000,000 00 3y2% Jan and July N Y C & H R R R Co—Lake Shore coll gold®*t 1898 Feb. 1, 1998 90,578,400 00 21,217,000 00 3Y2% Feb and Aug N Y C & H R R R Co—Mich Central coll gold®* 1898 Feb. 1, 1998 21,550,000 00 19,336,000 00 3V2% Feb and Aug N Y C R R Co consolidation—series A® J 1913 Feb. 1, 1998 70,000,000 00 69,361,000 00 4% Feb and Aug N Y C R R Co consolidation—series C® 1934 Feb. 1, 1998 48,000,000 00 48,000,000 00 4% Feb and Aug Mohawk & Malone Railway Co consolidated® 1902 Mch. 1, 2002 3,900,000 00 3,900,000 00 3V2% Mch and Sept N Y C R R Co ref and imp—series A® 1913 Oct. 1, 2013 115,000,000 00 115,000,000 00 m% Apr and Oct N Y C R R Co ref and imp—series B© 1920 Oct. 1, 2013 38,494,000 00 4,494,000 00 6% Apr and Oct N Y C R R Co ref and imp—series C® 1922 Oct. 1, 2013 260,000,000 00 260,000,000 00 5% Apr and Oct

Total $754,005,000 00

Less securities reacquired or nominally issued and pledged or otherwise held by or for the company: N Y C & H R R R Co gold debentures New York & Putnam R R Co—First consolidated N Y C & H R R R Co gold N Y C & H R R R Co—Lake Shore collateral gold t N Y 0 R R Co consolidation—series A N Y C R R Co consolidation—series C N Y C R R Co refunding and improvement—series A N Y C R R Co refunding and improvement—series B N Y C R R Co refunding and improvement—series C

$1,921,000 00 5,000 00

6,000,000 00 10,000 00

387,000 00 48,000,000 00

587,000 00 4,494,000 00

183,025,000 00 244,429,000 00

Total mortgage bonds actually outstanding $509,576,000 00

t Deposited with C i t y of New York and included in Balance Sheet account "Insurance and other funds" + Secured by N Y C & H R R R Co consolidation mortgage dated June 20. 1913 t Addit ionally secured by N Y C R R C o mortgage dated January 15. 1915

20

Annual Report

CAPITALIZATION (concluded)

Funded debt (concluded)

Date of issue

Date of matur i ty

Amount of authorized issue C O L L A T E R A L T R U S T B O N D S

N Y C K R C o promissory secured notes 1940 May 1, 1942-44 $16,000,000 00 N Y C R R C o ten-year secured sinking fund® 1936 Apr. 1, 1946 40,000,000 00 N Y C R R Co fifteen-year secured bonds® 1937 May 1, 1952 41,097,000 00

Total collateral trust bonds actually outstanding

Amount issued and now outstanding

$16,000,000 00 30,167,000 00 40,033,200 00

$86,200,200 00

Rate of interest

-3y2%

m% 3H%

Payable on

monthly Apr. 1 and Oct. 1 May 1 and Nov. 1

DEBENTURE BONDS

N Y C & H R R R C o 1900 July 1, 2000 $5,500,000 00 $5,500,000 00 33^% Jan and July

E Q U I P M E N T T R U S T O B L I G A T I O N S

Equipment trust certificates (N Y C R R ) ©1929 Apr. 15, 1944 $16,500,000 00 $3,300,000 00 4J^% Apr. 15, Oct. 15 Equipment trust certificates (N Y C R R )® 1929 Dec. 1,1944 11,175,000 00 2,235,000 00 4J^% June 1, Dec. 1 Equipment trust certificates (N Y C R R )® 1930 May 15, 1945 14,059,000 00 3,808,000 00 4J^% May 15, Nov. 15 Equipment trust certificates (N Y C R R ) ® 1937 Men. 15,1952 4.290,000 00 3,146,000 00 Mch. 15, Sept. 15 Equipment trust certificates (N Y C R R) ® 1939 Dec. 1,1949 9,000,000 00 7,200,000 00 2J^% June 1, Dec. 1 Equipment trust certificates (N Y C R R) © 1940 June 1, 1950 10,400,000 00 9,360,000 00 2% June 1, Dec. 1 Equipment trust certificates ( N Y C R R ) ® 1941 Feb. 15, 1951 10,900,000 00 10.900,000 00 VA% Feb. 15, Aug. 15

Total equipment trust obligations actually outstanding $54,949,000 00

Total funded debt actually outstanding $656,225,200 00

T R U S T E E S :

® Bankers Trust Company, New York

® Central Union Trust Company of New York (now Central Hanover Bank and Trust Company)

© Knickerbocker Trust Company, New York (now Irving Trust Company, New York)

® Guaranty Trust Company of New York

© Illinois Trust and Savings Bank (now Continental Illinois National Bank and Trust Company of Chicago) and Edmond B. Stofft

© Metropolitan Trust Company (now Manufacturers Trust Company), New York

© Irving Trust Company, New York

© United States Trust Company of New York, and John H. Holliday, Indianapolis, Indiana

® The First National Bank of the City of New York

© Chase National Bank of the City of New York

27


DETAIL OF RAILWAY OPERATING REVENUES

R E V E N U E S F R O M TRANSPORTATION Freight Passenger

Parlor and chair car Mail Express Other passenger train Milk Switching Water transfers—freight Water transfers—passenger Water transfers—vehicle and live stock Water transfers—other

Total

1941 1940 Increase $336,878,402 61 $270,274,027 58 $66,604,375 03

66,609,863 00 59,322,145 25 7,287,717 75 192,002 01 186,012 68 5,989 33 50,777 36 42,669 99 8,107 37

12,224,781 35 11,803,146 25 421,635 10 6,911,241 93 7,313,916 84

421,635 10

774,650 28 809,254 88 1,603,154 36 1,349,058 08 254,096 28 6,845,241 51 5,921,631 77 923,609 74

165,154 78 152,387 74 12,767 04 333,027 32 393,451 29

12,767 04

408,449 77 403,940 60 4,509 17 82,144 87 72,403 10 9,741 77

$433,078,891 15 $358,044,046 05 $75,034,845 10

Decrease

8402,674 91 34,604 60

60,423 97

I N C I D E N T A L A N D JOINT F A C I L I T Y

Dining and buffet Hotel and restaurant Station, train and boat privileges Parcel room Storage—freight Storage—baggage Demurrage Telegraph and telephone Grain elevator Power Rents of buildings and other property Miscellaneous Joint facility—Cr. Joint facility—Dr.

Total

Total railway operating revenues

$3,979,882 27 $3,487,743 66 $492,138 61 1,378 50 1,288 50 90 00

632,721 22 640,786 00 59,855 01 56,339 20 3,515 81

576,178 65 448,077 39 128,101 26 24,703 84 22,732 45 1,971 39

1,363,315 13 742,235 95 621,079 18 7,357 88 6,559 40 798 48

266,700 25 170,902 08 95,798 17 1,632,697 68 1,628,669 93 4,027 75 1,619,049 35 1,576,654 14 42,395 21 4,408,810 55 3,648,223 64 760,586 91

706,622 51 626,602 23 80,020 28 568,508 80 554,985 80

80,020 28

$14,710,764 04 $12,501,828 77 $2,208,935 27

$447,789,655 19 $370,545,874 82 $77,243,780 37

$8,064 78

13.523 00

DETAIL OF RAILWAY OPERATING EXPENSES

M A I N T E N A N C E OF WAY A N D STRUCTURES

Superintendence Roadway maintenance Tunnels and subways Bridges, trestles and culverts Elevated structures Ties Rails Other track material Ballast Track laying and surfacing Fences, snowsheds and signs Station and office buildings Roadway buildings

$3,666,638 05 $3,422,060 48 $244,577 .57 3,606,407 52 2,706,025 11 900,382 41

99,058 65 108,295 55 900,382

1,330,335 92 1.141,843 86 188,492 06 141,137 11 130,999 68 10,137 43

4,445,583 73 3,460,906 78 984,676 95 1,429,143 96 1,285,062 97 144,080 99 3,711,000 66 3,293,202 74 417,797 92 1,414,535 27 924.411 14 490.124 13

13,009,973 59 8,537,942 10 4,472,031 49 237,846 45 225,761 69 12,084 70

2,882,378 78 2,154,568 75 727,810 03 284,043 94 159,768 30 124,275 til

Carried forward $30,258,083 63 $27,550,849 15

28

Annual Report

DETAIL OF RAILWAY OPERATING EXPENSES (continued)

M A I N T E N A N C E OF W A Y A N D S T R U C T U R E S (concluded)

1941 1940 Increase Decrease Brought forward $36,258,083 63 $27,550,849 15

Water stations 598,852 01 421,276 39 $177,575 62 Fuel stations 245,528 35 240,806 77 4,721 58 Shops and enginehouses 1,697,853 17 1,500,890 56 196,962 61 Grain elevators 21,112 77 22,682 24 $1,569 47 Storage warehouses 1,769 65 2,826 66 1,057 01 Wharves and docks 41,660 15* 236,551 05 278,211 20 Coal and ore wharves 267,739 47 272,081 34 4,341 87 Telegraph and telephone lines 471,957 44 422,905 07 49,052 37 Signals and interlockers 4,350,278 47 3,733,380 07 616,898 40 Power plants 56,989 63 48,114 52 8,875 11 Power transmission systems 780,092 40 645,252 37 134,840 03 Miscellaneous structures 20,590 07 16,819 38 3,770 69 Roadway machines 727,536 94 623,681 93 103,855 01 Small tools and supplies 936,035 48 775,940 87 160,094 61 Removing snow, ice and sand 983,496 92 1,782,448 05 798,951 13 Public improvements—maintenance 658,852 40 579,372 04 79,480 36 Injuries to persons 391,245 42 351,220 11 40,025 31 Insurance 303,783 22 302,960 05 823 17 Stationery and printing 44,519 98 35,327 83 9,192 15 Other expenses 29,775 34 20,045 74 9,729 60 Maintaining joint tracks, yards and other facilities-- D r . 1,938,804 74 1,692,719 42 246,085 32 Maintaining joint tracks, yards and other facilities-- C r . 2,125,619 63 1,845,305 10 280,314 53 Right of way expenses 31,545 23 21,748 50 9,796 73 Road property—depreciation 4,506,911 00 — 4,506,911 00

Total $53,156,073 95 $39,454,595 01 $13,701,478 94

M A I N T E N A N C E OF E Q U I P M E N T

Superintendence $2,583,358 17 $2,504,589 47 $78,768 70 Shop machinery 1,909,792 85 1,602,432 21 307,360 64 Power plant machinery 378,305 41 397,933 03 $19,627 62 Power plant machinery—depreciation 254,133 00 — 254,133 00 Steam locomotives—repairs 31,988,216 66 27,106,062 20 4,882,154 46 Other locomotives—repairs 996,670 07 912,633 85 84,036 22 Freight-train cars—repairs 22,938,425 01 17,387,755 84 5,550,669 17 Passenger-train cars—repairs 8,944,036 68 8,311,921 56 632,115 12 Floating equipment—repairs 1,125,587 98 1,348,358 33 222,770 35 Work equipment—repairs 1,119,893 01 921,276 24 198,616 77 Miscellaneous equipment—repairs 49,162 72 45,738 31 3,424 41 Equipment—retirements 61,860 61 243,582 97 181,722 36 Equipment—depreciation 18,240,005 29 15,989,969 39 2,250,035 90 Injuries to persons 454,769 96 509,815 89 55,045 93 Insurance 257,530 87 239,239 60 18,291 27 Stationery and printing 79,705 93 64,141 96 15,563 97 Other expenses 668,165 61 12,926 55 655,239 06 Maintaining joint equipment—Dr. 580,476 98 538,795 74 41,681 24 Maintaining joint equipment—Cr. 175,528 95 147,439 90 28,089 05

Total $92,454,567 86 $77,989,733 24 $14,464,834 62

* Credi t

29


DETAIL OF RAILWAY OPERATING EXPENSES (continued)

T R A F F I C Superintendence Outside agencies Advertising Traffic associations Fast freight lines Industrial and immigration bureaus Insurance Stationery and printing Other expenses

Total

1941 $2,834,660 75 2,421,253 61

679,675 26 249,266 70

735 66 108,473 58

733 99 368,651 40

4,307 25

$6,667,758 20

1940 $2,799,752 61 2,353,597 47

663,972 13 213,717 36

522 66* 175,397 61

1,158 53 386,155 81

3,361 22

$6,596,590 08

Increase $34,908 14 67,656 14 15,703 13 35,549 34

1,258 32

946 03

$71,168 12

Decrease

$66,924 03 424 54

17,504 41

TRANSPORTATION Superintendence Dispatching trains Station employees Weighing, inspection and demurrage bureaus Coal and ore wharves Station supplies and expenses Yardmasters and yard clerks Yard conductors and brakemen Yard switch and signal tenders Yard enginemen Yard motormen Yard switching fuel Y'ard switching power produced Yard switching power purchased Water for yard locomotives Lubricants for yard locomotives Other supplies for yard locomotives Enginehouse expenses—yard Y?ard supplies and expenses Operating joint yards and terminals—Dr. Operating joint yards and terminals—Cr. Train enginemen Train motormen Train fuel Train power produced Train power purchased Water for train locomotives Lubricants for train locomotives Other supplies for train locomotives Enginehouse expenses—train Trainmen Train supplies and expenses Signal and interlocker operation Crossing protection Drawbridge operation Telegraph and telephone operation Operating floating equipment Stationery and printing Other expenses Operating joint tracks and facilities—Dr. Operating joint tracks and facilities—Cr. Insurance Clearing wrecks Damage to property Damage to live stock on right of way Loss and damage—freight Loss and damage—baggage Injuries to persons

Total

$4,114,496 47 1,052,909 69

22,970,732 47 329,042 95

1,500,530 72 1,967,677 72 5,963,393 53

14,783,278 43 1,962,053 32 8,489,566 20 1,509,195 56 3,552,342 27

39,913 65 152,122 52 470,506 74 110,389 63 130,851 29

2,052,754 81 504,928 18

4,520,558 18 1,807,125 41

16,024,768 22 827,615 40

18,208,944 81 197,185 64 757,132 82

1,862,123 13 737,524 74 281,623 96

4,300,607 21 20,061,474 30 7,858,065 75 3,675,841 11 1,889,868 50

174,366 50 576,788 40

4,585,741 35 668,564 15 174,577 49

1,051,510 23 1,104.963 25

157,896 09 293,336 45 223,400 79

15,860 65 1,639,874 06

30,279 18 2,916,453 73

$3,667,993 71 986,022 48

18,935,824 57 325.767 33

1,311,533 80 1,669,467 54 5,257,260 12

12,300,713 33 1,774,769 33 7,146,064 23 1,201,083 27 2,907,083 85

39,210 12 144,810 16 432,784 07 88,687 09

106.768 00 1,783,572 34

461,208 92 4,014,149 70 1,659,899 82

13,999,304 16 784,917 60

15,017,822 54 191,815 71 729,580 04

1,775,691 98 643,963 45 240,055 35

3,812,786 03 17,393,916 20 6,913,003 77 3,407,183 21 1,809,380 82

166,469 43 520,886 87

3,722,486 86 576,824 71 164,913 59

1,016,811 75 1,069,222 69

254,074 81 226,143 75 241,657 30

11,844 41 1,278,646 65

33,176 73 2,739,300 63

$162,457,180 33 $139,498,309 80

$446,502 76 66,887 21

4,034,907 90 3,875 62

188,996 92 298,210 18 706,133 41

2,482,565 10 187,283 99

1,343,501 97 308,112 29 645,258 42

703 53 7,312 36

37,722 67 21,702 54 24,083 29

269,182 47 43,719 26

506,408 48

2,025,464 06 42.697 80

3,191,122 27 5,369 93

27,552 78 86,431 15 93,561 29 41,568 61

487,821 18 2,667,558 10

945,061 98 268,657 90 80,487 68 7,897 07

55,901 53 863,254 49 91,739 44 9,663 90

34.698 48

67,192 70

4,016 24 361,227 41

177,153 10

$22,958,870 53

$147,225 59

35,740 56 96,178 72

18,256 51

2,897 55

* Credit

30

Annual Report

DETAIL OF RAILWAY OPERATING EXPENSES (concluded)

M I S C E L L A N E O U S OPERATIONS 1941 1940 Increase Decrease

Dining and buffet service $5,325,075 85 $4,584,327 78 $740,748 07 Hotels and restaurants 390 30 365 33 -24 97 Grain elevators 198,770 17 117,538 23 81,231 94 Producing power sold 813,589 48 788,792 13 24,797 35 Other miscellaneous operations 13,211 98 19,504 45

Total $6,351,037 78 $5,510,527 92 $840,509 86

G E N E R A L

Salaries and expenses of general officers $982,579 44 $970,414 50 $12,164 94 Salaries and expenses of clerks and attendants 6,781,722 83 6,400,562 18 381,160 65 General office supplies and expenses 546,651 25 525,332 31 21,318 94 Law expenses 1,012,904 65 1,000,020 34 12,884 31 Insurance 8,467 96 8,875 99 $408 03 Pensions 393,788 62 233,802 21 159,986 41 Stationery and printing 296,440 70 231,542 37 64,898 33 Valuation expenses 779 08 1,151 96 372 88 Other expenses 399,621 38 266,514 96 133,106 42 General joint facilities—Dr. 116,593 12 108,883 93 7,709 19 General joint facilities—Cr. 77,020 68 66,776 20 10,244 48

Total

T R A N S P O R T A T I O N FOR I N V E S T M E N T — C R .

Total railway operating expenses

$10,462,528 35 $9,680,324 55 $782,203 80 Total


Total railway operating expenses

$111,035 22 $55,100 93 $55,934 29

Total


Total railway operating expenses $331,438,111 25 $278,674,979 67 $52,763,131 58

RATIO OF R A I L W A Y O P E R A T I N G E X P E N S E S , B Y GROUPS, TO R A I L W A Y O P E R A T I N G R E V E N U E S

Maintenance of way and structures Maintenance of equipment Traffic Transportation Miscellaneous operations General

Transportation for investment—Cr.

Total 74-02 7521

UNITED STATES GOVERNMENT Income (normal, surtax and excess profits) Capital stock Emergency revenue Railroad retirement excise Railroad unemployment insurance

RAILWAY TAX ACCRUALS 1941

$7,592,387 69 585,000 00

49,235 64 6,360,249 59 6,369,038 51

Total $20,955,911 43

1940 $1,063,207 57

156,779 40 36,413 24

5,389,591 94 5,402,469 79

$12,048,461 94

Comparison $6,529,180 12 Inc

428,220 60 Inc 12,822 40 Inc

970,657 65 Inc 966,568 72 Inc

$8,907,449 49 Inc


RAILWAY TAX ACCRUALS (continued)

STATE, COUNTY, AND MUNICIPAL

Real and personal property Special franchise Gross earnings or income Capital stock Transportation privilege Sales, excise, liquor, and sundry others Railroad Commissioners' assessments Motor vehicle license Workmen's compensation Public Service Commission assessments Use of public streets

1941

$18,790,400 42 1,231,954 24

867,200 07 403,066 14

70,273 76 20,329 30

7,198 72 6,573 73 5,772 42 1,669 83

375 26

1940

$19,873,092 07 1,148,948 20 1,082,798 26*

359,989 44 50,034 02

163,418 01 6,572 96 6,071 7 8 0

13,556 9 8 0 1,646 31

998 90

Comparison $1,082,691 65 Dec

83,006 04 Inc 1,950,058 33 Inc

43,076 70 Inc 20,239 74 Inc

143,088 71 Dec 625 76 Inc 501 95 Inc

7,784 56 Dec 23 52 Inc

623 64 Dec

Total $21,404,873 89 $20,541,530 4 1 0 $863,343 48 Inc

FOREIGN Canadian income (normal and excess profits) Canadian real and personal property Canadian—other Mexican income

$838,184 74 144,600 16

66,612 74 1,645 80

$667,613 90 151,471 29 66,061 5 8 0

879 63

$170,570 84 Inc 6,871 13 Dec

551 16 Inc 766 17 Inc

Total $1,051,043 44 $886,026 4 0 0 $165,017 04 Inc

Grand total * Credit.

$43,411,828 76 $33,476,018 75 $9,935,810 01 Inc

0 Revised for purposes of comparison.

OTHER TAX ACCRUALS MISCELLANEOUS OPERATING PROPERTY

United States Government—Income and other State, County, and Municipal

$40,400 93 67,034 28

$12,748 88 64,214 96

$27,652 05 Inc 2,819 32 Inc

Total $107,435 21 $76,963 84 $30,471 37 Inc

MISCELLANEOUS T A X ACCRUALS State, County, and Municipal $503,897 65 $509,854 19 $5,956 54 Dec

HIRE OF EQUIPMENT ACCOUNT PAID 1941 1940 Comparison

Locomotives Passenger-train cars Freight-train cars Rent for floating equipment Work equipment

$217,457 82 1,959,688 89

31,699,019 14 720,561 39

28,762 50

$178,480 16 2,177,287 69

25,046,434 07 506,082 38

19,015 36

$38,977 66 Inc 217,598 80 Dec

6,653,185 07 Inc 214,479 01 Inc

9,747 14 Inc

Total RECEIVED

Locomotives Passenger-train cars Freight-train cars Floating equipment Work equipment

$34,626,089 74 $27,927,299 66 $6,698,790 08 Inc Total RECEIVED

Locomotives Passenger-train cars Freight-train cars Floating equipment Work equipment

$239,801 07 904,289 83

20,602,812 55 1,608 72

109,929 47

$165,786 22 761,101 00

15,275,609 77 2,173 55

86,341 25

$74,014 85 Inc 143,188 83 Inc

5,327,202 78 Inc 564 83 Dec

23,588 22 Inc

Total $21,858,441 64 $16,291,011 79 $5,567,429 85 Inc

Net debit balance $12,767,648 10 $11,636,287 87 $1,131,360 23 Inc

JOINT FACILITY RENT ACCOUNT

Amount paid for use of facilities maintained by other companies Amount received for use of facilities maintained by this company

1941 $7,787,360 21

5,034,059 18

1940 $7,675,239 93

4,969,088 43

Comparison $112,126 28 Inc

64,970 75 Inc

Net debit $2,753,307 03 $2,706,151 50 $47,155 53 Inc

:Y2

Annual Report

Separately operated properties

Pittsburgh, McKeesport and Youghiogheny Railroad, this Company's proportion, one-half, of profit Federal Valley Railroad—profit Mackinac Transportation Company—profit Owasco River Railway—profit

Central Indiana Railway—loss

Net profit on separately operated properties

$1,704,074 32 15,481 07 14,248 19 1,132 75 $1,734,936 33

4,312 51

$1,730,623 82

Dividend income

The Canada Southern Railway Co. Cherry Tree and Dixonville R. R. Co. The Cincinnati Union Terminal Co. Detroit Manufacturers R. R. Detroit River Tunnel Co. Detroit Terminal R. R. Co. The Hudson River Connecting R. R. Corp. Indiana Harbor Belt R. R. Co. The Indianapolis Union Railway Co. Joliet and Northern Indiana R. R. Co. The Lake Erie, Alliance & Wheeling R. R. Co. The Mahoning Coal R. R. Co. Merchants Despatch Transportation Corp. The New York and Harlem R. R. Co. The Pittsburgh and Lake Erie R. R. Co. The Pittsfield and North Adams R. R. Corp. Reading Co. The Toledo Terminal R. R. Co. The Toronto, Hamilton and Buffalo Railway Co. Union Depot Co. (Columbus, Ohio) The Wallkill Valley R. R. Co. Other companies' stock

T O T A L

1941 $250,347 00

10,000 00 30,000 00 8,865 00

240,000 00 40,000 00 15,000 00

684,000 00 70,000 00

410 96

674,752 50 787,500 00 687,050 00

2,603,904 00 3,610 00

1,137,100 00 29,040 00

159,650 00 2,983 90

11,550 00 67,908 90

1940 $250,347 00

10,000 00 30,000 00 8,865 00

240,000 00 50,000 00 15,000 00

638,400 00 70,000 00 15,000 00

110,000 00 721,082 50

687,050 00 2,386,912 00

3,610 00 1,137,100 00

29,040 00 159,650 00

2,983 90 11,550 00 2,449 76

Increase

$45,600 00

787,500 00

216,992 00

65,459 14

Decrease

$10,000 00

14,589 04 110,000 00 46,330 00

$7,513,672 26 $6,579,040 16 $934,632 10

Income from funded securities 1941 1940 Increase Decrease

Beech Creek Extension R. R. Co. 4% consolidated mortgage bonds—1955 $158,560 00 $158,560 00 Boston and Albany R. R. Co.:

43^% first mortgage bonds, series B—1948 135,675 00 135,675 00 6% refunding bonds—1946 270,000 00 270,000 00

Cherry Tree and Dixonville R. R. Co. 43^% first mortgage bonds, series A—1966 27,225 00 27,225 00

The Lake Erie and Pittsburg Railway Co.: 4J^% first mortgage bonds—1965 78,255 00 78,255 00 5% first mortgage bonds—1965 3,423 61 3,550 00 $126 39

The Cleveland, Cincinnati, Chicago and St. Louis Railway Co. 4J^% refunding and improvement mortgage bonds, series F—1964 1,306,800 00 1,306,800 00

The Michigan Central R. R. Co. 4lA% refunding and improvement mortgage bonds, series A—1947 277,695 00 277,695 00

Railway Express Agency—Notes and advances 118,124 59 106,764 57 $11,360 02 The Cleveland Union Terminals Company—Advances 1,252,983 46 1,229,514 32 23,469 14 Union Depot Company (Columbus, Ohio)—Advances 15,866 10 15,866 10 The Peoria and Eastern Railway Co.:

4% first consolidated mortgage bonds—1960 2,777 50 3,350 00 572 50 Open account, etc. 73,389 80 46,640 97* 120,030 77

Clearfield Bituminous Coal Corporation—Advances 105,000 00 105,000 00 The Pittsburgh, McKeesport and Youghiogheny R, R. Co.—Notes 18,000 00 18,000 00 Sahara Coal Co. 5% note 5,129 88 5,695 34 565 46 The Toledo and Ohio Central Railway Co. 3%% refunding and

improvement mortgage bonds, series A—1960 77,512 50 77,512 50 Railroad Credit Corporation 6,822 94 1,902 06 4,920 88 The Chicago River and Indiana R. R. Co.—Advances 11,254 79 15,825 14 4,570 35 The Securities Corporation of the New York Central Railroad 111,357 00 187,687 10 76,330 10 The Kalamazoo, Allegan and Grand Rapids R. R. Co. 5% first

mortgage bonds—1968 42,000 00 42,000 00 Louisville & Jeffersonville Bridge and R. R. Co.—Advances 87,042 08 87,042 08 Miscellaneous 44,773 46 12,050 80 32,722 66

T O T A L $4,229,667 71 $4,032,286 90 $197,380 75

* Debit.

33


FIXED CHARGES

Interest on funded debt

MORTGAGE BONDS

N Y C & H R R R C J o gold debentures Gouverneur & Oswegatchie Railroad Co first mortgage Indiana Illinois & Iowa Railroad Co first mortgage Chicago Indiana & Southern Railroad Co fifty-year gold Jamestown Franklin & Clearfield Railroad Co first mortgage N Y C & H R R R Co—Spuyten Duyvil & Port Morris first mortg Cleveland Short Line Railway Co first mortgage Carthage & Adirondack Railway Co first mortgage Sturgis Goshen & St Louis Railway Co first mortgage Mohawk & Malone Railway Co first mortgage New York & Putnam Railroad Co first consolidated mortgage Lake Shore & Michigan Southern Railway Co gold mortgage N Y C & H R R R Co gold mortgage N Y C & H R R R Co—Lake Shore collateral goldt N Y C & H R R R Co—Michigan Central collateral gold N Y C R R Co consolidation mortgage, series A Mohawk & Malone Railway Co consolidated mortgage N Y C R R Co refunding and improvement mortgage, series A N Y C R R Co refunding and improvement mortgage, series Cf

4% 5% 4% 4% 4% 3V2% m% 4% 3% 4% 4%

m% 314% 3V2% 3V2% 4% 314% 4Vi% 5%

$293,597 66 15,000 00

194,000 00 606,000 00 440,000 00 87,500 00

531,000 00 44,000 00 9,660 00

100,000 00 159,280 00

1,750,000 00 3,290,000 00

742,898 34 676,700 00

2,767,240 21 136,500 00

5,168,396 25 3,849,687 50 $20,861,519 96

EQUIPMENT TRUST OBLIGATIONS

Equipment trust certificates of April 15, 1929 Equipment trust certificates of December 1, 1929 Equipment trust certificates of May 15, 1930 Equipment trust certificates of March 15, 1937 Equipment trust certificates of December 1, 1939 Equipment trust certificates of June 1, 1940 Equipment trust certificates of February 15, 1941 Equipment trust certificates of July 15, 1941

4Y2% $162,937 50 4Y2% 131,287 50 4Y2% 187,425 00 2H% 72,125 62 zy2% 200,625 00 2% 195,867 00 ik% 171,461 79 2 M % 147,187 50 1,268,916 91

COLLATERAL TRUST BONDS

N Y C R R Co—serial secured notes 2J^-2.6% $19,500 00 N Y C R R Co—promissory secured notes—various banks 2-Z-3)4% 556,274 52 N Y C R R Co—ten-year secured sinking fund 3%% 1,209,376 31 N Y C R R Co—fifteen-year secured 3 M % 1,301,079 00 3,086,229 83

DEBENTURE BONDS

N Y C & H R R R Co of 1900 3J^% 192,500 00

Total interest on funded debt $25,409,166 70 t Interest accrued only on amount actually outstanding

Rent for leased roads and equipment

B A T T L E C R E E K & STURGIS R A I L W A Y

Interest at 3% on first mortgage bonds

B E E C H C R E E K RAILROAD

Dividend at 4% on 120,000 shares of capital stock ($50 par value) Organization expenses

B E E C H C R E E K EXTENSION RAILROAD

Interest at 3)4% on $3,500,000 first mortgage bonds Interest at 4% on $3,964,000 consolidated mortgage gold bonds Organization expenses

$240,000 00 650 23

$1,296 71

240,650 23

$122,500 00 158,560 00

220 04 281,280

Carried forward $523,226 98

34

Annual Report FIXED CHARGES (continued)

Rent for leased roads and equipment (continued) Brought forward $523,226 98

BOSTON AND A L B A N Y RAILROAD

Interest at 334% on $3,858,000 Refunding bonds of 1902 $135,030 00 Interest at 5% on $3,627,000 Refunding bonds of 1913 181,350 00 Interest at 334% on $1,000,000 Terminal bonds 35,000 00 Interest at 5% on $1,000,000 Improvement bonds of 1917 50,000 00 Interest at 4 M % on $5,700,000 Improvement bonds of 1928 242,250 00 Interest at 6% on $4,500,000 Refunding bonds of 1934 270,000 00 Interest at 4J4% on $9,000,000 main line first mortgage bonds of 1935, series A 405,000 00 Interest at 4J4% on $3,015,000 main line first mortgage bonds of 1938, series B 135,675 00 Cash rental 2,000,000 00 Organization expenses 12,155 25 $3,466,460 25

P l T T S F I E L D A N D N O R T H A D A M S R A I L R O A D

Cash rental $22,500 00 Organization expenses 168 45 22,668 45

W A R E R I V E R RAILROAD

Dividend at 7% on 7,500 shares of capital stock $52,500 00 Organization expenses 185 06 52,685 06

PROVIDENCE WEBSTER AND SPRINGFIELD RAILROAD

25% of the gross earnings for the year ended December 31, 1941 4,282 08

Total rent for Boston and Albany and its leased roads

BIG FOUR LINES C L E V E L A N D CINCINNATI CHICAGO AND ST LOUIS R A I L W A Y

Interest at 4 % on $28,579,000 General mortgage gold bonds Interest at 5% on $4,161,000 General mortgage gold bonds Interest at 434% on $43,706,000 Refunding and improvement mortgage bonds,

series E Interest at 434% on $29,040,000 Refunding and improvement mortgage bonds,

series F Interest at 4% on $4,000,000 Cincinnati Wabash & Michigan Division mortgage

bonds Interest at 4% on $3,000,000 Chicago Indianapolis & St Louis Short Line Railway

First mortgage bonds Interest at 4% on $7,536,000 St Louis Division First collateral trust mortgage

bonds Interest at 4% on $419,000 Cincinnati Northern Railroad first mortgage bonds Dividend at $10 per share on minority common capital stock Dividend at $5 per share on minority preferred capital stock Organization expenses

$1,143,160 00 208,050 00

1,966,770 00

1,306,800 00

160,000 00

120,000 00

304,641 00 16,760 00 71,211 00 74,095 00

5,359 40

C E N T R A L RAILROAD OF INDIANAPOLIS Cash rental 9.106 56

PEORIA AND EASTERN R A I L W A Y Under operating contract 496,105 70

Total rent for Cleveland Cincinnati Chicago and St Louis Ry and its leased and operated roads 5,882,058

Carried forward

35


FIXED CHARGES (continued)

Rent for leased roads and equipment (continued)

DETROIT H I L L S D A L E AND SOUTH WESTERN RAILROAD Dividend at 4 % on 13,500 shares of capital stock Organization expenses

E R I E AND KALAMAZOO RAILROAD Cash rental

FORT W A Y N E AND JACKSON RAILROAD Cash rental Organization expenses

HUDSON R I V E R CONNECTING RAILROAD Dividend at 6 % on 2,500 shares of capital stock Organization expenses

KALAMAZOO A L L E G A N & G R A N D RAPIDS RAILROAD Interest at 5 % on $840,000 first mortgage bonds Dividend at 6 % on 6,100 shares of capital stock Organization expenses

L A K E E R I E A L L I A N C E & W H E E L I N G RAILROAD Organization expenses

M A H O N I N G C O A L RAILROAD 4 0 % of the gross earnings for the year ended December 31, 1941

Brought forward

$54,000 00 500 00

$126,027 88 1,500 00

$15,000 00 5 50

$42,000 00 36,600 00

37 50

$9,951,381 48

54,500 00

30,000 00

127,527 88

15,005 50

78,637 50

40 00

2,172,230 77

M I C H I G A N C E N T R A L LINES MICHIGAN C E N T R A L RAILROAD

Interest at 3H% on $18,000,000 first mortgage bonds Interest at 4)4% on $6,171,000 refunding and improvement mortgage bonds

series A Interest at 4 K % on $11,634,000 refunding and improvement mortgage bonds

series C Interest at 4 % on $1,500,000 Grand River Valley Railroad first mortgage bonds Interest at 3)4% on $1,692,000 Jackson Lansing and Saginaw Railroad first

mortgage bonds Interest at 4 % on $1,500,000 Joliet and Northern Indiana Railroad first

mortgage bonds Interest at 3 % oh $49,000 Bay City and Battle Creek Railway first

mortgage bonds Interest at 4 % on $3,100,000 Toledo Canada Southern and Detroit Railway

first mortgage bonds Dividend at $50 per share on Michigan Central Railroad minority stock Organization expenses

B A T T L E C R E E K & STURGIS R A I L W A Y Interest at 3 % on first mortgage bonds Organization expenses

CANADA SOUTHERN R A I L W A Y Interest at 5 % on $29,235,000 first and refunding mortgage bonds Interest at 4 % on $130,000 Leamington and St Clair Railway first mortgage bonds Dividend at 3 % on 150,000 shares of capital stock Organization expenses

DETROIT MANUFACTURERS RAILROAD Cash rental Organization expenses

DETROIT R I V E R T U N N E L Interest at 4 ) 4 % on $18,000,000 first mortgage bonds Cash rental Organization expenses

JOLIET AND NORTHERN INDIANA RAILROAD Dividend at 5 % for ten days on 3,000 shares of capital stock Organization expenses

NIAGARA R I V E R BRIDGE Organization expenses

Carried forward

$630,000 00

277,695 00

523,530 00 60,000 00

59,220 00

60,000 00

1,470 00

124,000 00 52,050 00 3,483 00 $1,791,448 00

$11,587 94 334 20 11,922 14

$1,461,750 00 5,200 00

450,000 00 904 85 1,917,854 85

$15,000 00 502 00

$810,000 00 240,000 00

349 75

$410 96 80 00

15,502 00

1,050,349 75

490 96

17 50

$4,787,585 20 $12,429,323 13

36

Annual Report FIXED CHARGES (concluded)

Rent for leased roads and equipment (concluded) Brought Forward

M I C H I G A N C E N T R A L L I N E S (continued)

L A N S I N G M A N U F A C T U R E R S RAILROAD—Organization expenses L A N S I N G TRANSIT RAILWAY—Organization expenses ST C L A I R & W E S T E R N RAILROAD—Organization expenses ST JOSEPH SOUTH B E N D AND SOUTHERN RAILROAD

Cash rental CHICAGO K A L A M A Z O O AND SAGINAW RAILWAY—Organization expenses

ILLINOIS C E N T R A L RAILROAD Rental of 16th St property

T O T A L RENT FOR M I C H I G A N C E N T R A L RAILROAD AND ITS LEASED ROADS

N E W J E R S E Y JUNCTION RAILROAD Interest at 4% on $1,700,000 first mortgage bonds Organization expenses

N E W Y O R K AND H A R L E M RAILROAD Interest at 334% on $12,000,000 gold mortgage bonds Dividend at 10% on 200,000 shares of capital stock ($50 par value) Organization expenses

$4,787,585 20 $12,429,323 13

2 00 2 00 2 00

20,000 00 2 00

46,648 20

$68,000 00 262 89

$420,000 00 1,000,000 00

604 54

OHIO C E N T R A L L I N E S T O L E D O A N D OHIO C E N T R A L R A I L W A Y

Interest at 4% on $456,000 first mortgage bonds, St Mary's Division Interest at 3%% on $14,567,000 refunding and improvement mortgage bonds, series A Kanawha and Michigan first mortgage bonds Organization expenses

Total rent for the Ohio Central Lines ST L A W R E N C E & ADIRONDACK R A I L W A Y

Interest at 5% on $800,000 first mortgage bonds Interest at 6% on $400,000 second mortgage bonds Cash rental for line leased from Canadian National Railways Organization expenses

T R O Y AND G R E E N B U S H RAILROAD Rental at 7% on 5,500 shares of capital stock ($50 par value)

W A L L K I L L V A L L E Y RAILROAD Dividend at 334% on 3,300 shares of capital stock Organization expenses

W E S T SHORE RAILROAD Interest at 4% on $47,686,000 first mortgage bonds Organization expenses

VARIOUS COMPANIES for siding, team and yard tracks R E N T FOR L E A S E D E Q U I P M E N T

Total rent for leased roads and equipment •Includes $6,600.67 account of Mich igan Centra l Lines N O T E : The company received a return of S4,160,093.38 representing dividends and interest on jtB holdings of securities of lessor companies

$18,854 34 546,262 50

98,760 00 939 60

$40,000 00 24,000 00 10,000 00

104 00

$11,550 00 39 10

$1,946,681 53 1,040 03

11,589 10

$22,077,464 04

EQUIPMENT IN SERVICE

I N C L U D I N G E Q U I P M E N T O F L E A S E D L I N E S

D E C E M B E R 31, 1940 D E C E M B E R 31, 1941

Locomotives For freight service For passenger service For freight and passenger service For switching service Electric locomotives Oil-battery-electric locomotives

Totals

Average Held under tractive Installed Retired H e l d under lease or

power during during equipment other form Number (lbs) 1941 1941 Number Owned trusts of titles

1,649 60,011 13 10 1,652 945 208 499 569 45,854 — 1 568® 271 179 118 27 61,156 — — 27 — 27 —

933 43,348 — 1 932 590 — 342 146 56,106 — — 146 92 42 12 79 57,362 36 — 115 4 82 29

3,403 — 49 12 3,440 1,902 538 1,000

37


EQUIPMENT IN SERVICE (concluded)

I N C L U D I N G E Q U I P M E N T O F L E A S E D L I N E S

D E C E M B E R 31, 1940 D E C E M B E R 31, 1941

Marine Department Ferry boats Tugs, steel Steam-lighters Diesel propelled lighter Hoisting-barges Barges, scows and grainboats Car floats Oil storage barges for company use Coal and pumping barge

Totals (owned)

) Includes 15 streamlined units. ) Includes 435 air-conditioned units.

D E C E M B E R 31, 1940 D E C E M B E R 31, 1941 Average Average capacity capacity

9 — 1 8 26 — — 26 4 350 tons — — 4 350 tons 1 450 tons — — 1 450 tons

38 253 tons — 17 21 305 tons 142 269 tons 23 — 165 269 tons 45 14 cars — — 45 14 cars

3 5,000 bbls. — — 3 5,000 bbls. 1 150 tons — — 1 150 tons

269 23 18 274

i Includes 3 air-conditioned units. ) Air-conditioned units.

) Includes 175 air-conditioned units. ) Air-conditioned units.

He ld under Average Installed Retired Held undei • lease or Average

Freight-train cars Number capacity

tons during 1941

during 1941 Number Owned

equipment trusts

other form of titles

capacity tOUB

Box cars 61,332 4989 2,000 1,309 62,023 27,316 6,827 27,880 51-04 Refrigerator cars 204 3500 — 5 199 171 — 28 3500 Flat cars 2,150 4944 227 70 2,307 1,578 500 229 51-97 Stock cars 1,476 3995 34 139 1,371 1,007 — 364 4000 Gondola and hopper cars 59,052 57-70 100 458 58,694 26,891 8,086 23,717 57-76 Caboose cars 1,816 — 1 25 1,792 1,098 — 694 — Other freight train cars 1,270 6530 — — 1,270 934 — 336 6530

Totals 127,300 — 2,362 2,006 127,656 58,995 15,413 53,248 —

Average Average

Passenger-train cars seating

capacity seating

capacity Coaches 1,552 84 107 17 1,642® 1,168 84 390 84 Combination coach cars 208 44 — 3 205© 133 10 62 44 Parlor cars — — 6 — 6 ® — 6 — 30 Dining cars 182 — 4 — 186® 114 24 48 — Lounge observation cars 2 — 5 — 7® 2 4 1 — Postal cars 266 — 2 5 263 182 2 79 — Baggage, express and other non-passenger cars 1,793 — 19 8 1,804 1,367 99 338 — Other passenger cars 49 — 2 2 49 21 — 28 —

Passenger Rail Motor Cars Coaches 330 83 — — 330 330 — — 83 Combination coach cars 28 52 — — 28 28 — — 52 Other passenger-train rail motor cars 17 — — — 17 10 — 7 —

Articulated Trains Coaches 8 57 — — 8 8 — — 57 Combination coach cars 4 36 — — 4 4 — — 36 Parlor cars 6 33 — — 6 6 — — 33 Other passenger-train cars 2 — — — 2 2 — — —

Totals 4,447 145 35 4,557 3,375 229 953 —

Company service equipment Officers' and business cars 24 — — 3 21 14 — 7 — Ballast cars 1,934 — — 148 1,786 1,452 — 334 — Derrick cars 252 — 4 — 256 191 — 65 — Steam shovels 18 — — 1 17 17 — — — Wrecking cars 211 — 3 — 214 146 — 68 — Other company service cars 4,532 — 279 187 4,624 3,949 — 675 —

Totals 6,971 — 286 339 6,918 5,769 - 1,149 —

38

Annual Report

TABLE OF TRACKS

D E C E M B E R 31, 1941

MAIN LINE OWNED New York Central Railroad

BRANCHES OWNED 30th Street Branch Putnam Branch Yonkers Branch Schenectady Detour Branch Troy & Schenectady Branch Hoffman's Connection Branch Dolgeville Branch Adirondack Branch Saranac Branch Ottawa Branch Ogdensburg Branch Clayton Branch Rome Branch Syracuse Junction Branch Watertown Branch Phoenix Branch Ontario Branch Rochester Branch Sackets Harbor Branch Cape Vincent Branch Dexter Branch Carthage Branch Sanfords Branch Oswegatchie Branch St Joseph Lead Branch DeKalb Branch Auburn Branch Canandaigua Branch

Lyons-Newbury Branch

Penn Yan Branch Corning Branch Cowanesque Valley Branch Antrim Branch Falls Branch Charlotte Branch Attica Branch Tonawanda Branch Gardenville Branch Buffalo Belt Branch Niagara Branch Wonalancet Branch Dupont Branch Catskill Mountain Branch Valley Branch

Youngstown Branch Oil City Branch

Clearfield Branch Low Grade Line Cleveland Short Line Norwalk Branch Detroit Branch

Old Road

F R O M

Mott Haven. N.Y..1 W of State Line sta.

E of East Side Chicago

Total main line owned

Spuyten Duyvil St. John's Park Sedgwick Ave., New York . . . Putnam Jet. V. C. P. Junction.. Getty Square, Y'onkers Carman South Schenectady Schenectady Troy Hoffman's Rotterdam Junction Little Falls Salisbury Center Herkimer Malone Lake Clear Junction Saranac Lake Helena International Boundary Utica Ogdensburg Rivergate Clayton Rome Richland East Syracuse Syracuse Junction Syracuse (Signal Station J. G.). . .Massena Woodard Fulton Pulaski Suspension Bridge Windsor Beach State St., Rochester Watertown Junction Sackets Harbor Watertown Junction Cape Vincent Dexter Junction Dexter Watertown Newton Falls Main St, Watertown Roots G & O Junction Edwards Emeryville Balmat DeKalb Junction Ogdensburg . Syracuse Junction Brighton, Rochester Canandaigua Holcomb Batavia Caledonia Lyons 205' S of Lawrenceville S of Lawrenceville Newberry Junction Dresden Penn Yan Corning Junction Corning C V Junction Westfield Wellsboro Junction Antrim Ames St Jet, Roeh Suspension Bridge Jay St Jet, Rochester Charlotte At Attica Batavia North Tonawanda Depew Bay View William St, Buffalo.North Buffalo Junction Seneca St, Buffalo Lewiston North Buffalo Junction Harriet Wonalancet Branch Industries Kingston Point Oneonta Dunkirk 650'S of Fentonville S of Fentonville Titusville Ashtabula Harbor Andover Andover 3582'E of Simons E of Simons Oil City Polk Junction Rose Siding Carson Mann Collin wood Belt Junction Elyria Junction Millbury Junction Air Line Junction 4352' N of Alexis N of Alexis D & M Junction, Detroit Air Line Junction Vulcan Palmvra 6965' E of Vistula E of Vistula Elkhart

Carried forward

t Includes 635 miles 1st main and 6'40 miles 2nd main owned jointly with C R I & P R y

Passing M I L E S OF MAIN TRACK Tracks Yards

, Cross and State Firs t Second All Other Overs, etc Sidings

N . Y . 49978 499-76 876 03 6996 827'83 Penn 4396 43-96 87'92 1975 5250 Ohio 242 96 242-86 34992 6980 436-44 Ind 15256 152-55 78-22 54-42 159-87 111 14-001 14011 19-08 436 72 35

953-26 953 14 1,411-17 21829 1,54899

N . Y . 12-14 12-14 _ 423 62 63 52-08 4-75 - 8-55 11-15 3-08 2-98 - 06 08 3-68 - - 19 •44

20-91 - - 181 8-38 244 2-10 - - -

12-49 - - •44 140 17333 - - 988 2951

5-89 - - 33 151 4-70 - - 31 08

13430 •51 - 1018 31-45 15-78 - - •47 233 45-32 - - 692 17-41 8-22 8-11 1332 106 517

158-75 27-03 - 31 36 75-32 15-84 - - •64 4-62

175-28 •58 - 15'63 5653 730 - - •90 2-64

11-43 - - •46 231 24-10 - - T47 6-45

1-19 - - •30 •84 63-39 - - 358 6'36 5-21 - - •16 4-53

13-01 - - 97 2'56 4-24 - - •21 •57

19-10 - - •54 T61 96-89 - - 1137 3778 856 - - •43 1-66

17-68 - - 1-30 395 85-73 82-49 - 1208 53-10

Penn 95-33 37-11 - 1505 2529 N . Y . 6-55 - - •57 2-74

(< - - - 03 4-61 Penn 25-27 - - 1-54 177 " 16-44 - - •90 5-19

N . Y . 74-01 7381 - 807 9215 u 7-23 6-92 - •96 7-18 it - - - - 1-95

34-97 1-77 - •90 297 1296 12-78 - ro8 10270 6-72 672 - 115 2643

tt 3038 25-23 3-55 4'85 7907 a 4-32 - - •56 2050 a •71 - - •21 2-78 a 107-03 - - 1229 8'98 " 42-26 - - 329 6-01

Penn 48-25 - - 213 634 Ohio 26-90 5-90 2-47 626 98-68

«< 6-14 •09 - •80 1-69 Penn 55-00 - - 942 1729

6P06 - - 7-92 3-78 Ohio 18-10 18-10 - 143 8-22

20-41 20-31 9-14 1092 69 42 78-75 - - 1032 1382 7-42 6-38 - 306 2190

Mich 51-38 •07 - • 7-70 3387 Ohio 2-75 roo - •13 103 Mich 101-96 - - 1308 22-45 Ind 14-70 - - 120 •39

2,159-06 356-88 28-48 251-65 1,121-57

39


TABLE OF TRACKS (continued)

BRANCHES OWNED (concluded) Monroe Branch Fayette Branch Jackson Branch Lansing Branch Kalamazoo Branch Mishawaka Branch Goshen Branch

Kankakee Branch

Danville Branch

M C Connecting Branch Churchill Branch Bradley Branch Depue Branch Benton Harbor Branch Connections and wyes

State F R O M T O

Brought forward Lenawee Junction Monroe Mich Grosvenor 12063' W of Morenci " Lenawee Junction Jackson Mich Jonesville Springport " White Pigeon Kalamazoo " Elkhart Mishawaka Ind Goshen 12458' N of Twin Lake " N of Twin Lake Sturgis Mich South Bend 38' E of Illinoi Ind E of Illinoi Seatonville Junction 111 Ladd Junction N Y C Junction " Indiana Harbor 7524' S of Allison Ind S of Allison Danville 111 At South Bend Ind Ladd Churchill III Kankakee Bradley " Depue Junction Depue " St Joseph Junction Benton Harbor Mich Various places N . Y . Various places Penn

Total branches owned

Total main line and branches owned

M I L E S OP MAIN TRACK

First 2,159-06

29-50 1861 42T0 41*07 3652

25-57 3-83

82-17 109*51

•47 100-77

8-48 1-93 279 1-35 P27 142

1336 •96

Second 356-88

5602 8-34

Passing Tracks

> CrosB A l l Other Overs, etc

28-48 251-65 •97 •40

- 302 - 539

3-65 - 1334

•33 40

- 2156 - 1669

•31 - 1589

13 •45 •22 13

•14 •19

Yards and

Sidings 1,121-57

5- 02 1-04 5'43 6- 52 7- 55 679 102 •61

2562 4452

•38 122-75

•25 1-56 •70 •17 •52 •85

Total 3,91764

3549 20 05 5055 52-98 4772 2013 2692 4-84

12935 170-72

116 295-43

17-20 394 371 1- 65 193 2- 46

21-25

2,68074 429-13 28-48 33486 1,352-87 4,82608

3,63400 1,382 27 1,439-05 553-15 2,90186 9,91093

M I L E S OF MAIN TRACK

LINES OPERATED UNDER LEASE OR CONTRACT AFFILIATED Battle Creek & Sturgis Rwy Beech Creek R. R. Beech Creek Extension R R Cleveland, Cincinnati, Chicago and St Louis Rwy and subsidiaries Cleveland Union Terminals Detroit, Toledo & Milwaukee R R Hudson River Connecting Railroad Kalamazoo, Allegan & Grand Rapids R. R. Lake Erie, Alliance & Wheeling R R Mahoning Coal R R and subsidiaries Michigan Central R R and subsidiaries New Jersey Junction Railroad New York and Harlem Railroad Ottawa and New York Rwy St Lawrence & Adirondack Rwy Toledo and Ohio Central Rwy and subsidiaries West Shore R R and subsidiary

Total lines operated under lease or contract—affiliated

LINES OPERATED UNDER LEASE OR CONTRACT—NOT AFFILIATED Boston and Albany R R and subsidiaries Canadian National Rwys Central Railroad of Indianapolis Delaware, Lackawanna & Western R R Detroit, Hillsdale and South Western R R Dillonvale & Smithfield Rwy Erie and Kalamazoo Railroad Fort Wayne and Jackson Railroad Illinois Central Railroad Mt Gilead Short Line Rwy New York, Chicago & St Louis R R St Joseph, So Bend and Southern R R Titusville & Cambridge Springs R R Troy and Greenbush Railroad

Total lines operated under lease or contract—not affiliated

Total lines operated under lease or contract

, Passing Tracks Yards and First Second A l l Other Cross Overs, etc. Sidings Tota l

•28 — — 07 •20 •55 11841 8-91 - 1281 116-96 25679 129-04 6'66 - 1693 2942 18205

2,504-90® 66972 35-55 43749 1,201 23® 4,84889

- - — - 434 434 - - - - 1521 1521

24-39 20-29 8*79 273 11994 17614 58-47 - - 7-21 948 7546 87-67 - - 1277 3520 13564 70-56 35*45 8-82 987 58-84 18354

1,491 08® 596-82 24-51 21336 1,03999® 3,36576 4-44 4-34 - 104 904 1886

134-42 5498 26-54 25-77 8767 32938 57-27 - - 283 4-35 64-45 4348 - - 582 1252 61-82

65707 2239 170 129-14 364 31 1,17461 48938 255-27 39-35 57-72 28890 1,130-62

5,870-56 1,67483 14526 93556 3,39760 12,023-81

348-45 220-58 9509 62-15 30176 1,02803 13-32 - - 151 2-44 17-27

- - - - 194 194

- - - - 129 1-29 64-72 - - 1-53 393 7018 4-42 - - 37 501 980

21-82 - - 251 267 2700 96-72 -64 02 551 1634 11923

- - - - 202 202 74 - - 11 •23 108

- - 6-18 - - 618 39 31 - - 1-47 8-65 49-43

- - - - •45 -45 556 5'51 - •71 11 03 2281

595 06 22673 10129 75 87 35776 1,356-71

6,46562 1,90156 24655 1,011-43 3,75536 13,38052

©'18 mile at Mar ion , Ind., owned jointly with T St L & W R R and '20 mile in Carmi , 111., owned jointly with L & N R R ©Includes 1TJ9 miles at Speedway, Ind., owned jointly by the P & E and B & O, and "32 mile at Danville owned jointlv bv the P & E and C & E I R R ©Includes '77 mile at Chicago, owned jointly by the M C R R, I C R R , C & N W R y and C B & Q R R , and 137 miles at Joliet, 111., owned jointly by the M C R R

and C R I & P R y ©Includes "29 mile at Cheboygan. M i c h , owned jointly by the M C R R and the D & M R R, and "09 mile at Kalamazoo, M i c h , owned jointly by the C K & S and

G T V Ry

40

Annual Report

TABLE OF TRACKS (concluded) Passing

M I L E S OF MAIN TRACK Tracks, Yards , * Cross and

L I N E S O P E R A T E D U N D E R T R A C K A G E RIGHTS First Second A l l Other Overs, etc. Sidings Total Baltimore and Ohio Railroad 8973 49-41 - •45 •81 140-40 Boston and Maine Railroad •32 •02 - - - •34 Boston Terminal Company •45 •45 - - - •90 Buffalo Creek Railroad 3-56 3-48 •95 - - 7'99 Buffalo, Rochester & Pittsburgh Rwy 48-97 1977 - - - 6874 Canadian National Railways 9-69 •53 - - - 10-22 Canadian Pacific Railway 14-81 14-12 - - - 28-93 Cherry Tree and Dixonville R R 3533 - - 1-80 13'57 50-70 Chesapeake & Ohio Railway 20-75 1-55 - 2-10 4-73 29-13 Chicago, Burlington & Quincy R R 663 - - 117 4-11 11-91 Chicago & Eastern Illinois R R 3-50 - - - 395 745 Chicago & North Western Rwy L94 - - - - 1-94 Chicago, Rock Island & Pacific R R - - 433 - - 4-33 Cincinnati Union Terminal 271 1-91 - - 4-62 Cleveland Union Terminals Company - - 700 579 401 16-80

Dayton Union Railway 186 180 437 107 •65 975 Delaware and Hudson R R Corp 12-11 102 - - - 13-13 Detroit & Mackinac Railroad 2'16 - - - 359 5-75 Erie Railroad 54-91 48-66 - - - 103 57 Grand Trunk Western Rwy 3-23 - - - - 3-23 Illinois Central Railroad 15-48 1474 - - - 30-22 Indiana Harbor Belt Railroad 30 91 29-70 - 10*47 1291 83-99 Indianapolis Union Railway 10-94 1097 - - 21-91 Lake Erie and Eastern Railroad 8-31 8-28 - 4'23 3'26 24-08 Lake Erie and Pittsburg Railway* 27-76 - - 10*00 110 38-86

Louisville & Jeffersonville Bridge & R R 2-60 - - - - 2-60 Louisville & Nashville R R 1-82 155 - - 3-37 Manistee & North Eastern Rwy 2-96 - - - - 2-96 New York, Chicago & St Louis R R 21-02 23-36 - 44-38 New York, Ontario & Western Rwy 12-96 - - - - 12-96 Nicholas Fayette & Greenbrier R R t 104-01 - - 5-27 6'81 116-09 Pennsylvania Railroad 16506 89-08 - 2-48 3-95 260-57 Peoria and Pekin Union Rwy 8-83 8-82 - - - 17-65 Pittsburgh and Lake Erie R R 5-47 4-22 1-06 - 1123 21-98 Pere Marquette Railroad •16 - - - - •16

Rutland Railroad 3679 - - •05 - 36« Southern Railway Terminal R R Ass'n of St Louis - - 660 6-60 Southern Railway Terminal R R Ass'n of St Louis :.: •: 1261 - - - 24-72 Toledo Terminal Railroad 28-59 25-85 - - 54 44 Troy Union Railroad 203 1-47 - •63 •90 5-03 Union Depot Company (Columbus, Ohio) - - •53 - - •53 Wabash Railway •17 - — •03 - •20 Wheeling & Lake Erie Railway 7-35 - - - - 735 Zanesville Terminal Railroad •15 - - •12 •53 •80 Industrial Track - - - - 09 •09

Total trackage rights 818-14 37337 1824 45*66 82-80 1,33821

Total operated mileage 10,91776 3,65720 1,70444 1,610-24 6,740-02 24,629-66

RECAPITULATION

S T A T E O R P R O V I N C E New York Pennsylvania Ohio Indiana Illinois Michigan Massachusetts Kentucky Missouri New Jersey West Virginia Province of Quebec Province of Ontario

Totals

Owned 1st track A H tracks

miles miles 2,042-34 5,558-83

346-27 684-13 403-43 1,813-52 377-70 1,089-68 137-87 320-17 326-39 444-60

Lines operated under lease or contract

3,634-00 9,910-93

1st track miles 700-58 248-98

1,485-86 1,12313

68380 1,29006

293-18

2327 142 94 46-56

42726

6,46562

A l l tracks miles

1,659-45 447-36

3,085-30 2,082-68 1,303-24 2,559-91

891-92

176-50 22908

58-71 886-37

13,380-52

Otherwise operated 1st track A l l tracks

miles miles 92- 10 10L13

227-32 308-83 20089 435-19

93- 22 14940 65-72 163-98 8-68 13-38 •77 L24

2-12 2'86 8-18 16-86

104-01 14-12 101

818-14

11609 28-24

101

1,338-21

1st track miles

2,83502 822 57

2,090 18 1,594-05

88739 1,625 13

293-95 2-12 8-18

2327 246-95 60-68

428-27

10,91776

*Owned jointly with the Penn Co JOwned joint ly with the Chesapeake and Ohio R w y C o


TRAIN, LOCOMOTIVE AND CAR MILEAGE STATISTICS

INCLUDING A L L LEASED LINES T R A I N M I L E A G E

R E V E N U E SERVICE 1941 1940 Increase Freight train-miles Passenger train-miles (passenger) Passenger train-miles (milk) Passenger train-miles (other)

39,973,160 38,993,935

517,784 4,380,893

34,629,621 38,641,791

480,328 3,620,552

5,343,539 352,144

37,456 760,341

Total revenue train mileage Non-revenue train-miles

83,865,772 1,672,154

77,372,292 1,264,540

6,493,480 407,614

Total train mileage 85,537,926 78,636,832 6,901,094

LOCOMOTIVE M I L E A G E R E V E N U E SERVICE

Freight locomotive-miles Passenger locomotive-miles (milk) Passenger locomotive-miles (other) Train switching locomotive-miles Yard switching locomotive-miles

45,217,600 528,699

43,644,015 5,915,198

30,228,872

39,061,742 491,204

42,388,456 5,263,462

26,024,629

6,155,858 37,495

1,255,559 651,736

4,204,243

Total revenue locomotive mileage Non-revenue locomotive-miles

125,534,384 1,879,444

113,229,493 1,392,938

12,304,891 486,506

Total locomotive mileage 127,413,828 114,622,431 12,791,397

C A R M I L E A G E R E V E N U E SERVICE

Freight-train car-miles in freight trains Loaded Empty Caboose

1,400,663,762 863,650,131 40,346,814

1,141,541,723 777,773,852 34,690,349

259,122,039 85,876,279 5,656,465

Total 2,304,660,707 1,954,005,924 350,654,783

Freight-train car-miles in passenger trains Loaded Empty Caboose

736,615 111,319

102

605,063 94,590

818

131,552 16,729

Total 848,036 700,471 147,565

Total freight-train car mileage 2,305,508,743 1,954,706,395 350,802,348

Passenger-train car-miles in passenger trains Coaches Combination coaches Sleeping and parlor cars Dining, club, lounge and observation cars Business cars Other passenger-train cars (milk) Other passenger-train cars (other)

100,672,021 16,281,619

125,048,948 25,508,400

1,179,880 7,711,483

125,892,843

93,134,409 15,620,378

120,882,073 24,941,959 1,043,177 6,910,950

118,059,386

7,537,612 661,241

4,166,875 566,441 136,703 800,533

7,833,457

Total 402,295,194 380,592,332 21,702,862

Passenger-train car-miles in freight trains Coaches Combination coaches Sleeping and parlor cars Dining, club, lounge and observation cars Business cars Other passenger-train cars (milk) Other passenger-train cars (other)

664,637 353,295 60,586 2,446

39,917 2,448,435 3,801,031

888,322 251,245

16,387 2,358

83,843 2,338,683 3,450,370

102,050 44,199

88

109,752 350,661

Total 7,370,347 7,031,208 339,139

Total passenger-train car mileage 409,665,541 387,623,540 22,042,001

Total revenue car mileage Non-revenue car-miles

2,715,174,284 3,440,315

2,342,329,935 2,500,264

372,844,349 940,051

Total car mileage 2,718,614,599 2,344,830,199 373,784,400

42

Annual Report

FREIGHT AND PASSENGER STATISTICS

F R E I G H T

Tons of revenue freight carried Tons of company freight carried

1941 161,865,972 16,869,836

1940 136,549,195 13,679,239

Increase 25,316,777 3,190,597

Total tons of freight carried 178,735,808 150,228,434 28,507,374

Tons of revenue freight carried one mile Tons of company freight carried one mile

36,375,515,274 3,907,861,272

29,308,438,658 3,185,106,675

7,067,076,616 722,754,597

Total tons of freight carried one mile 40,283,376,546 32,493,545,333 7,789,831,213

Miles of road operated in freight service Tons of revenue freight carried one mile per mile of road Tons all freight carried one mile per mile of road Average distance haul of one ton of revenue freight Average distance haul of one ton of all freight Average number of tons of revenue freight per train mile Average number of tons of all freight per train mile Average number of tons revenue freight per loaded car mile Average number of tons of all freight per loaded car mile Average number of freight cars per train mile Average number of loaded cars per train mile Average number of empty cars per train mile Total freight revenue Average amount received for each ton of freight Average revenue per ton per mile Average revenue per mile of road Average revenue per train mile

10,871-95 3,345,813 3,705,258

miles 224-73 miles 225-38

91000 1,007-76

25 96 28-75 57-68 3506 21-61

8336,878,402.61 $2.08

cent 0-93 $30,986.01

$8.43

10,87271 2,695,596 2,988,542

miles 214-64 miles 216'29

846-34 938-32 25-66 28-45 56-45 32 98 22-46

$270,274,027.58 $1.98

cent 0'92 $24,858.02

$7.80

650,217 716,716

miles 1009 miles 9-09

63 66 69-44

•30 30

123 208

$66,604,375.03 $0.10

cent 0'01 $6,127.99

$0.63

P A S S E N G E R

Number of interline passengers carried 3,549,799 2,659,780 Number of local passengers carried 18,264,125 16,387,939 Number of commutation passengers carried 27,510,652 28,484,003

Total number of revenue passengers carried 49,324,576 47,531,722

Total number of revenue passengers carried one mile 3,508,301,326 3,047,294,655 Miles of road operated in passenger service 7,27158 7,27894 Revenue passengers carried one mile per mile of road 482,468 418,645 Average distance each revenue passenger carried miles 71'13 miles 64" 11 Average number of passengers per train mile I* 90 79 Average number of passengers per car mile 13'06 1192 Average number of passenger-carrying cars per train mile 6'89 6'62 Average number of cars in passenger trains 9'17 f 8'90 Commutation passenger revenue $4,948,035.46 $5,103,598.96 Al l other passenger revenue $61,661,827.54 $54,218,546.29 Average amount received from each passenger $1.35 $1.25 Average revenue per passenger per mile cents 1'899 cents 1'947 Total passenger service train revenue $88,366,470.29 $80,826,203.97 Average passenger service train revenue per mile of road $12,152.31 $11,104.12 Average passenger service train revenue per train mile $2.01 , $1.89

890,019 1,876,186

1,792,854

461,006,671

63,823 miles 702

11 1-14

•27 •27

$7,443,281.25 $0.10

$7,540,266.32 $1,048.19

$0.12

T O T A L T R A F F I C

Operating revenues Operating expenses

$447,789,655 19 331,438,111 25

$370,545,874 82 278,674,979 67

$77,243,780 37 52,763,131 58

Net operating revenue $116,351,543 94 $91,870,895 15 $24,480,648 79

Total miles of road operated 10,91776 10,940-89

Operating revenues per mile of road Operating expenses per mile of road

$41,014 79 30,357 70

$33,867 98 25,470 96

$7,146 81 4,886 74

Net operating revenue per mile of road $10,657 09 $8,397 02 $2,260 07

43


DESCRIPTION OF R E V E N U E F R E I G H T M O V E D IN 1941

N U M B E R O F C A R L O A D S C O M M O D I T Y N U M B E R O F T O N S (2,000 pounds)

Decrease Increase 1940 1941 PRODUCTS OF A G R I C U L T U R E 1941 1940 Increase Decrease

7,330 24,517 31,847 Wheat 1,504,964 1,122,420 382,544 8,803 34,251 43,054 Corn 1,940,360 1,511,389 428,971 2,119 11,894 14,013 Oats 460,160 379,612 80,548

920 4,000 4,920 Barley and rye 207,111 165,191 41,920 89 508 597 Rice 20,135 15,188 4,947 9 649 658 Grain, N . O. s. 17,363 17,663 300

1,760 42,897 41,137 Flour, wheat 1,137,495 1,150,919 13,424 460 1,615 1,155 Meal, corn 27,527 38,032 10,505

382 2,775 3,157 Flour and meal, edible, N . o . s. 77,975 65,912 12,063 1,607 12,666 14,273 Cereal food preparations, edible, N . o . 8. 243,317 222,349 20,968 4,201 41,601 45,802 Mil l products, N . o . s. 1,116,308 998,734 117,574

992 7,233 6,241 Hay and alfalfa 83,695 97,151 13,456 82 1,808 1,726 Straw 27,399 28,093 694

387 3,255 2,868 Tobacco, leaf 35,979 42,349 6,370 2,952 2,859 5,811 Cotton in bales 144,078 69,097 74,981

664 1,365 2,029 Cotton linters, noils, and regins 36,941 24,517 12,424 1 1 Cottonseed 20 18 2

6 848 842 Cottonseed meal and cake 19,426 20,673 1,247 2,025 9,827 11,852 Oranges and grapefruit 214,986 177,960 37,026

439 1,024 1,463 Lemons, limes, and citrus fruits, N . o . s. 25,011 17,574 7,437 565 5,674 5,109 Apples, fresh 73,334 77,645 4,311 493 11,328 10,835 Bananas 114,903 120,975 6,072

200 376 576 Berries, fresh 16,360 10,395 5,965 397 945 1,342 Cantaloupes and melons, N . o . s. 15,327 10,882 4,445

124 3,222 3,098 Grapes, fresh 53,329 55,221 1,892 719 1,252 1,971 Peaches, fresh 21,157 13,710 7,447 251 1,576 1,827 Watermelons 23,596 20,709 2,887

377 1,392 1,015 Fruits, fresh, domestic, N . o . s. 17,235 23,006 5,771 31 466 435 Fruits, fresh, tropical, N . o . s. 5,479 5,640 161

190 14,729 14,919 Potatoes, other than sweet 263,560 256,547 7,013 170 4,269 4,099 Cabbage 51,795 53,474 1,679

1,382 6,529 7,911 Onions 105,562 85,096 20,466 91 1,658 1,749 Tomatoes 24,187 20,196 3,991

2,580 13,956 16,536 Vegetables, fresh, N . O. s. 202,850 167,713 35,137 1,362 4,267 5,629 Beans and peas, dried 158,828 116,421 42,407

500 1,139 1,639 Fruits, dried or evaporated 55,773 33,249 22,524 109 1,791 1,900 Vegetables, dry, N . O. S. 27,731 25,678 2,053

2,527 6,564 9,091 Vegetable-oil cake and meal, except cottonseed 251,188 179,736 71,452 9 1,002 993 Peanuts 16,147 16,029 118

97 582 485 Flaxseed 20,107 23,901 3,794 137 1,649 1,512 Sugar beets 56,791 56,531 260

6,879 27,728 34,607 Products of agriculture, N . o . s. 965,063 744,795 220,268

43,037 317,687 360,724 TOTALS 9,880,552 8,282,390 1,598,162

N . O. S.— Not otherwise specified

44

Annual Report

DESCRIPTION OF R E V E N U E F R E I G H T M O V E D IN 1941 (continued)

N U M B E R OF C A R L O A D S C O M M O D I T Y N U M B E R OF TONS (2,000 pounds)

Decrease Increase 1940 1941 A N I M A L S A N D PRODUCTS 1941 1940 Increase

356 1,081 725 Horses, mules, ponies, and asses 8,622 12,901 2,053 16,238 14,185 Cattle and calves, single-deck 169,825 193,375

209 887 678 Calves, double-deck 8,294 11,319 105 622 517 Sheep and goats, single-deck 3,335 3,875 113 5,441 5,328 Sheep and goats, double-deck 52,077 53,456

183 2,477 2,660 Hogs, single-deck 20,380 19,585 795 3,295 29,281 25,986 Hogs, double-deck 325,670 369,934

1,142 61,282 62,424 Fresh meats, N . o. s. 744,800 720,924 23,876 880 7,323 8,203 Meats, cured, dried, or smoked 143,129 114,398 28,731

8 219 211 Butterine and margarine 2,738 2,639 99 1,071 4,717 5,788 Packing-house products, edible, N . o. s.

not including canned meats 116.125 80,306 35,819 704 2,305 1,601 Poultry, live 12,949 18,759 655 7,581 6,926 Poultry, dressed 84,575 91,372

508 6,151 6,659 Eggs 78,249 72,496 5,753 63 8,888 8,825 Butter 113,218 112,344 874

1,004 2,833 3,837 Cheese 53,306 36,904 16,402 2,743 4,955 7,698 Wool 116,012 69,594 46,418 1,221 4,808 6,029 Hides, green 141,943 111,529 30,414

210 843 1,053 Leather 19,400 14,442 4,958 471 2,057 2,528 Fish or sea-animal oil 65,349 53,591 11,758

51 60 9 Animals, live, N . 0. s. 88 501 1,430 8,782 10,212 Animal products, N . o. s.

(other than fertilizers and fertilizer materials) 240,148 211,035 29,113

3,251 178,831 182,082 TOTALS 2,520,232 2,375,279 144,953

PRODUCTS OF M I N E S

14,423 128,702 143,125 Anthracite coal 0,823,869 5,928,139 895,730 84,566 1,052,841 1,137,407 Bituminous coal 62,317,794 57,275,376 5,042,418 8,860 58,596 67,456 Coke 2,293,792 1,990,405 303,387

25,421 109,037 134,458 Iron ore 9,671,539 8,107,992 1,563,547 46 131 85 Copper ore and concentrates 2,761 5,268

38 103 141 Lead ore and concentrates 6,875 5,309 1,566 481 2,017 2,498 Zinc ore and concentrates 133,831 111,218 22,613

5,579 11,377 16,956 Ores and concentrates, N . o. s. 962,193 651,763 310,430 10,672 25,557 36,229 Gravel and sand (other than glass or molding) 2,059,954 1,445,740 614,214 4,704 12,947 17,651 Stone, broken, ground, or crushed 1,038,435 744,991 293,444

422 3,068 3,490 Stone, rough, N . o. s. 152,802 126,966 25,836 377 1,134 757 Stone, finished, N . o. s. 21,860 35,518

11,398 21,485 10,087 Petroleum, crude 361,683 769,166 5,951 19,656 25,607 Asphalt (natural, by-product, or petroleum) 936,254 703,966 232,288

658 11,989 12,647 Salt 463,313 438,916 24,397 1,395 1,055 2,450 Phosphate rock, crude (ground or not ground) 122,451 49,729 72,722 1,520 1,907 3,427 Sulphur (brimstone) 166,713 85,026 81,687

23,446 79,027 102,473 Products of mines, N . o. S. 5,168,315 4,120,029 1,048,286

176,315 1,540,629 1,716,944 TOTALS 92,704,434 82,595,517 10,108,917

Deere

2,501

13.6S 407,48

N . O. S. — Not otherwise specified

15


DESCRIPTION OF R E V E N U E F R E I G H T M O V E D IN 1941 (continued)

N U M B E R O F C A R L O A D S C O M M O D I T Y N U M B E R O F T O N S (2,000 pounds)

Increase 1940 1941 PRODUCTS OF FORESTS 1941 1940 Increase 704 1,319 2,023 Logs 48,758 33,960 14,798

1,004 3,489 4,493 Posts, poles, and piling 122,105 93,816 28,289 112 98 Wood (fuel) 2,681 3,160

1,676 1,408 3,084 Ties, railroad 94,070 40,151 53,919 1,325 6,143 7,468 Pulp wood 198,321 156,293 42,028

28,512 73,707 102,219 Lumber, shingles, and lath 2,841,846 1,951,051 890,795 2,824 9,184 12,008 Box, crate, and cooperage materials 237,590 176,767 60,823 1,108 2,338 3,446 Veneer and built-up wood 91,534 59,613 31,921

701 1,842 2,543 Rosin 66,467 46,562 19,905 43 537 580 Turpentine 12,734 11,967 767

2,427 5,479 7,906 Crude rubber (not reclaimed) 255,085 178,613 76,472 1,700 10,694 12,394 Products of forests, N . o. s. 215,480 185,889 29,591

42,010 116,252 158,262 TOTALS 4,186,671 2,937,842 1,248,829

M A N U F A C T U R E S A N D MISCELLANEOUS

4,731 83,800 88,531 Petroleum oils, refined, and all other gasolines 2,504,257 2,370,307 133,950 3,892 23,644 27,536 Fuel, road, and petroleum residual oils, N . o. s. 857,412 741,049 116,363 4,395 13,819 18,214 Lubricating oils and greases 401,056 301,499 99,557

332 1,718 2,050 Petroleum products, N . o. s. 48,229 39,699 8,530 652 1,582 2,234 Cottonseed oil 62,285 44,119 18,166 735 1,445 2,180 Linseed oil 60,227 39,099 21,128 373 4,987 5,360 Vegetable oils, N . o. s. 150,241 143,471 6,770

2,175 10,675 12,850 Sugar (beet or cane) 411,367 328,476 82,891 704 1,951 2,655 Table sirups and edible molasses 83,937 56,168 27,769 678 1,486 2,164 Molasses, blackstrap and beet residual 99,639 67,460 32,179

7,463 10,713 18,176 Iron, pig 952,063 590,818 361,245 4,338 17,027 21,365 Iron and steel, rated 6th class in official

classification, N . o. S. 1,111,725 893,775 217,950 1,481 2,049 3,530 Rails, fastenings, frogs, and switches 141,536 78,496 63,040

600 2,759 3,359 Cast-iron pipe and fittings 82,345 66,571 15,774 11,233 24,860 36,093 Iron and steel pipe and fittings, N . o. s. 1,117,575 738,733 378,842 3,976 12,478 16,454 Iron and steel: Nails and wire, not woven 426,981 317,067 109,914

47,362 141,819 189,181 Iron and steel, rated 5th class in official classification, N . O. s. (also tin and tcrne plate) 6,418,924 4,721,278 1,697,646

2,163 2,007 4,170 Copper: Ingot, matte, and pig 199,473 96,734 102,739 1,085 4,478 5,563 Copper, brass, and bronze: Bar, sheet, and pipe 174,210 , 153,875 20,335 1,172 6,911 8,083 Lead and zinc: Ingot, pig, or bar 352,121 304,788 47,333

499 1,601 2,100 Aluminum: Ingot, pig, or slab 80,433 60,757 19,676 15,846 31,397 47,243 Machinery and boilers 805,890 549,124 256,766 9,473 65,988 75,461 Cement, natural or Portland (building) 2,962,155 2,443,025 519,130

5,908 4,647 Brick, common 205,011 296,843 6,563 15,550 22,113 Brick, N . o. s., and building tile 813,759 565,934 247,825

875 1,297 2,172 Artificial stone, N. o. s. 62,166 35,086 27,080 612 19,940 20.55S Lime, common (quick or slaked) 568,665 526,046 42,019

511,895 644,042 Carried forward 21,153,682 16,570,297

N . O. S.— Not otherwise specified

46

Annual Report

DESCRIPTION OF R E V E N U E F R E I G H T M O V E D I N 1941 (concluded)

N U M B E R O F C A R L O A D S C O M M O D I T Y

Decrease

4,169

103

56

N U M B E R O F T O N S (2,000 pounds)

Increase 1940 1941 M A N U F A C T U R E S A N D M I S C E L L A N E O U S 1941 1940 Increase (concluded)

511,895 644,042 Brought forward 21,153,682 16,570,297

3,376 14,539 17,915 Plaster (stucco or wall) and dry kalsomine 436,698 336,214 100,484 313 4,925 5,238 Sewer pipe and drain tile (not metal) 90,545 82,906 7,639

2,094 8,544 10,638 Agricultural implements and parts, N . O. S. 157,565 127,905 29,660 54 153 207 Vehicles, horse-drawn, and parts, N . 0. s. 3,101 2,178 923

1,469 3,180 4,649 Tractors and parts 67,432 43,701 23,731 219 1,757 1,976 Railway car wheels, axles, and trucks 66,182 57,653 8,529

118,834 114,665 Automobiles (passenger) 725,208 725,773 18,044 10,968 29,012 Autotrucks 256,194 91,109 165,085 14,939 90,050 104,989 Automobiles and autotrucks, knocked down, and

parts, N . o. s. 1,752,874 1,492,118 260,756 2,309 13,596 15,905 Automobile and autotruck tires 232,869 198,045 34,824 2,818 2,942 5,760 Furniture, metal 65,678 32,367 33,311 4,470 9,181 13,651 Furniture, other than metal 107,128 72,618 34,510 3,811 17,211 21,022 Beverages 485,538 391,182 94,356

723 620 Ice 21,382 24,355 5,380 24,318 29,698 Fertilizers, N . o. s. 1,027,729 774,565 253,164 3,118 30,139 33,257 Newsprint paper 906,565 826,811 79,754 5,138 19,924 25,062 Printing paper, N . o. s. 579,980 447,065 132,915

9,679 9,623 Alcohol, denatured or wood 224,249 228,857 812 3,283 4,095 Sulphuric acid 202,157 162,556 39,601

1,015 1,565 2,580 Explosives, N . o. s. 56,317 32,121 24,196 1,573 5,417 6,990 Cotton cloth and cotton fabrics, N . o. s. 97,748 72,228 25,520

361 1,819 2,180 Bagging and bags, burlap, gunny, or jute 40,965 33,253 7,712 13,152 36,410 49,562 Canned food products, N . 0. s. 1,213,471 818,747 394,724

89 2,517 2,606 Tobacco, manufactured products 52,611 48,451 4,160 787 2,575 3,362 Paints in oil and varnishes 69,125 54,656 14,469

1,327 2,417 3,744 Furnace slag 215,045 137,964 77,081 13,626 31,061 44,687 Scrap iron and scrap steel 1,878,515 1,316,778 561,737 5,092 15,148 20,240 Paper bags and wrapping paper 445,643 328,892 116,751

11,250 30,769 42,019 Paperboard, pulpboard, and wallboard (paper) 888,059 638,983 249,076 3,355 8,755 12,110 Building paper and prepared roofing materials 259,785 180,661 79,124

890 2,680 3,570 Building woodwork (millwork) 69,744 52,024 17,720 774 9,100 9,874 Soap and washing compounds 218,655 193,127 25,528 388 1,211 1,599 Glass, flat, other than plate 42,963 31,755 11,208

7,241 17,978 25,219 Glass: Bottles, jars, and jelly glasses 438,299 311,958 126,341 181,568 549,239 730,807 Manufactures and miscellaneous, N . o. s. 15,621,703 11,702,214 3,919,489

438,671 1,614,502 2,053,173 TOTALS 50,171,404 38,642,087 11,529,317

703,284 3,767,901 4,471,185 G R A N D TOTAL, CARLOAD TRAFFIC

All L. C. L . freight

159,463,293 134,833,115 24,630,178

2,402,679 1,716,080 686,599

G R A N D TOTAL, CARLOAD AND L . C. L. TRAFFIC 161,865,972 136,549,195 25,316,777

N . O. S.—Not otherwise specified

47


C A P I T A L STOCK OF LESSOR COMPANIES

December 31, 1941 To tal Par Value

N A M E OF LESSOII COMPANY Class of

Stock Total

Par Value Held bv

New York Central

Held by Lessor and Controlled

Companies Held by the

Public

Beech Creek Railroad Co Capital 86,000,000 $1,250 $50,000 $5,948,750 Beech Creek Extension Railroad Co. Capital 5,179,000 5,179,000 Boston and Albany Railroad Co. Capital 25,000,000 25,000,000

North Brookfield Railroad Co. Capital 100,000 100,000 Pittsfield and North Adams Railroad Co. Capital 450,000 72,200 377,800 Providence, Webster and Springfield R. R. Co. Capital 160,000 160,000 Ware River Railroad Co. Capital 750,000 750,000

Cleveland, Cincinnati, Chicago and St. Louis Railway Co. Common 47,028,800 46,337,100 20,300 671,400 Preferred 9,998,500 8,516,600 1,481,900

Central Railroad Company of Indianapolis Capital 60,000 60,000 Chicago, Kalamazoo and Saginaw Railway Co. Capital 450,000 180,000 270,000 Detroit, Hillsdale and South Western Railroad Co. Capital 1,350,000 1,350,000 Erie and Kalamazoo Railroad Co Capital 300,000 300,000 Fort Wayne and Jackson Railroad Co. Common

Preferred 436,132

2,291,416 436,132

2,291,416 Hudson River Connecting Railroad Corp. Capital 250,000 250,000 Hudson River Bridge Company at Albany Capital 500,000 375,000 125,000 Kalamazoo, Allegan & Grand Rapids R. R. Co. Capital 610,000 610,000 Lake Erie, Alliance & Wheeling Railroad Co. Capital 3,000,000 3,000,000 Lansing Manufacturers Railroad Capital 100,000 50,000 50,000 Lansing Transit Railway Co. Capital 2,000 1,000 1,000 Mahoning Coal Railroad Co. Common 1,500,000 926,600 573,400

Preferred 661,367 522,650 138,717 Mahoning and Shenango Valley Railway Co. Capital 120,000 120,000 Shenango Valley Railroad Co. Capital 60,000 60,000 Stewart Railroad Co. Capital 7,700 7,700

Michigan Central Railroad Co. Capital 18,736,400 18,632,300 4,300 99,800 Battle Creek & Sturgis Railway Co. Capital 500,000 82,500 417,500 Canada Southern Railway Co. Capital 15,000,000 8,344,900 6,655,100 Detroit Manufacturers Railroad Capital 300,000 177,300 122,700 Detroit, Toledo & Milwaukee Railroad Co. Capital 1,060,000 530,000 530,000 Detroit River Tunnel Company Capital 3,000,000 3,000,000 Joliet and Northern Indiana Railroad Co. Capital 300,000 300,000 Niagara River Bridge Company Capital 700,000 700,000

New York and Harlem Railroad Co. Common 8,656,050 5,714,900 2,941,150 Preferred 1,343,950 1,155,600 188,350

New Jersey Junction Railroad Co. Capital 100,000 100,000 Nicholas, Fayette and Greenbrier Railroad Co. Capital 7,471,800 3,735,900 3,735,900(*) Ottawa and New York Railway Co. Capital 1,000,000 1,000,000 St. Joseph, South Bend and Southern Railroad Co. Common

Preferred 500,000 250,000

500,000 250,000

St. Lawrence & Adirondack Railway Co. Capital 1,615,000 1,615,000 Troy and Greenbush Railroad Association Capital 275,000 275,000 Toledo and Ohio Central Railway Co. Common

Preferred 5,846,300 3,701,400

5,846,300 3,701,400

Wallkill Valley Railroad Co. Capital 330,000 330,000 West Shore Railroad Co. Capital 10,000,000 10,000,000

Total $187,050,815 $117,525,300 $14,508,000 $55,017,515

{*) Held by Chesapeake and Ohio Railway Company.

4 8

Annual Report

S T A T E M E N T OF F U N D E D D E B T A N D OBLIGATIONS OF LESSOR COMPANIES A N D C E R T A I N WEOIll! OF OBLIGATIONS I N T H E T R E A S U R Y OF T H E N E W Y O R K C E N T R A L R A I L R O A D COMPff1

OTHER INDEBTEDNESS;!

LESSOR COMPANIES Designation of Obligation Due Principal Amount

Held by PiS

Battle Creek & Sturgis Ry. Co. First mortgage bonds, 3% Dec. 1, 1989 $360,000 00 $360,0008 Beech Creek Extension R. R. Co. First mortgage bonds, 3J^% April 1, 1951 3,500,000 00 3,500,0001 Boston and Albany R. R. Co. Improvement bonds, 5% June 1, 1942 1,000,000 00 1,000,000(1

Main Line First mortgage bonds, series A, 4lA% April 1, 1943 9,000,000 00 9,000,0001 * Terminal bonds, 314% Jan. 1, 1951 1,000,000 00 1,000,000 i * Refunding bonds, 3}4% April 1, 1952 3,858,000 00 3,858,000!' * Refunding bonds, 5% Oct. 1, 1963 3,627,000 00 3,627,0008 * Improvement bonds, 4}4% Aug. 1, 1978 5,700,000 00 5,700,0001

Clev., Cin., Chicago and St Louis Ry. Co. Refunding & Imp. mortgage bonds series E, July 1, 1977 43,706,000 00 43,706,000 ffl St. Louis Division trust bonds, 4% Nov. 1, 1990 10,000,000 00 7,536,0001! Cin. Wabash & Mich. Div. mtg. bonds, 4% July 1, 1991 4,000,000 00 4,000,0001 General mortgage gold bonds, 4% June 1, 1993 28,579,000 00 28,579,0001 General mortgage gold bonds, 5% June 1, 1993 4,488,600 00 4,161,000*.

Chi., Ind. & St. Louis Short Line Ry. Co. First mortgage bonds, 4% April 1, 1953 3,000,000 00 3,000,000! Cincinnati Northern R. R. Co. First mortgage bonds, 4% July 1, 1951 1,000,000 00 4 1 9,000*

Michigan Central R. R. Co. First mortgage bonds, 3}4% May 1, 1952 18,000,000 00 18,000,000* Refunding & Imp. mortgage bonds series C, 4}4% Jan. 1, 1979 11,634,000 00 11,634,000*1

Jackson, Lansing and Saginaw R. R. Co. First mortgage bonds, 3]4% Sept. 1, 1951 1,692,000 00 1,692,000* Toledo Canada Southern and Detroit Ry.

Co. First mortgage bonds, 4% Jan. 1, 1956 3,100,000 00 3,100,000*1 Joliet and Northern Indiana R. R. Co. First mortgage bonds, 4% July 10, 1957 1,500,000 00 1,500,000* Grand River Valley R. R. Co. First mortgage bonds, 4% Sept. 1, 1959 1,500,000 00 1,500,000*1 Bay City and Battle Creek Ry. Co. First mortgage bonds, 3% Dec. 1, 1989 49,000 00 49,000* Canada Southern Ry. Co. First & refunding mortgage bonds, 5% Oct. 1, 1962 29,235,000 00 29,235,000*

Leamington & St. Clair first mortgage bonds, 4% Oct. 1, 1945 130,000 00 13O,000>

Detroit River Tunnel Co. First mortgage bonds, 4J^% May 1, 1961 18,000,000 00 18,000,000*

* Also secured by mortgage covering series A bonds.

49


OWNED SUBSIDIARIES OUTSTANDING IN T H E HANDS OF T H E PUBLIC AS OF D E C E M B E R 31, 1941, E X C L U S I V E OR OF ITS LESSOR COMPANIES OR P L E D G E D TO SECURE OTHER INDEBTEDNESS, WHICH INCLUDED IN T H E T A B L E

LESSOR COMPANIES (CONCLUDED) Designation of Obligation Due Principal Held by Public Amount

New Jersey Junction R. R. Co. First mortgage bonds, 4% Feb. 1, 1986 $1,700,000 00 $1,700,000 00 Mew York and Harlem R. R. Co. Gold mortgage bonds, 3l/i% May 1, 2000 12,000,000 00 12,000,000 00 Toledo and Ohio Central Ry. Co. First mortgage bonds (St. Mary's division), 4% Feb. 1, 1951 456,000 00 456,000 00

Refunding and improvement mortgage bonds, series A, 3 M % June 1, 1960 14,567,000 00 12,500,000 00

First Preference income bonds (St. Marv's division) 4% Feb. 1, 1951 9,000 00 4,000 00

Kanawha & Michigan Ry. Co. First mortgage bonds, 4% April 1, 1990 2,469,000 00 2,469,000 00 St. Lawrence & Adirondack Ry. Co. First mortgage bonds, 5% July 1, 1996 800,000 00 800,000 00

Second mortgage bonds, 6% Oct. 1, 1996 400,000 00 400,000 00 West Shore R. R. Co. First mortgage bonds, 4% Jan. 1, 2361 47,686,000 00 47,686,000 00

Total Lessor Companies $282,301,000 00

NOTE.—In respect of certain items of the above funded debt and obligations of lessor companies, The New York Central Railroad Company is liable as guarantor in addition to its liability under the terms of the leases.

W H O L L Y O W N E D SUBSIDIARIES

Clearfield Bituminous Coal Corporation

Louisville & Jeffersonville Bridge and Railroad Co.

Merchants Despatch Transportation Corporation

New York State Realty and Terminal Co.

W C & C—Consolidated bonds, 5% B C C & C—First mortgage bonds, 5%

First mortgage bonds, 4%

Equipment Trust Certificates Mortgage 300 Park Avenue, N . Y. C. Mortgage 400 Park Avenue, N . Y. C. Real Estate, N . Y. C.

Mar. 1, 1942 June 1, 1944

Mar. 1, 1945

Various May 1, 1948 Dec. 30, 1945 Various

Total Wholly Owned Subsidiaries

t Guaranteed aa to payment of principal and interest by The Cleveland, Cincinnati, Chicago and St. Louis Railway Company.

$856,000 00 188,000 00

4,500,000 001

4,849,250 00 650,000 00 420,000 00 77,750 00

$11,541,000 00

50

Annual Report C O N D E N S E D I N C O M E A C C O U N T FOR T H E C A L E N D A R

R A I L W A Y OPERATING R E V E N U E S : 1932 1933 1934

Al l other

$193,328,132 60,151,922 40,156,086

$194,280,544 53,231,808 35,822,750

$204,155,074 54,752,612 36,177,195

Total railway operating revenues $293,636,140 $283,341,102 $295,084,881

R A I L W A Y OPERATING EXPENSES:

All other

$ 93,073,110 110,546,897

23,550,613

$ 84,621,673 101,722,945

21,578,676

$ 91,753,219 109,968,199

22,450,342

Total railway operating expenses $227,176,620 $207,923,294 $224,171,760

N E T R E V E N U E FROM RAILWAY OPERATIONS $ 66,459,520 $ 75,417,808 $ 70,913,121

Railway tax accruals (Note A) Uncollectible railway revenues

$ 30,083,642 90,672

$ 26,456,636 173,396

$ 24,836,981 178,056

R A I L W A Y OPERATING INCOME $ 36,285,206 $ 48,787,776 $ 45,898,084

Equipment rents, net Joint facility rents, net

$ 11,281,581 4,190,638

$ 11,592,638 3,925,975

$ 11,980,673 4,756,483

N E T RAILWAY OPERATING INCOME $ 20,812,987 $ 33,269,163 $ 29,160,928

OTHER INCOME Revenues from miscellaneous operations Income from lease of road and equipment Miscellaneous rent income Miscellaneous non-operating physical property Separately operated properties—profit Dividend income (Note C) Income from funded securities Income from unfunded securities and accounts Income from sinking and other reserve funds Release of premiums on funded debt Miscellaneous income

$ 745,324 126,361

4,785,432 3,545,802

139,479 6,817,340 5,218,299 2,562,573

186,309 33,411

207,175

$ 683,664 131,178

4,182,542 2,594,911

385,163 6,594,447 5,081,152 2,079,936

185,648 30,911

121,560

$ 834,820 139,008

4,989,741 1,937,052

348,653 7,387,682 6,009,558 1,884,302

169,105 28,414

328,319

T O T A L OTHER INCOME $ 24,367,505 $ 22,071,112 $ 24,056,654

T O T A L INCOME $ 45,180,492 $ 55,340,275 $ 53,217,582

M I S C E L L A N E O U S DEDUCTIONS FROM INCOME Expenses of miscellaneous operations

Miscellaneous tax accruals Separately operated properties—loss Maintenance of investment organization Miscellaneous income charges

$ 618,797 64,673

1,504,887 2 T 515,288

93,907 18,251

152,882

$ 491,175 57,800

1,250,090 400,370

41,436 11,176

131,556

$ 587,881 52,166

1,046,525 444,534

12,948 14,700

132,624

Total miscellaneous deductions $ 4,968,685 $ 2,383,603 $ 2,291,378

INCOME A V A I L A B L E FOR FIXED CHARGES $ 40,211,807 $ 52,956,672 $ 50,926,204

F I X E D CHARGES Rent for leased roads and equipment Interest on funded debt Interest on unfunded debt Amortization of discount on funded debt

$ 25,659,830 28,348,690

3,988,230 471,457

$ 26,423,122 28,153,486

3,792,578

$ 26,282,478 28,744,885

3,581,176

Total fixed charges $ 58,468,207 $ 58,369,186 $ 58,608,539

N E T INCOME $ 18,256,4000 $ 6,412,5140 $ 7,682,SS5i

Appropriation of income $ 70,150 — —

INCOME B A L A N C E TRANSFERRED TO PROFIT AND LOSS $ 18,826,550(*) $ 5,412,5140 $ 7,682,SS5\

Road property and power plant machinery—depreciation Amortization of equipment

$ 13,979,816 $ 6,439,095 $ 14,808,074

Total $ 13,979,816 $ 6,439,095 $ 14,808,074

Included in other income and rent for leased roads and equipment are certain inter-company transactions representing credits and corresponding debits amounting to $ 5,900,105 $ 6,017,006 $ 6,621,131

(cr)—Credit. (*)—Italics indicate deficit. See pages 52 and 53 for notes.

5 1

The New York Central Railroad Company TEAKS 1932 TO 1941, INCLUSIVE.

1935 $21S,260,324

55,292,024 36,640,632

1936 $257,714,419

62,575,824 40,773,029

1937 $257,541,451

66,405,564 42,279,111

1938 $202,781,708

60,313,894 35,585,593

1939 $240,130,665

61,412,817 39,543,226

1940 $270,274,028

59,322,145 40,949,702

1941 $336,878,403

66,609,863 44,301,389

$310,192,980 $361,063,872 $366,226,126 $298,681,195 $341,086,708 $370,545,875 $447,789,655

$ 96,776,251 117,380,073 23,041,131

$113,279,032 131,318,812 24,232,592

$120,561,963 139,560,843 23,877,633

$ 92,530,165 123,265,821 21,706,397

$106,810,115 128,370,420 21,703,697

$117,444,328 139,498,310 21,732,342

$145,610,642 162,457,180 23,370,289

$237,197,455 $268,830,436 $284,000,439 $237,502,383 $256,884,232 $278,674,980 $331,438,111

$ 72,995,525 $ 92,233,436 $ 82,225,687 $ 61,178,812 $ 84,202,476 $ 91,870,895 $116,351,544

$ 20,619,432 162,208

$ 30,S12,037.N o l e. — K D )

$ 32,160,527 $ 32,723,605 $ 31,735,690 $ 33,476,019 $ 43,411,829

$ 52,213,885 $ 61,421,399 $ 50,065,160 $ 28,455,207 $ 52,466,786 $ 58,394,876 $ 72,939,715

$ 11,676,501 3,788,860

$ 12,424,248 3,718,524

$ 10,722,838 3,314,055

$ 10,106,754 2,765,977

$ 11,810,198 3,353,161

$ 11,636,288 2,700,151

$ 12,767,648 2,753,307

$ 30,748,524 $ 45,278,627 $ 36,028,267 $ 15,582,476 $ 37,303,427 $ 44,052,437 $ 57,418,760

$ 615,952 157,484

3,305,336 918,242 614,400

10,695,431 5,395,959 1,249,450

160,123

142,417

$ 23,254,794

$ 60,003,318

$ 655,614 632,230

3,471,038 1,225,304

695,862 9,088,453 5,098,430 1,308,541

114,102

175,887

$ 22,465,461

$ 67,744,088

$ 710.121 551,341

3,525,523 1,335,228

527,220 11,675,123 4,654,455 1,186,281

77,870

74,234

$ 24,317,396

$ 60,345,663

$ 551,439 487,236

3,356,661 1,326,008

288,047 5,455,252 3,233,526

359,680 65,561

50,196

$ 15,173,666

$ 30,756,142

$ 587,800 291,670

3,337,657 1,182,513

656,338 6,460,071 3,913,321

281,887 68,884

113,280

$ 16,893,421

$ 54,196,848

$ 596,741 263,004

3,721,045 1,877,441

856,730 6,579,040 4,032,287

128,112 69,686

59,030

$ 18,183,116

$ 62,235,553

$ 569,571 301,757

3,246,714 1,299,468 1,734,936 7,513,672 4,229,668

38,317 62,897

86,788

$ 19,083,788

$ 76,502,548

Cr

504,881 57,255

840,401 84,082 7,448

25,814 2,953

$ 1,516,928

$ 58,486,390

502,607 56,631

572,322 352,349

7,509

177,945

$ 1,069,363

$ 66,074,725

552,459 72,275

627,011 359,929

648

183,665

$ 1,795,987

$ 58,549,676

434,718 76,719

514,545 427,254

18,919

207,580

$ 1,679,735

$ 29,076,407

422,370 79,216

463,396 423,329 26,361

169,496

$ 1,584,168 $ 52,612,680

443,883 76,964

484,472 509,854 22,776

$ 60,247,938

364,679 107,435 274,408 503,898

4,312

196,482

$ 1,451,214

$ 75,051,334

$ 26,366,303 28,549,102 3,455.939

$ 26,707,627 2S,777,854

1,656.069

$ 25,163,019 26,404,466

029,579

22,472,195 25,297,503

1,461,006

S 22,059,323 25,005,580 1,038,541

$ 21,724,402 25,283,482

1,974,970

$ 22,077,464 25,409,167 1,319,141

$ 58,371,344

$ 115,046

9 57,141,550

$ 8,933,175

$ 52,197,064

$ 6,352,612

49,230,764 $ 48,103,444 $ 20,154,357 (*) $ 4,509,236

$ 48,982,854

$ 11,265,084

$ 48,805,772

$ 26,245,562

$ 115.046 $ 8,933,175 $ 6.352.612 $ 20,154,357 (») $ 4,509,230 $ 11,265,084

$ 16,664,076(Note) $ 16,225,349 $ 16,111,419 $ 16,106,283 $ 15,926,938 $~15,989,969

$ 16,664,076 $ 16,225,349 $ 16,111,419 $ 16,106,283 $ 15,926,938 15,989,969

$ 26,245,562

$ 18,240,005 4,761,044

631,470

$ 23,632,519

$ 6,355,145 $ 6,129,779 $ 5,703,048 $ 3,990,620 $ 3,920,865 $ 4,331,859 $ 4,160,093

See paires S3 and 53 for notes.

52

Annual Report

N O T E A.—The Company makes provision for taxes by accruals of monthly charges against income on the basis of best estimate* available as to the amounts ultimately to be paid. As taxes are paid, adjustments are made in order to reflect in the income account the differences between accruals previously made and the amounts actually paid. Beginning with the year 1936 includes accruals iu connection wdth Railroad Retirement Act and Unemployment Insurance.

N O T E B.—Beginning with the year 1935 rates for depreciation were changed to conform with the composite rates approved by the Interstate Commerce Commission for the New York Central under Docket No. 15,100 which for the year 1941 were: Steam locomotives 3.42%, Other locomotives 3.59%, Freight train ears 3.19%, Passenger train cars 2 .75%, Floating equipment 2 .42%, Work equipment 3 . 6 9 % and Miscellaneous equipment 7 .22%.

S T A T E M E N T OF PROFIT A N D LOSS A C C O U N T FOR

1932 1933 1934

CREDIT B A L A N C E AT BEGINNING OF Y E A R $267,691,835.49 $238,624,521.10 $225,981,639.18

CREDITS: Credit balance transferred from income — — — Credits from retired road and equipment $ 5,085,978.09 $ 49,161.74 $ 156,846.98 Delayed income credits — — — Unrefundable overcharges 20,598.99 26,970.57 25,764.65 Donations 14,761.21 15,350.51 30,786.40 Miscellaneous credits 100,117.61 116,906.02 564,845.39

T O T A L CREDITS $ 5,221,455.90 $ 208,388.84 $ 778,243.42

D E B I T S : Debit balance transferred from income $ 18,326,550.12 $ 5,412,513.71 $ 7,682,334.56 Surplus applied to sinking and other reserve funds 20.00 — — Surplus appropriated for investment in physical property 17,610.70 4,628,657.58 28,395.00 Debt discount extinguished through surplus 1 3 , 1 0 0 , 6 5 9 . 5 4 ^ 0 ^ — ' 526,851.29 Debits from retired road and equipment (Note B) 894,561.04 2,537,057.42 3,234,012.04 Delayed income debits — — 14,907,366.73 (Note) Miscellaneous debits 1,949,368.89 273,042.05 481,460.72

T O T A L DEBITS $ 34,288,770.29 $ 12,851,270.76 $ 26,860,420.34

CREDIT B A L A N C E AT E N D OF Y E A R $238,624,521.10 $225,981,639.18 $199,899,462.26

* Debit.

N O T E A.—Represents unamortized discount, commission and expenses on funded debt. Prior to 1932 it was the Company's policy to amortize debt discount and expense over the life of the debt concerned by charges to income and since that time it has been and now is the policy to charge debt discount and expense directly to profit and loss when incurred.

N O T E B.—For the year 1936 and subsequent thereto represents ledger value, less net salvage recovered, of roadway property not required for transportation service retired during the year.

53


NOTE C—Dividends received from subsidiaries (Companies of which The New York Central Railroad Company owns more than 50% of the capital stock) and the equity of The New York Central Railroad Company in the net income of such companies in each of the years 1932 to 1941, were:

Dividends received Equity of the N . Y . C . R.R. Co. Year from Subsidiaries in net income of Subsidiaries 1932 ' $1,415,385 $1,311,275 1933 1,380,960 1,996,785 1934 1,431,960 2,542,104 1935 4,892,444 2,085,098 1936 2,870,706 3,838,167 1937 5,695,392 3,312,492 1938 759,472 1,002,723 1939 1,698,944 2,102,587 1940 2,386,912 2,551,333 1941 3,391,404 4,262,092

Total $25,923,579 $25,004,656

NOTE D.—Beginning January 1, 1936, uncollectible railway revenue is charged against the appropriate operating revenue accounts.

T E N - Y E A R PERIOD 1932 TO 1941, INCLUSIVE

1935 1936 1937 1938 1939 1940 1941

$199,899,462.26 $ 195,968,343.44 $ 189,128,381.65 $194,657,969.49 $172,310,113.27 $170,777,952.50 $178,079,442.84

$ 115,045.54 $ 8,933,174.98 $ 6,352,611.95 $ 4,509,235.64 $ 11 265 084 18 $ 26 245 561 80 4,103.04* 353,448.55 91,748.10 $ 116,843.82 21,664.34 34 510 82 155 441 26

290,208.20 9,061.84 6,422,888.04 (NoteN _ _ _ ' 4,127^980 41 33,173.60 — — — — _ ' _ ' 3,328.68 17,537.66 15,033.48* 16,945.98 10,995.58 9,546 50 14 407 29

1,823,121.01 1,810,517.74 518,823.72 l,608.376.95(Note) 466,569.77 372,631.48 796i580 64

$ 2,260,833.99 $ 11,123,740.77 $ 13,371,038.33 S 1,742,166.75 $ 5,008,465.33 jj 11,681,772.98 $ 31,339,971.40

$ 107,538.20 $ 153,565.79 56,300.50 1.676,929.52

4,748,854.20

1,279,253.91

14,406.046.27

1,726,260.98

46,348.62 319,921.23

6,441,703.49

1,033,477.15

$ 20,154,357.20

409,790.70

3,216,831.22

309,043.85

$ 6,191,952.81 $ 17,963,702.56 * 7,841,450.49 $ 24,090,022.97

$195,968,343.44 $189,128,381.65 $194,657,969.49 $ 172,310,113.27

$ 23,998.05 $ 112,626.29 17,222.85

5,437,031.62

1,079,596.43

3,255,377.70

995,055.80

53,193.18 17,342.44

3,185,105.75

31,695,351.76

$ 6,540,626.10 $ 4,380,282.64 * 34,950,993.13

$170,777,952.50 $178,079,442.84 $174,468,421.11

NOTE C.—By authority of the Interstate Commerce Commission charges aggregating $14,907,366.73 in connection with the voluntary retirement of equipment, instead of being included in operating expenses for the year, were carried directly to profit and loss.

NOTE D.—Includes reversal of accruals to December 31, 1936, for Excise Tax account Railroad Retirement Act of 1935, repealed, $4,781,496.45 and balance of pension reserves accrued in 1925-1926 and 1927 not required account Railroad Retirement Act of 1937, $1,641,391.59.

NOTE E.—Includes $1,120,270.42 representing adjustment of advances to the Pittsburgh, McKeesport and Youghiogheny Railroad Company for equipment charged to "Income prior to July 1, 1907."

51


Statement as of December 31, 1941 of the funded debt (a) of companies (other than lessor companies) in respect of the payment of principal and/or interest of which the Company and/or its lessor or controlled companies have assumed contingent liability jointly and/or severally with other railroad companies, and (b) of companies (other than lessor companies and wholly owned subsidiaries) of which at least 5 0 % of the capital stock is owned by the Company and/or its lessor or controlled companies.

T H E TOLEDO T E R M I N A L RAILHOAD COMPANY: First Mortgage 4lA%

UNION DEPOT COMPANY (COLUMBUS, OHIO): General Mortgage 4 ^ %

INDIANA H A R B O R B E L T RAILROAD COMPANY: General Mortgage Gold 4 % General Mortgage Gold 4 ^ %

T H E L A K E E R I E AND PITTSBURG R A I L W A Y C O M P A N Y : First Mortgage—Series A 4^6% First Mortgage—Series B 5 %

T H E PEORIA AND E A S T E R N R A I L W A Y C O M P A N Y : First Consolidated Mortgage 4 % P . & E . Ry.—Income Mortgage 4 % f

PEORIA AND P E K I N U N I O N R A I L W A Y C O M P A N Y : First Mortgage Gold 5A%

T H E MONONGAHELA R A I L W A Y C O M P A N Y : First Mortgage—Series A 4 %

T H E TORONTO, HAMILTON AND B U F F A L O R A I L W A Y C O M P A N Y : First Mortgage 4 % Consolidated Gold Mortgage—Series A 4lA%

November 1, 1957

July 1, 1946

Julv July

July-July

April April

August

Mav

June August

1, 1957 1, 1957

1, 1905 1, 1965

1, 1960 1, 1990

1, 1974

1, 1960

1, 1946 1, 1996

T H E BOSTON T E R M I N A L C O M P A N Y : Due First Mortgage

T H E CINCINNATI UNION T E R M I N A L COMPANY:

3 ^ 2 % 4 %

February July

1, 1947 1, 1950

$13,992,000 1,163,000 $15,155,000

First Gold Mortgage—Series D Series E Series F

3 H % 3%% 2 . 6 %

May February March

1, 1971 1, 1969 1, 1971

$24,000,000 11,829,000 3,000,000 38,829,000

C H E R R Y T R E E AND D I X O N V I L L E RAILROAD C O M P A N Y : First Mortgage—Series A 4 H % August 1, 1966 1,210,000

T H E C L E V E L A N D UNION TERMINALS C O M P A N Y : First Sinking Fund Gold Mortgage—Series A First Sinking Fund Gold Mortgage—Series B First Sinking Fund Gold Mortgage—Series C

5 H % 5 % 4 ^ 2 %

April April October

1, 1972 1, 1973 1, 1977

$10,201,400 20,881,500 20,114,000 51,196,900

T H E D A Y T O N UNION R A I L W A Y C O M P A N Y : First Mortgage General Mortgage—Series A General Mortgage—Series B

4 % «-2J4%

3A%

July December December

1, 1949 1, 1950 1, 1965

$83,000 1,350,000 2,400,000 3,833,000

FORT W A Y N E U N I O N R A I L W A Y COMPANY: General Mortgage 6 % September 1, 1974 92,000

T H E INDIANAPOLIS UNION R A I L W A Y C O M P A N Y : Refunding and Improvement Mortgage—Series B 3 H % March 1, 1986 7,679,000

T E R M I N A L RAILROAD ASSOCIATION OF ST. LOUIS: First Consolidated Mortgage General Mortgage Refunding and Improvement Mortgage—Series B

5 % 4 % 33A%

August January July

1, 1944 1, 1953 1, 1974

$5,000,000 34,400,000

6,673,000 46,073,000

$4,225,000 5,000,000

$3,478,000* 128,000*

$4,721,700 4,000,000

$3,000,000 1,872,000

Total

5,800,000

253,000

9,225,000

3,606,000*

8,721,700

2,879,000

11,418,000

4,872,000

$210,842,600 * One-half owned by The New York Central Railroad Company. f When earned.

Statement of funded debt outstanding in the hands of the public as of December 31, 1941, of companies in which lessor or controlled companies have a proprietary interest.

MISSOURI AND ILLINOIS BRIDGE AND B E L T RAILROAD COMPANY: Due First Mortgage St. C , M . & St. B. R. R. Co.—First Mortgage

4 % 4 %

January-January

1, 1951 1, 1951

$419,000 417,000 $836,000

The New York Central Railroad Company

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