se.vS.4 Return this book on or before the Latest Date stamped below. University of Illinois Library L161— H41 Of THE UKWERSSTr Of ILUaW NEW YORK AND ERIE RAILROAD COMPANY. REPORT OK THK F£R Q ?qOn wi«fis,ry Of miwii INVESTIGATING COMMITTEE. C>OTOBE3=t, X8S-<^ NEW YOKE: PRINTED BY ORDER OF THE BOARD OF DIRECTORS. 1 8 5 4 . NEW YORK AND ERIE RAILROAD COMPANY. REPORT THE mm FEB 3 1 UNIVEKStTY CF 93 INYESTIGATING COMMITTEE. ii' I LLINC! NEW YOKE: PRINTED BY ORDER OF THE BOARD OF DIRECTORS. 18 54 . Digitized by the Internet Archive in 2017 with funding from University of Illinois Urbana-Champaign Alternates ✓ https://archive.org/details/newyorkerierailrOOnewy 2 ,?- 5'4 REPORT. TO THE BOARD OI^ DIRECTORS OF THE NEW YORK AND ERIPI RAILROAD CO. The Committee organized on the 14th nit., at the re- quest of your Body to examine into all the Books, Papers, Accounts, and Transactions of the Company,'' submit the following Eeport : , SUBJECTS EXAMINED. • Under the authority derived from the Board, we have inquired into 1. The system of Checks and Accounts : 2. The Printed Keports of the Company to ascertain whether they correspond with the Books : 3. The state of the Stock Account : 4. The amount of the Stock, and other Indebtedness of ^ the Company : 4 ^ 5 . The principles governing the classification of Construc- ^ tion and Transportation Accounts : 6. The Construction Account : 7. The additions to the Bed, Track, Cuttings, Embank- ments, Boiling Stock, &c. : 8. The Property of the Company : 9. The ordinary sources of Income : K). The ordinary charges upon Income : 11. The gross and net Earnings as exhibited by the Books : 12. The prospective Revenue. We have also inquired into such acts of your Board as have come before us incidentally in investigating the above subjects. i' 8 ! C39:l 4 THE PERIOD INQUIRED INTO Is that between September 30, 1852, and September 30, 1854. The complete returns terminate with June 30, 1854, but with the help of partial returns and estimates, we are able to come with proximate accuracy to September 30, 1854. The Kesolution of your Board invited inquiry ^^for such period as we might see fit,'' and authorized us “ to question the officers of the Company concerning the same." On con- sulting with each other, we thought that the puqDOses to wliich we were called would he answered by going hack to September 30, 1852, at which time the Koad had been in operation nearly a year and a half, and two dividends had been declared. Mr. George Holbrook, of Boston, an experienced Ac- countant, well versed in railroads, and recently favorably known in this community, has been employed to aid us in the general examination. We have found the officers of the Company ready to render every assistance in their power, and to answer all questions. We therefore feel justified in assuming that the examination is thorough for the time which it covers, and the subjects to which it relates. report of SEPTEMBER 30, 1852. We assume the condensed Balance Sheet of 1852, hereto annexed (A.) to he a correct exhibit of the affairs of the Company on that day. The balances have been compared by Mr. Holbrook and found right, certain corrections being made in the Construction and Transportation Accounts, which will appear by reference to the note to Schedule (A.) You will observe that certain discrepancies exist between that statement and the published Keport of the standing of the Company at the same time made by the Treasurer in pursuance of law. These discrepancies are principally as follows : First. The Floating Debt is represented in the publish- ed Report at $1,323,053 55 : Whereas, including unpaid 5 interest and Dividends, Paymasters, &c. accounts, and other accounts payable, it then amounted in gross to (C.) ------ 12,771,550 29 Deduct accounts and bills receivable (C.) 387,143 46 Balance Floating Debt, (H.) - $2,384,406 83 Second. The Passenger, Freight, and other Earnings, are represented in the Eeport as follows : Passenger Earnings, - - - $1,382,636 87 Freight - 1,883,198 76 From other sources, - - - 271,930 90 Total, - - $3,537,766 53 The actual Earnings for the same Passengers, _ - _ Freight, - - _ - Other sources, _ - _ Total time were, - $1,286,732 38 1,761,016 01 272,157 75 - $3,319,906 14 The first discrepancy was caused by regarding Bills Pay- able as alone constituting a Floating Debt, and by deducting from them the value of the Buffalo and State Line Kailroad stock, and of the Fuel on hand. Cash, acceptances for Iron not received, and Bills Eeceivable. The Balance is assum- ed to represent the Floating Debt. The second discrepancy is caused by reporting only the credits of Passenger and Freight Earnings, without deduct- ing debit amounts to be refunded to independent connecting roads. The item Other Sources,’’ in the Eeport, is made up by adding the Hudson Eiver F erry Earning to the Ledger Balance, which appears to be correct, since the Ferry Ex- penses are reported. We leave your Body to determine the reasons for these erroneous statements, and to whom they are to be charged. We can see no justification for them. It appears in evi- dence before us, that the knowledge of them came to the then 6 Board of Directors in a short time after the Report had been sent to Albany by the Treasurer, and that the sub- ject was investigated by their orders. We think they erred in not frankly exposing them. Since September, 1852, your Board has had to contend against the effects of a dividend declared when not fully earned, and the re- presentation of your Floating Debt at far below its actual amount. A development like this, in the outset, led us to regard aU after transactions with suspicion, and to scrutinize them rigidly. The results have been highly favorable to the Company. SYSTEM OF ACCOUNTS. The mode of keeping the books, and the system of checks, lirst attracted our attention. This is best described in the testimony of Me. Beemner, the General Book-keeper. 1 . state the system of Accounts as to Receipts. The rule is that the Agents must remit to the Treasurer daily, all moneys received on account of the Company. Upon the receipt of the remittances by the Treasurer they are all counted and examined, and placed to the credit of “ Transportation Receipts” on the Cash Book, and upon a side hook are placed to the credit of the Agents personally; the total of the personal credits to the Agents agreeing, daily, Avith the amount placed to the credit of “ Transportation Receipts” on the Cash Book. At the end of the month Cash is charged on the General Ledger Avith the total of the receipts during the month, and Transportation Receipts ” is credited Avith the same amount, thus leaving to the credit of “ Transporta- tion Receipts” the amount received by the Treasurer during the month. The Treasurer then makes a report to the General Book-keeper of the amounts received from each Agent, the total of Avhich should agree Avith the amount credited to “ Transportation Receipts.” The General Book- keeper makes an entry crediting the Agents, personally, Avith the amounts received from each, and charges “ Transportation Receipts ” Avith the total amount ; or, Avhich is the same thing, charging “ Transportation Receipts ” Avith the same amount that the Treasurer had credited it Avith, thus closing, monthly, ‘‘ Transportion Receipts ” account. “ Transportation Receipts ” account is merely a memorandum account through Avhich the Agents get credit for the amounts remitted by them, or, in other Avords, instead of crediting each Agent daily on the Cash Book Avith the amounts remitted by them, it is first carried into Transportation Re- 7 ceipts ” and at the end of each inontli “ Transpoi-tation Receipts ” is charged with the amounts received from each Agent, and the Agent gets his appro- priate credit through a Journal entry, instead of through the Cash Book. 2. As to Expenditures for Coastriiction. Expenditures for Construction, excei)t contract work, are made under the direction of tlie General Superintendent, and under the immediate su- pervision of the Superintendents of Division, who certify to the vouchers for the expenditures. Contracts are made by a Committee of the Board of Directors, called the “ Committee on Contracts the vouchers for payments under such contracts are approved by the Cliairman of the Committee. 8. As to the Expenditures for Transpoi-totion. All expenses for “ Office and Station Expenses,” Cost of Running,” “ Re- pairs of Machinery,” “Repairs of Track and Road^vay,” “ Repairs of Build- ings, &c.,” “Cost of Operating Telegraph,” and the “Expenses of Hudson River Ferry,” between New York and Piermont, are charged to “ Transpor- tation Expenses.” The interest on the Funded and Floating Debt, and Dividends on Stock are charged to “Transportation.” “ Transportation” is charged with Interest on Funded and Floating Debt. Dividends on Stock. Rent of Union Railroad. Taxes. T’ransportation Expenses, and sucli other items as properly belong to it. Transportation is credited with the Earnings of the Road, such as Freight^ Earnings, Passenger Earnings, &c., as will more fully appear from the tabu- lar statement of Earnings. 4. As to other charges ? There are no other charges, except the current busine.ss of the Comi)any between other Railroad Companies or individuals. 5. As to Income and Earnings ? The Earnings of the Company are principally made up from the trans- portation of freight and passengers. The Freight Earnings are made up from the waybills of goods transported over the Road. Each Agent is charged with the freight and charges on the goods destined for his station, as per the waybills. When an Agent forwards any goods, he makes a waybill of the same to be sent with the goods, and a duplicate waybill is also made and sent to the Chief Clerk, who has charge of the details of the freight accounts : thus having a complete check upon the Agent who is to account for the freight money. In making up the Freight Earnings, which are made up from the totals of the waybills each month, if any portion has been transported over any connection roads, that, portion is separated from the proportion belonging to the New York and Erie Railroad, and credited to the road to which it belongs — the “ Freight Earnings” account being credited only with the amount belonging to the New York and Erie Railroad Company. The Passenger Earnings arc made up from the sales of tickets by the dif- ferent Agents. The Agents report the sales daily, which are charged to 8 them, and their reports are verified by the comparison of the tickets col- lected and returned by the Conductors, with the Agents’ reports of sales. In making up the Passenger Earnings, “ Passenger Earnings ” account is credited only with the proportion of the tickets sold belonging to this Com- pany ; if any are sold to go .beyond our own road, the proper amount is separated from the total of ticket sales and credited to the road to which it belongs. “ Passenger Earnings ” account is credited only with the amount belong- ing to the New York and Erie Kailroad Company ; all the connecting roads get their appropriate credit without reference to the Earnings of the New York and Erie Railroad. 6. In reference to ilie colkcUon of the Earnings. Each Agent is charged with the freight received at his station, and any amount he may collect on freight which is prepaid before being forwarded ; also with the passenger tickets sold by him. He is required to send to the Treasurer daily all the money be collects, which he gets credit for in the manner as explained in No. 1 of these explanations. Each Agent is required to send to the General Book-keeper, monthly, a detailed balance sheet of all the business at his station, which is carefully examined and returned to him for correction, if any errors are discovered. The Agents thus account for all the business done by the Company, if any of it belongs to other roads ; the Treasurer pays the amounts which are charged to such other roads, they first having received the appropriate credits in making up the Freight and Passenger accounts ; or the Agent sends all the money he receives to the Treasurer whether it belongs to this Company or not. If any portion be- longs to any other Company, the Treasurer is put in funds to pay the amount. It will be seen from the above that the “ Receipts” is not the true basis upon which to judge of the amount of business done by the Company — the true basis is the Earnings, the Earnings being only credited with the amounts actually belonging to the Erie Company. The Receipts may include amounts belonging to other Companies, and may not have included in it amounts due from other Companies, because where a general account is kept with other Companies they may pay the amounts due in General Account, which may include freight and passenger balances, and be credited with the same directly on the Cash Book if they pay in cash, or bj* a journal entry if they pay by note. 7. State how long this system of account ho.s prevailed, and whether it gives a just view of the business of the Company ? The present system of arriving at the actual earnings of the Company has been in force since September 30, 1852, and it is believed to be as nearly correct as the nature of the business will allow. The great point to endeavor to arrive at is, to make the credit side of the Earnings Account show just the amount earned by the Company. This has been nearly attained. There will be small amounts to charge back by overcharges, &c., but the system of crediting each road with its proportion of the business done, independently of the proportion belonging to this Comj)any, is the true method of arriving at the Earnings of this Company, 9 8. Whether the published staknmits sime October 1, 1852, the Earnings and Expenses of the Company have been in exact accordance with the boohs ? The tabular statement of the Earnings and Expenses for the year ending September 30, 1853, embodied in the Keport of the Directors, November, 1853, are in exact accordance with the books of the Company, as is also the tabular statement of the Earnings and Expenses for the nine months ending June 30, 1854 To our own opinion of the excellence of this system, we subjoin the evidence of Mr. Holbrook. Question. What is your opinion of the system of accounts and checks in use in the New York and Erie Railroad Company 1 Answer. In the course of my investigation I have had occasion to examine and compare the Books, Returns and Statements of the various departments with the accounts upon the Ledger in the principal office, and I am fully convinced that the business of the Corporation, in all its details, is most per- fectly arranged ; and that the system adopted for keeping correct records of the earnings and disbursements of the Road, under their legitimate and ap- propriate heads, cannot be surpassed. (Signed) GEORGE HOLBROOK. ACCOUNTS AND REPORTS SINCE 1852. Having satisfied ourselves of the correctness of the system, we proceeded with the examination. The accountant found all the books accurately kept. The Ledger Balances were audited by him, and the reports compared with them by the Committee. The published Treasurer’s Eeport of Septem- ber 30, 1853, the Condensed Balance Sheet of that date, in the Report to the Stockholders in November, 1853, (B.) and the Condensed Balance Sheet of June 30, 1854, (C.) are certified to be correct, as are also subsequent results con- tained in the annexed Schedules purporting to be derived from actual returns. Those which are estimated are, in our judgments, near the actual results. STATE OF THE STOCK ACCOUNT. The examination of the Stock Ledger shows that depart- ment to have been conducted with equal accuracy. We sub- join the Report of Mr. Holbrook, and also a certificate from Mr. White, a gentleman employed by the Company, 10 independently of Mr. Holbrook, to do a similar service, after the discovery of the frauds in the Transfer Office of the New Haven Kailroad Company. New York, October 7, 1854. Gentlemen, — From a careful examination of the Stock Ledgers of the New York and Erie Railroad Company to this date, I find 100,177 shares to the credit of 2,336 Stockholders'; and 62.5884-10,000 shares of Unconsolidated and Fractional Stock which, in the aggregate, will be found to agree with the amount of the Capital Stock upon the Ledger of the Company. Respectfully yours, &c., GEORGE HOLBROOK. To the Committee of Iiivestis;aUon, ) New York and Erie R. R. Co. ) New York, October 6, 1854. I certify that I have carefully examined the Stock Certificate account of the New York and Erie Railroad Company covering a period of ten years, or from the time of the consolidation of the old stock. I have made a com- plete list of all outstanding certificates, and find it to compare with the Stock List of the Company, and that there are no certificates outstanding, unless covered by Stock, without being accounted for. (Signed,) JUSTIN D. WHITE. STATEMENT OF THE STOCK AND OTHER INDEBTEDNESS. Between September 30, 1852, and September 30, 1853, the stock was increased $2,233,099 91 : the Funded Debt $2,170,000 : and the Floating Debt $300,619 66. Between September 30, 1853, and June 30, 1854, the same accounts were increased as follows : Stock, $23,867 76 : Funded Debt, $1,934,131 10 : Floating Debt, $126,848 88. The total increase therefore in the Stock, Funded, and Floating Debt, between September 30, 1852, and June 30, 1854, was $6,788,567 31 (G.) On the 30th September, ult., the Stock, Funded Debt, and Bills Payable amounted to $34,850,004 90 (H.) The books not being yet written up (which is impossible from the nature and extent of the Company's business), we can- not give the exact Floating Debt on that day. On the issue of Stock since September, 1852, the Company have suffered a loss of $215,645 76, principally through 11 sales of stock hypothecated for purchase of iron. The iron is said to have advanced nearly enough to cover the loss. The discount in the sales of Bonds of the Company during the same time has been $235,158 97. The condition of the Floating Debt on the 30th June, merits attention, (D.) The Bills Payable account on that day, amounted to $2,709,585 78.'"* The total liabilities of the Company to mature in the months of July, August and September, amounted to July. Aug. Sept. Total. Floating Debt, S805, 056 16 #648,019 30 #543,792 60 #1,996,868 06 i Interest, . . . . . . 122,500 00 245,000 00 315,000 00 682,500 00 i Total, . ...#927,556 16 #893,019 30 #858,792 60 #2,679,368 06 ' Owing to these heavy payments maturing in such prox- imity, the Company found themselves in a critical situation. After obtaining about $350,000 on acceptances endorsed by various members of your Board, and secured by hypothe- cation of the Bonds of 1883, they executed three Mortgages, as follows : one dated August 29, 1854, to Cornelius Van- derbilt, on the Koad and Franchises to secure him as endorser of their acceptances to the amount of $400,000 : one dated August 29, 1854, to Cornelius Vanderbilt, on 180 Locomotives, 2,975 Cars, Platform Trucks and Baggage Crates, and upon other goods and chattels of the Company, to secure the same : and one dated August 31, 1854, to Daniel Drew, to secure him for accommodation notes and endorsements to the amount of $981,168 20, and 'for all future endorsements, the whole not to exceed $1,000,000 at any one time. The liabilities secured by these Mortgages are shown by Schedule (H.) Thus, while the net earnings of the Eoad for the quarter were between seven and eight hundred thousand dollars, and its prospects were more favorable for the future, the Company was forced, by crowd- * The Company had at this date $1,392,000 of the Bonds of 1883 contracted for to be de- livered in monthly instalments.— B. E. Bremnek, General Book-keeper. 12 ing such heavy payments into a time of great depression and want of confidence, to pledge all its available assets to meet a part of its Floating Debt, and its stock and securities were lamentably depreciated in consequence. The measures adopted gave the necessary temporary relief, and it is the opinion of your financial officers that such an emergency cannot occur again. We understand that the contracts for Boiling Stock which increased the present heavy Floating Debt are either nearly completed, or are cancelled. We are assured that no new contracts have been made since March last, and that of the seventy-five Engines contracted for to meet the necessities of the Koad, the contracts for twenty-two have been cancelled with the consent of the contractors, and sixteen remain to be delivered. This wise arrangement has checked the increase of the Floating Debt, and if the policy be persisted in, the affairs of the Company will soon be put on a sounder basis. In our judgment, it is better to pause where you are, until additions can be made at a less sacrifice of the means and credit of the Company. RULES FOR DETERMINING THE CLASSIFICATION OF ACCOUNTS, AND DISTINGUISHING THOSE BELONGING TO CONSTRUCTION FROM THOSE BELONGING TO TRANSPORTATION. The Superintendents have furnished us, at our request, with the following General Kules for governing the classifi- cation of construction and transportation charges. They seem to be sound in principle : RULES Adopted on the New York and Erie Railroad m determining the Classification of Accounts, and distinguishing those properly chargeable to “ Constrvxtion^^ from such as belong to “ Transportation.'’^ * 1st. All work done with special reference to construction of Second Track. 2d. All new Switches or c.v.tensions of old ones. 8d. All new structures of ever}" description (not renewals of others that » have been used up or destroyed) and all additions to old ones. 13 4th. Widening of embankments not rendered necessary from the washing away of materials, but from their not having originally been constructed of sufficient width. 5th. New Ditches that have been found necessary since the Road has been brought into use, 6th. Removing material from Slopes that were originally too steep.* * 7th. Difference in value of new materials, in renewals, as compared with the original value of such as were previously used, to wit : increased weight of Rails and Chairs ; increased number of Cross Ties ; substitution of Iron for Log Pipes ; permanent Station buildings for Shanties, &c., &c. We the undersigned Superintendents of the several Divisions of the New York and Erie Railroad, do hereby certify that the above Rules furnish the theory upon which we have acted and are now governed in the classification and allotment of our accounts. A. S. WHITON, Sup’t Eastern Division and Union Railroad, W. H. POWER, ‘‘ Delaware “ R. N. BROWN, “ Susquehanna ‘‘ J. A. HART, “ Western “ September 14, 1854. CONSTRUCTION ACCOUNT. On the 30th September, 1852, the Construction Account amounted to (A.) _ _ . $26,841,576 79 Added to Sept. 30, ’53, (B.) $4,381,257 42 Do. “ June 30, ’54, (C.) 1,654,121 80 6,035,379 22 Total, June 30, 1854, (C.)- - $32,876,956 01 The Superintendent states that he deems it “ Essentially necessary for the economical working of the Road, that the Delaware River Bridge, the engine houses and turntable at Port Jervis, and • the engine houses at Susquehanna, the connection of the main track with Centre street Pier at Dunkirk, and the switches on the Delaware Division, should be completed, which will involve an outlay of about $30,000.” New York, September 19, 1854. *Homer Ramsdell, Esq., President. Sir In explanation of the 6th item of work chargeable to Construction, i. e., “ Removing material from Slopes that were originally too steep,” I would remark that, in constructing roads, the practice is to grade the slopes through excavations, to what is termed the “ natu* ral slope,” the incline upon which the materials will rest without sliding. The natural slope of course differs according to the character of the material, some kinds of rock requiring no sloping, whilst sand requires to be very flat. This natural slope, therefore, varies from a per- pendicnlar, or 90 degrees, to two base to one perpendicular, or angle of 26§ degrees. In the construction of this Road, in many cases a way was excavated for laying the track sufficient to admit of the passage of trains, leaving the necessary sloping to be done after the Road was brought into operation, and it is for doing this work that the charge is made against Construction, and embraced in the 6th item above referred to. Yours respectfullv, D. C. McCALLUM, GenU Sup’t. 14 An expenditure of $500 will complete the second track on the Union Eailroad. The locomotives and cars for which the Company are still liable, in addition to acceptances, amount to $218,000 ; and $10,000 will be required to com- plete the Neversink Bridge, which is deemed important, though not essential. It is believed that a rest may then he made in the Construction Account. We deem this highly desirable, and recommend that the Construction Account be then closed, and that future additions he made from Earnings. ADDITIONS TO THE BED, TRACK, CUTTINGS, EMBANKMENTS, ROLLING STOCK, ETC., SINCE SEPTEMBER 30, 1852. Having ascertained the increased indebtedness of the Com- pany, and the increased cost of the Koad since September, 1852, and having learned the principles governing the dis- tribution of accounts, our next inquiry was concerning the expenditure of this large sum of money. On this head we depend entirely upon information derived from the General Superintendent, in reply to oiU' question, which we return herewith, (Appendix II.) If any topograpliical informa- tion he necessary to the comprehension of his returns, it may be found in the Directors’ Eeport to the Stockliolders, in November, 1853. PROPERTY. The next natural inquiry was concerning the property representing this expenditure. The Company are possessed of a broad gauge road 464 miles in length, having termini on the Hudson at Newburgh and Piermont, and on the Lakes at Dunkirk, and connected with New York at Jersey City, by the Union Eailroad, of which they hold a lease. This Eoad is thoroughly built, and in perfect repair, and affords to travellers accommoda- tions and comforts unequalled on any other American line. 15 Tributary to it are 625 miles of road with wide gauge, and 75 with narrow gauge. The lands through which it luns are held by a clear title, and are all paid for, with some few exceptions in the case of minor heirs, &c. One hundred and eighty miles are laid with double track, and eighty-two miles with sidings and turnouts. The stations, woodsheds, .and other buildings, incidental to such a property, are re- presented to be sufficient. In addition to these, the Com- pany hold a long lease of a valuable water property and offices in the City of New York. ^ This estate has cost a large sum in interest and discounts above the actual amount paid for land, labor and materials. In constructing it the Company was obliged by its necessi- ties to keep in advance of its means, having only the alter- native of abandoning sums already spent, or going on at a sacrifice. The individual members of the Board, as we are informed, lent their names freely for large amounts, without compensation. The heavy fioating debts thus contracted were met from time to time by sales of securities at a dis- count. Justice, however, requires that we should state that some parts of this property are believed to have sufficiently appreciated by reason of the advances in labor and materials to be nearly or quite Avorth the sums absorbed in them. The outstanding accounts and bills receivable cannot be exactly ascertained, the books not being made up to Sep- tember 30. On the 30th of June last, they amounted to $390,470 54. We are told that they are probably now about equal to the accounts payable. The other property is as follows : 2,962 Cars, valued by detailed estimate about SI, 889,162 00 183 Locomotives, “ “ 1,736,903 00 Materials, 555,804 81 Fuel, 223,321 70 One-third Interest in Lake Erie Steamers (cost) 143,437 43 “ “ Propellers “ 72,337 27 Four-fifth Interest in Francis Skiddy, “ .... 100,000 00 Corning and Blossburg Railroad Bonds, 9,000 00 Loan to Canandaigua and Niagara Falls Railroad,. . 100,000 00 16 Cash on Sept. 30, about, 140,000 00 Real Estate, 12,311 80 Owners Propeller Bulfalo, 18,542 88 Bond City of Toledo, 100 00 Total, S5,000,920 89 Our attention has been called to the fact that with scarcely an exception, the New York and Erie Kailroad Company has refrained from contributing to the construction of tribu- taries. We think that the Directors may point with pride to this evidence of good judgment. SOURCES OF INCOME. These are — 1, Transportation : 2, Mails : 3, Storage : 4, Kents : 5, Hire of Engines and Cars : 6, Telegraph : 7, Dividends on Buffalo and State Line Railroad Stock : 8, Miscellaneous (I.) The Buffalo and State Line Stock has been lately sold. The amount of earnings from all these sources except the first, has been about $250,000 for the last fiscal year. The comparative statements of Transportation Earnings (the main branch of revenue) for three years is as follows : 1851-52. 1852-53. 1853-54. Passenger, . . . . .. SI ,286,732 38 SI, 601,209 71 S1,728,068 08 Freight, , 1,761,016 01 2,537,214 52 3,394,598 10 Total,. . . , . . . S3,047,748 39 S4,138,424 23 S5,122,666 18 Passenger Earnings . — In regarding the results, it is to be remembered, as to way travel, that until this road was built the country through which it runs was not within easy access of the great markets, and was consequently less densely popu- lated than more favored districts. It must also be borne in mind that the through travel has been long accustomed to fol- low the track now occupied by the Canal and the Central Road • — a road co-extensive with the Erie, and offering nearly equal inducements to the public. In regarding the total passenger earnings for the year just passed, the serious epidemic pre- 17 vailing through the country must be taken into consideration ; and in comparing them with last year, we must remember that the Crystal Palace then drew numbers to New York. We think you have reason to be satisfied with the results in this department. The increase of earnings has been con- stant, notwithstanding the influences to check them. They increased this year nearly eight per cent over those of last year, and 34 1-4 per cent over those of 1851-2. The per head cost of carriage has not decreased essentially, if any ; but it is supposed that decided reductions in the expenses will result from recent changes and improvements. The through tariffs have also been recently advanced 111-2 per cent, on the former rates, which will be a clear gain to the Company as long as maintained. The through travel, how- ever, bears but a small numerical relation to the way. For the ten months ending with July, it was only 7.45 per cent of the entire travel. Freight Earnings . — The great expansion of the business of your Eoad, is in the direction of Freight. The Freight earnings of the year just closed are 33 4-5 per cent more than those of last year, and 92 3-4 more than those of the year before. They now amount to the enormous sum of 83,394,598, and Freight transportation keeps from one to two thousand freight cars in constant employ. The increase in tonnage for the nine months ending J une 30, was somewhat less than the increase in earnings. The total tonnage moving West increased about 8 per cent, or, deducting the products of the forest, vegetable food, and manufactures about 24 per cent : the tonnage moving East increased about 22 per cent. The present Way Tariff (except for Lumber,) was adopt- ed in September, 1853, and it is proposed to continue to work under it. The Lumber Tariff was adopted in Febru- ary last, being an increase of 10 per cent on former prices, and gives an average of 1.83 cents per ton per mile on long and short distances. 2 18 The through Tariff on many articles is regulated by agree- ments with competing lines. The rates on freight beyond Buffalo and Dunkirk, were lately advanced five percent. The additional sum received under this arrangement will be clear gain to the road. The tonnage moving West for the nine months ending June 30, 1854, was, (in pounds) — Way, - 368,828,100, yielding #487,600 01 Through, 53,170,440, 369,459 03 421,998,550 #857,059 04 The total tonnage moving East, for the same time, was, (in pounds) — Way, - 466,309,100 yielding #899,554 93 Through, 158,686,590 '' 681,636 25 624,995,690 #1,581.191 18 The total number of pounds carried one mile during the same time, were Way West, Through West, Way East, Through East, 31,636,326,566 22,663,445,414 73,231,589,420 64,507,690,910 192,039,052,310 Thus it appears that the Earnings amount to, per ton of 2,000 pounds per mile. Way West, 3.08 cents ; Through West, 3.26 cents ; Way East, 2.45 cents ; Through East, 2.11 cents. The average Way Earnings East, are depressed by the low rates for lumber and coal. The Through Freights West are generally of a higher class than the Through East. The proportion of way to through business is almost as great in Freight as in Passenger transportation. 87 1-6 per cent, in bulk, of the Freight going West, and 74 1-2 per cent of that going East, for the nine months ending June 30, was 19 way. We regard this as a very satisfactory statement, since the way Freight is decidedly more profitable than the through Freight. The unrivalled advantages which the New York and Erie Kailroad enjoys for the transportation of freight are so well understood that we shall not dwell upon them. Other reports have fully set forth the magnitude of its connection ; and we have already shown the business which flows over the road and the means which it has for doing it. Six hun- dred and thirty-one men, we are informed, are in motion daily upon its freight trains, beside those employed in its shops, stations and offices. The completion of the double track allows such an economy in the use of rolling stock, that it can be kept in constant repair, and we are assured by the Superintendent that it will answer the present and pro- spective wants of the Company better than was supposed. The results of the three years under consideration, show that freight is a lucrative source of revenue ; but are not of much use in determining its relative value. In 1851-2, when the Passenger Earnings were 42.2 per cent of the whole, the Transportation Expenses absorbed 56 3-4 per cent of the Earnings. In 1852-3, when the Passenger Earnings were 38.7 per cent of the whole, the Transporta- tion Expenses were 58 1-4 per cent of the Earnings. Dur- ing this year Transportation was credited with $125,270 85, on account of the use of the road, and rolling stock for the construction of the double track. This would diminish the per centage to 55 3-4. In 1853-4, when the Passenger Earnings constitute 33.7 per cent of the whole, the Trans- portation Expenses are 53 1-2 per cent of the Earnings. The similar items on account of construction this year amount to $63,991 39, which reduces the per centage to 52 1-4. It is to be observed in regard to these charges for construction, that as the business obstructed the road, and excluded more profitable traffic, they were, in our judgment, a fair credit to Transportation. They were credited at the rate of 1.71 cents per ton per mile. 20 CHARGES UPON INCOME. These are — 1, Transportation Expenses ; 2, Rent of the Union Railroad ; 3, Loss in running connecting Steamers ; 4, Depreciation ; 5, Interest ; 6, Dividends. Transportation Expenses . — We have already shown that the relative proportion of Transportation Expenses to Earn- ings is less this year than last. Actually they have in- creased ; principally in the repairs of engines, cars, track and roadway, and incidentals, (G.) We are informed by the Superintendent that the changes which the completion of the double track permits, will effect a decided reduction in the relative transportation expenses of the coming year. All bear testimony to the admirable system now prevailing- in this department. Notwithstanding the length of the road aixl the amount of its business, the trains move with great regularity, and accidents are rare. The telegraj)h enables the Superintendents to know the exact number of trains on the line at any one time, and the situation of each. This almost insures against collision from ordinary causes. Bent oj- the Union Road . — This road connects the main line with the City of New York. The rent is $80,100 per annum. There is also a debit on the balance sheet of $400,000, for repairs and improvement to this road, which appears to us to belong to the Construction Account. The Loss hy connecting Steamers on the Lakes arises from the necessity of connection on those waters where trade and travel have been used to flow to other channels. We are informed that two-thirds of the interest in them has been advantageously sold to other parties. The loss by the Fran- cis Skiddy, on. the Hudson, grows out of the following trans- actions : The New York Central Railroad and the New York and Erie Railroad were com23etitors in western cities for the New York travel. Owing to the advantages derived from the North River transportation, the Central Road was able to offer, in Cincinnati and elsewhere, to carry passen- 21 gers to New York cheaper than the New York and Erie. The Executive Committee, in whom the general power over steamers had been vested by a previous vote of your Board, found it necessary to take some steps to counteract this ad- vantage, and purchased of parties having no interest in, or connection with the New York and Erie Bailroad, the Fran- cis Skiddy, to run between New York and Newburgh in connection with trains going from and arriving at that place. Depy'eciation . — No allowance has been made for deprecia- tion. It appears that the sums annually expended in re- pau’S leave the track and roadbed as good at the end of the year as at the beginning. But as to station houses, water stations, wood sheds, bridges, rolling stock, &c., some think that a sum in addition to repairs should be set aside annu- ally to keep them good. Others, equally well informed, as- sure us that they are kept constantly good by repairs and replacements at the expense of transportation. Hitherto it has not been necessary to replace much of the rolling stock. Possibly, when replacements become necessary, the per centage of repairs will be increased, which will amount to the same thing as an annual allowance for depreciation. On these points the Superintendent says : Some of the property of the Company has appreciated, -whilst the other lias depreciated in value, but to what amount I am unable to state. The road- bed and real estate — two important items in the cost of construction — arc enhanced in value, whilst the superstructure, buildings, roiling stock and machinery have depreciated : whether they .will depreciate still more, de- pends upon the care to be exercised in their preservation and the amount of repairs to be expended upon them. 1 have uo doubt that an examination at any period of time would show the property to be of less value than its original cost, but at the same time I have but little doubt that if our j^resent system of repairs is continued, and an annual amount expended for repairs equal to that of last year, it would be wortli as much (uie hundred years hence as at the present time ; or if not, the dilference would be so small as to- require but very little to be charged annually for dej)reci;dion to make it so.” Interest . — The annual interest on the Funded Debt, when the Bonds of 1883 are all issued, will be $1,645,000. We suppose the Floating Debt will be retired as fast as possible. 22 Dividends should be declared only when fairly earned, after payment of all these charges, and when the financial conditions of the Company will permit. We think that none should he declared until the Floating Debt is disposed of. We also recommend a sinking fund towards meeting the Funded Debt, unless some more complete scheme can be de- vised. GROSS AND NET EARNINGS. 1852-53. ^4,318,962 36 S2, 407, 373 13 111,408 55 1,298,291 29 3,817,072 97 Net Earnings, $501,889 39 1853-4, Complete to June 30, thence part Return and part Estimate, Gross Earnings, $5,376,273 14 Transportation Expenses, $2,740,960 42 Other Charges as below, 398,565 05 Interest on Funded Debt, 1,491,666 89 4,631,192 36 Net Earnings, $745,080 78 The following are the other charges in the year 1853-4 : Rent of Union Railroad, $80,100 00 Loss in running Lake Steamers, 74,202 77 Do, do, Francis Skiddy, 14,153 64 Transportation Expenses prior to Sept, 30, 1853, not re- ceived so as to be carried into last year’s account, . . . 42,531 47 Hire of Engines and Cars, 24,858 87 Interest on Floating Debt to June 30, 112,718 30 Estimate of same for 3 months, 50,000 00 398,565 05 It is estimated that during the last year the gross earn- ings were decreased about $300,000 by the break of gauge, the strike of Engineers, and the May freshet. Gross Earnings, Transportation Expenses . Other Charges, Interest on Funded Debt, 23 THE PROSPECTIVE REVENUE. The President estimates the gross earnings for the next year at $6,000,000. We are not well enough acquainted with the data upon which he forms his judgment, to be able to give an opinion concerning the precise result : but in so far as it is an expression of confidence in a decided increase, both in the gross and net earnings of the Koad, we fully agree with it. Notwithstanding the systematic management of the Eoad, it is the opinion of your officers that decided reductions may yet be effected in the Transportation Expenses. By the in- crease in Tariffs, which has gone into efiect, and the promised decrease in expenses, we think that you may count upon a decided gain upon the results of the year just closed, even without the anticipated increase in business. But we do not think that any past results are to be taken as the measure of the future business of the New York and Erie Railroad. From the opening in 1851, until May last, it was in the condition of a man with one arm. It had virtually but one track, with insufficient sidings and turn- outs (great as they were,) with incomplete roadbed, cut- tings, embankments and bridges; with station houses unequal to the business ; and with a rolling stock constantly added to, and yet ever behind its wants. It was also used in the construction of its second track to the exclusion of a better paying business. These things are now changed. With the exception of 7 1-2 miles, the proposed second track is completed and in use ; the old track is in better order than ever before ; the cuttings are widened and brought to the natural slope ; the embankments are in good order ; the station houses, water stations, wood sheds &c., are esteemed adequate to wants as shown by experience ; the bridges are represented as in good repair ; and the rolling stock, though not as large as the Directors seem to have desired, will meet demands for some time to come, when the works in progress are completed, which can be done for $270,000. 24 The New York and Erie Kailroad now earns annually about as large a sum as was originally proposed to be ex- pended in its construction. It is a competitor for the enor- mous passenger and freight business of the Lake country, the north-west, and the Canadian Peninsula, with New York : and also for that of the Valley of the Ohio and the Mississippi, with which it is soon to have even better con- nections than now. It passes through a line of country having no other Eastern outlet by rail, whose productions are bulky, and which has liitherto been less densely peopled than some other sections of the State, only because more difficult of access ; and its tributaries penetrate some of the richest mineral and agricultural lands in the Union. When we see what it has already done, while new, en- cumbered, and without perfect connections, we have no difficulty in agreeing that it is destined to do decidedly more with experience, without incumbrance to the traffic, and with connections established. At the same time we cannot shut our eyes to its financial condition. We are aware of the difficulties with which your Board has had to contend, and bear willing testimony to your arduous and untiring exertions to surmount them. But we think you will agree with us, that the recent critical situation of the Company has demonstrated the imprudence of anticipating earnings so largely, and calls for frankness and judicious management on the part of the Directors. If the public can be assured that the Construction Account is closed, and a scheme can be devised for retiring the Float- ing Debt, making at the same time prospective provisions for meeting the Funded, we see iiotliing to prevent this Eoad from becoming one of the most valuable railway properties in the world. To insure this result we recommend : 1. That the Construction Account be closed. 2. An increase in your Tariff prices of freight and pas- sengers, both Way and Through. We believe that an im- 25 mediate judicious addition to the present rates is not only due to the Stockholders, but will essentially conduce to the permanent welfare of the Company. . 3. That no Dividends he paid till the Floating Debt is disposed of 4. That a Sinking Fund be established, to be paid monthly into the hands of Trustees, independent of the Company. 5. That the President and Vice-President of the Com- pany be required to give their whole time and undivided attention to the duties of their respective offices. We think this is indispensable to the proper management of so large a Corporation as the New York and Erie Kailroad Company. All of which is respectfully submitted. * JAMES BROWN, THOMAS TILESTON, D. D. WILLIAMSON, ' • JOHN E. WILLIAMS, CALEB 0. HALSTED, DAVID HOADLEY, JOHN H. GOURLIE, J. C. BANCROFT DAVIS. New York, October 10, 1851. ■» ‘ i' ' % APPENDIX 1. 28 APPENDIX I. ACCOUNTANT’S REPORT. New York, October 6th, 1854. Gentlemen : The ^Schedules herewith submitted, marked A, B, C, 1), E, F, G, H, I, J, and K, liave been prepared by the undersigned from the books of the New York and Erie Railroad Company, with which they agree in every particular. The correctness of the books^ and these statements, can be fully relied upon. I have the honor to be your ob’dt Servant, GEORGE HOLBROOK. To the Committee of Investigation, i New York & Erie R. R. Co. ) ♦Schedule A — Statement, Condensed Balance Sheet of Sept. 30, 1852. B— “ “ ‘‘ “ of Sept. 30, 1853. C — “ “ “ “ of June 30, 1854. D — “ Floating Debt, June 30, 1854. E — “ Transportation Account, June 30, 1854. F — “ Materials and Fuel, June 30, 1854. G — “ Increase of Liabilities, 1852-53-54. H — “ Stock, Funded Debt, and Bills Paya. Sept. 30, 1854. I — “ Earnings, &c., 1853-54. J — “ Expenditures, 1853-54. I Rate per cent. Increase Passenger and Freight K — “ < Earnings, and Expenditures from Sept. 30, ( 1852, to Sept. 30, 1854. SCHEDULE (A.) — Condensed Balance Sheet, September 30, 1852. 29 1 : ! 1 ;§ : ! :8 8 ; i : ; :i iliiii HI : 18 : 1^' ; :S 00 s I i ; i i IS : I illliilli « p ANHODOV NOIXOnrnSNOO *It will be observed that there is a variation of $269,844 02, between this statement of the Construction Account, and the one previously published, which arises m the fact, that items properly chargeable to Construction under the year ending Sept. 30, 1852, had been omitt^. 30 BS* For items in detail, see printed Report of November, 1853. SCHEDULE (C.) — Condensed Balance Sheet, June 30, 1854. 31 SCHEDULE (D.) — Floating Debt , June 30, 1854. 32 iOOiOOt-COCO»OCO COO>OCD'«tCO«M 05-^ O 0^ O GO CO O O CD O OOOiOit'- 0> 00 rH o O Oi O iH 'op>P ’3 2 ® 'S p S' g 'g I S ft > 2 > O ; 1 s 2 .P p : S-+/« ■S g S ® 2 M «-2 go Ho §1 wa - S I ^ H § » I O_C0 i-( ^ T-i o O^^ CO VO o i- ” ^-S rW ..- 0) .O ItS-S'-sa _.So 5 g o^cji _h ce K_. rri . 5 ^ S Lh Tl 5: ‘ - p < i ^" g " 8.S k ^ S -5 p bo^ •S "23 .2 J 2 <5 g ^ ^5 .2|S g g§|| : 02 E o ^ a g o H Ssp ' S^AapH ^^p^pL|P^a!!2:<3o2ftUMMMSoPMM i 33 00 o CO w p •-0 eh' P o o o <1 o H <1 Ph O Ph CQ <1 p Pi^ s«x p Q P W o Wl 3 83,889,307 04 | 83,889,307 04 34 SCHEDULE (F.)— Materials and Fuel, June 30, 1854. 1 Pierniont Shop, S21 1,734 98 30,937 96 11,673 68, 36,569 01 6,960 58 235,075 35 12,478 33 10,374 92 i I iSns([iiehanna Shoj), 1 Elmira Shoj), Dunkirk Shoj), Printing Office, On llie line of the Road, Oil and Waste, General Supply Store, j j Fuel on hand, I 555,804 81 223,321 70 i 1 i $779,126 51 Bad and Doubtful Debts. Sundry Agents and others, $8,652 81 21,929 66 1,161 10 9,399 88 2,266 58 22,326 60 $65,736 63 •lohn R .Johnston, Chemung Railroad Co., Chemung Railroad Co., deferred Suflern’s Station, 1852, New York Station, C. S. Tanpen, SCHEDULE (G.) — Increase of Liabilities from Sept. 30, 1852 to June 30, 1854. 35 36 SCHEDULE (H.) Stock, Funded Debt, and Bills Payable, September 30, 1854. stock, 810,023,958 84 Funded Debt, 22,601,000 00 Bills Payable, as below, 2,225,046 06 834,850,004 90 ^Maturity of Bills Pg^yable. Secured by Moi-tgage to C. Vandrrbilt. Secured by Mortgage to D. Drew. i Not secured by Mortgage. Total. i October, 1854. 1 November, ‘‘ j December, “ j .Taiiuary, 1855, j February, “ ! March, “• 1 April, “ 1 May, ’ “ 1 .Tunc, “ 1 August, “ j February, 1860 1 858.333 32 133.333 30 74,999 99 133,333 39 855,825 00 63,153 44 199,319 78 120,031 83 8,557 99 63,574 05 14,733 40 4,457 11 14,497 96 13,759 69 8524,211 07 342,084 86 126,061 29 130,943 10 58,336 00 21,189 16 23,410 33 900 00 40,666’ 00 8580,036 07 405,238 30 383,714 39 384,308 23 141,893 98 218,096 60 38.143 73 5;357 11 14,497 96 13,759 69 40,000 00 8400,000 00 8557,910 25 81,267,135 81 82,225,046 06 Of the payments becoming due October, November and December, 1854, the following Table will explain for what purposes the acceptances of the Treasurer were given : OCTO-BKR. i November. December. Locomotives, 869,904 65 15,020 00 47,622 40 48,236 59 21,545 54 1,400 00 314,475 00 61,831 89 832,580 63 12,625 72 42,293 80 23,530 36 873,898 41 18,843 84 49,737 51 Freiglit and Passenger Cars,.. Materials, Iron, Grading, 2,119 49 4,136 26 219,720 78 10,896 05 4,362 00 Sundries, *Cash, 263,175 00 14,592 68 14,381 78 2,058 33 Paymasters, Fuel, Propellers, 8580,036 07 8405,238 30 8383,714 34 I’hese amounts were obtained of Banks and Brokers, in cash, for which acceptances were given, the money being required to meet obligations of the Company as they matured. SCHEDULE (1.) Comparative Statement of Earnings between the Years ending Sept. 30 , 1853 , and Sept. 30 , 1854 . 37 Increased per centage. 7.92-100 pr. ct. 33.4-5 “ 5.35-100 ‘‘ 16 0 0 24.48-100 pr.c. 1 - 00 o o GO GO 00 O O CD rH 00 CO O <01 CD 0 iO> 00 01 lO . . C5 . 00^ CO^ 01^0 • • tO^ . CO^ -5 co" !>•" o" ! ; cd" : oi o CD to t-H 00 0 ^ 1—1 m o' OO O oo -tf O rH 00 CO 1' "a 00 00 GO T-I 0 00 CD C5 Ol r-H . . CD . 1- O^UO^CD^O^ • • C5^ • 01 ^ O rA o6' cD^'-rh' ! ! of : CO Ol 0 ) o o . rH 1-. c t- 0^0^ Oi^ CO rH o I3C T— 1 CO ! 00 " o' of 1-- 00 O l 01 Ol 00 2:^9 m ss ^ C0'^'+^ GO O CO 00 GO l-~ 0 Oi CO CO ^ O rH CD CO CO 0 CO ■'1-' O lO QO 00 GO GO rH t-H CD CO »0 GO rH rH CD O 1^ I— 1 O . CO rH Oi Oi cT o cT O^O^hJH^O^CO^ . rH 1 Oi^ op CO CO CO rH I co"' co" ^ 0) lOl 1— < o' a o . O (D la C5 Three Months TO Sep. 30, 1854, AT Pro Rata. 70,201 02 00 Cl 0 0 ^ Cl" an Cl 49,98G 17 an >0 00 I — 1 o' oo w >r, CO 0 CO 0 0 o' 01 1.0 00 0 co' Cl 1 - 149,958 53 U) ia> CO CO CO GO lO C5 0 1.0 CO C5 1 — 1 CO CD E" -tH 0 lO Cl CO a CO oi OJ 0 10 0 10 OJ CO 00^ a^ 00 cT a' Cl" a^ 0 " 00 " I— H O*' 00 hHh CO m CO CO CO rH rH 00 CO a CO 0 rH r-H 0 10 Ih. CO CO CO an CD 1- I'- CO 10 tH 10 00 CO CO w a 0 CO 1^ CO 1 - 0 an 0 Cl 10 0 Ci 0 00 I-H CO CO 10 00 0 CO CO ci oi 0 0 01 0 Cl t-h OC' IC an C 1 r-H 1- H 00 W CO rH an CD Cl 00 w 1^ 1.0 1' Cl lO an HH CO t-H CO an Cl 0 CO aH^uo^i-^cD^ 00 CO an CO 1— 05 CO 0 0_^CX)^0^ OO^CS^an^ CC^CO^O^OO^ CC^UO^rH CO an C0^ICI_^C5 00_ a a 02 co" of -t" co" co" 00 " an ' 00 " 00 " co" co" co" go" co" oo"io" co" oc" Cl" ocT 0 " co" CO QO O' •1» CO -O CO 1.0 0 CO 0 i-H Cl rH a* 0 0 CO 0 cc 1—1 tH 10 00 Cl o' CO a-i CO 00 0 CO 00^ 06 CO 1 94,611 58 rH tH GO CO 0^ 00" 00 80,140 35 393,467 28 1 CO a 1- Cl 00 lO !■- Cl a 0 Cl CO a Cl CO CO 10 0 CD Ot* 00 I" Cl rH CO W Cl a CO 00 0 1.0 05 10 VO Cl CO a 00 00 0 (M -Ttl rH 0 0 ‘O 00 00 Cl 0 a a CO a 05 CO !■- a CO a vo CO CO CO CO rH 0 Cl a 10 rH 1' 00 l-- Cl 05 10 00 a a 00 CO 05 a 1 — 0 0 c co^o^co^ i'^oq_oo^co___ co^a^oo iq^ vq^05^v0_^ 05^ a^ 1-^CO^O^CO^ 00 00 a r co" 00" co" io"oo"oo"rH'' 00" Cl" co" 05" co" a" 05 " <^05" ocT CQ Cl rH a 1 ^ CO 00 rH l- 0 a a Cl CO a a a CO CO a rH rH X 1-- iH rH C5 W i- 'TJ^ Tt^ O 4> * S A a M ^ c2 CO . ^ 'a C! t» Ti a w ^ a^.S a riJ 'TIS Ph a rt t -1 a o H sab ffi JLra g ^ cs o <1 P '1 .'pa fl ‘I ^ 5' a J 3 o rt 3 3‘-^^ 1“ a j; £ ss| ® I s " ll|l ~ a .1:5 r/3 a r-r . S -a - t: S'3 o [;? a Ph^ Ph a 3 o' 3 3 3 a aPP'OpH -a P-a bo a ^ a a a 5 ; a P a a 2 a o r- a .a a H H fcD 'a o , a ao SW ^03 aa 3 i>£'S^ too Ph Ph Ah Pm bj:) a 3 H t« o a rH Ph Ph o - O bb a w W ^ ■a! O a ^ a 2:^ Ph P^ bo w . , c/3 'i a I i£ V 3 53 'P Ph 43 O poo H O *-' - ^ o a a & Jh o « a sa a a^PH 4> a 0 Q r-H 1/3 W 0^0) 5 hj: be a a ^ S 3 o a a p;«p ,P Q a.p ^ 3 g pa o a a (D O O O 2 a a M 3 . a 5'^ f® I S ^ rt ^ a fenD « g gm V- EH H'^ ® _ _. a ^a 'a a ia a a a o M W bCHHJ 3 P a a3 .3 .3 ^ i>X) be iU 3 M ’S a a a S PPPqPnPH CO a .Si o o .5 a ^ O o A a !ki ?3W a® CO S (M CO : O C3 a, X F=3. '2 - >-i o oS T. 1^ I— . « I jft (1> G ^ ijj3 § ^ ‘Sd c ^ C c5 G O 0) HPhH P5 H o o Gh H M H •3 r^ o 5 oi o ^*0C'H CO ^ T-H I— I »0) to I- CD CO lO C5 1^ 1-H CO O ;:; O O CO CCi CO CO C5 04 CC T-i O c H , -tJ G 'C ?- P o H « ^ „ I— H oi CO. t— Ph O Ol r~( ^oco- Q o ^ CO H Cl O CC' 0^ o'cfo 1- -It rH o 04 o rH O O t-h 04 04 1^ l- 1-0 CD O XO 05 00 O 04 I- 00_^CC^ xO;_CC^ 1 ^ O co" 04 ^ I—! 2 G ci G D 04 -rfl o CD CD CD lO D4 r oT Ol" CD CD 00 CD CD O r-H O' » o • O CO. CD o 0 4 CD O CD r-l O O O CC 04 CO O CO CO O CD^O^CO_^C'4 CD o' lO cT t^’' o" '04 i— i 7— I Tji o ^ O Oh -H O <^1 G g -5 ^ 3 1-1 CO O J>- lo -ti CD lO CD O 0_^rO_r-H_G0^20_^ of o'co'' i-T 1 -f 04 i+l 04 >0 04 -Ol CO T-H “'g «=J0 g Tn ZD Gh3 . bni . • ^ . r/-, gP5 G Oh <■1 o H O . O O - M ac ^ .2 .2 S C3 G GO H— tB O GhO ^ ^'S cqoGG G^e OOOP 3 CJ G SCHEDULE (K.) — Kate per cent of Increase in Passenger and Freight Earnings, and Expenditures from 1852 to 1854. 40 APPENDIX IL APPENDIX II. REPORT FROM THE GENERAL SUPERINTENDENT CONCERNING CONSTRUCTION. J. C. Bancroft Davis, Esq., Secretary of Investigating Committee. New York, October 9, 1854. Sir : — In compliance with your request, I inclose herewith a statement giving the details of work charged to Construction since May last, so far as the accounts have been made up. In answer to your question as to what work was done generally from September, 1852, to May, 1854, I would state that the Report of the Direc- tors, submitted in November last, furnishes an answer to the question up to September 30, 1853, and I beg leave to refer to it for particulars. From that time until May, when I assumed charge of the work, the ac- counts were very voluminous, and not kept in such a manner as to enable me to furnish the details in time for your purposes. The work was similar in character to that done since then, and the statement furnished will give a very fair idea of the general character of our Construction Account. Respectfully, Your obedient Servant, D. C. McC ALBUM, GenH SupH. STATEMENT OF WORK DONE AND CHARGED TO CONSTRUC- TION/' IN THE MONTHS OF MAY, JUNE, JULY AND AUGUST. UNION RAILROAD. Building Double Track between Paterson and Bergen, ^55,731 30 “ Cattle platform at Bergen, 61 75 “ Machine Shops ‘‘ “ 1,699 32 “ Telegraph Office “ Boiling Spring, 24 00 “ Retaining Wall “ Van Winkle’s Farm, 212 75 “ Hackensack Bridge, 1,899 30 $59,628 42 44 NEWBURGH BRANCH. Grading Depot grounds and laying side tracks at Newburgh, S‘^,435 40 EASTERN DIVISION. Grading Depot grounds at Shultz for wood yard and laying side track, ^*222 62 Building new fences, rendered necessary by the ope- rations of contractors and others, in building se- cond track, viz. : 1400 feet between Oxford and SufFern, ^^141 25 162 rods “ SufFern and Ramapo, 447 72 248 “ “ Otisville and Port Jervis, 383 59 105 “ “ One mile east of Neversink Bridge, 213 69 80 “ SufFern and Ramapo, 324 29 1,510 54 Filling Depot grounds at Middletown, 184 48 Building Road Crossing at Middletown, 57 77 “ Platform at SufFern Station, 28 95 “ “ Newburgh Junction, Ill 32 “ Second Track between Otisville and Port Jervis, 28,064 55 Estimate of Wells & Co., on account of Second Track between Otisville and Port Jervis, 41,545 54 Estimate of King & Co., for work on Neversink Bridge, 819 23 “ “ “ I Delaware “ 2,124 00 Work done by Bridge Department, viz. : at Wild Cat, S34 98 : Wallkill, $S 11 : New Hampton, $42 50 : Davies Creek, $o0 44 : Turners, ^352 08 : Augusta, $614 57: Neversink, $318 67, 1,416 35 $76,085 35 DELAWARE DIVISION. NEW DITCHES. Between Turnout and Rosa Switch, $352 25 “ Mast Hope and Delaware Bridge, 290 73 “ Hankins and Basket, 373 46 On miles 85, 91, 92 and 93, 841 14 East of Holbert’s Bridge, 289 70 Two miles east of Cochecton, 170 63 At Callicoon Station, 390 53 Between Hancock and Deposit, 45 56 “ Hankins and Callicoon, 332 12 On miles 166, 177 and 178, 898 82 Two miles west of Basket Switch, 635 19 Half-Mile “ Lordville, 307 69 On mile 155, 631 13 5^5,558 95 SWITCHES AND TURNOUTS. At Port Jervis for Car House and Yard, $2,249 69 Connection with Coal Basin, 2,213 44 At Narrowsburgh, 1,281 14 Carried forward, $5,744 27 $6,558 95 45 Brought forward, $5,744 27 $5,558 95 At Stockport, 1,059 13 “ Basket, 4,771 67 “ Matamoras Bridge, 1,176 22 “ Callicoon, 2,555 13 “ Hankins, 302 53 “ Nobodys, 1,953 96 “ Lordville, 674 41 “ Deposit, 731 13 " Rosa, 502 34 19,470 79 Removing slide at King & Fuller’s Cut, $3,320 86 “ “ half mile west of Cochecton, 4,647 73 Ditching and sloping embankment between Port Jervis and Rosa, 687 29 Ditching and sloping embankment east of Summit, ... 1,199 99 9,855 87 Ballasting, surfacing and laying second track between Deposit and Susquehunna, 38,663 50 Cattle Guards between Deposit and Susquehanna, 402 50 LAYING ADDITIONAL TIES. Between Sands Creek Bridge and Hancock, 232 40 “ Hancock and Deposit, 1,105 41 “ Narrowsburgh and Lackawaxen, 1,565 66 “ Hale’s Eddy and Hancock, 1,126 62 4,030 09 FENCING. Between Mast Hope and Lackawaxen, 17 83 “ Hancock and Stockport, 72 34 “ “ “ Deposit, 107 66 “ Narrowsburgh and Nobodys, 66 15 On miles 162 and 163, 78 00 341,98 Building Machine and Work Shop at Port Jervis, 1,476 94 Extension of Passenger Depot at “ 77 23 Building Turntable at “ 201 99 Coffer Dam at Matamoras Bridge, 703 79 Water Station at Middaugh’s, 284 70 Office expenses, $180 00 : Contingencies, $9 55, 189 55 Repairing Gravel Cars for Construction, $1,444 27 : Tools for Construction, $223 25, 1,667 52 Building boarding houses for laborers, 574 91 Turntable at Port Jervis, (by Bridge Department), 234 11 Delaware Bridge, “ “ 2,126 24 $85,860 66 SUSQUEHANNA DIVISION. BRIDGES. New Road Bridge at Kirkwood, $4,691 90 “ “ “ ‘‘ Windsor, 334 00 “ •' “ “ Great Bend, 49 50 ^ Carried forward, $5,075 40 46 Brought forward, S5,075 40 New Road Bridge at Binghamton, 467 02 “ “ “ ‘‘ Owego Creek, 261 80 Elmira Island Bridge, 1,870 24 Dickinson Road Bridge, 1,874 57 Corning Bridge, 275 17 Grading approaches to various Railroad Bridges, 475 50 10,299 70 SWITCHES. Alteration of Switches at Kirkwood, S120 50 Extension “ “ “ Owego, 121 06 “ “ “ Addison, 206 46 ' Cross Switch at Campville, 90 50 “ “ “ Waverley, 191 95 Switches “ Susquehanna, 4,874 43 Laying Track to Payne & Olcott’s Car Shop, 1575 Building Cattle Guards, and Planking various crossings on Second Track, 163 66 Office Furniture and Clerk hire, 333 43 Engineering Services and Expenses, 134 66 Susquehanna Machine and Workshops, ^611 34 Owego ‘‘ ‘‘ ‘‘ 1,066 14 1,677 48 Susquehanna Freight and Passenger Stations, 1,512 61 “ Hide House, 254 67 Owego, “ 319 29 Corning Freight and Passenger Station, 898 06 Owego New Platforms, 14 00 2,998 63 WATER STATIONS. Water Station at Union, SI 02 72 “ “ “ Campville, 233 83 “ “ “ Susquehanna, 50 51 “ “ “ Kirkwood, 369 42 “ “ “ Campville, 68 13 824 61 Fitting Gas Lamps at Elmira, 33 41 Contingencies, 22 38 Culvert at Corning, S105 34 “ “ Elmira, 202 83 308 17 New Fences, 318 26 Side-walk, Owego, 375 81 Widening Embankments, 2,422 63 Work done by Bridge Department, viz. : Highway Bridge, S27 75; Binghamton, S86 44; Pipe Creek, S223 13 ; Elmira, S766 55 ; Kirkwood, S131 19 ; Wind- sor, S30 13; Elmira Island, S672 36; Corning, S47 63; Watchmen’s Services, S65 37, 2,032 22 S27,565 70 WESTERN DIVISION. Widening Cuts betw'een Alfred and Hornellsville, S4:,624 14 “ “ at Maple Hill, 1,566 37 Carried forward, S6,190 51 47 Brought Forward, S6,190 51 Grading and Docking Water street, Dunkirk, 2,199 26 Grading and Laying Switch to Cattle Pen at Dunkirk, 446 37 Building Cattle Pen at Dunkirk, 531 22 Painting and Finishing new Warehouse at Dunkirk, 241 10 Ditching at Maple Hill, S522 25 “ between Almond and Hornellsville, 214 87 737 12 Erecting various temporary Water Tanks, rendered necessary by the drouth, 1,129 72 Fighting Fire to protect Building Materials, &c., 166 00 Laying new Side Track at Scio, 1,773 92 Building Office, &c., for General Car Repairer, 68 99 “ Dining Saloons at Hornellsville and Dunkirk, 299 35 Fencing Andover Depot grounds, 30 60 Engineering, 43 67 S13,857 83 RECAPITULATION. Union Railroad Newburgh Branch, Eastern Division, Delaware “ Susquehanna “ Western, “ Locomotives, Iron, Cars— Freight, $90,208 20 ; Passenger, $6,941 15 Machinery, $59,628 42 2,435 40 76,085 35 85,860 66 27,565 70 13,857 83 263,864 43 170,929 68 97,149 35 2,829 96 Total, $800,206 78 ^I^IVERSiTY 3 U-tn’Qi: isi f/ ' ' k^, pr. ‘v-' . -•.'■4 . ; !,n}V’.''^i /;K Tali ..•.■■ 4 .; .ufii; y /;*r, V %■ * .■V^.?(!'!fv' '-^ff ■■ >, , ,'A I '■'^- •j!*’'* » ‘ V ^ , , i . ^ <^i!j pa.-^':..M .4.4 k'v. .4 4.^.4 j ' »{.*►■ ■^Vii.t* .4.4 1 ' 4 .4 4„> j ;.,, 4, -.-(cv- . ijwtyT* wt Gi/.triyif.V 4. 41 •.'^4 -lii «itV><».} 4{H ‘biiuM ' . ^ I 2<7Tr^’^.V 4. ' v rM4 ^4• 4‘'.’ ■': ■ M-.i' •>■• f SI ''''■’ < ■-::.#<*? 'sir ,,-rj * 'l -.•»■•■ ■ ■ c!L«'.'W •'^' ■ ■ --r ■ ■ ■' "'■‘IT f :w,^»kr V4 ,v. , .- It s'jMS ■ ' > »VV>;'4 ■j’l^i^^'VH.'',*' ■.:*4.-. it» jiuf? <>t* J'-^KSIxT -'^•V ,-,;- 4 xv. ..iit, .-..4’, •■..■- . . 4 . . 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