The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-06
General Remarks

owing 10 the unfavorabie market for long tefm securities
turing number Of years past. the company has been obliged
10 provide Tor its corporate financing in part by the issuing and
renewal OF series Of short-term notes hearing . relatively high
rate OF interest. secured by pledges Of various treasury assets.
by devo'inS substantially all Of the companys current income
=" additions and improvements. which ordinarily and properly
would DO provided for from new capital since January. 1905.
the company has not done any lone-tsm financing. except
through the recent sale Of The Erie L Jc~ey divisional bonds and the
SencSee River divisional bonds. 10 discharge and refund . part
OF vs. outstanding shor'-'crm notes. snd the sale Of u 900 600
PennsylvaniA collateral bonds.
The mobilization Of the terms. Of the general mortgage. de-
tails Of which have been sent all stockholders OF the company,
Is IN course OF negotiation. This viii provide Tor the issue an.
sale Of si"G27 $50 general mortgage convertible bonds. the pro
errSi> OF which ~ TO he used a. $1,000 900 in retirement OF
the 80 notes Of the Erie Railroad Co. due April I, 1915. tb)
about s20ooo 900 to complete the doube-tr~ckins and Grade
reduction on a stretch OF about thirt, Ave miles On the Chicago
4 Erie division between LomaI and Grnmth. Ind. the plans for
mich work have been prepared. and TO increase the terminal
facilities at several points in Ohio. notably ~ Youns>,own and
Akron, the balance being used in part 10 the retirement at the
compan! 5 issue oi 5l,G notes, due April !, 1917. The retire.
men, Of that issue OF notes will complete the e. undinx Of all Of
the compsnys shor-t~rm obligations. which in March, 1914.
amounted TO S3i.55oOoo. Interest charges n the convertible
bonds to be issues: and sold will he a, . rate .ppro.imatinr one
anu n'e-nishths per cent, per annum less than that heretofore
paid ON the notes to he refunded.
The increase in freight rate. allowed by IN. Interstate Com.
merce Commission, it is expected. will result in material addi-
tons Il the companys net income. which should increase with
the volume OF business.
ON June 30. 1915. occurred the death Of Hon. John G.
Mccullough. a director for over thirty years On October II.
1915. occurred the death of Mr.. Thomas T.. Fowler. who ON
May 20. 1915, had been elected a director Of the company.
To oil existing vacancies. Mr.. George =. Bro~nei WAS elected
. director for the torn expiring N 1915, and Aiessr>. 4. NJ.
Anderson, Irenvile Kane and George q. Mason for the term
expiring In 1919.
Mr.. q. A. Richardson resigned as vicr-pre>ident Mr.. Il. y.
circuit was elected = vice~president in charge OF Purchasing.
Land. Ts and Federal Valuation Departments.
ON November /. 1915. the $3.50. 800 FRS, mortgage bonds OF
the Tioga Railroad Company. the capital stock Of which is wn ed
by the Erie Railroad Co. were renewed for a term OF twenty
years The principal and interest Of the extended bonds are
guaranteed by the Erie Railroad Company.
on July /. 1915. the $500 900 Of bonds OF the Blo>sbug Coal
Co, the capital stock Of which il owned by the Err. Railroad
Co. were extended to July |. 1922 The principal and interes,
of tn. extended bonds are guaranteed by the Erie Railroad
Company.
In compliance with an order Of the Interstate CommaTce
Commission. your company has Invested itself by sale OF it's
fleet of eight lake steamers at a price somewhat in advance OF
the appraised value. For a period OF fifty years the Enc Rail-
road has been engaged In lake transportation which 4 now
sbsudons, The effect Of this action on It's revenues is a = yet
probhemaucal,
Certain classes III employees in thu transportation depart
ment have asked for an eght-hour day with = penalty Of time
and = half for all hours worked over eight. Your hoard desires
seAsonabic. For the reason that railway are required TO fur.
the principle of pcnalzins overtime Is unsound.
During the year $50. 643 .2s7 IA, equivalent To 81 81 per cent.
Of the Operating expenses. was paid by the Company direct
to labor The average number Of employees WAS - 2O2.
The efficient services of the Officers and emplo, ~ are hereb,
a,kno~ lodged.
BY order OF the Board.
Respectfully submitted.
FREDERICK D. UNDERWOOD,
President.