OF THE BOARD OF DIRECTORS TO THE STOCKHOLDERS OF THE New York, New Haven & Hartford Railroad Co. TO BE SUBMITTED AT THEIR ANNUAL MEETING IN THE CITY OF NEW HAVEN, ON Wednesday, Jan. 8th, 1873. The Directors of the New York, New Haven and Hartford Railroad Company respectfully submit the following report of the business and condition of the Company for the fiscal year, terminating September 30th, 1872. SHORE LINE DIVISION. The Receipts on this Division for the year ending September 30th, 1872, have been On the 3d day of August, 1870, the New York and New Haven Railroad Company, and the Hartford and New Haven Railroad Company, entered into a perpetual agreement by which all the railways and properties of both corporations, except all monies, claims and demands which should thereafter become due on account of subscriptions to the capital stock of either corporation, became a joint estate, and were brought under the control and management of a joint Board of Managers. Under this agreement, the net earnings of the two roads, after the payment of all expenses, liabilities and interest, were to be divided between the two corporations in the proportion of fifty-seven per cent. to the former Company and forty-three per cent. to the latter Company. It was also provided in said agreement that as soon as the necessary legislative authority could be obtained, the two corporations should be merged and consolidated into one Company, and that all apportionments of Capital Stock under such consolidation should be made on the basis of fifty-seven per cent. to the New York and New Haven Railroad Company and forty-three per cent. to the Hartford and New Haven Railroad Company. On the 6th day of August, 1872, under and pursuant to Acts of the Legislatures of the States of Connecticut and Massachusetts, authorizing the same to be done, the Hartford and New Haven Railroad Company was merged into and consolidated with the New York and New Haven Railroad Company, and the name of the latter Company changed to that of the New York, New Haven and Hartford Railroad Company. Copies of the agreements of August 3d, 1870, and August, 1872, will be found annexed to this report. By the Acts of the Legislatures of Connecticut and Massachusetts, the Capital Stock of the consolidated corporation was limited to the aggregate of the Capital Stocks of the two corporations. This amounted to $15,500,000; the Capital Stock of the New York and New Haven Railroad Company being $9,000,000, and that of the Hartford and New Haven Railroad $6,500,000. It was necessary, under the partnership agreement of August 3d, 1870, that in consolidating the two corporations the $15,500,000. of the Capital Stock of the consolidated Company should be divided between the two Companies in the proportion of fiftyseven and forty-three as above stated. It will be seen that under this division, the Stockholders of the New |