ML101190329
| ML101190329 | |
| Person / Time | |
|---|---|
| Site: | Indian Point  |
| Issue date: | 02/28/1967 |
| From: | Consolidated Edison Co of New York |
| To: | |
| Shared Package | |
| ML101190330 | List: |
| References | |
| NUDOCS 8111110666 | |
| Download: ML101190329 (37) | |
Text
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1966Annual report Consolidated Edison Company of New York, Inc.
4 Irving Place, New York, N.Y. 10003 Contents Page Letter to Stockholders ........................ 3 Highlights of the Year ..................... 4 Review of Operations ..................... .5 The Revenue Dollar ...................... 6 System Development ...................... 9 Financial Review .............. 12 Growth in Our Service Area ................ 16 Promoting Our Services .................... 18 Other Activities ........................ 20 Financial Statements ...................... 23 Statistics ............................... 30 Trustees and Senior Officers .......... Inside Back Annual Meeting:
The Annual Meeting of Stockholders will be held on Monday, May 15, 1967 at 2:30 P.M. in the Company's auditorium on the 19th floor at 4 Irving Place, New York, N.Y. Proxies for this meeting will be requested from stockholders when notice of meeting, proxy statement, and form of proxy are mailed on or about April 7th.
Common Stock:
Listed on the New York, Midwest, Pacific Coast, and the Amsterdam, Holland, Stock Exchanges; unlisted trading on the Boston, Detroit, and Philadelphia-Balti more-Washington Stock Exchanges.
(The Cover) W.J. Cahill, Jr., left, mechanical plant engineer, and J. A. Prestele, plant superintendentat Indian Point, check construction progress of the Company's second nuclear gen erating unit. The 873,000-kilowatt unit, which is scheduled for completion at Indian Point in Westchester County in early 1969, is expected to produce electric power substantially cheaper than the Company's newer coal-burning plants. The first nuclear unit at Indian Point was constructed by your Company in 1962.
Charles E. Eble, right, Chairman of the Board of Trustees, and John V. Cleary; President, look at plans for new facilities planned to meet the expapding energy requirements of Con Edison's customers.
To the stockholders In 1966 your Company recorded new highs in many of the the Company's early commitment to nuclear power. Deliv indices that measure growth. Operating revenues increased ered power cost from this unit is expected to be consid
$29 million, or 3.5 per cent over 1965, and the volume of erably below those -of the most economic conventional electricity, gas and steam sold established new records. The power plant on the Company's system.
average use of electricity per residential customer contin Rehearings on the Cornwall pumped storage hydroelec ued its strong upward trend with a 1966 increase of 7.1 per tric plant before the Federal Power Commission are near cent over the previous year. ing conclusion and the Company is making every effort to While these increases reflect favorably on the growth of see this project through to completion. Its unmatched the Company and its service area, net income applicable advantages in economy of peaking and reserve power and to common stock declined in 1966, as more fully explained in system reliability, along with the important contribu on page 13, to $86.1 million, down $4 million. Earnings tions it can make to reduce air pollution should be realized.
per common share, for.1966 were $2.31 compared with The Company's sales promotional efforts should also
$2.42 per share earned the previous year. provide substantial future benefits. Special attention is This decline in earnings is of utmost concern to the man being given to those applications most likely to contribute agement, and a number of steps have been and are being to an improved load factor and to the promotion of high taken to improve the situation. While several factors have use appliances. In this connection, electric heating is re contributed to this decline, the most significant is the large ceiving increased attention with good results. At the end increase in operating taxes other than Federal income tax of -the year there were 2,500 residential electric heating which in 1966 increased $18.6 million over the previous customers, representing a 117 per cent increase over 1965.
year. Continued gains in this new market are expected.
In addition, the Company has been faced with rising Important advances in air pollution control have been costs in a number of areas, including higher labor and made during the past year. The Company has long had the material costs, increased charges for depreciation, and most extensive air pollution control program of any utility increases in interest costs. Also, delay in the construction in the country, and it continues to exercise leadership in of the Cornwall project has made it necessary to incur this important field. Recently arrangements were.made to major and costly maintenance expenditures for some of obtain 1 per cent 'sulfur oil in quantities sufficient to meet the older generating units scheduled for retirement, but all- of our oil requirements beginning in the fall of 1967.
which now must be kept operating for a few more years. This is less than half the sulfur content of fuels now per In order to obtain immediate relief, the Company ap mitted by the present law, which calls for step reductions plied to the New York Public Service Commission last July in sulfur content to a 1 per cent level in 197 1.
for an increase in electric rates. At the same time, the Com As we continue to expand our highly reliable and com pany filed for an increase in steam rates and a reduction in plex energy systems, we are mindful of the loyalty of the gas rates. The net effect of these changes is an estimated Company's 24,000 employes, who provide the skills, and increase in annual revenues of some $29.8 million. The the investors, who provide the means, by which we expand Commission permitted these new rates to go into effect on to meet the growing energy demands of our service area.
November 25th, and scheduled hearings on the electric The year 1966 was the 82nd of the operation of this rates which began in mid December and are still underway. Company, and dividends have been paid consecutively The new electric rates are not expected to bring the rate throughout this period. It also marks the 144th year of the of return on electric operations to the 6.2 to 6.3 per cent existence of the Company and its predecessors.
found by the Public Service Commission to be appropriate, This Annual Report is submitted, but they do provide a degree of immediate necessary relief, and will help to improve earnings in 1967.
For the future, earnings are also expected to reflect the By the order of the Board of Trustees, economies available from the more efficient facilities now being constructed, and the results of current sales activities.
During the year construction began on a 500,000-kilo watt coal-fired generating unit at Arthur Kill, Staten CHAIRMANPRSDN Island, scheduled for 1968 operation, and an 873,000
- kilowatt nuclear unit at Indian Point scheduled for 1969 completion. The new Indian Point unit more than justifies February 28, 1967
At the end of the year
[ ghfo[ht off the] V (S , new office buildings with approximately
, 25 million square feet of space were under construction in the Company's sprvice area.
Electric Revenues Up 4.1 per cent as sales volume increases 5.5 per cent.
Gas Revenues Increase 0.9 per cent on 2.7 per cent increase in sales volume.
Steam Revenues Rise 2.1 per cent on 3.6 per cent sales volume increase.
Company Earns
$2.31 on each of 37,257,292 common shares outstanding compared with
$2.42 earned on the same number of shares in 1965.
,JL (see page 13)
Operating Taxes other than Federal income tax total $178.7 million, up $18.6 million over 1965.
New Rates placed in effect to yield about
.. 3.5 per cent, more in annual revenues.
Sale of 500,000 Shares of 53/4 % Series E Cumulative Preferred Stock arranged Company-Sells
$75-million- t5.9O1% bon.dsor a net anfvual interest I cost of 5.959 per cent.
.Record Peak Load of 6,154,000 kilowatts-is 7.8 percent
... htherthan 1965 peak.
Construction Started on 873,000-kilowatt nuclear unit at Indian Point and 500,000-kilowatt coal-fired unit at Arthur Kill.
Construction Expenditures for the yeartotal $198 million; estimate for 1967 put at $265 million.
Steam Peaks Set Record principal investor-owned New York State utilities through The summer demand for steam peaked at 6,457,000 the Empire State Atomic Development Associates pounds per hour between 1 and 2 P.M. on August 23rd, (ESADA), which the Company helped form in 1960.
exceeding the record 1965 summer peak by more than 12 Through 1966, nearly $17.1 million has been appro per cent. The winter steam peak of 10,325,000 pounds, priated by the member companies for ESADA's nuclear reached on January 28, 1966 between 9 and 10 A.M., was research programs. The present program places primary up 2.3 per cent over 1965. emphasis on further development of the water-cooled re The summer steam peak continues to increase rapidly actor, the type already built, under construction or planned and is now more than three times what it was ten years ago. by four member utilities of ESADA. Long-range, breeder The continued rapid growth in the summer steam peak reactor studies and high-temperature-reactor work also reflects the increasing use of steam for air conditioning in will be a part of the program.
large Manhattan office and apartment buildings.
Electronic Data Processing Enters a New Phase Research and Development Con Edison has been active in the electronic data process Research and development are essential parts of the Com ing field for more -than ten years, pioneering with large pany's continuing efforts to hold down costs and improve scale applications of such equipment to a broad range of efficiency and reliability of utility service. utility business practices. Another major advance was Con Edison has contributed to significant breakthroughs undertaken in 1966 with the expansion of the Company's in technology applicable to modem utility system design, computer center. New equipment installed in the-center construction and operation. Included in the fields in which will provide increased productivity, a much greater capac the Company has pioneered are nuclear power, air pollu ity for programming, and advanced communications..
tion control, electronic data processing, and electric gen With the new equipment, the Company has extended an eration, transmission and distribution. information retrieval system for answering telephone in Recognition of Con Edison's leadership in the develop quiries to nearly all customer accounts. An installation in ment, installation and operation of the nation's first under the Company's headquarters permits Company employes ground, extra-high-voltage electric transmission system led there to retrieve account information directly from the last year to the Company receiving the Edison Award, the computer center for. discussion with customers. Similar highest honor bestowed by the electric industry. equipment is now being installed in the Company's district Con Edison has given particular attention to research customer relations and sales offices.
Nand development designed to improve air pollution control Another computer communications development per performance. A new type electrostatic precipitator, which mits field forces to order construction materials by tele is discussed on page 11, is a current result of research and phone. Computer-prepared requisitions are then trans development in this important area. mitted by wire from the computer center to the Astoria Also under study are methods of reducing the sulfur central stores warehouse for dispatching to work locations.
content in coal and oil, the removal of sulfur oxides from stack gases, and dispersion of stack discharges under dif State-Wide Power Pool Formed ferent meteorological conditions. A New York Power Pool, consisting of Con Edison and, The feasibility of high-voltage, direct-current transmis the six other principal investor-owned utilities in the state, sion and higher-voltage, underground transmission sys was formed July 21st. The new power pool, which repre tems, also .is being investigated 'in reearc h studies und Ier sents a significant development in the evolution of power taken in cooperation with the Edison Electric Institute and sup -ply for New York State, will provide for increased co manufacturers. The Company is also participating in other ordination in the development and operation of the elec vital research work with manufacturers, industry associa tric facilities serving 98 per cent of the consumers in New tions, universities, and other utilities, contributing toward York State.
advances in engineering and business techniques. Electric utilities in New York State have had power pooling agreements for many years. However, the new Nuclear Research Continues agreement replaced the smaller power-pooling and inter During the year Con Edison continued its participation in change contracts. The new power pool is expected to re a cooperative nuclear research program with the six other sult in lower capital and operating costs, while improving
reliability of each company system. ating costs of Indian Point No. 1 are now equivalent to Under the New York Power Pool Contract, participating those of the most modern conventional generating units on
- electric utilities in New York State will construct larger and our system.
more economical generating stations. Surplus power from In addition, the new core has demonstrated a degree of the stations will be sold or exchanged with other, utilities reliability that exceeded the Company's expectations. Al in the pool through an interconnected system. To reach the though the Indian Point No. 1 unit represents only 4 per power-pool objectives, standing committees for manage cent of system capacity, it produced 8 per cent of the ment, operation and planning have been formed. energy generated by the Company during the last two months of the year, and has been available for service more Northeast Power Coordinating Council than 90 per cent of the time.
On January 19, 1966, the Northeast Power Coordinating Council was formed by 22 utility systems, including Con Electronic Computer for Control of Edison, that operate in the area affected by the power Electric System in Operation interruption on November 9, 1965. A new electronic computer to help direct the system's elec The council was formed to achieve closer coordination tric power supply went into operation at the Company's of the long standing cooperative procedures in effect Energy Control Center in Manhattan during the year.
among the utility systems. Utilities in the area have for This $1.3 million, digitally-directed, analog computer many years coordinated their engineering, design and will further increase the reliability of -Con Edison electric operating procedures through working committees. Work service. It continuously monitors the loads on transmission ing through standing committees, the council now pro lines and generatinhg equipment, enabling control of the vides a permanent organization for greater administrative system to meet constantly changing electricity, demand in direction and continuity of these activities. the most economical manner possible, consistent with The utility companies of the council were among those reliable service.
sponsoring a special study by Stone and Webster Engi In seconds, it is possible for the digital computer to neering Corporation to investigate the existing Northeast make complex calculations involving many Variables af interconnection, including additions and changes sched fecting the load and power supply, in order to determine uled for completion before December 1968. and control the optimum combination of generating This study, submitted by Stone and Web ster in Novem sources to meet existing conditions.
ber 1966, analyzed system protection practices; simulated This computer equipment also provides for monitoring events that might cause serious system outages; recom the feeder cables within our system, to give indications mended load shedding, system separation, and other pro when these feeders are approaching normal capacity and cedures to reduce the possibility of a widespread outage; warnings when they are approaching emergency capacity.
and presented design guide lines concerning the location Statistical information, including the amount of power and size of generating facilities and transmission reliability. generated, the amount of power received from. outside These recommendations are now being evaluated by the sources or dispatched to neighboring companies, and the Northeast Power Coordinating Council. amount of power distributed to customers is logged auto matically every hour.
Indian Point No.1I Refueled In April, installation of a new reactor core for refueling Additional Natural Gas Temporarily Authorized the Indian Point No. I nuclear generating unit was com As noted in last year's report, the Company has been pleted and the unit returned to service. The core modifica seeking additional natural gas supplies to be used mainly tions resulted in a 5 per cent increase over the unit's origi for fuel in its electric generating stations.
nal capability of 275,000 kilowatts. Subsequently, the Federal Power Commission tempo Experience gained during the three-year operation of rarily authorized Transcontinental Gas Pipe Line Corpora the original fuel. core for the Indian Point No. 1 unit, tion to sell the Company an additional 20 billion cubic feet along with other technical advances, enabled the Company of natural gas on an annual basis over a 12-month period to develop with the Westinghouse Electric Corporation, a starting April 1, 1966. Hearings before the Commission new, highly efficient core that has resulted in nearly a on Transco's application to make the temporary allocation two-thirds reduction in fuel costs for this unit. The gener- permanent have been completed and a decision is pending.
Review of operations Operating Revenues In 1966 Company operating revenues reached a record Alillu*,Bo I),Jth r level of $870 million, an increase of $29 million, or 3.5 I SteaIm per cent over 1965. Gas SElectric Electric Sales A total of 26.7 billion kilowatthours of electricity was sold in 1966, an increase of 5.5 per cent over 1965. Revenues from electric sales gained 4.1 per cent overall. Sales to resi dential customers, who account for 22.7 per cent of total sales, were up 7.5 per cent. Sales to commercial and indus 400 q trial customers, who account for 54.1 per cent of the total, were up 4.8 per cent.
The average annual residential use of electricity rose to 10 2,439 kilowatthours in 1966 from 2,277 kilowatthours in 1965, an increase of 7.1 per cent. In Westchester County, where most customers live in individual homes, average 11)57 1958 195 1910 1'96 1 64 965 1966 residential use reached 3,935 kilowatthours in 1966, a gain Average Annual Use per Residential Customer of 7.6 per cent. Average residential use on Staten Island 2500 reached 3,308 kilowatthours, up 10.1 per cent. The aver age annual residential use of electricity has shown an up ward trend each month for over four years.
Gas Sales Gas sales in 1966 increased 2.7 per cent. and revenues from gas sales were up 0.9 per cent. Although the rate reduction in effect since November 25, 1966 will affect future revenues from gas sales, the promotional effect of the lower rates should encourage the growth of gas mar kets which, in turn, should contribute to continued gains in the volume of sales and revenues. Sales of gas for resi dential heating were up 4.9 per cent.
157 195K y, 1960 191 1962 1963 194 9{; I}t Steam Sales Electric Energy Sales During 1966 thc Company sold 27.6 billion pounds of 30 steam, up 3.6 per cent over the previous year. Revenues from steam sales totalled $39.2 million for the year, repre senting an increase of 2.1 per cent over 1965.
New Electric Peaks Reached Demand on the Company's electric system peaked for the year at 6,154,000 kilowatts on July 13th between 3 and higher than record nearly 8 per cent new 4 P.M., setting a new winter the 1965 peak. The peak also set a record, reaching 5,120,000 kilowatts between 5 and 6 P.M. on December 20th. This was 261,000 kilowatts, or 5.4 per cent, over the 1965 winter peak.
A 24-hour electric sendout record of 115 million kilo watthours also was reached on July 13th. This was 14 mil 1)5Xt57 1, 19t( I d 19 91, 1963 196t4 115 lion kilowatthours, or 14 per cent, above the 1965 high.
During the year 1,320 new, all-electric installations were made, more than double the 590 installations made in 1965.
,1, TJUl)0 (D 9Jr D@& -q WE RECEIVED FROM INCOME SALES TO OUR CUSTOMERS:
ELECTRIC.................. 83¢ RESIDENTIAL ............................ 27 COMMERCIAL-INDUSTRIAL ............... 44 RAILROADS AND RAILWAYS ................ 4 PUBLIC AUTHORITIES ...................... 7 OTHER UTILITIES ........................ 1 GAS ........................................ 12 STEAM .................... .........
OTHER-Prip lc ety Rentals ......................
$1.00 OUR COSTS WERE OUTGO OPERATING TAXES, Other Than Federal Income ...
FEDERAL INCOME TAX ........................
OPERATING PAYROLLS ANO PENSIONS .......
PURCHASED FUEL ..........................
'SUPPLIES, SERVICES & OTHER CHARGES DEPRECIATION ................................
ENERGY PURCHASED FOR RESALE ...........
INTEREST................................
NET INCOME ...... . ...........
PREFERRED DIVIDENDS ............ 3 COMMON DIVIDENDS ...................... 8 RETAINED IN THE BUSINESS ............ 2
$1.00
'System development Construction Expenditures Construction expenditures in 1966 were $198 million, dis Wli / D,1-tributed as follows:
Electric transn-ission and distribUtion ....... $117 E lectric prodUction............ ............ 60 Gas ..................................... 1I Steami...................................4 General ........................ .......... 6 Total ........................... $198 Expenditures for new facilities in 1967 are budgeted to increase to $265 million. For the five-year period, 1967 7 1, construction costs are forecast at $ 1.34 billion.
Cornwall Pumped Storage Hydroelectric Project As noted in previous reports, the Company applied to the Federal Power Commission in January 1963 for a license to build a 2,000,000-kilowatt pumped storage hydroelec tric plant at Cornwall on the Hudson River. Following ex tensive hearings, the Commission granted the Company a Capability at time of Peak and Peak Load license to build the project on March 9, 1965.
On December 29, 1965, the United States Court of Ap peals for the Second Circuit set aside thc order and re U turned the case to the Commission for re-examination of questions in which the court held that the record of the hearings was insufficient. Prehearing conferences were held by the Commission on March 22nd and 23rd of 1966.
New hearings on the project were started before the Federal Power Commission on November 14, 1966, and as of date of this report are still in progress. Nationally recog nized authorities in fields ranging from scenic beauty, rec reation, and fish life to geology, dike construction, and electric power generation have joined with Con Edison en gineers and with representatives of civic, business, labor and other groups to support the project at the hearings.
The Cornwall project is a key element in the Company's plans to reduce air pollution and improve further the relia Investment in Utility Plant-Gross ffilh bility and economy of the power supply for 9 million peo 5 ple. Great care has been taken in the design of the project.
Present plans call for the plant to be built entirely under ground by tunnelling. An extensive recreation plan has been developed that will provide visitor facilities, scenic overlooks and transformation of a blighted waterfront at Cornwall into a mile-long river edge park. Engineering.
land acquisition, and construction costs incurred to the end of 1966 amounted to $14 million.
The benefits the Cornwall project will bring to millions should be realized, and the Company is making every effort to see the project through to completion.
New Unit at Arthur Kill Station Construction of a new 500,000-kilowatt, coal-fired, gen I'-_ I 1N9 I,, .I I , 463 164 erating unit, announccd in January 1966 for the Coin-1 1Y 196)
. A 500,000-kilowatt unit, left, under construction at the Arthur Kill station,,
is schbduled for operation in 1968.
A new electronic computer, oapper right, installed at the Energy Control Center, helps dires-t the system's power supply.
The world's largest electrostatic precipitator, lower right, is being constructed at the Company's Ravenswood station.
pany's Arthur Kill station on Staten Island, is proceeding Auxiliary Generation on schedule, with foundation work, intake and discharge Twelve gas-turbine generators totalling 185,000 kilowatts tunnels, and much of the steel work being completed. The of capacity are being installed at the Indian Point, Astoria, unit is scheduled for operation in 1968. Ravenswood, Waterside, 59th Street, 74th Street, Kent A feature of the new unit will be an electrostatic precipi Avenue, and Hudson Avenue stations to provide reserve tator designed to remove more than 99 per cent of all solids capacity as well as quick starting capability for the Com from the stack gases. pany's main generating units. In addition, 25 diesel-driven New Nuclear Unit for Indian Point generators have been installed to provide emergency power for safe shutdown, emergency lighting, and supply of essen Con Edison, as noted in last year's annual report, applied tial auxiliaries.
to the Atomic Energy Commission in December 1965 for a permit to construct an 873,000-kilowatt nuclear unit at Modernization at 59th and 74th Street Stations its Indian Point station. Following a series of technical Two new steam boilers and a 35,000-kilowatt turbine gen meetings with the Atomic Energy Commission and the erator are being installed for service in 1967 at the Com Advisory Committee on Reactor Safeguards, hearings on pany's 59th Street station. Construction of a 500-foot stack the application were held in September and a provisional that will replace four 240-foot stacks also is under way at construction permit was granted on October 14, 1966. the station. The expansion at 59th Street will make it pos Preliminary work on the unit was started in the spring sible to retire a small steam plant with a 125-foot stack at of 1966, and upon receipt of the permit a full construction 66th Street and West End Avenue. In addition, construc schedule was undertaken. Foundations for the reactor and tion is under way on a new 500-foot stack to replace three generating equipment have been poured and steel work is 270-foot stacks at the 74th Street station. The new high now under way. stacks at both stations are part of the Company's continu Indian Point's No. 2 unit will have a pressurized water ing air pollution control program.
reactor, fueled by slightly enriched uranium oxide. It is being constructed by Westinghouse Electric Corporation Transmission and Distribution on a turnkey basis and will cost $108 million. When com Expenditures during 1966 for electric construction amount pleted in 1969, total nuclear capacity at Indian Point will ed to $177 million, the largest portion of which, $117 mil be more than 1,100,000 kilowatts. lion, went for transmission and distribution facilities.
The new unit is expected to produce power for about We are extending our 345,000-volt underground trans one-half cent a kilowatthour, including fixed charges and mission system some 18 miles, interconnecting the Farra cost of related transmission facilities. This is substantially gut substation in Brooklyn with the new Goethals substa less than the cost of producing power by the Company's tion in Staten Island. The first of two 345,000-volt feeders most efficient coal-burning unit. is scheduled for completion in the summer of 1967. Also, the present 138,000-volt tie from Staten Island to Public World's Largest Electrostatic Service Electric and Gas Company in New Jersey will be Precipitator at Ravenswood increased to 230,000 volts and the interconnection capac Con Edison is constructing the world's largest electrostatic ity will be increased from 300,000 to 500,000 kilowatts.
precipitator for its 1-million-kilowatt generating unit at the In addition to the completion of a number of unit sub Ravenswood station in Queens.. stations throughout the territory and the reinforcement and This unique "hot" precipitator, designed to operate at modification of the equipment in many of the larger ones, 700 degrees Fahrenheit, will be taller than a 16-story three major distribution substations-East 29th Street and' building. It will be the first precipitator ever constructed West 1 10th Street, in Manhattan, and Bensonhurst, in that can operate in conjunction with an oil-fired boiler. It Brooklyn-were completed.
will permit the generating unit to operate with low-sulfur content coal without loss in efficiency and will promote Gas and Steam Systems cleanliness of air-heater equipment with either coal or oil Expenditures during 1966 for gas construction, principally as fuel. to expand the distribution system, to take care of load Scheduled for completion in the spring of 1967 at a cost growth and new customers was $11 million.
of $10 million, the precipitator will remove more than 99 Improvement and extension of the steam distribution per cent of all solids from stack gases. facilities in Manhattan cost $4 million.
The major expansion in 1966 of Con Edison's Computer Center signals a new phase in the automation ERDnan' irs ww of accounting practices. Computers in the new center are linked by wire to customer relations and general accounting offices!
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Operating revenues for the year were $870 million, up $29 Earnings and Dividends per Common Share million, or 3.5 per cent, over 1965. Only about $1 million of the increase in revenues is attributable to the new rates placed in effect on November 25, 1966.
Net income applicable to common stock decreased $4 million to $86.1 million. This is equivalent to $2.31 per share on common stock outstanding at the year end and compares with $2.42 per share for 1965. The decline in earnings resulted principally from insufficient increases in revenues to offset significant increases in operating taxes.
operation and maintenance costs, depreciation. interest.
and preferred dividends.
The earnings for the year 1966 reflect the Company's election to include in construction costs begyinning, with the year 1966 the portion of payroll taxes and pension costs related to construction. This change. which increased both 957 1958 16
" ' 960 16 1 962 166;, 196 1965 196 construction costs and net income for the year 1966 by
$6,260,000 ( 1 6 a share), was made because of the stead g'ating $125 million for financing its expansion and con ily mounting payroll taxes and pension costs, which in struction program. The first sale was on July 19, 1966, at creased in 1966 by $3,700,000. and because of the con which time the Company sold through a group of 82 under tinuing high level of construction expenditures. However, writers 500,000 shares ($50 million) of 5 / % Series E the net charge to operations for 1966 for payroll taxes and Cumulative Preferred Stock ($100 par). Delivery of pensions was $4,330,000 (11l, a share) less than 1965. 391,800 shares was made in August and November of 1966, and pursuant to delayed delivered contracts, 108,200 Taxes Increase shares were delivered on February 1, 1967.
Taxes other than Federal income charged to operations in On December 14th the Company made arrangements 1966 amounted to $178.7 million, up $18.6 million from through Morgan Stanley & Co. and The First Boston Cor 1965, and reflect higher property taxes resulting from poration, as representatives of a group of underwriters, for higher property tax rates and additional company property the sale of a $75,000,000 issue of first and refunding mort placed in service. gage bonds, 5.90 % Series DD. due December 15,1996. Net Federal income taxes charged to operations in 1966 annual interest cost to the Company was 5.959 per cent.
were $14.1 million, a decrease of $3.6 million. Delivery of $46,785.000 of the bonds was made to the underwriters on December 28, 1966 and reoffered to the Wage and Pension Payments, public at par. Pursuant to delayed delivery contracts.
Salaries, wages and pension payments were $224.6 million $28,215,000 of the bonds are to be delivered on April 13, in 1966. The active employe payroll was $200.7 million. 1967 and June 15. 1967.
The Company shares with employes the cost of a compre Proceeds from both sales are for use in connection with hensive medical plan, and liberal group insurance cov the Company's continuing construction program.
erage. Federal social security, and Federal and New York Bank Credit Agreement Renewed State unemployment taxes are also paid by the Company.
For the 21st successive year the Company arranged a Income Deductions Rise credit agreement with local banks for short-term bank loans. The current agreement runs from September 29, Total income deductions increased $4.5 million over the 1966 to September 28, 1967 and allows borrowing of up to previous year. Interest on long-term debt was up $5.0 mil
$ 100 million, with interest at the prime commercial rate.
lion. bank loan and other interest was down $1.6 million.
This procedure allows the Company flexibility in financing and the credit for interest charged to construction was its construction program, as these loans are repaid through down $ 1.1 million.
the issuance from time to time of. permanent securities of
$125 Million of New Securities Sold a type to be determined by prevailing money costs and During the year the Company sold new securities, aggre- other considerations.
New Electric, Gas and Steam Rates Made revisions, based on electric and steam sales for the 12 Effective November 25 months ended June 30, 1966, and gas sales for the calendar On July 28, 1966, the Company filed new schedules cover year, 1965, will be an increase in revenues of some $29.8 ing electric, gas and steam rates with the New York Public million annually. It should be noted that the increase in Service Commission. The new schedules became effective 1966 operating taxes of $18.6 million (see page 13) is ap on November 25th. proximately 60 per cent of this revenue increase.
The new rates will result in increases in annual revenues The Commission, in permitting the rate changes, or of $32.4 million from electric sales and $1.5 million from dered that a hearing be held concerning the propriety of the steam sales and in a decrease of $4.1 million in revenues new electric rates and that during the pendency of the hear from sales of gas. The net overall effect of the proposed ing the Company keep account of moneys received as a re Detailed Tax Comparisons (000 Omitted) Sources of Funds for Utility Plant Taxes, other than Federal Income Expenditures (000 Omitted)
Local 1966 1965 1957 Property taxes 1966 1965 real estate and special franchise ... $127,761 $113,952 $ 60,96.4 Utility plant expenditures.... $197,764 $235,493 Public utilities excise.. 17,930 14,955 5,118 Sales and compensat Funds provided by operations:
ing use and other ... 7,266 8,092 6,281 Net income ............ $110,307 $111,777 Total .......... 152,957 136,999 72,363 Less Dividends State Preferred and common. . 91,427 88,987 Public utilities gross income.. 16,567 16,041 10,394 18,880 22,790 Franchise ............ 5,660 5,435 3,321 Unemployment Depreciation ............ 88,259 83,561 insurance ........... 1,043 1,418 613 Amortization of gas Sales and compensat conversion costs ...... 261 1,346 ing use and other. 2,097 947 228 Total ............ 25,367 23,841 14,556 107,400 107,697 Federal Funds provided by financing:
So cial security ......... 6,324 4,212 2,344 Unemployment ... 298 299 230 Sales of preferred stock... 50,000 75,000 Oti ier ................ 162 261 412 Sales of bonds ........... 75,000 100,000 Total ............. 6,784 4,772 2,986 Less-Preferred stock and bonds to be issued in 1967 (39,035)
Total taxes, other than Federal Increase or (decrease) income .......... 185,108 165,612 89,905 in short term loans.. 5,000 (47,000)
Charged to:
Operating taxes .... 178,712 160,102 87,743 Decrease in funds resulting Operations from other assets and principally produc liabilities-net ......... (601) (204) tion expenses .. 2,701 2,961 2,162 Other accounts Total .............. $197,764 $235,493 principally construction .. 3,695 2,549 185,108 165,612 89,905 Federal Income Tax Charged to: Transfer Agents-Office of the Company, 4 Irving Place. New York, N.Y. 10003; C)perations .......... 14,100 17,700 39,365 Continental Illinois National Bank and Trust Company of Chicago, 231 South C)ther accounts ... 340 1,850 LaSalle Street, Chicago. Illinois 60604; Bank of Amnerica National Trust and Savings Association, 300 Montgomery Street. San Francisco, California 94120.
14,440 19,550 39,365 Registrars-First National City Bank, 55 Wall Street,'New. York, N.Y. 10015; Total taxes ....... $199,548 $185,162 $129,270 The First National Bank of Chicago, 38 South
Dearborn Street,
Chicago, Ili nois 60603; Crocker-Citizens National Bank, I Montgomery Street, San Fran cisco, California 94104.
suit of collection of such increased electric rates in order to Three-Year Contracts With Unions provide for adjustments, if any, upon completion of the New collective bargaining contracts with the Unions repre hearing. Hearings commenced on December 15, 1966 and senting the Company's employes were signed in January are being continued. 1966. The contracts run from December 1, 1965 to No vember 30, 1968. There are no provisions for reopening Part of Common Dividends Nontaxable during the three-year period. The contracts provide for A portion of common stock dividends paid during the year general wage increases in each of the three years on a pro represents a return of capital for Federal income tax pur gressive basis. In addition, improvements in fringe benefits poses and therefore is not includable as taxable income. such as medical coverage, retirement, vacations and insur Subject to audit by the U. S. Treasury Department it is esti ance rounded out this settlement.
mated that 93 per cent of the total amount of dividends re ceived by common shareholders in 1966 represents a re Antitrust Suits" turn of capital which reduces the tax basis of the shares on In antitrust actions instituted in 1962 against 19 manufac which dividends were paid.. turers of electrical equipment, the Company reached agree The U.S. Treasury Department under date of November ments covering price adjustments of approximately $12 28, 1966 notified the Company that the percentage of div million plus certain litigation expenses.
idends received by common shareholders for years prior On December 29, 1966 an action was started against the to 1965 which represented a return of capital were: Sep manufacturers of brass mill products named in the criminal tember 1963, 67.71%; December 1963, 78.21%; Year indictment previously filed by the United States Govern 1964, 79.76%; Year 1965, 63.33%. These percentages ment. The Company claims damages in the amount of are subject to adjustment upon the final determination of about $200,000 arising out of its purchase of brass mill the Company's income tax liability for these years. products, such as condenser tubes and copper pipe. Under Dividends paid on the Company's preferred stocks, how the antitrust laws, the Company is entitled to triple the ever, are fully taxable as dividends. amount of any damages awarded.
Five-Year Comparison (000 Omitted) 1966 1965 1964 1963 1962 Operating revenues .................. $869,692 $840,240 $789,291 $748,955. $725,153 Operating income ................... 174,634 171,600 153,457 145,316 134,434 Net income before provision for dividends on preferred stock......... 110,307 111,777 100,957 94,017 90,636 Provision for dividends on preferred stock 24,176 21,633 18,463 20,759 19,720 Net income for common stock ........... 86,131 90,144 82,494 73,258 70,916 Number of shares of common stock outstanding at December 3 1t ........ 37,257 37,257 37,257 34,978 32,188 Earnings per common sharet ........... $2.31 $2.42 $2.21 $2.09 $2.20 Dividends per common sharet .......... 1.80 1.80 1.65 1.6125 1.50 Capitalization ratios at December 31:
Long term debttt .......... ........ 53% 53% 53% 53% 54%
Preferred stock ................... 15 14 12 14 15 Common stock and surplus .......... 32 33 35 33 31 tRestated to reflect two-for-one stock split effective February5, 1965. ttlncludes in 1965 the $100 million mortgage bonds issued in January 1966.
.Metropolitan New York offers its residents morp. than any, Growth in our service area ' other area of the World.
It offers cultural opportunities, recreation, good working conditions, modern homes and apartments, ald unparalleled educational facilities.
A. New Bronx Terminal Market at Hunts Point provides modern facilities for produoe wholesalers. B. Ice skating at Prospect Park in Brooklyn. C. A new Madison Square G, rden and 29-story office building rise over Pennsylvania Railroad Station. D. Residents enjoy all-electric living in these new Gold Medallion condo minium garden homes and town houses near White Plains, Westchester. E. Dansk Designs national office and warehouse at Village Industrial Park, Mount Kisco, Westchester. F. Alcoa at UN Plaza in Manhattan provides office space topped by residential towers. G. Jumping competition at the National Horse Show in Madison S uare Garden. H. Metropolitan Opera's new home at lncoln Center. 1. Midway Homes is a new 45-home, all-electric development in Queens. J. All-State Welding Alloys Corp. plant at Cross Westchester Industrial Park, North Elmsford, Westchester. K. Sailing in New York harbor. L. Television Communications Center at St. Joseph's Seminary serves 225,000 students throughout ten counties in the Archdiocese of New York.
More new office space was added in New York City during the past 20 years than the aggregate of all other U.S. cities.
This trend is continuing.
Throughout our service area, 28 new office buildings, providing over 12.5 million square feet of space, were under construction at the end of the year, and 40 more buildings with another 25 million square feet were in the planning stage. Also under construction, or planned at the end of the year, were 827 apartment buildings providing more than 130,000 new dwelling units.
Not included in these indications of growth is the Port of New York Authority's World Trade Center for which land is being cleared in downtown Manhattan. This-project will provide another 10 million square feet of space.
To make the most of limited space, imaginative engi neering and construction concepts are being pioneered in New York City to open up new vistas for urban develop ment and growth by the use of air rights over railroads, water, highways, and by landfill projects. /
One example of air rights construction is the new 13 story Madison Square Garden sports and entertainment center and its companion 29-story office building being built directly over the Pennsylvania Railroad Station.
A large landfill project now underway in New York City will create more than 23 acres of new space along the lower Manhattan Hudson River shore line with m ails exca vated from the site of the new World Trade Center. In ad dition, a landfill operation of up to 98 acres in lower Man hattan is under consideration by governmental agencies.
Plans also have been announced for a midtown Manhat tan offshore development along the East River to include the new United Nations school and a 1,500-dwelling unit housing project' to be known as "Waterside," which will combine construction above the river on pile-supported platforms and on newly created landfill areas.
Other developments include the 63-acre Cross West chester Industrial Park in North Elmsford and Brooklyn's 96-acre Flatlands Industrial Park, which ultimately is ex pected to provide approximately two million square feet of
-manufacturing and warehousing space and employment for about 7,000 people.
The Company supports activities of business and gov ernment groups promoting economic growth in New York
. ... City and Westchester County. In addition, the Company
- i: sponsors economic, positive a national social advertising program factors and cultural to emphasize the that have
' -j .- enabled so many diverse types of enterprises to prosper and grow here. The advertisements also identify Con Edi son's area development group as a source to which busi 1L J& i nessmen can refer for help and information.
Outdoor lighting enhances nighttime appearance of Reader's Digest building, upper left, in Westchester County.
Promoting our services This all-electric branch office of Franklin National Bank, lower left, is located in downtownManhattan.
Electric induction heaters furnish the precise temperature for the casting of copper rods, upper right, by Nassau Smelting & Refining Company on Staten Island.
A cooking school, lower right, is conducted by the Company and El Tiempo, Spanish language newspaper.
The Company has developed a comprehensive marketing New gas load connected during 1966 will provide more program to increase sales of electricity, gas and steam in than $4 million annual revenue. Of this, nearly $3 million the most profitable growth areas, and to provide economi will be derived from 10,000 space and water heating instal cal and satisfactory service to all our customers. lations, and over $1 million from 1,360 industrial and Since our electric load peaks during the summer, and commercial installations.
gas and steam loads peak during the winter, the Company's The reduction of our gas rates in November 1966, and marketing strategy is tailored to improve sales on an over the establishment of a new promotional rate for large in all basis and to increase off-peak energy loads. dustrial and commercial customers will contribute further to the growth of our gas business during 1967.
Electric Heating New opportunity for gas sales growth was also created In the case of electric business, which accounts for 83 per by the exercise of our franchise and extension of our gas cent of revenues, the major marketing emphasis has cen distribution system into the Town of Somers, in northern tered on building up electric heating sales to make use of Westchester, where large tracts of land are open for devel generating capacity available during the winter months. In opment. In the new 300,000-square-foot Baldwin Place the residential market, both new and existing private Shopping Center, where some 11 additional structures are homes and apartment buildings offer substantial opportu planned, gas is now being used for heating in 23 stores, a nity for electric heat growth. The installation of electric post office, and a theater.
heating nearly always results in a total-electric home, where the use of electricity, on the average, is seven to ten New Steam Business times greater than in a home heated by other fuels. During 1966 the Company continued its aggressive pro Public awareness of the many advantages of electric heat gram to promote the sale of steam for heating and air con was developed further during 1966 by our advertising pro ditioning of commercial and apartment buildings in Man grams involving television, radio, newspapers, billboards, hattan. The estimated additional annual revenue from these direct mail, and other effective media. Architects and build sales will be in excess of $2 million. Sales of Company, ers in our territory also recognized more fully the desira steam for air conditioning serve both to fill partially the bility of offering total-electric homes to the buying public. valley of the summer steam load curve and to minimize
- As a result of these promotional devices and the efforts of summer peak electrical loads created by electric air condi our field sales forces, during 1966 new all-electric installa tioners. Ten years ago the summer peak steam load was tions in homes and apartments totalled 1,320 dwelling only about 30 per cent of the winter peak. At the end of units, more than double the 590 installations made in 1965. 1966, however, almost half a million tons of air condition There were also 150 schools, churches and commercial ing equipment was being operated by steam absorption or establishments that installed nearly 4,000 kilowatts of elec turbine driven equipment supplied from our steam dis tric heating equipment for their entire space heating re tribution system and summer usage in 1966 amounted to quirements. Additionally, there were many hundreds of more than 60 per cent of the winter peak. During the year major installations of electric heating equipment to supply steam service was provided to 67 new customers. Out supplementary heating. standing at the year's end were contracts for service to 96 The number of residential customers now enjoying elec more customers, totalling more than $3 million in annual tric heat has risen sharply from 240 in 1963 to 2,500 at the revenue, to be connected in the future.
end of 1966, an increase of more than tenfold. At the be ginning of 1967, there were planned and under construc Clean Air tion 1,650 additional total-electric private dwelling units, As referred to elsewhere in this report, the new air pollu-;
plus 23 schools, churches, commercial and industrial struc tion control law passed by the New York City Council in tures with 2,600 kilowatts of heating load. May 1966 has established new standards for the operation of fuel burning equipment. This will not only affect the Gas Load Growth Company's operations, but is expected to have a substan On the gas side of the Company's business, marketing tial impact on many of our customers. As a result, it is promotions centered on the conversion of space and water anticipated our electricity, gas and steam sales stand to heating in homes and apartments to gas from oil and coal, benefit substantially in the years to come as the- require and on greater use of gas in manufacturing and processing ments of the new law make the use of Company services applications by industrial and commercial customers. more desirable.
Other activities Company Receives Edison Award In June Con Edison received the Edison Award, the elec tric utility industry's highest honor, for making "an out standing contribution, by bold and imaginative engineer ing, to the advancement of underground, extra-high-voltage electric power transmission."~
Presentation of the award was made at the Edison Elec tric Institute's 34th annual convention in San Francisco.
The Company was cited by the committee of judges for its success in "designing, building and operating, in the na tion's most populous metropolitan area, the first integrated, multi-terminal, underground 345,000-volt power trans mission system, involving the solution of many unique problems in engineering design, construction and mainte nance."
Cleaner Air Program Huge quantities of fossil fuels... 5 million tons of coal, a billion gallons of oil, and some 65 billion cubic feet of nat ural gas... .were used in 1966 to provide for the expanding electric and steam needs of the Company's customers.
As the major single fuel user in the New York area, Con Edison has long recognized its, responsibility to help keep the air clean. The Company was installing "dust collectors" in its electric generating stations some 50 years ago, and since 1936 the Company has spent more than $120 million on air pollution control, taking advantage of every practi cable technological development.
During the past decade, the Company has been purchas ing electrostatic precipitators of at least 99 per cent effi ciency for installation on all new coal-burning electric generating units. When the new electrostatic precipitator being installed on Unit No. 3 at Ravenswood begins op eration in March, Con Edison will have more dust collec tion equipment on its system of 99 per cent or better effi ciency than the rest of the nation combined.
To minimize the effect of sulfur oxides, the Company for many years has purchased coal and oil with sulfur con tents well below the level specified in city codes. In addi tion, it has used for power generation all the natural gas available for this purpose, and has sought and is seeking additional supplies.
In recent years, legislative emphasis has been placed on reducing further the amount of sulfur dioxide emissions from fuel burning operations. In May 1966, the New York City Council passed a new air pollution control law estab lishing even lower sulfur-content limits for fuels than had been called for in its 1964 law. The new law calls for step decreases in the sulfur content of coal and oil to a 1 per cent level by 197 1. The present limit is 2.2 per cent.
The Company's fuel oil, delivered by tankers from as far as Africa and South America, top photo, will have 1 per cent or less sulfur content by October 1, 1967.
A new Company exhibit, "A Nuclear Adventure," center,'
located at New York City's Hall of Science, is attracting approximately 13,000 visitors a month.
Sulfur dioxide levels in New York's air are continuously monitored, bottom, by Company engineers.
In working with its suppliers to obtain even lower sulfur content fuels, a major breakthrough was achieved in Janu ary 1967 with respect to the availability of low-sulfur oil.
As a result, by October 1, 1967 the Company will be re ceiving enough oil with 1 per cent sulfur content or less to meet all of its fuel oil requirements for producing electric
- ity and steam in New York City. This will be nearly four years ahead of the schedule required by the present air pol lution control law. In addition, about 70 per cent of the Company's coal requirements will be met beginning April 1, 1967, with coal having a sulfur content of 1 per
~~ cent or less.
With the objective of further minimizing that portion of the air pollution problem in which the Company through necessity is involved, a Memorandum of Understanding was entered into with the office of Mayor John V Lindsay of the City of New York on May 18, 1966.
In keeping with this Memorandum, the Company sub mhitted to the Mayor mn November a detailed ten-year plan designed both to meet the city's growing energy needs and to reduce stack emissions by decreasing significantly the amounts of coal and oil burned'in the city to produce elec tricity and steam.
A56 per cent growth in electric generation and a 26 per cent increase in steam requirements are forecast during the next ten years. Nevertheless, under this plan, the Company would reduce the amount of coal and oil burned in New York City for its electric and steam supply systems from' 77 per cent of its total fuel consumption in 1966 to 33 per cent by 1976. This should make an important contribution to New York City's cleaner air program.
The Cornwall pumped storage hydroelectric project is
' the key element in this plan. Completion of the Cornwall project, together with other planned construction, will make it possible to retire, by 1972, some 1.5 million kilo watts of older coal and oil-fired electric generating equip ment, including three entire stations and certain units at others. Plans for the orderly replacement of these older, less efficient, generating units have been upset by the delay" of the Cornwall plant. By 1972 the Company plans to have more than 4 million kilowatts, about 40 per cent of the Company's projected electric generating capacity, located outside the city.
Nuclear power, in conjunction with the Cornwall pumped storage plant, offers the best long-term answer for efficient generation of electricity close to metropolitan area load centers without. the air pollution control problems as sociated with the burning of coal and oil. The Com.pany has maintained this position for several years and contin ues to focus its efforts in this direction.
Hall of Science Exhibit Employes A new Company exhibit at the Hall of Science of the City There were 24,203 employes on the active payroll at the of New York in Flushing Meadow Park, formerly part of end of the year, 340 more than a year ago.
the World's Fair site, is currently attracting approximately The Company continues to recruit college graduates in 13,000 visitors a month, mostly school children. various specialized fields as part of its program to develop The exhibit, "A Nuclear Adventure," utilizes slide pro personnel for future managerial responsibility.
jectors, sound motion pictures, music, and other sound ef Development of employe capabilities also is encouraged fects to take the visitor on a "journey" covering the past, by a matching grant tuition aid program which the Com present and future of electric power in New York City. It pany established some years ago to encourage employes to focuses on the Company's modemn nuclear methods of gen further their education. During the year, 740 employes erating electricity, including an animated model of a nu were assisted in such studies, accomplished on their own clear power station, to meet customer demands. time and mostly leading toward college degrees.
New Trustee Elected On-the-job training is given to employes who demon strate growth potential or special aptitudes. In certain op Richard K. Paynter, Jr., chairman of the board and chief erating departments, where substantial numbers of experi executive officer of New York Life Insurance Company, enced and skilled personnel are scheduled to retire over the was elected to the Board of Trustees at the annual meeting next few years, concentrated training programs are admin on May 16th. He replaced Devereux C. Josephs, who had istered in classroom atmosphere on Company time for served on our Board since 1947. LeRoy A. Petersen, who selected employes.
became a trustee in 1953, relinquished his place on the A new employe information series, known as "Edison Board along with Mr. Josephs under the terms of the retire Mainstream," was prepared in 1966 and the first of two ment program for trustees. three-hour programs was given in January 1967. The series is designed to provide employes with a better understand Chairman Eble and President Cleary Take Office ing of the community, familiarize employes with Company Our previous annual report noted the election of Charles operations, and create an awareness of the importa nce of E. Eb *leto chairman and chief executive officer, succeeding each employe to the Company.
Harland C. Forbes; and John V Cleary to president. Both appointments became effective March 1, 1966. Mr. Forbes Employe Mutual Aid Society is 75 Years Old continues as a trustee of the Company. One of the pioneer mutual aid societies in the United States Mowton L. Waring was elected an executive vice presi was organized 75 years ago when employes of one of our dent to direct overall system planning and related engi predecessor companies joined together to form an organi neering phases of the Company's operations. zation to promote social and fraternal relations between its J. Eliot McCormack was elected a senior vice president members and to establish a burial fund.
with overall responsibility for production and distribution Today's Mutual Aid Society is a highly efficient organi operations of the electric, gas and steam services. zation providing comprehensive medical and health serv W Donham. Crawford was elected administrative vice ices to nearly 24,000 members. The society also contrib president with responsibility for purchasing and related ac utes to the social life of Con Edison employes. Currently tivities, and the direction of atomic power development 13 clubs are affiliated with it, offering a wide variety of and air pollution control. activities of interest to men and women of all ages, includ The Board also elected the following assistant vice presi ing bowling, bridge, chess, photography, and skiing.
dents: Robert M. Coover, customer accounting and data Last year also marked the 20th anniversary of the Con processing; Thomas A. Griffin, Jr., sales; Joseph T Hydok, Edison Mutual Aid Society Blood Bank, the oldest indus industrial relations; Joseph F Murphy, construction and trial blood bank in the United States. Since its beginning in shops; William J. Murphy, engineering; and John P. Neu 1946, the blood bank has helped 5,692 Mutual Aid mem bauer, system operations. bers and 4,437 of their dependents. In all, 57,352 pints It is with deep regret we report that Earl L. Griffith, of blood have been donated by 12,329 individuals, and senior vice president, died on June 5th. He joined the Com 2,357 employes have contributed a gallon or more of their pany in 1923 after graduating from Stevens Institute of blood. Since 1948 the bank has been affiliated with the Technology, was appointed vice president in 1950 and be American Red Cross on a pint-for-pint withdrawal and came senior vice president in 1957. deposit basis.
To the Board of Trustees and Stockholders of Consolidated Edison Company of New York, lnc.
Sthe yinbalanc tderelateds n ad earned surplus cnt fairly the ana position of Coil gied Edi son Company of New York, Eic. at Deeember 3 1 1966 and the results of its opera tions for the year, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year, except forthe account ing ge, which we approve, described in No 'o the financial sta ents. Our eaiition orf these statmets was made in ~accr'ce with genlle y accepted t auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
1February17, 1967 >4<
Consolidated Edison Company of New York, Inc.
Income statement 1966 1965 Operating revenues Electric ..................................... $72 1,695,147 $693,591,000 Gas ........................................ 105,271,174 104,291,577 Steam ...................................... 39,244,974 38,424,671 Other ...................................... 3,480,252 3,933,026 869,691,547 840,240,274 Operating revenue deductions (Note B)
Operations ................................... 330,259,428 328,411,568 Maintenance ................................. 83,726,227 78,866,385 Depreciation (Note A) ........................... 88,259,374 83,560,592 Taxes, other than Federal income ................... 178,712,303 160,102,186 Federal income tax (Note C) ...................... 14,100,000 17,700,000 695,057,332 668,640,731 Operating income ........................ 174,634,215 171,599,543 Income deductions Interest on long term debt ........................ 67,678,436 62,704,768 Other interest and miscellaneous deductions, net ......... 2,573,942 4,113,409 Amount equivalent to increase in Federal. income tax resulting from amortization under necessity certificates ............ (900,000) (900,000)
Interest charged to construction .................... (5,024,772) (6,096,129) 64,327,606 59,822,048 Net income ............................... $1,0,0 $111,777,495
Consolidated Edison Company of New York, Inc.
SEarned surplus statemnent 1966 1965 Balance, January 1 ............................. $321,662,209 $298,871,936 Net income for the year .......................... 110,306,609 111,777,495 431,968,818 410,649,431 Deduct Dividends on capital stoc k:
Cumulative preferred, $5 per share .............. 9,576,595 Cumulative preferred, Series A, 53/ % ........... 3,450,000 3,450,000 Cumulative preferred, Series B, 51/ % ........... 3,937,500 3,937,500 Cumulative preferred, Series C, 4.65%........... 2,790,001 2,790,001 Cumulative preferred, Series D, 4.65 %........... 3,4.87,5 02 2,170,000 Cumulative preferred, Series E, 534 % ........... 1,122,114 Common, $1.80 per share .................... 67,063,126 67,063,126 91,426,838 88,987,222 Balance, December 31 ........................... $340,541,980 $321,662,209
Consolidated Edison Company of New York, Inc.
Balance sheet ASSETS Dec. 31, 1966 Dec. 31, 1965 Utility plant, at original cost Electric .................................. $3,576,138,048 $3,425,451,709 Gas ..................................... 236,153,477 227,250,546 Steam.................................... 112,501,856 109,020,577 General .................................. 117,953,216 113,871,211 Total utility plant ...................... 4,042,746,597 3,875,594,043 Less-Reserve for depreciation .................. 774,962,061 706,056,472 3,267,784,536 3,169,537,-571 Investments, special deposits and other physical property, at cost or less .............. 5,275,205 6,297,226 Current assets Cash .................................... 24,993,697 23,601,613 Accounts receivable, less allowance for uncollectible accounts ...................... 92,985,453 85,754,560 Subscriptions to capital stock and long term debt (See page 29) .................. 39,035,000 Materials and supplies, including construction materials, at average cost .................... 60,042,675 62,583,444 Prepayments and other current assets ............. 6,472,893 6,489,631 223,529,718 178,429,248 Deferred charges Net unrecovered costs relating to gas plant retirements being amortized through 1967 (Note A) .......... 3,281,892 6,643,536 Nuclear research and development costs, being amortized through 1977 ............... 7,719,038 8,437,088 Unamortized debt discount and expense .......... 4,599,717 3,250,500 Other deferred charges ........................ 5,111,292 4,382,214 20,711,939 22,713,338 Capital stock expense ........................ 10,759,399 *10,029,117
$3,528,060,797 $3,387,006,500
LIABILMES 31, ~Dec.
LIABILITIES 1966 De.3,16 Dec. 31, 1965 Capitalization Long term debt (See page 29) .................. $1,785,972,500 $1,610,972,500 Notes payable to banks ....................... 100,000,000 Capital stock and surplus:
Capital stock (See page 29)
Preferred stock ......................... 494,999,927 444,999,927 Common stock ......................... 750,469,455 750,469,455 Earned surplus ........................... 340,541,980 321,662,209 1,586,011,362 1,517,131',591 Total capitalization ................... 3,371,983,862 3,228,104,091 Credit equivalent to reduction in Federal income tax resulting from amortization under necessity*certificates ........................ 16,403,627 17,303,627 Current liabilities Notes payable to banks ....................... 15,000,000 10,000,000 Accounts payable ........................... 37,951,392 38,418,801 Accrued taxes .............................. 17,354,746 27,377,139 Accrued interest, wages and other current liabilities ... 23,492,696 19,987,028 Customers deposits .......................... 29,750,214 28,454,849 Dividends payable ........................... 6,373,611 5,810,399 129,922,659 130,048,216 Deferred credits Unamortized debt premium .................... 3,899,274 4,122,038 Other deferred credits ........................ 2,814,514 4,452,116 6,713,788 8,574,154 Reserve for injuries and damages ............... 3,036,861 2,976,412
$3,528,060,797 $3,387,006,500
Notes to financial statements Note A-Depreciat ion:
Provisions for depreciation of utility plant are made in accordance, with annual rates for depreciation consistent with the average service lives and net salvage approved by the New York Public Service Commission.
For the years 1966 and 1965, such provisions were equivalent to approximately 2.3 per cent of related depreci able utility plant. Depreciation charges for each of the years 1966 and 1965 include a provision of $3, 100,000 for amortization of net unrecovered costs of extraordinary retirements of certain gas plant facilities, principally manufacturing.
The reserve for depreciation also was credited with approximately $6,140,000 for 1966 and $5,800,000 for 1965 representing Federal income tax adjustments for prior years resulting principally from adjustments of tax depreciation.
Note B -Construction costs:
In view of the increases in payroll taxes and pension costs and with the continuing high level of construc tion expenditures, the Company has elected to include in construction costs beginning with the year 1966 the portion of payroll taxes and pension costs related to construction, which heretofore were included in operating revenue deductions. This change in accounting increased both construction costs and net income for the year ended December 31, 1966 by $6,260,000.
Note C -Federal income tax:
Federal income taxes charged to operations for 1966 and 1965 exclude additional taxes of $340,000 and
$1,850,000, respectively, applied to other than income accounts, relating to interest on prior years tax settle ments, dispositions of plant and gas refunds.
Depreciation deductions for Federal income tax purposes were estimated at $153,900,000 for 1966 and
$142,700,000 for 1965 and include deductions for rapid depreciation and other deductions for depreciation as permitted under the Internal Revenue Code.
Investment tax credits on property additions which qualify for credit under provisions of the Internal Revenue Code amounted to $4,800,000 tor 1966 and $9,500,000 for 1965 (including $2,200,000 representing remaining amount available for carryback).
Tax reductions resulting from rapid tax depreciation deductions and investment tax credits are accounted for as current reductions in Federal income tax provisions. This method of accounting is in accordance with the general policy adopted by the New York Public Service Commission for accounting and rate-making purposes.
Note fl-Pension plans:
The pension plan for retirement for age, established in 1953, provides in substance that the Company will make current payments for employes retired for age and also payments of not less than $4,000,000 nor more than $6,000,000 annually into trust funds until the plan is fully funded. Accordingly, the Company paid
$17,797,358 and $16,159,117 into the plan in 1966 and 1965 respectively, representing $11,797,358 (1966) and $10,159,117 (1965) for benefits paid to employes retired and the addition of $6,000,000 in each year to the pension plan trust. The last actuarial valuation indicated that continuation of this present funding program of current payments for employes retired for age together with the additional $6,000,000 annually and all invest ment income accumulations will fully fund past service credits over a period of about 35 years from inception of the plan. At December 31, 1966 the pension plan trust net assets, consisting principally of investments stated at cost, amounted to $98,585,503 ($88,472,126 at December 31, 1965) and the aggregate market value of the investments was in excess of cost.
The employes security plan is an unfunded plan under which the Company makes payments to employes retired for disability or reasons other than age and in certain cases to widows of former employes. The amounts paid totaled $5,815,121 and $5,487,023 for the years 1966 and 1965, respectively.
The Company reserves the right to amend or terminate the pension plan for retirement for age and the employes security plan as provided therein.
0 Long term debt Consolidated Edison Company of New York, Inc.
(including merged former subsidiary companies): Dec. 31, 1966 Dec. 31, 1965 First and Refunding Mortgage Bonds:
234% Series A, due March 1, 1982 ...................................................... $ 100,000,000 $ 100,000,000 25/h% Series B, due April 1, 1977....................................................... 100,000,000 100,000,000 24% Series C, due June 1, 1972........................................................ 60,000,000 60,000,000 3% Series D, due November 1, 1972...................................................... 30,000,000 30,000,000 3% Series E, due January 1, 1979....................................................... 50,000,000 50,000,000 3% Series F, due February 1, 1981 ...................................................... 60,000,000 60,000,000 3V/4%Series G, due May 1, 1981 ........................................................ 40,000,000 40,000,000 33h% Series H, due March 1, 1982...................................................... 50,000,000 50,000,000 3;6% Series I, due February 1, 1983 ..................................................... 40,000,000 40,000,000 33/8% Series J, due January 1, 1984...................................................... 35,000,000 35,000,000 34% Series K, due December 1, 1985 ................................................... 70,000,000 70,000,0(0 35/8% Series L, due May 1, 1986............. **'***.............. ...................... 30,000,000 30,000,000 44% Series M, due October 1, 1986 ............................. ...................... 40,000,000 40,000,000 5% Series N, due October 1, 1987....................................................... 60,000,000 60,000,000 4% Series 0, due June 1, 1988.......................................................... 50,000,000 50,000,000 434% Series R, due June 1, 1990........................................................ 50,000,000 50,000,000 5% Series S, due December 1, 1990...................................................... 75,000,000 75,000,000 434% Series T, due June 1, 1991........................................................ 50,000,000 50,000,000 45A% Series U, due November 1, 1991 ................................................... 60,000,000 60,000,000 4Yo% Series V, due June 1, 1992........................................................ 100,000,000 100,000,000 43/s% Series W, due October 1, 1992..................................................... 75,000,000 75,000,000 4N4% Series X, due December 1, 1992 (not listed).......................................... 60,000,000 60,000,000 4.40% Series Y, due June 1, 1993 (not listed).............................................. 75,000,000 75,000,000 45/8% Series AA, due December 1, 1993 .................................................. 75,000,000 75,000,000 4.60% Series BB, due October 15, 1994 (not listed)......................................... 125,000,000 125,000,000 5% Series CC, due January 1, 1996 (not listed)............................................ 100,000,000 5.90% Series DD, due December 15, 1996 (not listed) (a)....................... *'* ...*'* 75,000,000 1,735,000,000 1,560,000,000 Th e Edison Electric Illuminating Company of New York, First Consolidated Mortgage Gold Bonds, 5%, due July 1, 1995 (non-callable)..................................................... 1,437,000 1,437,000 Kings County Electric Light and Power Company, Purchase Money, 6%, 99 Years Gold Bonds, due October 1, 1997 (non-callable)........................................................... 1,454,500 1,454,500 Staten Island Edison Corporation, First Mortgage Bonds, 2V8% Series, due May 1, 1979 (not listed) ... 2,750,000 2,750,000 Westchester Lighting Company, General Mortgage Bonds:
3'h% Series, due July 1, 1967 (b)........................................................ 24,331,000 24,331,000 3% Series, due May 1, 1979............................................................. 12,000,000 12,000,000 The Yonkers Electric Light and Power Company, 2%4% Debentures due July 1, 1976 .............. 9,000,000 9,00)0,000 Total.............................................................................. $1,785,972,500 $1,610,972,500 (a) In December 1966 the Company sold $75,000,000 of First and Refunding Mortgage Bonds, 5.90% Series DD, due December 15, 1996. Of this amount $46,785,000 principal amount of bonds were issued and delivered in 1966. The remaining amount will be issued and delivered.
in April and June, 1967.
(b) It is anticipated that the Company will refinance $24,331,000 principal amount of Westchester Lighting Company, General Mortgage Bonds, 3V2% Series, due July 1, 1967.
The above issues are listed on the New York Stock Exchange unless otherwise indicated.
Capital stock Shares Authorized Shares Preferred Stock Outstanding: Dec. 31, 1966 Dec. 31, 1966 Dec. 31, 1965 De.3,CapitalStock Dc311966 Dec. 31, 1965
$5 Cumulative Preferred Stock without par value (a) 1,915,319 1,915,319 1,915,319 $174,999,927 $174,999,927 Cumulative Preferred Stock ($100 par value) (a) (b). 3,600,000
- 2. . . . . . . . . . . . . . . . . . . . . . . .
534% Series A *** 600,000 600,000 60,000,000 60,000,000 54% Series B2...................... :...... 750,000 750,000 75,000,000 75,000,000 4.65% Series C'2 ........................... 600,000 600,000 60,000,000 60,000,000 4.65% Series D . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 750,000 75,000,000 75,000,000 534% Series E2 (c) ........................ 391,800 None 39,180,000 Total ................................ 484,179,927 444,999,927 Preferred Stock Subscribed Cumulative Preferred Stock ($100 par value) 534% Series E2 (c) ........................ 108,200 None 10,820,000 Cumulative Preference Stock ($100 par value) ... 2,250,000 None None Total Preferred Stock................... $494,999,927 $444,999,927 3 . .. . . . .. . .. . . .. . . .
Common Stock ($10 par value) . 43,543,662 37,257,292 37,257,292 $750,469,455 $750,469,455 (a) In case of involuntary liquidation, the holders of Cumulative Preferred Stock are entitled to receive $100 a share.
(b) An increase in authorized shares of Cumulative Preferred Stock from 2,950,000 to 3,600,000 was voted by stockholders on May 16, 1966; an amendment to the Certificate of Incorporation was filed on June 22, 1966.
(c) In July 1966 the Company sold 500,000 shares of Cumulative Preferred Stock, 534% Series E. Of these shares, 391,800 were issued and delivered in 1966. The remaining 108,200 shares were issued. and delivered on February 1, 1967.
t 3
'Listed on the New York Stock Exchange. Not listed. Listed on the New York, Midwest, Pacific Coast and the Amsterdam, Hol land, Stock Exchanges; unlisted trading on the Boston, Detroit and Philadelphia-Baltimore-WashingtonStock Exchanges.
Statistics C' '
SALES AND REVENUES-1966
% Increase % Increase Electric or (Decrease) or (Decrease)
Kilowatthours from 1965 Revenues from 1965 Residential ..................................... 6,044,367,972 7.5 $230,384,622 4.8 Commercial-industrial ............................ 14,411,867,106 4.8 386,609,104 3.1 Railroads and railways ............................ 2,529,954,465 (3.7) 36,606,277 (3.1)
Public authorities ............................... 2,449,818,112 6.0 57,585,500 6.2 Other electric utilities ............................. 1,221,586,451 28.5 10,509,644 52.0 Total ........................................ 26,657,594,106 5.5 $721,695,147 4.1 Residential--Sales directly to residential customers and to reli Railroads and railways-Sales to the four electrified railroads gious institutions. running into New York, the New .York City Transit Authority, Commercial-industrial--Sales directly to all types of general the Staten Island Rapid Transit and Port Authority Trans customers, also to customers who include residential or com Hudson Corporation.
mercial tenant-use in the rent and to customers who resell Public authorities-Sales to municipal and other governmental energy to commercial and industrial tenants. authorities, including public street and highway lighting.
Other electric utilities-Principally delivery over tie lines inter connecting with other New York State utilities.
% Increase % Increase Gas or (Decrease), or (Decrease)
Cubic Feet from 1965 Revenues from 1965 Residential ..................................... 7,615,177,800 (0.5) $ 29,535,595 (0.7)
Residential heating ............................... 24,287,535,400 4.9 36,596,626 2.9 G eneral.... .................................... 20,079,550,700 1.2 37,188,057 0.2 Public authorities ................................ 1,318,309,300 5.5 1,950,896 4.5 T otal ........................................ 53,300,573,200 2.7 $105,271,174 0.9 Residential-Sales directly to residential customers and to reli General-Sales to all general-use customers for use in their gious institutions except those customers using gas for space operations including heating.
heating. Public authorities-Sales to municipal and other governmental Residential heating-Sales for heating residences and religious authorities.
institutions, including gas consumed for other purposes by these customers, and for heating multiple dwellings.
% Increase % Increase Steam Thousands or (Decrease) or (Decrease) of Pounds from 1965 Revenues from 1965 G eneral........................................ 1,567,744 (2.9) $ 3,687,559 (2.2)
Annual power ................................... 19,907,834 5.0 26,702,616 3.1 Apartment house ................................. 5,014,807 (4.0) 7,380,839 (2.8)
Public authorities ................................ 1,111,010 32.4 1,473,960 26.3 Total........................................ 27,601,395 3.6 $ 39,244,974 2.1 General--Sales to all customers with low load-factor use. Apartment house-Sales to apartment houses and hotels.
Annual power-Sales for power, or power and heat use. Public authorities-Sales to the City of New York.
4 Operating Revenues Electric Gas Steam Other Total 1966 ........ $721,695,147 $105,271,174 $39,244,974 $3,480,252 $869,691,547 1965 ......... 693,591,000 104,291,577 38,424,671 3,933,026 840,240,274 1964 ........ 645,044,847 103, 550,074 36,9349445 3,761,849 789,291,215 1963 ........ 605,188,849 104,981,908 35,259,303 3,524,565 748,954,625 1962 ........ 583,667,363 103,618,248 34,177,953 .3,689,756 725,153,320 1961 ........ 561,922,704 100,312,810 33,464,037 3,377,908 699,077,459 1960 ........ 526,505,748 95,267,523 30,740,328 3,299,227 655,812,826 1959 ........ 489,968,753 -92,556,050 299545,718 2,837,745 614,908,266 1958 ........ 454,537,559 89,530,000 30,164,721 2,867,189 577,099,469 1957 ........ 441,849,718 81,521,654 26,356,641 2,940,949 552,668,962 Sales Meters Electric Gas Steam Electric Gas Steam Kilowatthours Cubic Feet Thousands of Pounds Number at December 31 1966 ... 26,657,594,106. 53,300,573,200 27,601,395 3,055,141 1,319,132 4,485 1965 ... 25,258,254,915 51,894,458,000 26,642,271 3,042,138 1,320,427 4,455 1964 ... 23,847,676,404 50,281,888,200 25,709,663 3,025,282 1,322,937 4,431 1963..22,185,557,993 49,234,821,000 23,963,739 2,994,773 1,322,574 4,334 1962 ... 20,833,860,879 47,810,171,200 22,140,657 2,949,389 1,321,169 4,190 1961 ... 20,204,2689412 46,049,037,300 21,689,834 2,922,732 1,325,140 4,086 1960.18,899,690,544 43,140,040,000 19,712,184 2,904,624 1,333,007 4,100 1959.17,653,913,344 42,285,632,200 18,775,282 2,886,299 1,343,634 4,148 1958.15,961,464,897 40,775,963,800 18,333,839 2,872,695 1,353,448 4,114 1957 ... 15,395,350,690 38,000,101,500 16,773,249 2,861,341 1,361,935 4,123 Population served, 1966--8,900,000. Service area-660 square miles.
Employes Payroll Employes Construction Average Pay of Number at Operating (and other accounts) Total Weekly Em ployes December 31 1966 ........ $155,212,738 $45,454,622 $200,667,360 $149.64 24,203 1965 ........ 149,651,520 50,597,950 200,249,470 146.95 23,863 1964 ........ 147,025,189 46,884,802 193,909,991 139.72 24,417 1963 ........ 143,301,719 45,735,988 189,037,707 134.92 24,621 1962 ........ 141,410,164 44,561,264 185,971,428 133.81 24,962 1961 ....... 137,620,638 43,320,769 180,941,407 131.15 24,545 1960 ........ 136,725,188 42,014,611 178,739,799 126.60 24,866 1959 ........ 129,826,611 35,254,254 165,080,865 116.35 25,792 1958 ........ 121,666,945 34,342,702 156,009,647 110.45 25,153 1957 ........ 117,948,934 29,159,339 147,108,273 103.34 25,342 Payroll figures include overtime and premium payments but exclude pension payments.
Statistics Taxes Federal (including Local State income tax) Total 1966 ............ $152,956,780 $2 5,366,702 $21,224,367 $199,547,849 1965 ............ 136,998,774 23,841,324 24,322,098 185,162,196 1964........... 128,393,498 2 1,505,268 22,222,073 172,120,839 25,470,563 162,288,608 1963 ........... 116,019,841 2'0,798,204 1962........... 106,799,254 2'0,172,902 33,324,952 160,297,108 1961........... 102,498,101 20,336,804 41,537,147 164,372,052 1960............ 98,076,636 17,658,275 43,436,559 159,171,470 1959............ 86,841,002 16,377,769 46,211,619 149,430,390 1958............ 77,043,110 15,176,509 45,264,063 137,483,682 1957 ............ 72,362,794 14,556,217 42,350,657 129,269,668 Electric System Generating Capacity Syst em Peak* Heat Rate Residential December 31 Btu per Kwhr per Revenue Kilowatts Date Kilowatts Kwhr Customer per Kwhr 1966 .............. 7,567,000 July 13 6,154,000 11,560 2,439 3.80 1965 .............. 7,595,000 June 23 5,710,000 11,751 2,277 3.9 1964 .............. 6,607,000 July 1 5,505,000 11,505 2,161 "3.8 1963 .............. 6,663,000 July 29 5,105,000 11,372 2,050 3.9 1962 .............. 5,885,000 June 19 4,852,000 12,149 1,939 4.0 1961 ............... 5,301,000 Sept. 13 4,744,000 12,378 1,937 4.0 1960 .............. 4,883,000 Aug. 30 4,352,000 12,461 1,780 4.1 1959 .............. 4,894,000 Sept. 9 4,245,000 12,746 1,787 4.0 1958............. 4,076,000 Dec. 11 3,517,000 12,846 1,676 4.0 1957 .............. 3,717,000 June 26 3,460,000 12,993 1,621 4.0
- One hour net maximum load distributed locally.
Stockholder Statistics Number of Stockholders December 31 Shares December 31 Common Stock Record Preferred Common Earningst Dividendst Stock Stock Total Preferred Commont per Share per Share 1966 .....25,389 225,572 250,961 5,115,319* 37,257,292 $2.31 $1.80 1965 .....24,313 199,635 223,948 4,615,319 37,257,292 2.42 -1.80 1964 ..... 24,115 178,458 202,573 3,865,319 37,257,292 2.21 1.65 1963 .... 61,642** 173,435 235,077 4,178,349** 34,977,952 2.09 1.6125 1962 .... 67,993** 170,032 238,025 4,209,833** 32,188,088 2.20 1.50 1961 .... 24,991 169,497 194,488 3,265,319 32,178,038 1.89 1.50 1960 .... 25,014 166,023 191,037 2,515,319* 31,035,446 1.94 1.50 1959 .... 23,935 161,594 185,529 1,915,319 30,182,726 1.96 1.40 1958 .... 23,350 156,474 179,824 1,915,319 29,802,246 1.87 1.35 1957 .... 23,848 148,146 171,994 1,915,319 27,433,376 1.72 1.20
- IncludingCapitalStock Subscribed.
- Including PreferenceStock called Sept. 11, 1964. tRestated to reflect two-for-one stock split effective Feb. 5, 1965.
Trrustees Henry C. Alexander (1964) Chairmanof the Executive Committee, Morgan Guaranty Trust Company of New York John V. Cleary (1965) President Fredrick M. Eaton (1962) Partner,Shearman & Sterling Charles E. Eble (1957) Chairman of the Board Gilbert W. Fitzhugh (1963) Chairmanof the Board, MetropolitanLife Insurance Company Thomas C. Fogarty (1964) Chairman of the Board, ContinentalCan Company, Inc.
Harland C. Forbes (1948) Former Chairmanof the Board Grayson L. Kirk (1961) President,Columbia University Milton C. Mumford (1964) Chairmanof the Board, Lever Brothers Company J. Wilson Newman (1962) Chairmanof the Board, Dun & Bradstreet,Inc.
Richard K. Paynter, Jr. (1966) Chairmanof the Board, New York Life InsuranceCompany Richard S. Perkins (1965) Chairman of the Executive Committee, FirstNational City Bank Edmund E Wagner (1955) Chairmanof the Board, The Seamen's Bank for Savings Lawrence A. Wien (1963) Senior Member, Wien, Lane, Klein & Malkin James DeCamp Wise (1952) Director,Bigelow-Sanford, Inc.
o Senior Officers Charles E. Eble (1916) Chairman of the Board John V. Cleary (1925) President Otto W. Manz, Jr. (1925) Executive Vice President Mowton L. Waring (1933) Executive Vice President J. Eliot McCormack (1926) Senior Vice President W Donham Crawford (1963) Administrative Vice President Vice Presidents:
Arthur N. Anderson (1933) Gerald R. Hadden (1931)
John W. Balet (1933) Winthrop E. Mange (1922)
William C. Beattie (1927) C. Wesley Meytrott (1933)
Charles B. Delalield (1946) Ralph E Norris (1919)
Thomas C. Duncan (1927) Emanuel Toder (1938)
Bernard E. Gallagher (1930) Max M. Ulrich (1958)
Edward T. Roche (1916) Secretary John D. Gray (1939) Treasurer Dates after trustees' names indicate year first elected; after officers' names, the year first employed.
T" V, 16 TR A N*."~r R,--A-j LIN
...... - EX IBITT (ILINE V -------- C LE POT PANO-T E.ST 2/*
FuEONOoLSTORAGE UNDERCONSTUCERA AKEAC DOCKTT50-86CAR SCALEN NO NO
. . .. ANOVD96
BULK RATE 4 IRVING PLACE, NEWYORK, N.Y. 10003 U.S. POSTAGE PAID NEWYORK,N.Y.
PER MIT 9337 0 -