30th Annual Report C.C.C. Ry (1934)

THIRTIETH ANNUAL REPORT, for Twelve Months, Ended December 31, 1934
(12 pages)
[Photo Image used was not part of source]

THE CRIPPLE CREEK CENTRAL RAILWAY COMPANY

Colorado Springs, Colorado

DIRECTORS and OFFICERS

DECEMBER 31, 1934

Directors

L. G. CARLTON, Colorado Springs, Colorado
E. P. SHOVE, Colorado Springs, Colorado
C. L. TUTT, Colorado Springs, Colorado
W. P. TANNER, New York City, New York
V. H. MANN, Colorado Springs, Colorado
J. F. UNDERWOOD, Colorado Springs, Colorado
E. W. WINSLOW, Colorado Springs, Colorado

0fficers

L. G. CARLTON, President
E. P. SHOVE, Vice President
J. F. UNDERWOOD, Secretary
A. S. GILL, Treasurer

GENERAL OFFICES : COLORADO SPRINGS, COLORADO

Secretary, Colorado Springs, acts as Stock Transfer Agent The Telsa Finance Company, Colorado Springs, Registrar

Colorado Springs, Colorado,

March 4th, 1935.

To the Stockholders of

THE CRIPPLE CREEK CENTRAL RAILWAY COMPANY :

The annual report of your Company shows the operation of The Midland Terminal Railway to October 31, 1934, when the assets of The Cripple Creek Central Railway Company were exchanged for 57,000 shares of the capital stock of The Golden Cycle Corporation. Stock is now selling, March 2, 1935, for $40.00 per share, ex-dividend.

The report of E. W. Winslow, General Manager, gives information as to operations and general conditions.

Very truly yours,

L. G. CARLTON, President.

Midland Terminal Ry. Rail Motor Car No. 101, Seen at the Freight House in Cripple Creek.

Colorado Springs, Colorado,

March 4th, 1935.

MR. L. G. CARLTON, President,

The Cripple Creek Central Railway Company,

Colorado Springs, Colorado.

Dear Sir:

The following is a summary of business for 1934:

While we had an increase in ore tonnage in the Cripple Creek District of approximately 85,000 tons of ore as compared with 1933, there was no improvement in value, it still being of a low grade.

There was an increase of approximately $15,000.00 in maintenance of equipment as compared with prior year, and on account of the age of both the engines and freight cars now in service we may expect heavy maintenance on this equipment, it being in continuous service.

The past year we filled five large main line bridges, which were in such a bad state of repair it was necessary that immediate attention be given, and since it was considerably cheaper to fill them with waste rock rather than reconstruct them, this action was taken.

During the year seven miles of 75-lb. rail were taken up and replaced with second-hand relaying 90-lb. rail, which we were fortunate in being able to purchase at a very low figure. The 75-lb. rail was badly worn and with the increased tonnage this change was necessary. In connection with our repairs to track, it was necessary to replace some 30,000 ties during the year. Quite a large percentage of these ties were used in the Cripple Creek District in repairing sidings and spurs, which have not been in use for several years. The increase in price of gold has made it possible for ore from the low grade dumps to be shipped, thus making it necessary that considerable repairs be made.

Twelve second-hand steel dump cars were purchased during the year, they being of the same type as the twenty-five steel dumps bought in 1932. A saving in car hire has been effected in the purchase of these cars.

The mail, passenger and express rail motor car installed in March, 1933, is still operating very efficiently.

The truck competition in the handling of most all commodities is still a very serious menace. While we are fighting this situation from every angle, we must admit it is a very difficult matter to control.

E. W. WINSLOW,

Vice President and General Manager.

THE MIDLAND TERMINAL RAILWAY COMPANY

MILEAGE OWNED

Main Line	Spurs and Sidings	Total Miles
55.44	35.92	91.36

LIST of EQUIPMENT OWNED

Locomotives		9
Passenger Train Cars :
Coaches	2
Baggage	1
Combination	5
		8
Track Motor Car		1
Freight Train Cars :
Box	27
Coal	142
Refrigerator	13
Flat	11
Stock	9
Steel Dump	51
Wood Dump	1
Caboose	3
		257
Company Service Cars :
Business Car	1
Motor Inspection Car	1
Wrecking and Outfit	4
Derrick	1
Snow Plow	1
Other Company Cars	15
		23

Total Rolling Stock		298

Midland Terminal Rotary Plow in Colorado City Yard Near Roundhouse in Either August 1936 or 1937

F. W. MARCROFT

Income Tax Advisor Admitted to Practice Before U. S. Treasury Dept.

Public Accountants

Auditors

Accounting Systems

F. W. MARCROFT AND ASSOCIATES

INDEPENDENCE BUILDING

COLORADO SPRINGS, COLORADO

March 5, 1935.

MR. L. G. CARLTON, President,

Cripple Creek Central Railway Company,

Colorado Springs, Colorado.

Dear Sir :

We have examined the books and accounts of the Cripple Creek Central Railway Company for the year ended December 31, 1934, and of its former subsidiary, the Midland Terminal Railway Company, for the period beginning January 1, 1934, and ending October 31, 1934, and verified the cash, loans and securities owned.

The following exhibits and schedules agree with the said books and accounts:

Exhibit A - Balance Sheet, C. C. C. Ry. Co., as of December 31, 1934.
Exhibit B - Income Account, C. C. C. Ry. Co., for year ended December 31, 1934.
Exhibit C - Profit and Loss Account, C. C. C. Ry. Co., for year ended December 31, 1934.
Exhibit D - Balance Sheet, C. C. C. Ry. Co., as of October 31, 1934.
Exhibit E - The Midland Terminal Railway Company:

Schedule 1 - Balance Sheet as of October 31, 1934.
Schedule 2 - Income Account for period ending October 31, 1934.
Schedule 3 - Profit and Loss Account for period ending October 31, 1934.

As the Cripple Creek Central Railway Company disposed of its stock in the Midland Terminal Railway Company to the Golden Cycle Corporation as of October 31, 1934, there, of course, will be no consolidated balance sheet at the end of the year. We are of the opinion that the balance sheet of the Cripple Creek Central Railway Company is a true and correct statement of the assets and liabilities of that company on the dates mentioned, and that the value of the investments are conservatively stated. We are of the further opinion that the values stated in the balance sheet of the Midland Terminal Railway Company at the time of its disposal were conservative, and that adequate reserves for depreciation were provided.

We have checked the transaction of the exchange of the assets of the Cripple Creek Central Railway with the Golden Cycle Corporation, and find that there was no profit or loss sustained in this transaction.

Very truly yours,

F. W. MARCROFT AND ASSOCIATES,

By F. W. Marcroft.

THE CRIPPLE CREEK CENTRAL RAILWAY COMPANY

EXHIBIT A

BALANCE SHEET

AS OF DECEMBER 31, 1934
ASSETS
Golden Cycle Corporation, Accounts Receivable			$ 57,000.00
Cash (As reserve to pay taxes accrued prior to sale of assets October 31, 1934 - any surplus to be paid Golden Cycle Corporation and any deficit to be paid by Golden Cycle Corporation.)			11,006.45
STOCKS :
57,000 shares Golden Cycle Corporation (acquired 10-31-34)			1,567,018.62

			$ 1,635,025.07



CAPITAL AND LIABILITIES
Accrued Taxes			$ 2,806.82
CAPITAL STOCK :
Preferred, Authorized and Issued, 30,000 shares	$ 3,000,000.00
Common, Authorized and Issued, 25,000 shares	2,500,000.00
	$ 5,500,000.00
Less : Liquidating Dividends	1,080,000.00
		$ 4,420,000.00
Less: Profit and Loss (Deficit), Exhibit C		2,787,781.75
			1,632,218.25

			$ 1,635,025.07

EXHIBIT B

INCOME ACCOUNT

FOR THE YEAR ENDED DECEMBER 31, 1934
INCOME :
Interest from Loans	$ 4,285.28
Income from Sale of Investment Securities	8,619.90
Interest from U. S. Treasury Bonds and Notes	8,789.44
Interest from Con. Federal Land Banks Bonds	188.88
Interest from Federal Farm Mortgage Corp. Bonds	75.00
Discount on R. F. C. Notes	497.22
Dividends on Stocks Owned	57,362.44
		$ 79,818.16
DEDUCTIONS FROM INCOME :
General Expenses	$ 2,954.84
Taxes	3,221.28
		6,176.12

Net Income		$ 73,642.04

EXHIBIT C

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED DECEMBER 31, 1934
January 1, 1934, Debit Balance		$ 2,872,158.54
Cancellation of Premium Previously Charged to U. S. Bonds	$ 1,917.19
Collection of Loan Which Had Been Charged Off	8,500.00
Cancellation of Capital Tax Accrued in 1933, which has been re-accrued in 1934 under U. S. Treasury Bulletin IT 2827	317.56
Net Income for Year 1934 (Exhibit B)	73,642.04
		84.376.79

Profit and Loss Debit Balance (shown on Exhibit A)		$ 2,787,781.75

EXHIBIT D

BALANCE SHEET

AS OF OCTOBER 31, 1934

(Prior to Acquisition of Golden Cycle Corporation Stock)
ASSETS
CONTROLLED COMPANIES :
10,000 shares Midland Terminal Ry. Stock		$ 1,736,114.00
Less : Liquidating Dividends		1,448,415.74
		$ 287,698.26
OTHER COMPANIES :
36,244 shares United Gold Mines Co. Stock (cost)		2,264.67
			$ 289,962.93
U. S. Treasury 3.25% Bonds of 1944-6 — Face Value $300,000			307,897.73
Federal Farm Mtg. Corporation 3s— Face Value $60,000			58,380.25
Notes Receivable			2,500.00
Cash			919,031.91
Accrued Interest			1,245.80

			$ 1,579,018.62



CAPITAL AND LIABILITIES
CAPITAL STOCK :
Preferred, Authorized and Issued	$ 3,000,000.00
Common, Authorized and Issued	2,500,000.00

	$ 5,500,000.00
Less : Liquidating Dividends	1,080,000.00
		4,420,000.00
Less: Profit and Loss (Deficit)		2,844,501.98
			$ 1,575,498.02
Accrued Taxes			3,520.60

			$ 1,579,018.62

EXHIBIT E, SCHEDULE 1

ASSETS AND LIABILITIES

AS OF OCTOBER 31, 1934
ASSETS
Cost of Road and Equipment		$ 2,683,338.49
Less: Equipment Replacement Accruals	$ 268,512.36
Accrued Obsolescence of Road and Depreciation	2,255,426.94
		2,523,939.30
Net Value of Road and Equipment			$ 159,399.19
WORKING ASSETS :
Cash		$ 233,333.73
Agents and Remittances in Transit		68,716.30
Accounts Collectible		4,352.63
Material and Supplies		41,852.13
			348,254.79
DEFERRED ITEMS :
Unadjusted Suspense Items			200.75

			$ 507,854.73



CAPITAL AND LIABILITIES
Capital Stock, Authorized Issue			$ 1,000,000.00
WORKING LIABILITIES :
Audited Accounts and Wages Unpaid		$ 28,021.55
Foreign Roads Balances		20,225.67
			48,247.22
ACCRUED LIABILITIES NOT DUE :
Tax Liability		$ 49,754.57
Insurance		7,122.95
Unadjusted Credits		746.15
			57,623.67
APPROPRIATED SURPLUS:
Additions to Property		$ 519,919.84
Funded Debt Retired		597,799.30
			1,117,719.14

			$ 2,223,590.03
Less : Profit and Loss - Deficit (Exhibit E-3)		267,319.56
Liquidating Dividends		1,448,415.74
			1,715,735.30

			$ 507,854.73

EXHIBIT E, SCHEDULE 2

INCOME ACCOUNT

FOR THE PERIOD JANUARY 1, 1934, TO OCTOBER 31, 1934
INCOME
From Freight Traffic	$ 482,931.27
From Passenger Traffic	2,263.36
From Excess Baggage	22.19
From Transportation Mail	5,973.96
From Express Traffic	6,600.17
From Switching	291.60
		$ 498,082.55
From Operations Other Than Transportation		783.23

Total Operating Revenue		$ 498,865.78



EXPENSES
For Maintenance of Way and Structures	$ 77,847.41
For Maintenance of Equipment	73,163.62
For Transportation Expense	121,622.51
For Traffic Expense	6,085.16
For General Expense	15,150.35
Total Operating Expense		293,869.05
Net Operating Revenue		$ 204,996.73
From Which Deduct :
Appropriations for Improvements	$ 23,191.14
Hire of Equipment	9,390.02
Rent of Joint Facilities	138.90
Miscellaneous Income Charges	10.69
Interest on Unfunded Debt	139.16
Taxes	52,514.30
		85,384.21

Net Profit (Exhibit E-3), 10 Months 1934		$ 119,612.52

EXHIBIT E, SCHEDULE 3

PROFIT AND LOSS ACCOUNT

FOR THE PERIOD JANUARY 1, 1934, TO OCTOBER 31, 1934
January 1, 1934, Debit Balance		$ 386,937.98
Net Profit January 1, 1934, to October 31, 1934 (Exhibit E-2)	$ 119,612.52
Miscellaneous Adjustments	5.90
		119,618.42

Debit Balance (Exhibit E-1)		$ 267,319.56

The data and statements contained in this report are sent to stockholders as a matter of information only, and are not intended to influence either the purchase or sale of the Corporation's securities.