ointly by the Pennsylvania R. R. Co.
and the New York, New Haven and
Hartford R. R. Co., about 14,000,000

Pennsylvania Railroad improvements in the
State of New Jersey, electrification of
line from Jersey City to Park Place,
Newark, Greenville freight line and terminal
on New York Bay 10,000,000
------------
Total $159,000,000

CORPORATE ORGANIZATION AND FRANCHISE CONDITIONS.

As the tunnel extension lies partly in the State of New Jersey and
partly in the State of New York, it was necessary to charter two
companies, each covering the territory within the State to which it
belonged. The New Jersey corporation was entitled the Pennsylvania, New
Jersey and New York Railroad Company, and the New York corporation, the
Pennsylvania, New York and Long Island Railroad Company. These
organizations were completed early in 1902. Subsequently, after the
tunnels had been joined under the North River, the companies were
consolidated, on June 26th, 1907, and thereby formed the present company
under the name of the Pennsylvania Tunnel and Terminal Railroad Company,
a corporation of both States.

Mr. Cassatt, President of the Pennsylvania, New York and Long Island
Railroad Company, made application in its behalf for a franchise to
extend the lines of the Pennsylvania Railroad by tunnels under the North
River to a passenger station to be erected in New York City and thence
under the East River to a connection with the Long Island Railroad, on
May 5th, 1902.

The franchise for that part of the tunnel line which is within the State
of New York, that is, from the boundary line between New York and New
Jersey, in the Hudson River, to the eastern terminus at Sunnyside Yard,
Long Island, is contained in the certificate issued by the Board of
Rapid Transit Railroad Commissioners of the City of New York on October
9th, 1902.

The essential features of the franchise have been summarized
substantially as follows in the report of the Committee of the Board of
Rapid Transit Railroad Commissioners of the City of New York, dated June
14th, 1902:

_First._--A grant by the city in perpetuity of rights, subject, however,
to a periodic readjustment of payments at intervals of twenty-five
years, as follows:

(_a_) To construct and operate a railroad of two tracks fro