PENNSYLVANIA COMPANY (COMPANY ONLY) SCHEDULE OF INVESTMENTS AND ADVANCES(1) — (Continued) December 31, 1969 (continued) PENNSYLVANIA COMPANY (COMPANY ONLY) SCHEDULE OF INVESTMENTS AND ADVANCES(1) — (Continued) December 31, 1969 * Does not reflect ownership by affiliated companies. (1) See notes 2, 4 and 11 to financial statements of Pennsylvania Company. (2) Pledged as security for 84% Collateral Trust Bonds. (3) The following are pledged as security for 4.15% to 4.50% Collateral Trust Serial Bonds: Detroit, Toledo & Ironton Railroad Company, capital stock.. Wabash Railroad Company, 4% preferred stock... The Philadelphia, Baltimore and Washington Railroad Company, capital stock.. 3,487 2,661 2,661 160,129 $570,582 Number of 26,029 22,650 38,390 73,277 (4) Includes 540,584 shares (subsequently converted into 610,002 shares of Norfolk and Western Railway Company Common Stock) deposited in escrow in conjunction with 9% Sinking Fund Debentures. (5) Includes 1,002,400 shares pledged as security for 54% Collateral Trust Bonds and 516,228 shares held in escrow in conjunction with 4%% Cumulative Preferred Stock. PENN CENTRAL COMPANY AND CONSOLIDATED SUBSIDIARIES CONTROLLER'S CERTIFICATE The undersigned hereby certifies that in his opinion the statement of consolidated earnings and retained earnings of the company and its consolidated subsidiaries for the three years ended December 31, 1967 presents fairly the results of their operations in conformity with generally accepted accounting principles, except that no provision has been made for deferred federal income taxes, applied on a consistent basis, as restated (see note 13); and the statements of earnings and retained earnings of Penn Central Transportation Company (company only) for the three years ended December 31, 1967 present fairly the results of its operations in conformity with generally accepted accounting principles, applied on a consistent basis, as restated (see note 13); and the statement of consolidated source and application of funds for the two years ended December 31, 1969 presents fairly the information contained therein. April 21, 1970 C. S. HILL OPINION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Board of Directors and Shareholders Penn Central Company: We have examined the balance sheets of Penn Central Company and consolidated subsidiaries and of Penn Central Transportation Company (a wholly-owned subsidiary of Penn Central Company) as of December 31, 1969 and the related statements of earnings and retained earnings for the two years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying balance sheets and statements of earnings and retained earnings present fairly the financial position of Penn Central Company and consolidated subsidiaries and of Penn Central Transportation Company at December 31, 1969, the results of operations of Penn Central Transportation Company for the two years then ended, and, except that no recognition has been given to deferred income taxes as explained in note 4, the results of operations of Penn Central Company and consolidated subsidiaries for the two years then ended, all in conformity with generally accepted accounting principles applied on a consistent basis, as restated (see note 13). Philadelphia, Pennsylvania March 12, 1970, except as to the PEAT, MARWICK, MITCHELL & CO. second paragraph of note 15 which is as of March 31, 1970 |