The Delaware Railroad is a corporation of the States of Delaware and Maryland, having its principal office at Dover, Del. Although the Delaware Railroad acquired title to its original property on January 23, 1899, it did not commence recording the results of the operation of its property in its books until February 1, 1899. The accounting data in this report, therefore, cover the period from February 1, 1899.

The Delaware Railroad is controlled by The Philadelphia, Baltimore and Washington Railroad Company through ownership of a majority of capital stock. On the other hand this company controls, jointly with the Pennsylvania Railroad, The Philadelphia, Baltimore and Washington Railroad Company, and the New York, Philadelphia and Norfolk Railroad Company, through ownership of 21 per cent of the capital stock, the Baltimore, Chesapeake and Atlantic Railway Company, which operates its own property.

The property of this company was operated from January 23, 1899, the date it took over its original road for operation, to December 31, 1917, by the Philadelphia, Wilmington and Baltimore Railroad Company and it successors, the Philadelphia, Baltimore, and Washington Railroad Company and The Philadelphia, Baltimore and Washington Railroad Company, under lease agreements. On January 1, 1918, the lease of the latter company was assumed by the Pennsylvania and the common-carrier property of the Delaware Railroad was taken over for operation by the United States Railroad Administration as a part of the operating system of the Pennsylvania Railroad, and it is so operated on date of valuation.

The Delaware Railroad was incorporated under authority of special acts of the States of Delaware and Maryland, April 13, 1887, and May 3, 1882, respectively, through filing on January 23, 1899, an agreement dated December 31, 1898, for the purpose of consolidating the property, rights and franchises of the Delaware Railroad Company, Queen Anne's and Kent Railroad Company, as reorganized, Delaware and Chesapeake Railway and The Cambridge and Seaford Rail Road Company. The date of organization of the Delaware Railroad was January 26, 1899. Pursuant to the above purpose, the Delaware Railroad acquired the property, rights and franchises of the four railroad corporations named. The Delaware Railroad, itself, and those corporations, together with their predecessors, total eight different corporations and comprise the line of corporate succession culminating in the Delaware Railroad as at present constituted. The following chart shows the names of the corporations, the respective dates of incorporation and for each predecessor the date of succession, the immediately succeeding corporation and the manner of succession. Reference to each of these corporations is made in the last column by its respective number shown in the first column.

No.	Name	Incorporation	Succession
1	The Delaware Railroad Company	Under authority of special acts of Delaware and Maryland, Apr. 13, 1887 and May 3, 1882, respectively, through filing articles of consolidation dated Dec. 31, 1898; filed Jan. 23, 1899
2	Delaware Railroad Company	Under special acts of Delaware June 20, 1836 and Feb. 22, 1849	Consolidated Jan. 23, 1899 with 3, 5, and 7 to form 1 .
3	Queen Anne's and Kent Railroad Company, as reorganized	Under special act of Maryland, Mar. 28, 1876	Consolidated Jan. 23, 1899 with 2, 5, and 7 to form 1 .
4	Queen Anne's and Kent Railroad Company	Under special acts of Maryland, Mar. 8, 1856, and Mar. 21, 1867	Sold at foreclosure July 14, 1874, and conveyed by deed of Apr. 20, 1875, to interests which reorganized May 2, 1877, as 3 .
5	Delaware and Chesapeake Railway	Under special act of Delaware, Mar. 7, 1877, of Maryland, Apr. 5, 1878	Consolidated Jan. 23, 1899, with 2, 3, and 7 to form 1 .
6	Maryland and Delaware Rail Road Company	Under special act of Maryland Mar. 10, 1854, of Delaware Feb. 13, 1857	Sold at foreclosure Dec. 2, 1877 and property in Delaware and in Maryland conveyed under deeds of Dec. 23, 1879 and Jan. 24, 1880, respectively, to interests which conveyed entire property to 5 Feb. 10, 1880.
7	The Cambridge and Seaford Rail Road Company	Under special act of Maryland, May 3, 1882	Consolidated Jan. 23, 1899 with 2, 3, and 5 to form 1 .
8	Dorchester and Delaware Railroad Company	Under special act of Maryland Feb. 6, 1866, of Delaware, Jan. 30, 1867	Sold at foreclosure Jan. 3, 1883 after receivership begun Nov. 1, 1882, and conveyed Apr. 24, 1883 to interests which conveyed property to 7 Oct. 13, 1883.

The owned mileage of the Delaware Railroad, amounting to 245.188 miles, was acquired partly by consolidation and partly by purchase. The property acquired by purchase was bought from The Baltimore and Delaware Bay Railroad Company without acquiring the corporate rights and franchises of that company. Of the seven corporations that comprise the line of succession culminating in the Delaware Railroad as at present constituted, three corporations did not construct any road or other common-carrier property. These companies were the Queen Anne's and Kent Railroad Company, as reorganized, Delaware and Chesapeake Railway Company, and The Cambridge and Seaford Rail Road Company. The property constructed by the remaining corporations, together with that purchased by the Delaware Railroad and one of its predecessors from companies whose corporate rights and franchises were not acquired, the years when the various portions of the line were constructed, and the manner in which the Delaware Railroad acquired the property are indicated in the following table, wherein, to facilitate comparison with the table showing the corporate succession, previously given, the same order of corporations is maintained.

The investments of the Delaware Railroad in other companies on date of valuation are stated in its records at a total book value of $558,044.68. The total of such investments on date of valuation amounts to $1,928,486.32 par value and $1,296,194.89 recorded book value. Of these there have been disposed of $1,006,500 par value with a recorded book value of $738,150.21, leaving on date of valuation investments of $921,986.32 par value and $558,044.68 recorded book value. A statement of the several investments recorded as of date of valuation, with their respective par values and book values, follows:

The considerations recorded as passed in the acquisition of the investments recorded as of date of valuation were $558,044.68 cash.

In addition, the Delaware Railroad acquired $1,006,500 par value of investments in other companies at a recorded book value of $738,150.21, all of which have been disposed of. Certain of these investment securities were disposed of at a loss of $6,830.92, which was charged to the profit and loss account, and certain other investment securities were disposed of at a profit of $47,145.43, of which $5,019.73 was credited to the profit and loss account, $216.90 to the income account and $41,908.80 to the investment in road and equipment account.

In addition, the Delaware Railroad records an investment in sinking fund assets in the amount of $455,615.23, representing book value of sundry securities held, $439,686.62, and uninvested cash $15,928.61. A summary of the securities follows:

The property of the Delaware Railroad was solely operated by The Philadelphia, Baltimore and Washington Railroad Company and its predecessors, as hereinbefore explained, from January 23, 1899, to December 31, 1917, under lease agreement. On January 1, 1918, the lease was assumed by the Pennsylvania Railroad. From that date to date of valuation the common-carrier property of the Delaware Railroad has been operated by the United States Railroad Administration as a part of the system of the Pennsylvania Railroad. Details with respect to the operation of this property are given in the chapter on leased railway property in the report on the Pennsylvania Railroad.

Although published in 1929, the report is "...as of date of valuation" which was 30 June, 1918