English Translation

the company's higher operating performance, but also in the various pay arrangements and disbursements of assistance to active staff and recipients of pensions carried out during the financial year. The personal expenses amounted to 1,802,799 million K, the material expenditure 963,681 million K. The operating loss thus amounted to 365,798 million K. It was 220,338 million K lower than the forecast for 1939. The interest rate and amortization of the investment debt were allocated 131,989 million K and the yield from interest and price differences amounted to 2,832 million K in total. In the accounts (profit and loss account), a balance sheet loss of 494,955 million K was incurred in 1939.A total of 176,261 million K were spent on the construction and procurement of new plants (investment growth), of which 10,212 million K from own resources, 166,049 million K came from the income of the Unification Bond. Of the total amount spent, 173,641 million K were to be activated in the balance sheet as access to fixed assets. A total of 213,089 million K was spent on the renewal of railway installations and rolling stock; this amount was mainly covered by the funds available in the depreciation account. By and large, the result of the economy of the railway company can be regarded as satisfactory. In 1939 the construction activity was mainly directed towards the continuation of the buildings begun in recent years. However, some new buildings necessary for the safety and economic viability of the operation were also begun. In particular, the conversion and construction of a two-track main railway from Brno to Deutsch Brod began with a junction from Gross Meseritsch to Krisans. In addition, the importance of the traffic direction from north to south, as well as new connections to the east, required the accelerated expansion of the sections leading in this direction by the Protectorate. This work concerned in particular the construction of some line connections, second and further tracks, the extension of routes for increased operation, the expansion of stations and heating houses and the laying of sections. In the area of the railway superstructure, further rail superstructure constructions System A were introduced or prepared, which is better suited to modern requirements. The laying and maintenance of the rail superframe was further improved and made more economical. On some sections the permissible maximum speed was significantly increased. In addition, test drives were carried out to determine the possibility of a further increase in the maximum speed allowed for steam operation so far, as far as possible in narrower con- sequential sections. On various routes, the highest wheel pressure so far fixed was increased. 4