The Sun.
London, England, 1867-03-11 00:00:00

THE SUN, LONDON, MONDAY EVENING, MARCH 11, 1867

two swords, some daggers, a tin can filled with what
is called " Greek fire," but looks very much like paraf-
fin oil, 12 crowbars and pickaxes, a couple of sledge-
hammers, tin canisters containing bullets and percus-
sion-caps, powder flasks, ball cartridges, and several
yards of the cord-fuse which is used in blasting, and

is supposed to have been intended for use in con-
..

nection with the Greek fire. There was a railway rug
which the Fenian commander had not disdained to

bring into action, and perhaps in such weather as
this he would give a good deal more for his rug than
for the sword which, in the hurry of his departure,
this terrible chieftain also forgot to remove. It is a

Tower sword, and the handle bears the crown and
cipher " V.R." Inside the leather scabbard of the
other I noticed, written in ink, the words " John F.
New, West Middlesex Volunteers, F company."
This weapon belonged to Walsh, and was of the same
make as that worn by Dunne. Of the guns four are
double-barrelled, and the muzzles of two have been
shot through by bullets, which were, no doubt, alined
from the barrack window at the only mark which
the police could see.
Both Dunne and Walsh are Irish Americans.
The former is a native of Charleville, and was ar-
rested a year ago, but was released on promising to
leave the country. He is supposed to have served
as a captain in the American army. Head-constable
Adams, who maintained so stout and skilful a de-
fence, has been 25 years in the force. His conduct
and that of the whole party, garrison and reinforce-
ment, cannot be too highly spoken of.
TIPPERARY, Saturday.

Ever since the outbreak there have been rumours
in this town of an impending attack from the Fe-
nians, and to-day I find the same apprehensions. I
am afraid it is no exaggeration to say that with the
greater number of the inhabitants hope is stronger
than apprehension. Tipperary is a name that does
not carry with it very pleasant associations, and the
population of this town is supposed to be greatly
disaffected. The streets are clean, the houses better
built than those of inland towns usually are in Ire-
land, and the shops are of such pretensions as show
the place to be the centre of an agricultural district
of some importance and wealth. In fact, the land
near here is the most fertile in the whole country—
" The Golden. Vale," it is called—and as a class the
farmers are well to do, and the peasantry better
lodged and paid than in other counties. A low range
of hills rises at some little distance from the town,
and towering above these is the well-known Galtee
range, the crests of the mountains now whitened
with a thin covering of snow. From the unfinished
Court-house, now occupied by troops, all eyes were
directed yesterday afternoon to the far mountain
range, where the rebels are believed to be in force,
and at times have been visible. The highest point of
this range, Galtymore, is over 3,000 ft. above the
sea level, and is only overtopped by three other
mountains in the South of Ireland. On its bold,
rugged shoulder many persons were able yesterday
to make out a strong force of men moving towards
the loftiest peak, where it is assumed that some sort
of Fenian stronghold exists. As the sun now and
then lit up the mountain gorges I saw clearly the
same dark objects amid the snow ; but whether they
moved, or whether they were trees or mere patches
or gorse, I cannot profess to say. The wild, wintry
weather that now prevails, and the difficulties of
maintaining a large body of men for any time on the
bleak mountain side, incline one to doubt whether
the Fenians can remain there in any numbers. If
so, cold and hunger must soon drive them into the
plains ; but, although cold and hunger may make
men desperate, the Fenians in Tipperary must differ
much from their brethren in other parts if they
venture to attack a town garrisoned as this now is by
infantry, horse artillery, and cavalry, strengthened
this morning by new arrivals from the Curragb.
The Fenians of this party were no doubt in con-
siderable force, and had prepared to do great things;
but here also, as everywhere else, the promise was
great and the performance miserable. As in Dublin
county and other places, the rising b?gan on Tues-
day night. Detachments of the 31st Regiment, under
the command of Major Lind, were at the time sta-
tioned here, and as information was given of an ad-
vance upon the town a reconnoitring party was
pushed forward in the direction of Croughill, under
the command of Lieutenant Wallrou. Mr. (1,?
Gernon, the resident magistrate, knowing the roads,
accompanied the party, and while SOlll3 yards in
advance came upon a Fenian sentinel. As this
man refused to surrender, the magistrate seized
him, but several armed men ran to his aid, and
in the scuffle all escaped. Several blows were
aimed at Mr. de Gernon, who drew his revolver ani
fired three shots ; the patrol also fired at the party,
who thereupon took to their heels, leaving about a
dozen pikes behind them. As a pursuit was not
thought advisable no prisoners were taken, nor
could it be seen whether any of the shots fired took
effect. Early on Wednesday morning several men
were arrested. Some of them were making their
way back into the town. (The man was found
lying helplessly drunk in the fields, with his pike
close beside him, and was carried ingloriously to
gaol upon a stretcher. During Wednesday informa-

tion was received that the Fenians had fixed their
camp in an old Danish fort at Ballyhurst, about two
miles from Tipperary. The approach to this fort
is by a stiff ascent over a ploughed field, and at the
top of the hill a circular embankment some 15 feet
high remains in fair preservation, and at the foot a
ditch. Some stunted trees within the hallowed
space and on the bank afford capital shelter, and a
body of determined men might have held this
stronghold against a considerable force. A detach-
ment of the 31st Regiment and a troop of Carabi-
neers marched out from Tipperary to dislodge the
insurgents, who were seen in force on the crest of
the hill. Major Lind, who was in command, brought
his men forward at the double, and they charged
up the hill with fixed bayonets. I need not say
that the Fenians did not wait to receive the attack,
but, after firing two or three ineffectual shots, fled
long before the troops mounted the summit. The
leader was mounted on a horse which had been
' stolen by the party for his use from a gentleman in
the neighbourhood but this man, not being much
in the habit of riding across country, came to grief
at his first bank and was taken prisoner. He gave
his name as Burke, and upon his person was found
a map of the country. One of the insurgents, a
farm labourer, named Russell, was found hiding in
a ditch, and tried to stab with his pike a soldier,
who at once shot him through the shoulder. The
man is since dead. The Carabineers and infantry
followed two or three miles in pursuit, and captured
17 prisoners, some of whom were wounded ; but, as
the Fenians flung their arms away, were fleet of foot,
and had a considerable start, the main body got
away. Inside the fort about sixty pikes were
found, with loose powder, bullets, and percus-
sion caps, with a commissariat of cold boiled
potatoes, white bread, oaten cakes, and
milk. Along the line of flight sixty pikes and four
guns were picked up. One of the latter is a rifle
which was stolen from a sergeant of the 64th Regi-
ment during the last Tipperary election. And so
ended the first and last encounter of Fenians and
soldiers around Tipperary.
Kilteelly, a small village about 12 miles west of
the Junction here, was occupied by about 150 or
200 Fenians on Thursday. They took posession of
the police- barrack there, which had been evacuated
by the constabulary, and demanded arms and am-
munition from the well-disposed inhabitants and
gentry. These were generally given up without re-
sistance, but a sturdy old farmer named Gearing,
when thus summoned, refused point blank, and pre-
pared to defend himself. The insurgents battered
at the door with a sledge-hammer ; and Mr. Gearing
replied by firing through the door at the people out-
side. His wife, however, who was dreadfully
alarmed, struck the gun upwards, and the contents
passed through the panel above the heads of the
Fenians. These men broke his windows, and pounded
at the door till it was nearly off the hinges. Then
; a parley took place, the gun was handed out to the
mob, and they were satisfied to retire without ac-
tually effecting an entrance. This took place before
daybreak on Thursday morning. Kilteelly is five
or six miles from any railway station. Some time
elapsed, therefore, before any alarm was given. Still,
if the mass of the inhabitants had not sympathised
with the insurgents, troops would have been sum-
moned from here or from Limerick in time to inter-

cept them. As it was, the Fenians ate, drank, and
made merry with their friends ; and the whisky
flowed in such plenty that some of the men got
exceedingly drunk, and lay about the street for
some hours in a helpless state. Meanwhile, others
were occupied in searching for arms, and one party
impressed into the Fenian service several young
men of the place, much against their will. This
forced levy has prevailed largely during this
rising, chiefly among the peasantry, who are much
less disaffected than the townspeople, or at all
events, are more timid and disinclined to commit
themselves. In more than one case men have been
shot down by the Fenian leaders for refusing to join
their ranks. By examples like this, and by threats
of vengeance, many men have been taken away
from their homes, and the people you meet are not
inclined to talk much about the Fenian doings. The
people at Kilteelly would give little information,
and said as little as they could possibly help about
their visitors. It appeared, however, that these
men preserved some attempts at discipline, and paid
for all that they ate and drank, so that they were
probably welcome. They were badly armed, and
were extremely anxious to procure guns and re-
volvers. They left the village at about seven in
the evening, moving towards the Galtee mountains,
and were followed for some distance by women be-
wailing, with the demonstrative grief common to
their class in Ireland, the sons, brothers, or hus-
bands who had been forced into the service of the
" Irish Republican army." Yesterday morning a
detachment of the 74th Regiment from Limerick
and a small force of the 31st Regiment and the
4th Dragoon Guards stationed at Limerick Junc-
tion and Tipperary marched to Kilteelly, but of
course were too late to be of serviee, except by re-
assuring the well-disposed inhabitants. The party
of Fenians who performed this exploit are supposed
to be among those who were seen on Galtymore
mountain yesterday.
LIMERICK JUNCTION, Sunday Evening.

A movable column, under the command of
Colonel M'Neill, 48th Regiment, left Tipperary
this morning for the Galtee mountains where bodies
of Fenians are believed to have taken refuge.
Around Mallow, on Friday night, several farm-
houses and other residences were entered by the
insurgents, who took away arms, but committed no
other outrages. _

Troops were sent yesterday from Mallow junction
to Mil'street, county Cork, where an attack was
expected last night ; the Fenians, however, did not
appear.
Troops have passed through Limerick junction
to-day from the Curragh, en route for Ennis and
Clare.

Three milesmen employed upon the railway here
were arrested yesterday for having joined the in-
surgents. They say that they were forced into the
Fenian ranks.

Miscellaneous French News.

--0- -

(From Correspondents of Anglo-American Times.)
PARIS, March 7.
The weather really deserves mention this week,
!or sunshine has enlivened Paris for some days past,

and though quite cold, the Boulevards have been
crowded with promenaders. The week has also
been marked by the procession of the Bceuf Gras ;
which was a novel and interesting spectacle
to many Americans who never witnessed any-
thing of the kind before.

Tuesday closed the Carnival in Paris ; the
streets were thronged with persons in costumes of
all descriptions ; men dressed in the habiliments of
the " fairer sex," and many a short coat and blouse
pantaloons enclosed the pretty figure of some
petite demoiselle.
The Americans have greatly enjoyed the past
weeks of festivities ; and now that all gaieties are
thrown aside till after Lent, many will leave for
tours through Italy and Spain.
In the American circles this week there is no news
of interest, and after the festivities of the past few
weeks everything now seems dull. Mrs. Colonel
Norton has had a severe attack of illness, but hopes
are now entertained among her numerous friends
of her rapid recovery.
It is s:C.I that by the 10th of this month all
goods that are intended to be exhibited hi the Ex-
position must bc received in their designated places,
or they will be• refused entrance. This official order
will no doubt be extended to a later date; as there
are yet many goods to arrive. The works of the
Exposition buildings are progressing rapidly, but
slight hopes are now felt that it will be completed
by the Ist of April, though the persons having the
affair in charge are using their utmost endeavours
to insure its completion by that date.
The little ship Red, lVhitc, and Blue is not to be
shown in the Exposition building, but in the
Pompien Palace, in Avenue Montaigne, for-
merly the property of Prince Napoleon.
Judgment was given on Thursday in the case of
M. Emile de Girardin, prosecuted on account of his
recent article in the Liberte. The Court allowed
the defendant the benefit of extenuating circum-
stances, and condemned him, to a fine of 5,000 f.

The printer, M. Serriere, was condemned to pay a
fine of 100 f.

Some people think it is a very agreeable and easy
task to be a fashion writer, to attend all the Court
balls, parties, and banquets, and look at all the new
clothes that are invented before any one puts them
on. Superficial observers do not know that a
fashion writer has a great deal to go through in
private life, and that the pleasure one certainly ex-
periences on beholding pretty girls tastefully and
elegantly attired is deafly bought in the course of
every-day existence.

Ladies who read fashion letters, and gentlemen
too (for while they are pretending to be deep in
politics they are often running over the next
column all about crinolines), have no idea of the

annoyances a fashion oracle is exposed to. The
following are only a few, but still they convey an
idea of the rest :

In the first place, one's sleep is disturbed by the
ringing of bells at an hour when none but chiffon-
niers and dust-carts ought to be allowed in the
public streets. These early visitors, intent on way-
laying the doomed writer, take up their station in
her hall, and bribe her servants to carry in a chignon
or pots of pomatum on the neatly-laid breakfast tray.
Now, hair oil and head grease of any description,
however nicely they may be perfumed, are notprecisely
what people order for sharpening a morning appe-
tite. The things have to be examined, however,
as suffering humanity must wear chignons, and
it is a duty to recommend what is really deserving.
Then letters, prospectuses, and invitations come in
by the basketful. All must be answered as at-
tended to. At about 10 carriages draw up con-

taining ladies who are in want of advice, which one
feels will never be followed, for the simple reason
that it is asked for. 1 have observed that when
a young beauty is in a tremendous hurry to know
what she is to wear, and on being told presses one's
hand with overflowing gratitude, she is sure to
change her mind before she has got to the end of
the street, and comes out in blue if she was
advised to wear mauve. Women do not believe
in women ; they trust in man's taste, and man—
who cannot invent anything more becoming for
his own wear than black cod tails behind and
waistcoats without any buttons in front—pretends
to find fault with us for treating our skirts as
those lovers do daisies, who, on throwing petals to
the winds as they tear them off, repo.at—" A little,
very much, not at all." We may love crinoline
a little if we have not yet acquired the habit of
walking without one ; we may lore it very much if
we are so destitute as to have nothing else to build
on ; we may love it not at all if we can get through
this world without it; but these are affairs of our
own on which woman should make man hold his
peace.

These are the grave considerations which absorb

a fashion writer by day, but at might her real
troubles begin. She must give an account of every
dress worn by " her friends," hear all the new songs,
record all the bon mots among which je ne le de-
mande is almost as witty as " Lambert, eh ! Lam-
bert !" She must drink sugar and water in one
salon, sirop and water in another, ice and water in
a third. Aquariums are fashionable in more senses
than one. She must heat —" Ah !si j'avais des

ado," without any idea of flying away herself ; or
if any of the old masters—Beethoven, Mozart, or
Haydn—are preferred, she is doomed to see them
sacrificed to the graces. But then, again, salons
there are where the classics are sacrificed without
any grace at all. Some of the worst inflictions are
balls to which some three score people are invited,
and while round the middle of a room about as
spacious as three silk handkerchiefs sewn together.
In this country of no bodies and no sleeves, men
must know what torture can be endured from
pointed elbows and angular shoulders. Fanraps
are nothing to it, and spirit-rapping is scarcely less
startling. When sleep gently falls on the eyelids of
some, the real work begins for tin conscientious
fashion writer. Then it is she produces those
epistles which are to come out iu print and enlighten
forthcoming ages on the ways and customs of her
contemporaries. If Napoleon felt awed at the idea
of forty centuries looking down on him from the
top of the Egyptian pyramids, what feelings must a
weak woman experience at the idea of the per-
plexing mystification which forty generations will be
entangled in on computing the length of our trains.
In the silence of night she therefore mixes satire,
morality, and economy with her,ribbons and shreds ;
and this is certainly one of her most arduous under-
takings, but posterity must be relieved in some way
or other.

The new colours I promised in my last are called
" Isabelle," a kind of fawn ; " cornaline," which
is very lovely on poplins ; and poult de sole, " moon-
light," with a dreamy haze on a silvery surface of
light mysterious grey ; " grenade," which is a lovely
bright glow, all sunny dreamland ; and the freshest
sea-greens that ever mermaid 19,thed in, under
twinkling evening stars.
There are tulles worked with moss rosebuds, all
coming down in showers on budding beauties, and
broches for next summer in reserve on Bilk muslin.

The spring textures are nearly all chine ; but I
may not anticipate, or I shall be accused of spoiling

the blanket and fur trade. As long as there is a
chance of selling a yard of flannel I will give freezing
humanity • fair play. I can even do more, by de-
scribing Mme. Rimsky-Korsakoff's buiade costume
in my next. The Prince de Korsakoff is the Em-
peror of Russia's grand master of ceremonies ; if
that is not freezing and chilly enough for the
blanket trade about the middle of March, why I
can only say that Timon of Athens showed less
ingratitude to hi. 3 fellow-creatures.

GENEVA, March 2.

The cold which made its appearance in Paris
yesterday proved more and more intense as the
sun went down, and the cars swept out into the
open country. It was a relief after being shut
within walls, however elegant, for so long a time,
to gain free range for the eye, and to obtain ocular
evidence that the stars do shine in France. To be
sure, one may sometimes catch sight of them in the
capital, but even on those rare occasions when they
are visible it can be only by glimpses, and the very
skies s.3ein cut up into streets and lanes, or laid out
in Boulevards and squares. On leaving the city,
however, thanks to the general flatness of the French
territory, and the clearness of the night, a wide
expanse of heaven was open to us, and on one
side we could see the bear, as it is classical to call it,
(though the Yankee name of " dipper" is so much
more descriptive,) slowly sweeping round the pole ;
while on the other " great Orion " appeared, strid-
ing, as it were, through the clear fields of upper air,
a starry giant. Whether such references are inte-
resting to the reader now, the traveller was fortunate
to whom the sight could be interesting then, for it
was the only means of beguiling long periods of
sleepless weariness and of chill, which no clothing
would keep out, and no sustenance or beverage expel.

_ .
The passengers, in self-defence, patronised liberally
the well-appointed buffets, which are wise enough
to keep open in the night, and soup, meats, coffee,
wine, and some stronger stimulants rapidly disap-
peared ; but probably most were heartily glad when
daylight returned, and the cold became somewhat
less intense. Then we found ourselves in a more
broken country, where were rough rocks curtained
and fringed with ice, and dry sandy fields very full
of short sticks, which peasants were carefully trim-
ming, an 1 which will by and by be bright with the
green leaves and ruddy clusters of the grape.
The spots now look as if nothing could ever
grow there. Then came the passage of the long
tunnel under the Jura, and soon we were in Geneva.
But what a change since the early autumn !
Nothing except the wind appeared active. The
omnibuses at the station could scarcely find a
passenger ; the cabs seemed to have laid aside all
thought of being present ; and the very porters
and coachmen had become tranquilly polite in
their utter despair of prizes worth clustering for.
The lake was in a state of wildest commotion, its
deep blue surface flecked with foam as far as the
eye could see, and the waves dashing in clouds of
spray across the breakwater. Many of the hotels
and cafés have closed the doors which open on the
lake, and submit to the comfortable humiliation of
a back entrance. If any one should now
Quai probably no violent
presume to promenade on the little island
in front
would
ofthebe
taken with him, but he
would be thought of in connection with a
retreat in the environs of the town, which is called
Maison des Foux. The Hotel de la Couronne,
which all the guide-books declare to be quiet, along
with its other excellencies, is eminently so at pre-
sent, as far as human excitement is concerned,
agreeing in this with all its confreres, which
are contented in receiving little because at present
they expect nothing. Otherwise we are anything
but quiet, for the whole establishment is in a state
of siege ; and, as I look out from my window upon
the Lake, and listen to the wind crashing and
shrieking around the casement, I can only think of
a wild night on the summit of Mount Washington,
or of wakeful hours in a New England home, where
the March winds sing the same stormy melody.
Yet in frigid, unrelenting fury, I think this
exceeds anything that even America can produce.
This mountain wind is here a not unfrequent
guest, and is naturalised under the name of Bise ;
but the residents say they have had scarce anything
so severe through the whole winter, and that of
late, until within a day or two, the weather has
been fine. They congratulate themselves on the
beneficial effects of the present state of.things, upon
the atmosphere and the public health ; and cer-
tainly, if such a draft could be forced along the
most fetid streets of the most neglected city, it could
scarce leave a cubic inch of any noxious gas. It is
perhaps needless to say that the inclemency of the
weather does not keep people from the cafes. In
fact, it would rather seem as if it shut thorn up
there.

You seldom see any one entering or leaving, but
open the door, and there is a solemn crowd reading,
talking in low tones, playing chess or billiards,
sipping coffee, beer, &c., or tranquilly smoking,
while the waiters are the only persons who seem to
be in any haste. _ . .

March 4 —One reason why the weather has be-
come so favourite a subject of conversation is pro-
bably its instability. As the exciting changes of life
are fortunately so few, it is pleasant to have some-
thing to speak of which seldom continues so fixed as
to become monotonous. Certainly one who writes
on this topic can seldom write long in the same vein.
During Saturday night the wind went down, and
the temperature has since been
just pleasmtly low.
"Clear placid Leman" has regained its wonted
calm. There is more movement in the streets, and
more cheerfulness in the faces of the people since
the Rise has ceased its attentions.

Services are maintained here throughout the year
in the pleasant English Church, and if all arc alike
what it was my privilege to attend, the English-
speaking residents have reason to profit by them.
In the afternoon the Temple Neuf, where M.
Conlin was to preach, was so crowded that many
persons were obliged to go away, all the standing-
room to the very doors being occupied.
A larger crowd, as may be supposed, attended
an open-air masquerade, where equestrians ap-
peared in various costumes of olden time, and a
number of carriages were filled with ridiculous in-
ventions of the present. Ethiopians of course were
largely personated, and one fellow made himself
prominent by an immense pug-nose, which he wore
so naturally that I could not rid myself of the im-

pression that it really belonged to his face, in spite
of a toy windmill which revolved at the end. The
procession passed through the principal streets, a
number of collectors bearing on either side cloth
tunnels elevated on extremely long poles, and
connected by a cloth tube or hose, as it might
be termed, with a money - box slung at
the back of the bearer. Copper and sil-
ver descended pretty freely into these re-
ceptacles. The collection was said to be for
the poor, a worthy object surely, though one won-
ders where the poor are found in this thrifty town ;
but surely such means of forwarding the object
would be better employed on another day, for it
needed but a glance at the performers and atten-
dant crowd to see that the immediate effect was
not in the slightest degree religious. The collection
of the last year, which was obtained in the same
way, though not on a Sunday, amounted, lam
told, to 25,000 francs, certainly a handsome sum for
a town of less than 50,000 inhabitants.
This afternoon I had the satisfaction of inspec-
ting the watch manufactory of Messrs. Patek,
Phillippe, and Co., who- perform in their own
establishment all the work, which is done
upon their watches, preparing the metals, and
making even the tools employed from the
very first. It is wonderful that the human hand
and eye can attain such exactness as to shape by the
dozen delicate wheels which a breath would blow
away like feathers, and yet so perfect that any one
taken at random will at once fit any watch of its
own grade.
The manufacturers seem well acquainted with the
American works at Waltham (Mass.), and are now
in treaty with the proprietors for a new patent.
They consider that they have an advantage here in
using no steam, which they deem too violent for
the delicacy of the work, a point which results must
of course determine. They are preparing some fine
specimens for the Paris Exhibition, and among
various novelties have a watch, about the size and
shape of a walnut, to be fastened to a
bracelet or a riding-whip, or worn in
any eccentric way. They have also some beautiful
specimens of those little " singing birds " which
jump out at a touch, warble their song, and then
fold themselves up and disappear. The song, they
say, is an exact imitation of that of the lark.

Yesterday increased largely the number at our
table d'hote, which seems to be as well maintained in
this dull season as it could be in the height of
summer, as is the case with all the other appoint-
ments of this pleasant house. A. bridal party are
now dancing to merry music in the marble-floored
hall, tastefully decorated for the occasion ; and
Monday night presents a striking contrast to the
stillness and chill of Saturday noon.

RAILWAY INTELLIGENCE.

TWENTIETH ANNUAL REPORT OF THE PENN-
SYLVANIA RAILROAD COMPANY.
The following are extracts from the report issued
to the stockholders of this line, dated Philadelphia,
Feb. 19, 1867 :
The shareholders will perceive by comparing
with previous reports that, in addition to the pay-
ment of dividends upon your original investment,
equal to 46 per cent. above legal interest, the cost
of your road from Philadelphia to Columbia has
been reduced $900,000, and from Harrisburg to
Pittsburg $6,426,855 from the surplus profits of
the company ; and the equipment of the line, which
has cost $10,603,559 55, is now represented at
$3,371,214 93.
'The sinking fund, which cost $1,996,367 68, it
is believed is ample, with its accruing income, to
take up at maturity the debt of the Harrisburg and
Lancaster Railroad Company ($760,000), the
second mortgage bonds of this company,
and still leave in it all the stocks that
it is important that this company should retain
for the security of its traffic. This conser-
vative policy has been pursued in view of the ad-
ventitious character of the traffic of the line during
the past five years, and for the purpose of giving
to the company a financial strength which will
render the continuance of its dividends certain, in-
dependent of the action or policy of rival lines.
The company has been placed in this strong posi-
tion, while it has, at the same time, to a larger ex-
tent than any other corporation of the kind, pro-
moted the development of the interior of the
commonwealth by aiding the completion and ex-
tension of other railroads where private capital
would not incur the risks of such investments.
The Pennsylvania Railroad was commenced
under the sanguine hope that it could be completed
and equipped without incurring a debt. The efforts
of the company in this direction, in view of thegreat
abuse that bad attended the financial operations of
the earlier corporations of this State, were emi-
nently wise and worthy of an earnest effort to carry
them into effect. But after some years of persistent
labour it became evident that the enterprise was too
great for the local capital of this city without sub-
mitting to a delay in its completion, which neither
the commercial prosperity of Philadelphia, nor the
interest of the shareholders of the company would
justify. This policy was therefore abandoned for
one which limited the mortgage indebtedness of the
company to its capital stock.
At the commencement of its work, the views of
the company extended only to the construction of a
railway between Harrisburgh and Pittsburgh. But
in operating such a line, in connection with the un-
certain and frequently adverse management of the
Philadelphia and Columbia Railroad, under the
State authorities, it became evident that it must fail
to meetthejust expectations of its projectors, unless
an independent connection could be made with its
commercial depot, or a lease or purchase of the
existing lines effected. After many abortive efforts
this object was accomplished by a lease of the
Harrisburg and Lancaster Railroad, and the pur-
chase of the State improvements at a high price,
but upon a satisfactory credit. The great point,
however, of securing harmonious action throughout
the line, from Philadelphia to Pittsburgh, was
accomplished, which at once imparted new life and
vigour to the enterprise, and insured its prosperity.
It was early foreseen that a trunk line, intended
to accommodate the traffic between the East and
West, would fail in its object if wholly dependent
upon the uncertain navigation of the Ohio River as
a feeder. The earlier commencement of the other
trunk lines bad already diverted the routes of the
railroads in progress from the commercial centres of
the West towards the East to their works. To
overcome this disadvantage, it became essential
that other lines connecting your road with these
trade centres of the West should be commenced,
and, to effect this, direct and efficient aid by this
company towards their construction was necessary.
So fully impressed were the shareholders of this
companyat the time, of the importance of this move-
ment that in voting such aid they exceeded the views
of the directors. The three principal lines selected for
such aid were one to Cincinnati, a second to the centre
of Ohio, at Columbus, and a third towards Chicago.
The connection with Cincinnati via Marietta was
adopted, and failed from the inadequate means pro-
vided to construct a line over what proved to be an
unexpectedly rugged country. The line to Chicago"
was only saved as an investment, after the failure of
the credit of that company, by much labour and
large additional outlays by this company to secure
its completion. These efforts were crowned with
entire success, and the enterprise, both financially
and as a feeder of your main line, has met our most
sanguine expectations.
Thn line to Columbus—which also afforded au
equally good connection with Cincinnati as that via
Marietta, though leaving a large district of country
tributary to another railway, after long delays,
growing mainly out of a failure to procure adequate
legislation in Virginia, has recently been brought
into efficient use„ and promises satisfactory results.
The Pennsylvania Railroad Company will own as
a preferred shareholder more than half of the capi-
tal stock of this Rue.
The Marietta line, which had enlisted the warmest
support from tKe shareholders and the merchants of
this city, of e.ther of the lines mentioned, became
so hopelessly involved that the funds advanced by
this company, for the construction of that part of
the road between Marietta and Wheeling were
taken without .our assent, to meet its debts incurred
upon the liner west of that point. In consequence

of this misapplication of the means furnished by this
company, and the immense sums that would have
been absorbed in carrying out the original plan, it
was not deemed prudent to make any attempt to
save the amount invested in the enterprise, under
your instructions. This amount was accordingly
charged to profit and loss, and its stock no longer
appears among your assets.

The interest of the company in the Chicago line
has nearly all been disposed of, at a profit to this
company fully equal to its loss upon the Marietta
line. But for the timely aid afforded by this com-
pany it would have proved, as an investment, nearly
as unproductive.
The shareholders will perceive, from this resume
of the operations of the company, the extent of
means required, and the labour and responsibility
incurred to save the original investments made
under your instructions, to build up lines to con-
nect yours with the trade centres of the West—
expenditures that were necessary to the success of
your own work, but which a few years earlier
commencement of it would have rendered unneces-
sary, as the tendency of the Western lines would
probably then have been towards Pittsburgh.
We have thus presented to you the extent and
the causes for the unusually heavy expenditures
made by this company on account of its tributaries.
Their magnitude has made it necessary, not only
to protect the investments made in them, but also
to secure the control of other lines important to
their success. This policy has eventuated in a
system which includes the Philadelphia and Erie
and Northern Ceatral Railroads, by which the com-
pany's cars find their way over continuous and un-
broken lines, under one control, from Columbr.,s,
Erie, and Pittsburgh, to Philadelphia and Bal-
timore.

• The responsibilities assumed by this company,
through the endorsement of the bonds of other
railroad corporations, are confined to the first
mortgages of the Philadelphia and Erie Railroad
Company, amounting to five millions of dollars, the
Western Pennsylvania Railroad Company for eight
hundred thousand dollars, and the Connecting
Railway Company for one million of dollars. In
the two last-named companies the Pennsylvania
Railroad Company is also the owner of nearly all
their share capital, and upon the first it has a lease
for 999 years.
The directore have given to the subject of esta-
blishing a line of steahLships between this port and
Europe, committed to them at your last annual
meeting, all the consideration which its importance
required ; but they have not yet arrived at a satis-
factory conclusion as to the best means of effecting
this desirable object. Proposals have been asked
until the Ist of May next, by public advertisement,
of those engaged in this business to establish such
a line, under concessions, and a subsidy to be paid
by this company during the continuance of the
contract.

The bonds of these railroad companies, with the
exception of $1,200,000 of those of the Philadelphia
and Erie Railroad Company, were endorsed after
their purchase by this company, and were so en-
domed to secure a better market price for this com-
pany when sold by it.
The propriety of selling the bonds of this line
aided by this company, either with or without its
endorsement, is questionable, inasmuch as better
results can be obtained by the use of the direct
credit of the company. Hitherto, however, there
has been no alternative, as the powers of the com-
pany have been too circumscribed to act upon such
a policy.
The earnings and expenses of the Pennsylvania'
Railroad, and the roads worked by it, except the
Philadelphia and Erie Railroad, were for 1866 as
follows :

EARNINGS.

From Passengers, Ist class 53,245,800 06
7, Emigrants

3,385,521 31
„ United States Troops 560,945 44
11 1/ 11 Mails B9, 730 00
-
„ Express matter
„ General freights 11,709,293 59
„ Miscellaneous sources 471,023 28

$16,583,882 84