The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-02-21

| the rebellion might render the construction OF
dafion while ont OF service. II the rebellion had
| ceased, as every indication seemed 70 warrant in
| this would now, 10 a considerable extent, be the
| condition Of things But the Southern Planter
eontpus 10 devote bIs labor 20 Yaisi1s pro1s,ons no
until TOO late TO put In cultivation a crop for the
past yesr, he has not yet become 70 material ex-
| tent a customer OF the Northwest The exhaus.
ton produced by the long continuance Of the war,
added 70 the loss Of this crop, has thus deferred
the full transfer OF traffic 70 Its original channels
10 a more distant period. Still, this diversion Of
freights small as IL has been, s felt in the
( tion. At present neither Of the trunk lines have
their rolling stock for through trafhc fully en-
The capacity Of the East and West Trunk lines,
at present rs not only ample for the through traffic
| Offering, but, with the addition OF the new Road
already opened from Erie, and the second tracks TO
| the present lines now in progress, they will be
found largely in excess OF the business require
period of low prices will preyent anv compst,tor
that may hereafter enter the field from meeting the
| contest upon equal terms.
| Whatever may be the immediate effects of COM
petition beiween railways, its ultimate resnts,
when capital Is brought into the contest In excess
of the demand for its use, is TO tax commodities
with the increased interest which such capital IN
| the end always exacts. Under the influence of a
railway were built so largely in excess of the le-
| gtimate demand for their use, that with all the
| advantages of cheap labor and materials for ope-
rating them, the rates now charged are generally
nearly twice those prevalent on similar liues in
| this country, while they still continue, in most
cases, comparatively unremunerahve TO their
As the cost Of transportation is largely dimiu-
ished by the quantity and regularity of the supply
Of freight 10 follows that the local traffic of the
| State be more cheaply accommodated by
branch lines TO the existing trunks (Which occupy
the only natural routes of intercomnun nication be-
tween the East and West within the State, and in
| the success OF which the Common veal III and the
Hy 81 inn ~ are s deeply ana % directly hn
| can be located so as TO accommodate larger eX-
| tent Of country than additional through routes
At an early stage in the history OF this Company
its Directors, under the influence of an enlightened
policy, by subscriptions to their stock, extended
efficient aid to the construction of railways from
it's terminus to the sources of traffic in the West
The in vestment made in the Marietta and Oincin-
natl Line, from incorporation by that Com
pany of the means thus furnished, proved unpro-
ductve, and 1t has long since been charged TO profit
and loss upon our books The credit OF the line
between Pittsburg and Chicago, in which this
Company held $4,000 of stock, also gave way in
1857 with eightYtwo miles of its line west of Ply
mouth scarcely begun, bringing this large in vest
ment into great jeopardy. Your Directors, how
| ever, promptly agreed that this Company would
furnish the iron required for the completion of the
road while the President, with the use of his nd-
vidual credit and exeruons brought the whole
line into early use, thereby not only saving the
original investment, and largely increasing the
trB ffic OF this Company, but enabling it subse-
quenty to dispose OF It's interest in the line at
profit The result of this operation has been ap-
piled to the completion OF the line between Pitts
| burgh and Steupenville, commenced under the pa
County, but abandoned after a much heavier ex-
| pendtu1e of municipal bonds than of cash The
| cost of completing this work. in consequence OF
| the late period OF the war at which It was COM
menced, has greatly exceeded our antcipations;
put tne outlay, IL is believed VIII eventually prove
remuneratve in its direct profits, as well as upon
the traffic of our line, which has already felt its
| influence beneicially upon the current Of travel
| since II was opened Tor use in October last.
In addition to the assistance afforded to these
linee, and the completion of second track OF its
| own road, except 1lK mlles) this Company has
| means extension
Top Railroad to Bloody Run; for the completion
Of the Bald Eagle Valley Railroad, between Ty::
Railroad, the Ebensbnrg and Oresson Railroad;
| the Western Pennsylvania Railroad, to Freeport,
| and the Philadelphia and Erie Railroad besides
other lines OF less extent all of which hav been
| brought into successful operation.
| The, Company is also extending its road to the
Delaware river at Green wich Point in the city of
Philadelphia, for the accommo odation OF the oil and
other heavy trehtc, from which line short branch
can connect with League Island, object OF much
importance in the event of the General Government
locating Navy Yard at that point IL is also fur
nishng the means for the construction Of road to
| join the Philadelphia and Trenton Rail way at
Frankford, by which 1t is expected TO return to the
| Philadelphia Division much of the business that
has avoided this city, in conseq uence OF Interrupt
tions to its transit through IT,. No project has
been undertaken during the year, except the con-
version OF the abandoned Canal below Freeport,
| into railway, TO connect with the Fort Wayne
| Railw ay, in Allegheny City. This line will be
cheaply built, and IL Is believed that IL will prove
| remunerative from its local business alone.
1t l. TO this liberal and progressive policy that
the prosperity OF this Company ts in a large mea-
| sure Que. The construction of these various
| works. and the large equipment purchased for
them, have, in consequence OF the high prices of
labor and materials, required much larger outlay
| than anticipated when they were undertaken. The
unexpectedly large traffic during the past summer
al d autumn alone caused an immediate increase of
| equipment, &c, above our estimate of over
$I2OU,U0U, and from present indications this will
have 10 be increased this year for the accommoda-
tion OF the Coal, Oil, and Lumber interests fur
ther sum of one and quarter millions OF dollars
| The equipment for the through business seems TO
| be sufficient
| The business of the PHILADELPHIA and Erie Rail-
road is nearly twice what It was estimated at
when You were asked TO authorize its lease, fully
justtyiDg the belief that it's stock, al distant
| period, will prove remunerative investment
The expenditures upon these several en- nterprises
| including the equipment OF the Philadelphia and
| Erie Railroad, and other lines, have heretofore
been met without any material enlargement of the
obligations OF this Company from the revenues OF
the Pennsylvania Railroad, and from the sale OF
cuIles received from those Companies; but the po-
| pularity and large supply of United States bonds
bearing high rate OF interest," continually pressed
| upon the market during the past year has pre-
cluded the sale of even the best railway securities
| at ordinary rates. To meet future outlays IL may
therefore be necessary TO change, 10 some extent,
the usual means for raising funds 10 meet the obli
| cations of the Company.
| 1he expenditures for new work (iucluding
\ equipment, &c, charged 10 expense aceount)
amounted in 1865 To S60lO,2s7 IL, which have been
| met from the surplus revenues OF the road and the
/ sale OF securities held by the Company. The out
lays Tor similar objects this year Will not be less
| than $3,OOO,OOO.
After many years Of unsuccessful efforts TO in
| duce the New York trunk lines to abandon their
policy OF committing share OF their freight busi-
ness 10 private Freight Expresses, the Pennsylva-
| MIA Railroad Company, for the purpose OF coun-
| teracting the diversion of traffic from It's route
| caused by these organizations, and TO provide at
least equal facilities for the merchants of Phila-
| delphia, assented to the introduction of similar
lines upon your rail ways. The cars TO be provided
| at their own expense, and OF a compromise gauge
| That they might reach all important points In