The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-02-16

TO Buffalo, New York. Its control by this com.
pany was the result OF an unsuccessful etfort
road Company TO shut up this avenue as q com
peiltor with It's own railway for transportation
between Baltimore and the Vest
Instead of burden TO the Pennsylvania
Railroad Company, as apprehended at the time
by the sinking Fund, IL has proved a very pro-
htable investment. After placing this work in
good condition, and increasing It's equipment,
dends TO It's shareholders at the rate OF eight
per cent. per annum after leaving a reasonable
surplus of net profits. The number OF shares
OF this company held by the Sinking Fund is
4S6l4, equal at tneir par value to S2lSl,10)
The ordinary traffic of this liue has Increased
with the population of the wealthy aud enter.
prising section of country II aeoomm odates,
while It's coal transportation, whioh is still In
It's Infancy, has become very important
source of revenue. 1t has connections through
q lease of the Sbamokin Valley and Pottsvllle
RellwGy, the control of the Lykens Valley
Railway, and n connection with the Phila
delphia and Erie, ,Laokawanna and Bloomsbury
of Pennsyiyanis' which will COSTUME to
give IL constantly increasing tonnage. The
Pittsburg, Cincinnati, and ST Louis Railway
has been described in previous reports. II
extends from South Pittsburg to Columbus,
Ohlo, a distance of 1913 miles. The interest
held by this company in their stocks and
bonds stands upon Its books at So .63S, ,450 co. II
Is an ACKNOWLEDGEMENT for The Pennsyl-
wanna Railway with the West and Southwest
and must eventually pay reasonable dividends
to It's shareholders.
It's trafiic for the second year of It's use as
equal TO $4,000 per mile of road.
In the Connecting Railway, which extends
from West Philadelphi9 TO FrankfOrd-9 dis
tsnce of seven miles-and operated under q
lease by the Philsdelphis and Trenton aud
Camden and Amboy Railroad Companies, at
an annual rental equal TO six per cent, clear of
al taxes, upon It's whole cost the Pennsylyanta
Railroad Company holds 20 541 T., shares of the
This road was constructed with means fur.
nished by your company for the purpose Of de
creasing the heavy cost of passing Its New York
and Eastern trade through this city, and in the
expectation OF returning to the Philadelphia
iravei which II W the Selavs and obstrusuons re.
ferred TO had driven to other channels. The
result, as shown in the eighteen months since
such as we anticipated, while, In addition
thereto, we will receive during the term of
the lease legal interest upon the expenditure
The anals east OF the Allegheny Mountains,
purchased by this company of the State OF
Pennsylvsnia, l73 miles in length, have. as
stated in our last annual report, been sold TO
the Pennsylvania Canal Company, of which
General Isaac j. WiRtar is President. That
company has since purchased with its first
mortgage bonds majority Of The shares of the
West Branch Canal Company, extending from
the Juniata river mp the Susquehanna
and Its West Branch ,oto to Farrands
has consolidated its shares with those of the
Wyming Valley Canal Com pany, which occu.
pies the North Branch of the Susquehanns,
tance Of 64 miles, making in all 800 miles OF
canal This arrangement brings the Susque.
mamma system Oh STATE canals DelOW Jh6 coal
es-dismembered by their sale TO three
companies-under one control. without whicn
they could not successfully compete
valley of the same water courses. TIE whole
OF the revenues of these caua s must for few
years be appTOp lated to their Improvement
and protection from freshets that have hereto.
fore periodically destroyed their usefulness for
months at a time, to the great injury of their
revenues and the business of those who use
them for the transportation of the products of
the country to market. Whea these objects are
lein sfu1Q nj ia ln1rl iIlf
Pennsylvania Canal Comp my will doubtless
become profitable, and highly advantageous
to the community for whose accommodation
they were originally built by the Common
wealth.
own roads, invested for the protection and en-
largement of its traffic, are now, at reasonable
valuation, more than sufncient TO meet the
whole Indebtedness of the company except the
five per cent. bonds held by The State OF Penn
sylvsnia, which are being paid by contribu-
semi-annusi payments of $3.50, 900 each Daring
the past year these contributions. after the pay
ment of Interest, left Sl4207o'5O TO be eppro-
prjated to the reduction of the principal. which
amount will annually increase as the debt upon
which interest is payable is reduced.
In the month of october last an attempt was
made by the Erie and New York Central Rail-
road Companies to break up the through traffic
iaise Teductions upon their freight charges This
movement was promptly met by the Pennsyl-
vania Railroad Company by still greater reduc.
large increase of It's tonnage. These low charges
were continued until q restoration of former
rates was desired by those companies, after
incurring q heavy loss in their revenues, while
the effort increased the prestige of this com.
pany by bringing Its shorter lines and better
facilities more prominently into public notice.
After the failure of this attempt the managers
OF the Erie Company, by means of large sums
of money suddenly realized from condding
public in manner at least unworthy OF tmits.
Jion, ,disregarding the comfy which should exist
%S aaans popniap OF senIjmeD o
and public righ ts, ,endeRvoredt to arrest healthy
competition for the traf1ic between the East and
| West through the control OF our connecting
lines and by this means divert business from
its natural channels to their circultous route to
the seaboard. The policy of your Board has
OF Pennsylvania TO those companies that they
originally deemed 1t proper TO assist for the
purpose of securing connections with the then
existing lines whose interests harmonized
with It's own. The restless spirit of our rivals
in the East and West has, however, rendered
It necessary to make our connections with the
chief trade-ceAtres OF the West more perfect
and less Liable In the future Si ito to mo mo,
done to a great extent through q recent
lease to the Plttsburg, Cincinnati and ST. Louis
| route), guaranteed by this company, of the
lines OF the Columbus, Chicago and Indiana
Central Railway Company, which has direct
connections with Indianapolis, st. Louis, Louis
vile, and Chicago.
These arrangements will require consider.
able amomat OF N money en 10 pc applied especially
| productive. This IL is proposed to raise by
| giving to the stockholders OF the Pennsylvania
1 Railroad Company registered upon the books
of the company on the thirtieth day of April
next, the privilege OF SUB scribing TO twenty
FIVE (25) per cent. OF their holdings at that time
| in new shares at par.
With the proposed increase of capital the
| Board entertain no difficulty In continuing
dividends of ten per cent. per annum, even i
| these arrangements should not, as anticipated
| increase our net profits TO 'feater extent thar
| the interest upon the outlRys to be Incurred.
/ 1t will appear from an examination OF the
statements already given, that the business O.
the past year would have justified dividends O