The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-02-15

brought il into existence.
The original policy of this company was to
reach the traffic of the Northwest, West, and
Southwest by assisting the construction OF
tributary lines leading TO the markets of these
sections, but not to control their management
beyond the State of Pennsylvania. With this
object in view, it gave TO the Pittsburg, Fort
Wayne, and Chicago Railway Company, at
several periods of its extremest need, large
advances to complete its line and preserve its
property to its shareholders under written
pledges that its Eastward business should
follow the direction which prompted and JUS
tilted this company in granting the assistance
so earnestly solicited. Under tho conviction
that this agreement was ample, 1t
was not believed that further protection
to your interests in the Northwest was either
desirable or important. The rapid growth of
this section of tho country, no wever, placed
that company in few years after its COM
pletien, in condition of great prosperity. 1t
then, unmindful of it's former obligations,
endeavored to seek other Eastern connections
that it could control through this company,
at all times gave to its business the same
rates per mile that it charged upon its own
line, upon both passengers and freight.
Extensive surveys were accordingly made
Of the regions east of Pittsburg by that
company to find a suitable line for this OBJ
ject, followed by material pecuniary advances
| posed TO use as part OF this rival route to
the East; but during the progress of these
movements, an effort was inaugurated by
the Erie Railway Board to absorb not only
the Pittsburg, Fort Wayne, and Chicago line,
but nearly all the Western connections of
the Pennsylvania Railroad Company, which
only failed from misapprehension of the
| terms of the law under which they proposed
| to accomplish their object, and subsequent
odU claft h.,l dant
of the Fort Wayne Company.
In view of these extraordinary movements,
1t became evident to your board that this
| company must depart from the policy that
had heretofore governed it, and obtain direct
| control of its Western connections. Nego-
tiations were accordingly opened with the
directors of the Pittsburg, Fort Wayne, and
Chicago Railway Company, who had also be-
come apprehensive (under the vicious system
that had been developed in New York. by
which stock and bondholders of railways and
| their agents sold their proxies to vote at the
elections of the company, without any regard
to the interests involved in the issie), that
their own work might fall into hands whose
object would be to seriously impair the per-
manent interests of their constituents.
After lengthened negotiation with the
| directors of that company, a lease was agreed
| upon, and this company entered into possess
|
cago Railway on the 1st of July last. The
| terms of this lease, which gave to the share
holders 12 per cent. on their capital, we're at
| the time considered very onerous and only
| justified by the circumstances already referred
| to. The results of its operation, however,
for the first half year, Notwithstanding
| diminished revenue of 1904, $3.50, compared
| with that of the same months in 1868, have,
through vigorous retrenchment of expenses,
left net profit of $36, 794.43 over all out
| lays including the semi-annual contribution
| of $52, 050 to the sinking fund.
For these favorable results the company is
| much indebted to the energetic and economi-
| cal administration of its affairs by j. N.
Mccullough, Esq, its General Manager
| The loss in the gross receipts of this rail
| way occurs mainly at Chicago, and is, to
considerable extent, due to the low rates upon
west-bound traffic that prevailed from the
beginning of the lease to near the close of the
season. The low price of grain, and the bad
condition of the common roads leading to
railway stations in the West, have been the
chief cause of the falling off in the receipts
of the line during the past few months. The
business of this railway must, however, con-
tinue to increase with the advance in popu-
lation and wealth Of the section of country it
accommodates and we believe that its lease
will prove judicious operation for the com
pany. .--
The same reasons that induced this COM
pany to Become the lessee of the Fort Wayne
line, prompted the Pittsburg, Cincinnati and
st. Louis Railway Company, in which this
company holds majority of its shares, to
take at an earlier period lease of the lines
owned by the Columbus, Chicago and Indiana
Central Railway Company. The results of
this lease have not proved so satisfactory
The railway was found, contrary TO expecta-
tions to be, to a considerable extent in an
unfinished and dilapidated condition, def
Gent in depot accommodations with a limited
rolling stock largely out of repair, and shops
entirely inadequate to place this machinery
in good order. These deficiencies had to be
supplied, and in the meantime its road and
rolling stock could only be placed in condi-
ton for economical service at great extra
cost
Upon representation of these facts to the
company, notifications in the lease have
been made by it, which will, it is believed,
render it acceptable to the lessees and to this
company, their largest stockholders.
, These several arrangements still left our
, connections with Cincinnati, the great trade
, centre of the Southwest, incomplete, the
, business with which has been steadily in
, creasing since the termination of the late
, war. TO perfect these the Pittsburg, Cincin-
natl, and st. Louis Railway Company has also
{ agreed upon a lease with the Little Miami
, | Railroad Company of their line, through
, | whose railroad our connection with Cincin-
, | natl will be made, thus enabling this COM
| pany to participate in the growing prosperity
, | of that city.
| The connections of your line with st.
A | Louis, the great city of the Mississippi val
/ lev. are now comnlate nv wav of Crestlino.