The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-06-05
SPECIAL NOTICES.

R6y- FEW PLAIN FACTS FOR THE CON-
sideTation Of the Stockholders OF the United
Companies OF New jersey.
The net earnings OF the United Companies for the
past few years have averaged but about eight per
cent. The funds required to make up the ten per
cent. dividends were taken from q reserved fund,
which is now exhausted.
The net earnings Of the last four years have ave-
ragged only something over eight per cent. and for
the past year were less than seven per cent
II the lease should not be concluded rival road
would undoubtedly be built by the Pennsylvania
Railroad Company.
What would be our earnings then?
Would there be any reasonable prospect that they
will equal those even Of last year?
The Western business would be lost entirely, and
probably half the Southern. OF the Philadelphia
and New York business proper perhaps half might
be retained, but at reduced and ruinous rates. The
interest of the debt, however, would not be re-
duced, but increased. million OF debt will be
added this year. No lease simply means compet-
ing road and diminished business at reduced
rates.
The lease guarantees a clear net ten per cent,
payable quarterly. In addition to the guarantee
of the Pennsylvania Railroad Company we have the
security Of our own wors s. and the additions that
must constantly be made to them. The security is
practically perfect.
Before the negotiations for lease began the stock
had fallen to 49, the prospects frightened 1t
to 1907 and had it not been for the efforts Of few
interested persons, who are endeavoring to de-
feat the lease it would be quoted at 1885, When the
lease is consummated those having most experience
concede that it will sell for 140. The common
sense public are willing to pay that pr ce for steady
security, paying q fixed income OF ten per cent,
while they will not give 115, and perhaps not par for
unreliable, fuctuatng stock, that may not here
after the six and half per cent. Of last year.
But it is urged that state pride should intervene,
and not allow these works to pass out OF the hands
OF the citizens OF the State OF New Jersey into the
control Of those OF another. We can see no force In
the objection, If the facts which 1t is founded
were true-which, however, they are not.
For many years these works were owned and con-
trolled by Jerseymen. The force OF circumstances
and larse Of time have, however, changed the situa
ton; the majority Of the stock and consequently the
control, passed some years since into the hands Of
citizens OF other States, who own about three
fourths OF the stock. The objection, therefore, has
no vitality or force. The works are already under
the control OF non-resdents. We have cheerfully
acquiesced in it, not believing it would be for the
true interests Of the State to oppose it. To part
willingly with the substance, and then bemoan the
absence OF the shadow would scarcely become prac-
tical business people.
A good honest, healthy State pride has always
been a characteristic of Jerseymen, but 1t has
always been guided by strong common sense and
not by false sentiment.
AS far the true, direct interests Of the State
concerned the lease will affect them most favorably.
Our system of roads, instead of being isolated
and detached from the other great works OF the
country, will be brought into intimate and direct
contact with them; freight or passengers passing
from to the State will have greater facilities De-
lveries viii necessarily be more prompt and charges
simplned and reduced. This is a matter OF great
practical Importance to every citizen In the State
whose interests mast necessarily be directly or in.
directly benefited thereby.
As is well known, marked feature In the Penn
sylvania Railroad management is its great atten
ton to its local business Conceving, truly, thai
the prosperity Of road and OF the country which Il
traverses, were, in great measure identical, the
policy has been to foster local interests along tht
line OF their roads in Pennsylvania, and OF the
leased roads of Ohio, Illinois, and Indiana. Th'
effect OF this wise arrangement be readily
Possessed of larger means and resources than tn,
United Companies, they will be able to carry ou
this enlarged policy by extending all the facilitie
| that the local requirements demand
Additional capital coming into the State to en-
large and develop resources is subject OF con
graduation, and short experience will soon prov
that the lease Is greatly to the advantage OF bot
| citizens and stockholders.
| The directors voting against the lease were =
| Messrs. Ashbel Wech, w. II. Gatzmer, Benjamin
| Fish, Charles Manchester, A. W. Markley, r. S
Conover, NJ. A. Howell, d. A. Gregory, and N
| Perry.
| pOSl
| tions and one towing contract, and held about tw
| thousand shares Of stock at the time the vote wa
| taken.
The directors who voted for the lease were: :
| Messrs John NJ. Read, John Jacob Astor, Cam
| bridge Livingston, John g. Stevens, Robert
Stockton, n. r. Remsen, George R. Chetwood
Isaac W. Scudder, Samuel Welsh, Moses Taylor
| A. L. Dennis d. b. GILL; W. G. Cook, w. W. Ship
pen, Ferdinand Suydam, and G. NJ. Dol-ance.
OF these latter, five hold salarled positions, eeve
do not. The stock held by them, or represented b
them for their families amounts to over eghtee
thousand shares.
In conclusion, 1t is source of great satisfactio
to be assured that the great mass OF the employe
will be retained in the positions they have so credit
ably flled-some of them for many years.
1t is true the lease may affect the positions of
very Few gentlemen holding some OF the highes
Offices While this is to be deplored yet their int
rests should yield to yours Stockholders who wis
to make their dividends secure and protect the
property should send in their assent to the leas
without delay.
| 1t A STOCKHOLDER
nSSz- HERD-BOOK JERSEYS AN EXHIB
TION for competition Of HERD-BOOK JEt
SEY COWS. HEIFERS, and YOUNG BULLS, Il