The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-02-21

company was first directed to the procuring
of these connections by securing the organi-
zation of the independent railway companies,
and their construction by such pecuniary as
sistance as was required to effect this neces-
sary object under contracts for the mutual
interchange of business This course it was
confidently expected would meet the objects
desired without involving this company in the
direct management of distant enterprises.
1t however soon became evident, after Sc
curing such feeders, that their success in
diverting the traffic of the West from the
channels it bad become accustomed to fol-
low stimulated the older rival interests to
endeavor to overcome it by obtaining the
control of such feeders with a view to
embarrass our business and augment their
own. The efforts proved nearly sue
cessful, and were only prevented by
promptly meeting the exigency by securing
the absolute control of these lines for this
company. The board think that they would
have been derelict in their duty if they had
yielded to timid counsels and permitted this
opportunity to secure their object to pass un-
improved. This control was effected by the
lease for nine hundred and ninety-nine years
of the Columbus, Chicago and Indiana Gen.
tral Railway, and of the Little Miami Rail-
road, through the Pittsburg, Cincinnati and
st. Louis Railway Company, which your COM
pany controls by the ownership Of large
majority of its shares; and the direct lease
of the Pittsburg. Fort Wayne and
Chicago, and the Erie and Pittsburg
Railways. Under the lease of the Pittsburg
Fort Wayne, and Chicago Railway this COM
pany became possessed also of one-half the
shares of the Indianapolis and st. Louis Rail
road Company (between indianapolis and
Terre Haute), which had lease of the old
line between Terre Haute, Alton, and st.
Louis. The Pennsylvania Railroad Company
hoA 20, Of kho
shares of the new line between Terre Haute
and ST. Louis via Vandalia, thus completing
our connections with st. Louis.
Under the amended lease of the Columbus,
Chicago, and Indiana Central Railway this
company felt morally bound to assume its
| obligations to the Indianapolis and Vincennes
| Railroad Company, of which it is now nearly
| the sole shareholder. This enterprise is at
present Improbable, but will ere long prove
a productive work, and when extended to
Cairo, the grading of which is in a great
measure finished, it will become a line of
national importance.
1t is not proposed nor is it desirable to
| manage these lines in manner to divert
| traffic from its natural markets or channels,
| but solely with view to secure to this COM
| pany its fair share of the business of the
| West, which it was found impossible other
| wise to obtain.
| The result of the operations of all these
| lines for 1870 shows a small profit, which
| under judicious management must annually
increase. Their net profits for 1871 it is con-
fidently expected will be very satisfactory.
| With view to give greater simplicity and
efficiency to the management of this large
| Western interest, and as far as practicable
return to our former policy, charter was
obtained from the Commonwealth of Penn
| sylvapia incorporating the pennsylvania
Company" to which all the interests above
mentioned of the Pennsylvania Railroad
Company will be transferred on the first
of March next, and SIS, 900, 900 of the pre-
| ferred capital stock of the Pennsylvania
Company received therefor, which amount
covers fully all of our expenditures in
| this connection. The whole capital of the
| Pennsylvania Company will consist of
| $S,O00,000 of preferred and not exceeding
| $4,000,000 of common stock. All the profits
of the corporation du1ing 1871 after meeting
the obligations of the lines leased are to be
used by the managers in perfecting and
| equipping the railroads transferred to it.
| After 1871 the preferred shares of this COM
pany will yield at least per cent. on their
par value
In addition to the interests of the company
| in the West to be transferred to the Penn
| sylvania Company, it still holds twenty-five
thousand shares "a large maj jority) of the stock
| of the Cleveland, Mt. Vernon, and Delaware
Railroad Company-whose line is partly fin
ished and the remainder in progress under the
| judicious supervision of its President, Judge
Hurd, of Mt. Vernon, Ohio. This interest
was received with the lease of the Pittsburg,
Fort Wayne, and Chicago Railway,
and promises to become a profitable invest
ment; also one million and forty y-nine
thousand dollars of the bonds of the New
port and Cincinnati Railroad bridge, now
being erected to connect the Little Miami
Railway with the Kentucky system of rail-
roads; four millions four hundred and forty
six thousand dollars of the General Mortgage
Bonds of the Pittsburg, Cincinnati, and st.
Louis Railway Company; one million seven
hundred and sixty-six thousand dollars of the
Second Mortgage Bonds of the Terre Haute,
Vandalia, and st. Louis Railway
Company; and eight hundred and
seven thousand dollars of the First
Mortgage bonds of the Cincinnati and Mus
kingum Valley Railroad Company-thel line of
which is built from GAINESVILLE to Morrow, 132
miles, and is being extended from GAINESVILLE
16 miles to Dresden, on the Pittsburg, Gin
cinnati, and St. Louis Railway. The inte-
rest upon all these bonds (amounting to
S,06S, ,000) will be duly met from the reye-
nues of these works.
This company also holds maj ority of the
shares of the stock of the CHARTERS Railway
Company, whose line between Pittsburg and
Washington is now approaching completion,
and must soon become profitable invest
ment.
The liabilities of the Pennsylvania Railroad
Company in the West as guarantors, arise
wholly under the leases that it has made oil
guaranteed, and extend to four millions OF
dollars of the first mortgage bonds of the
Grand Rapids and Indiana Railroad Company
as required by the terms of the lease of the