New-York tribune., 1871-06-02
THE NEW-JERSEY RAILROAD.
THE LEASE TO THE PENNSYLVANIA CENTRAL
REASONS FOR THE MOVEMENT.
From The Netcark advertiser, Nay 30

From The Ne,cark Adperts,r May 30.
The negotiation between the Pennsylvania
Central Railroad and the Joint Companies of NewJersey
approaches completion. On Saturday the Committee OF
Directors authorized by previous meeting met at Tren
holders in favor of the lease the vote of twohrd of
the stock being required to egaize the transfer The
Committee have prepared and published an extended
address OF much interest to stockholders, but rather
matter Of history than Of present action as IL Is wen
large BUYERS of late and control enough Of the stock
and proxies OF the Joint Companies to carry the lease
ment They recite the obvious necessity for har;
monous action between the two COMPANIES, COMPANIES, ana
the Hudson for the Pennsylvania Road, which
now owns controls about 1000 miles OF line reaching
PENNSYLVANIA Road needed greater terminal facilities at
Jersey City than possesses, and anticipating that
erty with the expectation that the Pennsy yvania Com.
pany would advance portion OF the several % mons Tt
which they had no title and the united companies
pendlture for terminus of system OF roads of over
1000 miles, their pr0PUOn Gd conVev WIZ ne Tile TO- te
PENNSYLVANIA Railroad Company, and thus abandon one
Of the keys OF insE and t6e pros
posed to solve il by building competing road meas
the whole Western traffic which 1t enjoys, aud would
have injured the direct Philadelphia business With all lS
The Committee thus discuss the earnings OF the old
companies They explain that in the earlier days the
capital stock was only s3OOOO and the debt SsOooO
When earnings we're made amounting to eight pc cent
on the total Of 100000, the result was as fol
Eight per cent earnings of Investment $50 0o
Deduct interest $8ocOOO at per eeat''''''''''''' 4o
leaving ,rr,,nle 70, dividend loO 900
or l3t per cent
But the stock was then increased by the conversion at
par of bonds held by stockholders until on the fst OF Jan
uary the stock held by individual stockholders In the
United Railroad Companies was In round numbers,
$40 500 600 while the debt somewhat over SloOOOO
Taking the rate of earnings this total Investment 10
be eight per cent the above, then the result VIII
be as follows - .,-e,oo,
Blight per cent earnings s3i5OOO 5b60N
Deiuct interest $l5O0OO 900 at per cent'''''' vVVV
Leaving applicable for dividend
o about nine aud a half per cent
But for the last year the earnings have been Only q per
cent on total Investment and the Committee uISe
that the decrease, though partly due TO eAeeptohal
causes such failures III the peach crops aud paIa ~
OF the coal trade strikes there are other causes
tending To reduce the earnings below those OF former
days. the increase in the price Of labor ana materia p
ing prominent. The net earnings ON most rairuaus
would formerly average about 80 per cent, now seiuo s
more than 3O Again, "A large increase OF eApehn'nI.
il made necessary without any corresponding
OF earnings. The public demand more costly ~ M
Real estate has 10 be purchased In advance Oh .o
mediate requirements. which. while absolutely M ~ az
In the future, must he Durlen not DrlhGAhs "'' " "
immediate Increase OF earnings