The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-05-30
SPECIAL NOTICES.
For aciiitiona, Special Notice, SO. Inside Pages.

Rf5g% TO THE STOCKHOLDERS OF THE CAM
den and Amboy Railroad, Delaware and Rarltan
Canal and New Jersey Railroad Companies
At meeting OF the Board OF Directors OF the
United Companies OF New jersey held at Trenton
on the 10th of May 1871, the following resolutions
were passed.
Resolved, l. That the Directors OF the United Com
panies viz the Delaware and Rarltan Canal Com
pany, the Camden and Amboy Railroad and Trans
portation Company and the New Jersey Railroad
and Transportation Company, corporations OF the
State OF New Jersey, do hereby declare that 1t does
70 them seem expedent to lease the property and
franchises OF the said United Companies and each
OF them to the Pennsylvania Railroad Comp any, on
the terms and conditions forth in the instrument
OF lease this day read to the Board.
q Resolved, That Samuel Welsh, A. L. Dennis, r.
f. Stockton, John q. Stevens, Cambridge LIVING
stoD, and the General President be Committee,
with power to submit the said lease to the stock
holders OF the United Companies, and obtain their
consent, in writing, in proper torm and to do all
things necessary and proper to consummate the
negotiation therefor, ana in case two-thrds in in
terest Of the stockholders In said company consent
thereto, that the officers OF the respective companies
do execute the said lease, and attach the proper
corporate seals Of said companies thereto and de-
liver the same when instructed 30 to do by this
board.
presenting the lease and contract to and with the
Pennsylvania Railroad Company TO the stockholders
for their ratification think 1t proper make brief
statement in relation thereto.
In order that the mutual business between the
works OF the United companies and those OF the
Pennsylvania Railroad Company should be con-
Quoted harmoniously, an agreement was entered
into some years since, In which, among other things
it was provided that the Connecting Railroad should
be built; that the United Companies should pro-rate
freight and passengers, aud that certain reason.
able terminal facilities should be provided. Expert
ence, however, soon made it evident that many
points had received no consideration, while others
were provided for in an indefinite manner; hence it
became necessary to add supplementary provisions
explanatory OF the contract Other points OF differ
ence arose, however, from time to time, and COM
m Inv hnf mar
rights and obligations While, in some sense, there
was mutually of interest," yet, in the actual
aging Of the roads, the interests OF the companies
came into absolute direct conflict. There were too
many points OF contact and attron for the arrange
ment to work smoothly, and the position became
simply that OF an armed truce.
From the great expansions OF the systems OF roads
in the South and West, owned or controlled by the
Pennsylvania Railroad Company, embracing, 1t is
sand miles, necessity for enlarged terminal facii-
ties at some point on the New York waters became
urgent. This being extraordinary, and not contem-
plated in the contract added much to the complica-
lions already existing.
Some years since, however, the United Com
panies, foreseeing that this necessity might arise
purchased the property in jersey City known the
Harsimus Cove. 1t was believed that, when the ne
cessty arose, the Pennsylvania Railroad Company
wouiS aid in the construction of the Wharyes and
other necessary works. This however, they de-
clined to do. The outlay would be several millions
OF dollars and they naturally objected to invest so
large an amount on property to which they had no
title; and the United Companies were likewise
nus Of a system OF roads OF over seven thousand
miles, their proportion OF which was only one hun
title to the Pennsylvania Railroad Company, and
thus abandon one OF the keys Of their position
The differences appeared to be irreconcilabe, ne-
ther party being willing TO improve a property
which admitted to be essential to the prosperity
OF both. In the meantime, the want OF facilities
became embarrassing, and the relations OF the
panies more and more unfrendly; permanent
breach seemed inevitable.
AS last resort the idea was suggested OF enter
inc into arrangement DV which The PeQQSylYaQta
Railroad Company should have the right to use our
| works for their own business, accompanied by a
lease extended for length OF time OF part OF the
| Harsimus property. After full consideration the
plan was abandoned by both parties as impracti-
A crisis had arrived, and it became more and more
evident that no temporary truce would avail, but
| that some arrangement must be made founded ou
! absolute community OF interest The rapidly ex-
tending system OF roads controlled by the Pennsyl
vana Railroad Company, extending from the Pacific,
required independent outlet to the seaboard; In
fact is vital to their interests that the terminal
points should be under their own control.
| This could only be obtained either by lease OF
the works OF the United Companies or by the cen.
structon of arrival line between the two great cities
| United Companies OF the whole OF the Western
business, but would have diverted, 60 a very great
extent, the Southern business and the New York
and Philadelphia business proper, and that, proba
bly,, at rates 80 reduced as to make the competition
! ruinous.
rests OF the United Companies, 1t would also have
affected the interests OF the Pennsylvania Railroad
|
Alter long ana patient negotiation, the lease al
| now submitted was agreed upon by the directors o
| the respective companies.
| Its main provisions are, that the stockholders o
the United Companies shall receive clear net renta
OF ten per cent per annum for the use OF thei
works; the Pennsylvania Railroad Company as
suDing all their debts and obligations OF every kind
1t is well known that the amount OF rental wa
greatly objected TO by the Pennsylvania Railroat
Board AS the United Companies had netted, TO
the last year. but about seven rer cent. on thei
STOCK 1t strongly urged that the rate OF ten pc
cent. was too great Your board was, however, firm
| and finally the rate was acquiesced In.
| AS regards the probability OF the net revenue
| exceeding ten per cent. under the present manage
ment the following facts as 10 the past earnings
the United Companies will, perhaps, not be out G
place. . -, -. -,
| viz the Delaware and Raritan Canal, and the Cam
| den and AmbOy Railroad Companies, very larg
| dividends were made, one Of the principal cause
being the small proportion the stock bore to tn
bonds For many years the stock OF the Joint Con
panies was but three millions of dollars while th
debt was eight Millions When earnings weT
made amounting TO eight per cent on the tot
investment OF eleven millions, the result was as TO
lOWs:-
Eight: per cent earnings on sll, 100000 OF In
Deduct Interest on ss OOOO 600, at per cent $500
Leaving applicable for dividend ........ $500, ,O
| or thirtee a and one-third per cent.
1 at Of