The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1871-01-06
A. That's the way the contract reads ?

power TO the RennSyIVRnla CenIFa' 10 pre-
vent the Richmond, Fredericksburg, and
Potomac railroad connecting with any other
lines than the Baltimore and Potomac road
to Baltimore and the Northern Central at
Baltimore?
A. No, sir.
Mr.. Daniel.-Well, + leave that to the
committee.
TIE RECEIPTS OF THE r., F. q P. RE-
Mr.. Daniel.-You spoke of the profits Of
the Richmond, Fredericksburg and Poto-
mac railroad last EVENING" Had you seen
the official report Of 1859, that there was
clear profit OF 1918 on each share, which
might have been declared as dividend had
it not been thought proper 10 put it into a
reserved fund?
A. alluded to 1870.
Mr.. Daniel read from the report Of the
company for 1870, showing the clear profits
made in that year, and how much Of it was
used for extraordinary expenses which had
occurred in no other year.
Q. You stated that the Pennsylvania Cen
tral railroad was furnishing the money for
the building of the Alexandria and Fred
ericksbug railroad to Richmond. They eX-
pect then to have the control Of the road,
do they not? -
A. Yes. They don't think anybody un-
derstands running the road as we'll as they
do.
CONDITION OF THE PENNSYLVANIA CENTRAL
RAILROAD.
@. Was there not third mortgage loan
issued by the Pennsylvania Central in the
last few years.
A. Yes, sir. A general mortgage third
| in point of date. 1t is quoted at 96@97.
Q. Has it not been bought as low as SO?
A. Perhaps some lucky persons have
bought it ut that.
Q. Then it is true that these third mort
gage bonds, which are made by law legal
investments for guardians and fiduciaries,
sell lower than the first and second mort
gage bonds?
A. That is because the first and second
mortgage bonds were issued in '62, and are
gold-bearing bonds. I see you have ten
mortgages down here.
Q. There are ten classes Of certificates Of
debt. Are you aware that there never was
a mortgage on the Richmond, Fredericks-
burg and Potomac railroad?
A. don't know. It is not considered
straightforward with us to issue bonds not
secured by a mortgage.
Q. Why, if The purchasers are satisfied
| without mortgage?
A. Well, it Is not so considered with us.
| Q. Is the statement in the report of the
Pennsylvania Central railroad, showing
that the increase of the stocks and bonds OF
the road for 1869 over 1868 was Sill, ,733 $50,
and that the gross receipts of $50 only ex-
ceeded those of '6s by $4,000, 900, correct ?
A. 1t is correct, if it is in the report, and
will explain that money was spent in
building branch roads and fostering other
improvements. The road has done this,
paid handsome dividend, its taxes to the
State, and carried handsome surplus.
O. Well, if the Pennsylvania Central
| railroad, 360 miles, has only revenue OF
s. 200. 900. how can the 1900 miles (the
length of rail controlled by that company,
with revenue of $7,00O,000 pay. Is it not
| true that these 33 roads controlled by the
PENNSYLVANIA Central are really made trib-
utaly to it, and are impoverished to make
| it rich?
A. No. The Fort Wayne railroad stock
holders get II per cent. dividend. Some OF
the roads that didn't pay at all pay IA per
cent. since we took them. Some Of them
we have lost by. We try all. and whenever
we see q good road we are willing to make
| the trial.
Q. Are not fast freight lines allowed to
be run over the roads of the Pennsylvania
Central Company by parties who own no
roads ut all
A. Yes. They run over all the northern
roads now.
| @. Do you know what proportion OF the
profits these parties get?
A. do not.
| Q. What is the proportion of the rates
charged by these parties to the rates
charged by the company?
A. don't know. The rates are pretty
nearly the same. The parties owning these
lines are shrewd, sharp men, and conduct
their business so we'll that they do good
business. They have such an organization
all over the country that they offer facilities
for carrying fast freight that no railroad
company can offer.
@. What is the proportion the fast freight
companies pay the roadsS
A. don't know.
Q. 1 understand you to say that In 8
country where the people were scarce, the
rail poor, money scant, and travel and
freight light, you would charge the same
rates as III a populous and wealthy coun'
try.
| A. Well, We would give that sort of peo-
ple facilities to get better of. We run oul
roads now into a country where nobody
lives.
| Examined by Mr.. Ould: -.-
=. What was the denomination Of the
bonds you received from Mr.. Lincoln?
A. 81 900 bonds.
EVIDENCE OF MR.. JOHN HULME, OF PHILADEL.
PHIA-CoNp1TIoN OF THE PENNSYLVANIA
| CENTRAL.
Examined by MIR. Daniel
@. Are you stockholder Of the Penn.
sylvaaia Central railroadS
A. am not. I sold out some months
ago.
@. For what reasonp
A, Because I believed they were over
loading their conc ern and would eventually
break IL down.
Q. How?
A. By building lateral roads and increas-