The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-06-20
mur TEAGE

The advocates of the lease in the Board of
Directors of the United Companies do not oc-
cupy an enviable position, either as regards the
stockholders of the New Jersey companies, the
public, or the Pennsylvania Railroad Company.
They boldly proclaimed to the public In ad-
vance that three-fourths of the stockholders
desired to lease.
Through the newspapers they have repre-
sented that the lease had actually obtained the
consent of the two-thrds of the stock owners.
The newspapers have teemed with circulars
from the committee authorized by the Joint
board to solicit the consent of the stockholders.
with other articles signed ''Many Stockholders"
depreciating the property of the United Compa-
mics and their capacity to earn ten per cent.
dividend. These newspaper articles have freely
menaced rival road in order to compel timid
stockholders to part with their property for an
inadequate consideration.
While crying down the value of the work of
the United Companies, they have magnifed the
wonderful power and resources of the Pennsyl-
vania Railroad, and threatened that, unless the
United Companies surrendered to them, new
railroad would certainly be built, impairlng the
value of their property.
Now, what has been accomplished after all
this flourish of trumpets? As MIR. Webster said
to Mr.. Hayne, 'The vigor and success of the
war have not quite come up to the lofty sound
ing phrase of the manifesto" The committee
to obtain the consent of the stockholders have
worked with all their energy; they have dis
tricted city and country, and with a small corps
of paid itinerant agents, secured every nook
and corner in search of stockholders to sign the
papers.
Commencing with the $4,000 shares which
they say the majority of the directors represent,
they have obtained only about 5000 shares.
"A T. a..
out reflection, have expressed their regret at
so doing, and desire to withdraw it. Now this
is the work accomplished by them since the 10Th
of May.
The Pennsylvania Railroad Company we're no
doubt persuaded to submit their propositions
under the assurance that the consent of the
stockholders would be an easy conquest. They
may thank their friends among the ma ority
directors for the unpleasant position which a
defeat will compel them to occupy.
The defeat may be ascribed to two causes:-
First. The stockholders were refused the sight
of the schedule of property to be transferred,
which the lease promised should be submitted
to them. They had, therefore, no knowledge
of the amount or value of the property they
were to part with.
Second. The stockholders resent the attempt
to treat about the sale of their property by
agents unauthorized to act for such purpose.
The directors were elected to protect, preserve,
defend, and manage the great property of the
stockholders, not to initiate measures for its
alienation and the utter destruction of all power
in the stockholders to have any control whatever
in relation TO it.
We suppose that many of those stockholders
who have given their consent really igno-
rant of the value of the works of the United
Companies, but the work of signing, we learn,
has come to stand. The stockholders not
signing know what 1t is they are asked to
relinquish. They know that ten per cent. an
nual dividends on the capital stock, $lS, 800, =
677'50, is adequate compensation for $40, 600,
900 or $50 600 900 property they know, too that
railroad property in the United States on all the
great routes of business, doubles in value every
ten years. They know that If a railroad pro
perty doubles Gas is stated in "Poors Railroad
Manual" for 1879 in ten years anywhere it Il
sure to double in the favored location occupied
by the works of the United Companies. The
fact that the revenues and business of railroads
in the United States double every ten years is
ascertained in Mr.. Poors valuable work by a
careful analysis of the statistics furnished by the
reports of the different railroads throughout the
whole country.
1t may, therefore, be asserted with entire
confidence that the works of the New jersey
companes-now at the lowest estimate wortl
$40 600 000-will in 1880 be worth $50, 900
This fact alone of itself should be sufficient tt
satisfy every intelligent stockholder that
would be bad bargain to surrender to th'
Pennsylvania Railroad Company for ten PEI
cent. on less than one, fourth sohGt the acorks O.
the United Companies wiu be soorh ten year
hence. A STOCKHOLDERS.