Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1872-12-10
TEsE PESXSYE.YANIa RAIL
ROAD AND ITS 'tATEaCI-
wETTs."

are receiving very doubtful compiF'
ments from all quarters &C. dc. il
1t would exhaust all the editorial
space of several issues, TO respond fully
tn the above very natural enquiries
and 10 tell about" these companies
We will, however, give brief state
ment, which will meet the points pre-
scented. The Pennsylvania r. r. Co.
chartered hy Pennsylvania, own the
road from Philadelphia to PItt3burg 35S
miles long, (thcre is no such company
as the Pennsylvania Central,l in lis
desire to draw business TO its line, IL
became necessary to form connections
with oIher lines stretching into the
"f.r west and as the connection oi
the New York Road, and the Balti-
& Ohio Road, was likely to iniure is
trade, il was deemed wise To obtain con
troll of the seconnections until il became
"bv lease or otherwise" the controller
offs. 300 miles of road west of its termi-
nus at Pittsburg. To accomplish this
from time 20 time, il became necessa-
ry tofncrease its capital stock, from 6
to 40, some say 60 millions of dollars,
and to extend its credit by the issue Of
its own bonds, AID guaranteeing the
bonds of other corporations until its
liabilities became fabulous. For rea-
SONS satisfactory TO itself, sometime in
1871 it transferred all its interests in
all it's connecting lines, 20 n company,
then recently chartered lin 1870 by
the State OF Pennsylvania, Ivy the
name OF the Pennsylvania Co., which
had capital ut the date of transfer,
subscribed of $500 900, for the considers
alton of eight millions of preferred six
per cent stock, with the privilege Of
PARTICIPATION in all profits over 6
per cent. Mr. President Thompson cI
the Pennsylvania Rail Road, informs
us that the capital stock of the Penn
sylvania Co., is fixed ut 12.G0O.WO, Of
which four milE0ns is TO he common
stock that may be disposed Of TO indi-
uiduals, at not less Than par. At the
date of the transfer, as we have sta
ted. only S200 600 of the common stock
had been subscribed for. "dH Of SChich
had been taken by its managers To
perfect the organization Of The com
J,0ny." 1t is paipable that no more
L.. 4. l.,,T 20
ia the face of eight millions of prefer
red stock, which is 'to participate in
all OF the profits Of the company above
per cent. Thus a company with on
Is S3G0 coo of stock subscribed. how
innch was paid up does not appear
purchases the control of 3 200 miles Of
completed railway, at the price OF
500, 600 and pays for the same in its
ot0n stock: 1900 miles of railway, at
the rate Of s., 800 per mile, arithOW the
expenditure Of Il GoUar. How this
was affected may find some eXplana-
tom in the fact, that two of the Vice
Presidents of the Pennsylvania Rail
Road Co., arc officers in the Pennsyl-
vania Co.
On the 22nd Of March, 1871, Thorn /
as \. Scott, Vice President ofthe Penn
sylvania Rail Road Co, and Prcsi-
dent Of the Pennsylvania Co., with
others, were incorporated and made a
body polite 10y the pennsylvania Leg
islature. under The style of the Over
land Contract Company, with power
To change it's name. On the 5th day Of
April, the cooperation organized the
Overland Contract Co. ard immedi-
ately changed its name, to that of the
Southern Railway Security Company,
aud established its principal office. in
the City OF New York, with George |
w Cass as President. The suhscri |
e~s thus Incorporated were nine in |
rumhcr- Cass 20 shares, Scot 200 |
shares, ". T. Walter. 2GO shares, c. !
=, Plant, 200 shares, 3. T. Newcome,
200 shares, J. ID. Cameron, 200 shares, |
and four Others 200 shares each Sub
sequently the Pennsylvania Rail Road
Co., took stock in this Company, "to
protect its investment in the Balti-
more & Potomac Road" Mr.. Edgar
Thompson was therefore fully justified
in stating to the Stockholders OF the
Pennsylvania Raj! Road Co, that
"thc southern Railway Security Co. |
is composed of gentlemen friendly |
to oar interests and objects"
In Feb. 1872, less than Il months
from its organization, this Southern
Railway Security Co, composed of
northern railway jobbers, largely
CONTROLLED the whole system of rail
roads south of Richmond, ''friendly to
the interests and objects" of the Penn
sylvania Rail Road Company; and
since that date have greatly increased I
their control, affording an unbroken
rail road, from our terminus opposite I
Nc5U York, from Philadelphia, and
from Baltimore, 10 all points of inn I
portance in the South Atlantic, and
the Gulf States, operated continuously
by locomotive power, and with the
single object in view To promote the $
commerce between the North !
and the South by the adoption OF rates :
Of freight, placed at iigureswhich
can not fail TO secure the move {
mont by it. of vast tonnage that is q
now forced into other channels, in c
of 1.-THE interests and pur- i
poses' of the Pennsylvania Rail Road
So friendly is this South
,rn Railway Security Co, TO the lin
erests and purposes" of the Pennsyl-
'ania Railway Co.. that at the last Z
annual meeting Of the stockholders of c
he same, that it was recognised rs a i
lureau ofthat great corporation, bear I
nc to it, in reference TO the Southern |