New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-29
RAILROAD INTERESTS.

COL. THOMAS A. SCOTS NEGOTIATIONS.
LOAN OF $1O,O00.0OO OBTAINED PROM EUROPEAN
CAPITALISTS FOR TIKI PENNSYLVANIA RAILROAD
COMMUNICATIONS or AN ATTEMPT TO NEG0-
TATE LOAN FOR THE TEXAS AND PACIFIC
RAILwAY-CoL. THOMAS A. SCOTS VIEWS or TIE
PROSPECTS OF THESE ROADS.
fFRoM SPECIAL CORRESPONDENT OF THE TRIDUNEI
PHILADELPHIA, Oct. 28.-Col. Thomas A. Scott.
President Of the Texas and Pacific Railway, and
Vice President Of tho Pennsylvania Railroad, TO
turned to this city yesterday after an absence In
Europe of several months. He went there hoping
to negotiate loans for the Texas Pacific Railway.
Wishing TO ascertain what success he had met WITH
your correspondent called on him at the Pennsylva-
MIA Railroad Company's building, in Fomth-st.
In consequence of tho large amount OF
business matters requiring his individual
attention which had accumulated in his absence
Col. Scott gave audience TO but few persons. lie
readily admitted the representative OF HE IRlb-
UNE. and expressed his willingness to give oil de-
sired information. He stated that the loan oil
S1OOOOOOO for the Pennsylvania Railroad Com
pany was negotiated by tho Companys
bankers in London few days before the
present financial revulsion began. Inc Pennsyi-
vania was therefore in excellent condition TO meet
its requirements Tho panic was entirely unex-
pected and unlocked for abroad. 1t would have
terms so favorable ON any American Sc
entities after tho outbreak of the panic.
With reference to the Texas and Pacific Railway he
had not been so fortunate. He had not been able
10 close successfully negotiations for sale of bonds
Int obtained financial aid so that work on the road
will not be discontinued. The work needful 10
build the road within the limits Of the re-
ouirements of Congress and the state OF
Texas will be continued by the Com
pany The effect Of The recent panic was tOstOp the
sale Of the bonds of American railroads in Europe
for the present. This condition OF things he be-
ieved to be merely temporary, and no Thought
there would soon be ready sale for bonds as well
secured a. those of tho Texas Pacific Rail
way. The Company now have about 800
miles of completed road in operation, built
solely from means raised by individuals and have
not as yet disposed of any of their bonds, nor do
they intend to cell at any time except upon com
pleted line, thus giving an absolute property III
working order as security to purchasers Of bonds
One of the leading officers of the Pennsylvania
Railroad Company was questioned by Your cor
respondent relative to the financial condition Of the
road and the extent to which IT is affected by the
present reyulsion He stated that the loan of Sl0,
100000 recently negotiated in Europe had made
matters easy in monetary way. or
course the business OF the road was af-
fected by tho panic. There no
class or kind Of business in the country that was not
affected by it more OF less. The business of the
PENNSYLVANIA Railroad was affected much less, how
ever, than might naturally be supposed from the
general condition Of Affairs The passenger traffic
had shown some falling of within few
weeks. He presumed this could DO accounted for
partly on the score Of economy, few persons travel
ing for pleasure at this time, and in addition the
majority of business men are required to remain at
home and look after the details Of their affairs and
how best TO provide against loss or failure
The freighting business of the road is good.
Westward bound froights have fallen off some
what. Eastward-bound freights have materially IN
creased The next annual report will show net
increase IN earnings last year of from 81 100000
TO S2OOOOO0. Expenses, especially IN the conStruc-
ton and equipment departments, have been
reduced TO the lowest point that can be
done and provide for the growing business
Of the road. He believed the financial revulson
would ultimately inurc TO the benefit Of the old and
railroads 1t would have the effect
Of stopping altogether delaying the construction
of many new railroads which had been projected
and some on which much work had already been
done. Weak financially they would probably
in the end pass under the control Of those running
and operating the older roads, and he run in con-
JUNCTION with those roads, and in their control the
districts to be developed would be sure Of ample
railroad facilities The great shrnkage in values of
railroad stocks and securities have seriously crippled
many Of the large operators and induced distress
on the part of many others 1t was not, therefore,
likely that there would be any large amount of
building Of new roads for a considerable time TO
come Nevertheless, he believed in the stability OF
most of the old railroads in the country and that
majority would continue, as heretofore, to pay good
dividends on the amounts expended in their con-
structiOn and equipment.