Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1873-04-16

ton per mile, leaving a margin of prof
OF only one quarter of cent per tor
per mile.
The increased tonnage in 1872 over
1871 was 2O0,077 tons, and the in
crease in revenue from freipbts wa,
S377,l9 6l 100, and from passengers
SCI ,29S 59-l00. The total increase O.
revenues for the year being S48S, ,4Ss
l4-l0O; but the expenses, chiefly owing
TO the destruction ofthe Linden Bridge
by fire and the unusually large amou o
OF iron required to keep the track in
good condition, has more than alb
sorbed this innrease.
lhe net earnings ofthe Philadelphia
and Erie Railroad have disappointed
the expectations of its friends and pro.
jectors not in the extent of its ton.
mage since the modification of the
lease, but in the rates of freight that
II has been able to command for what
it carried. This line being longer
from the commercial centres of The
Fast to all important points of the
West than its competitors, and travers.
ing a sparsely populated country, with
gradients unfavorable for cheap trans
portation, the cost of conducting its
passenger business has usually exceed
ed the income from this branch of rev.
cnue. This year il shows loss Of
s37 7,933.T3.
In working this Railway it early
became apparent that the continuance
Of the old lease, which exacted thirty
per cent. of the receipts, without re.
gard to the rates Of freight that could
be procured, must result in the adop-
tion Of charges by the lessee that
would render any participation in the
lake trade at Erie, or through traffic
from west of the mountains, impossi-
BILE. For such business the New York
and Erie Railroad Company, the chief
competitor Of this line, charged rates
that yielded it little or no profit, and
the lessee consequently had no other
resort but to meet this competition, or
abandon the through traffic, and rely
upon the local business of the line for
its support, at rates of freight which
would leave sufficient margin for
profit on its transportation, TO meet
the terms Of the lease.
Before adopting the policy here in
dicated, which appeared to be opposed
to the interest and expectations of the
public, the question Of a modification
Of the lease, to meet the difficulty thus
developed by the character of the
traffic of the line, was brought before
the shareholders of the Philadelphia
and Erie Railroad Company, who with
great unanimity confirmed the altera-
tions proposed. Under the modified
terms, tho Lveooo agreed W work the
line at cost, giving the share holders
whatever profit the enterprise might
develop.
This change in the lease has permit
ted the Pennsylvania Railroad Com
pany to develop the resources of the
country traversed, meet the interest Of
its bonded Indebtedness, and preserve
the property to the share holders that
they may be able to reap from their
investment whatever advantage the
future has in store for them, from an
increase in the population and wealth
of the country traversed or that may
become tributary to the line.
Before the lease was entered into,
the shares of tho Philadelphia and
Erie Railroad Company bad only a
nominal value, being freely offered at
five per cent of par. They are now
marketable at over fifty per cent. IAN
increase ofa thousand per cent }, clear
ly demonstrating that the lease has
not had, as represented, depressing
influence upon the stock of the Com.
pany.
The lease of this line was only Of
fered to the Pennsylvania Railroad
Company after it had been declined
by the officers of the Philadelphia and
Reading Railroad Company, and after
all other means for raising the funds
required to complete the work-that
did not involve tho sacrifice of the
stock of the Company--had failed.
The failure of this enterprise to be.
come at once profitable is due first TO
its having been started with INSULT
cicnt capital second, that it was To-
Gated without reference to the capa-
bilities of the country it was to trav-
erse, to yield a sufficient traffic for its
support. Instead of crossing the val
uatle coal deposits of the Allegheny
mountains it passed north of them,
and in doing so avoided also the still
more important oil deposits of north
western Pennsylvania--the existence
OF which was then unknown--being
Influenced in tho adoption Of the pres
ent route by two Insignificant local
subscriptions; thirdly, by commenc-
ing and continuing the work of con-
struction at both ends, when the means
of the Company were insufficient for
the execution of any considerable por-
ton OF either end-a policy which has
ruined many other extended enter
prises, and by the temporary adoption
Of which by the Pennsylvania Rail
road Cvan;rr..nv;thc early success of that
enterprise was jeopardizej fourthly.
from its financial sacrifices incurred
to secure an early opening Of its road,
through which mainly its cost with a
single track, has amounted TO S75,-
744.00 per mile, while that OF the
Pennsylvania Railroad with a double
track throughout and third track
for portion of the distance, travers-
;ne a vastly more rugged country,wps
but 10000
In strong contrast with this policy
It may be stated that oil financial sac.
r;6oca made duripg the construction