The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-07-09
President WatsOn's Report.
New York, July 8.

NEW YORK, July y.
The following Is an abstract of Pres
dent Watson's report at the Erie X. II
meeting to-day The earnings of the
company have contintinued steadily tc
increase for the past half year, they
have largely exceeded those of any SINH
lar period since the completion of the road.
The reforms began in the management of
the Company's business and have diminish
ed relative to the expenses in almost every
department, and these expenses will be still
more largely diminished as reforms in pro-
gress are developed, and when the present
plans for the double track and narrow
gauge upon the whole line shall be carried
into effect.
There is no reason why the cost of oper-
ating this road in comparison with its
gross earnings should not be as low as up
on any other great trunk lines.
We are rapidly increasing our facilities
for business. We have put in this season
already twenty miles of sidings and laid
ten miles of second track have increased
our coal, postal and other cars, and are
are preparing to reduce the heaviest grades
upon the line. The grading for the double
track is rapidly progressing.
Upwards of forty miles will be ready for
the rail in August, and during the autumn
further portion of eighty miles will be
completed, making in all one hundred and
fvppfx yt,i1ac 70 ha t.1 81 a..
During the present season we expect to
change the existing broad guage, from
Attica to Painted Post, distance of 100
miles, and to lay third rail from Attca
to Buffalo, and from Painted Post to WAY
erly, the third rail or latter being already
nearly complete.
This will give us narrow gauge connec-
ton with Philadelphia and anthracite coal
fields as rapidly as is consistent with the
economical change of our present motive
power and rolling stock 1t is proposed
narrow gauge of the whole of the main
line and branches. The motive power and
rolling stock of the company is in more
efficient condition than at any previous pc
Rod, as is shown by the increased service
which it performs.
But the imperative demands of our
traffic will pay well by the time the narrow
guage track is extended eastward to
Waverly, and the immediate addition of
two thousand narrow guagc cars and one
hundred narrow guage locomotives, which
we are now about to put under contract.
In preparing accounts upon which Fcbru-
airy dividends We're based, sundry impor-
tant items had to be estimated. but in
instance when these estimated items came
to be corrected by actual returns and the
completion of accounts it was found we
had underestimate receipts and ovcresti-
mated expenses, and therefore underestl-
mated the actual net earnings,
Nothing has since occurred to show or
even raise doubt that this dividend was
not fully earned or was not properly de-
clared and paid. On the contrary it is be-
lieved that the system then naugurated of
carrying cost paid from earnings of all adj
ditions to property and equipments of the
road to capital account taking
care in all cases TO make ample
allowances for necessary expenditures.
for full and liberal separation of road and
its equipment and machinery in every de-
partment, and of their dividing the whole
of the actual net earnings of the company
among its stockholders for the time being,
is policy equally honest and wise, and to
this policy of fairly dividing the actual
earnings at short intervals, say semi-annu-
ally, among the whole body of stockhold-
ers, the present board is fully committed
upon principle