New-York tribune., 1873-04-17

otherwise.
II l wore 70 form conclusion from the condition OF
those companies controlled by them o which ihey uo
give au account It would be that tho OF them hey
acquire the greater viii be their loss BY taking their
receipts and working expenses on tho PcnnsyFa"'
Railroad proper for of years and analySng theh
In the light OF the experience OF other railroads. IL u luz
possible to how they earn their dividehuS ~ "
Increase OF g. per in passengors and 2o9 per ce
freight during eight years has given only 20 per
crease In gross receipts, while II has made necessary "
increase Of lG6 per stock Ill per cent in
debt and 3O per in floating abiities' u cannot i
qure much discernmont 10 see that the nli,geu no'
earnings" OF Ss2i7 s52 must be imaginary. Ihis con
sion IA Irresistible unless 1t be demOnsrateu
this largo increase business can be done NJ tue " "
70 100 per cent increase IN operating eAp'ise'' ~,
This pretnnse is so inconsistent with all railroad expe
ence that tho nero statement Of 1t s PROOF "
its folIacy III they arc not earning diYlendS anu
they continue for few years more the same poic''
easy TO foretcll what must bo the final result.
II this was merely local aillr. 1t would NOT oohpo"
sote for the trouble OF the examination bnt TINS Co
pany has assumed such colossal proportions tnat S
report and its condition are subjects oI Interest " ~
people in every part Of the United States Ihey nav,
already covered the West, tho North-"est' anu 'no
Southwest with perfect network OF ROADS uhuer '
control Thoy are reaching down INFO the Southern nv
lantc states and seeking to gain the controlling Interest
W
leo whether running north and south or east ana west
They have leased the works Of the United Companies OF
NewJerscy and are row preparing to subordinate 10
their interests the great commerce OF NeW-lork oa'
Tho Iepslature of one state after another has bowed
subnissiycly to their dctation Even the has OF Con
ress arc supposed feel more or less thelr po"rlu
influence All this may be legitimate, If their acqui'
stions were fairly made II their business was cOnhuotou
upon right principles if their influence was but the re-
f,i If their SUCK ana DOnus
verc rendered safe investments by Of the ju
dcious and economical management OF their vast ran
road interests If the rights of individuals and conmu
mites and other railroads were justly treated and prop
ery respected it would DO the duty vi goOu clt
zeps to commend them for their energy enterprise
ard ability and to sustain them. But IL IL
none the less the right and duty OF q citlzen
In examine and point out dangers which may npenh
over those who bndly conde the statements of such
rcpors az these The subject has become nat'oha ono
Should any disaster overtake them II would involve u-
told millions in their fate. 1t would be national caa
ity They now intend, and 80 advertise to increase
their capta SIS OO by issue of stock equal to
3St per cont on the amount now out They nave egAa
tive power TO issue bonds and stock they see t unt
the whole amount of stock shall roach S5)OOO0OO and
the bonded debt shall reach the same tremendous
amount
have endeavOrcd TO show that the report was mis-
taken in the assertion that the surplus net earnings Ior
1872 were equal to 10 cent on S2iOOoOOO' ha'"
also endeavorel point ont the fact that their reports
Of former years were they must be mistaken IN
asserting that the operating Of 1872 were less
than II the business has increased as their
tables show then the expenses must have kept pace
with them and instead Of net profit OF over SSOOOVO
the business Of 1872 would fail to meet the interest on
the bonds and dividend declared on the stock already
issued IL impossible TO do more than throw out heSe
thonchs as dednced or suggested from or by the reports
.rv.rt aflrRg Ia hnt
present position calculated to excite more THANH ordinary
interest They are known TO be large borrow
crs Of money at high rates of interest. 1t
is true that other railroad companies have
been doing the thing. But when the
enormous and rapid increase of their capital iS con
sidered IL Is well worthy Of reelection why they should
still be pressing year after year for ttil more ana larger
sums than m any previous year or. thompson says
$40 meet these annual requirements for additional funds
the directors have thought it best to adopt revised
financial Plan and with that they have procured an
actof the legislature authorizing OF the cap
ta stock Of the Company 100 per cent with the privilege
of raising by bond be secured by mortgage equal
amount" In 1861 he promised that in 1875 the CONDITION
Of abundant safety Of the Company should be such that
the receipts of the Company should equal its liabilities.
He has evidently taken several new departures since
that time and apprehend that the time has long since
passed when any such hope could be INDUCED by the
should tanely acquiesce in policy fraught with dan
GER IA that now pursued whether they will the
courage to into the affairs Of the Company and
insist upon return to that management which will give
them some hope Of safety IN the future. In many re-
spects their management has been characterized by
marvellous the general scope of their enterprise
But such success IS in itself dangerous II in danger
Of begetting too much confidence Can it be that in
order to induce the stockhodersto subscribe for
Of additional stock to make the bonds they may wish
70 sell more acceptable to capitalists the operating
expenses OF the road have been reduced below what
shoud properly been charged to that account end
thereby unduly swell the net profits cannot affirm
this TO be true and have neraken TO do But
have called attention to the yery anomalous condition OF
things as presented in the comparison of the years 1865
and 1872 have called attention to the fact that at
least two OF the railroads in which they hold control
ling interest have ebbngiout very sickly exist
ence for 10 years past and that 20 Of them such
has been put upon 10 as 20 reduce its net earnings
from IS per cent in 1864 TO nothing III 1872 and that tOO
wbeDeyery condition Of ITS actual business tended 10
promote an enormous increase in its profits call atten
ton TO the fact that the liabilities including capital stock
OF the Pennsylvania Railroad Company have increased
from about S3 in 1851 to about s030O0DO in 1872
call attention TO the fact that the report indicates the
pnrpose of an increase OF the bonded debt Of the Com
pany To what extent does not clearly appear But the
power has been obtained TO increase the capital stock
and bonds to s3OO,OOO,OOO 1 call attention to the
fact that the report docs not set forth the
specific character of the investments of the Company
except IN very few cases, and that 1t nowhere shows
under what liabilities 1t has under by way Of
antees or otherwise for other railroads call attention
the fact that Mr. Thompson the following Ian
guage in his last report But it is tho duty well
the interest Of your Company to meet the legitimate
demands OF the public for increased transportation
facilities, the necessary to that object must be
provided The amount required in 1873 for additional
tracks, equipments shops, wharvcs, depots, &c. tC
meet demands from increasing traffic Of your lines
and the existing obligation Of the Company is estimated
at $22 OOO0O0 When this amount Is realized the
sale Of stock bonds and the existing obligations fpre
sumed to be the floating debt OF about $4,000 O0O paid
camtal nd bondod debt viii