Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1873-12-05
Correspondence tie N. Y. Graphic.)
The Pennsylvania Railroad "A Gigantic
Corporation Weakened by Too Much
HEuterDrjSe.o

The Pennsylvania Railroad "A Gigantic
Corporation Weakened by Too Much
"Enterprise."
The original Pennsylvania Railroad
Company, whose road extends from Phil
adelphia to Pittsburg, with capital stock
of $500, ,000, 900, began the work ofextend-
ing It's lines by leasing the Fort Wayne
aud Chicago Railroad, assuming the
debts of the latter and guarante, log per
cent, dividends on its stock. Snbsc-
quently it leased the United States Rail-
ways of New jersey, with d, bit Of 80
0N0 600, and guaranteed an annual
dividend of 81 9iS 500. IL also leased the
Philadelphia and Eiie, guaran 'eeing near.
ly Sl,CO0, 900 annually to the stockholders
and assuming the interest on a debt of
$14 600 coo.
In addition to these entqnglirg sI'ian-
ces the Off GERS Of the PENNSYLVANIA Rail
road Company have formed a second cor
poration, known as the ''Penns ylvania
Company" and which Cf course, Is the
old company under another name. This
younger company leases or controls, By
the ownership of the mij0rity Of the
stock. the Erie and Pittsburg. Cleveland
and Pittsburg, Pittsburg and Cincinnati
and st. Louis, the Columbus, Chicago and
Indiana Central. the Little Miami, Co
lumhuS and Xenia, the jeff rsonville
Madison and Vincennps, the Cincinnati
and Muskingun Valley, aud the st
Louis Vandalia and Terra Hlute Rail
ways, together with many other smaller
roads in The West and Northwest. The
debts OF al these roads are practically as
sumed by the Pennsy lvania people, and
seven per cent. dividends are guaranteed
upon their stock which Is greatly waterei I.
- "a NJ a I.ka oto 20
ment of the burdens assumed by Col.
Scott and his associates, shows the tre-
mendous burdens which they have as
sumed.
Now, in order to meet their liabilities,
the Pennsylvania Railroad Company has
been compelled to charge the highest
practical rafes Cf transportation in the
most favorable business seasons. Had
the country continued to be prosperOus,
oil might have gone well. The slightest
check, however, becomes serious reverse
TO corporation so heavily buIdcned.
with the falling off in its receipts, which
has necessarily followed the p0nic, the
Pennsylvania Railroad finds lis II unable
to pay the dividends it has GU .ranteed,
and at the same time 10 declare dividend
to its own st ckhollers. With enormous
assets, and business which in the worst
season would yield immense profits, the
Is drifting into bankruptcy
simply because In its e7gcrness 10 eXtpnd
its lines it has mad6 haste too rapidly,
and has assumed responsibilities which
are now proving too heavy for it.
| only echo the opinion Of men here
who are fully competent to idgs Of the
matter. when assert that this great cor
poralion, which few mo 1ths since
seemed so impregnahlr, will be compelled /
to pass its own dividends, and to post |
pone the payment of those Il has guaran-
teed. The vast field of Ii igarion Which |
this will open, and the consequent har- |
vest which the lawyers will reap, can be /,
imagined. The end viii probably he the /
up Of the great eonfederacv of
roads which Scot hls bound toytth n
"a result that will be terrible blow to |
'ur overgrown railroad corporation.