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

tcrfcu with n
lease (Sl7l, ,629 92)
showing an outlay
In operating them
under the lease in
excess Of their net
receipts Of S22i,-
2S9 oi...........- 3,l2l,357 ~
------ s,s62,O56 II
Sz5vo 423 "a
This balance represents the net re
suits Of the operations Of your sever.
al lines of railway in Pennsylvania
and New Jersey for 1872, and they
are thus stated that you may fully
understand the value Of your proper,
ty, nothing having been entered to the
expense account except the regular
transportation charges against the
business of the Company. In former
years the expense account was in.
creased annually, by considerable pay,
ments that might have been charged
to construction account, which, had
they been divided as profits, would tc
that extent have increased the pres.
ent Indebtedness of the Company
The Pennsylvania Railroad Uompa-
ny has also largo amount of proper.
ty that is at presen. practically un.
productive, such as controlling in.
terest in 22,l94 acres of anthracite
coal lands, stock 10 the Pennsylvania
Canal and in Railroads, the profits OF
which will, 10 a short time, add large
ly TO its net revenues, but which, at
present, are small, and have been de.
voted to their improvement.
1t will be seen by the preceding
statement that the surplus net profits
of the Company in 1872, without in.
cluding those from the sources alluded
to, were sufficient to have paid div
idend at ten per cent. upon an addi.
tional capital stock of nearly s24,.
100000, and there is every reason to
believe from the daily indications OF
the future business OF the Company,
that, without further outlays, the
profits Of 1878 would be equally sat
isfactory. But as it is the duty as
well as the interest of the Company
to meet the legitimate demands ofthe
public for increased transportation ia
cililies, the means necessary for the
object must be provided. The amount
required for 1873, for additional tracks,
equipments, shops, wharves, depois,
&c, &C., TO meet the demands from
the increasing tonnage of the Compa.
ny and its existing obligations is esti.
mated at s22, 100000.
The increase of the tonnage of 1871
over 1870 was 22t per cent, and in
1872 over 1871 was 10 $40 per cent.
upon this increased amount. This
rate could have been further increased
by tho possession Of additional roll.
ing stock and better terminal facilities.
The amount of rolling stock, &c,
added in 1872, though deemed ample
TO meet the wants ofthe public, proved
inadequate to that object. A further
increase of equipment involves, also,
large extensions of third track, sidings,
warehouses, and all other facilities
that a Railroad requires, the business
of which is already crowding all OF
its departments. To raise the means
desired TO provide for this anticipated
increase Of traffic, your Directors have
concluded that inasmuch as tho sur
plus profits of the year were largely
in excess OF the amount required to
pay the usual dividend on it's existing
capital, the most acceptable modo Of
raising this sum would be by distri
button OF an additional number ol
shares to the extent of 33t per cent
of their present holdings, ratably
among all the stockholders, whose
lanes may stand upon the books oI
tho Company on the first day of April
next, one-half to be paid in between
the lst and 24th Of May, and the re,
mainder $50 per cent to be called for
on sixty days notice, in instalIments
not exceeding rs per cent at any one
time.
The increase OF tho tonnage of the
Pennsylvania Railroad was chiefly due
TO the local traffic of the Line. Thi:
increase of traffic, not, however, 10 sc
great ratio, will, it is believed, con.
tinue for somo years to come.
To meet these annual requirement:
for additional funds, the Directors
have thought it best to adopt a revised
financial plan, and with that view
they have procured an Act of the
Legislature authorizing an increase
of the capital stock Of the Company
one hundred per cent, with the priv.
lcge ofraising by bonds, to be secured
by mortgage, an equal amount. A
certified copy of said act is submitted
to you, with this report, for your ac'
tion.
An application for an act TO increase
the capital of the Company and it'
mortgage indebtedness, in 1860, elici'
ted such strong objections in conse
quence of its apparent magnitude
from those who could not appreciate
the extent and rapidity with which
the traffic of the Company would in
crease, that II was thought expedienl
to cut down the amount asked for tc
s35, $50, 600, an amount which has al
ready proved to be wholly inadequate
TO the requirements of the Company
II has therefore boen thought advisa
Bile 10 discontinue the sale Of the pres
ent general mortgage bonds At th'
sum of $40, 100000, and provide BY
an additional general mortgage, al
amount sufficient to meet the future
necessities of the Company. The ba
sis for such mortgage was increased
last year by the issue, at par, OF sll,
932 900 capital stock, which IL is nov