The New York herald., 1873-07-09

bteauly 70 increase For the past haIr year tney
nave largely excee led those OF any similar period
since the completion oi the road. The reforms be-
gun In the management OF the company's business
every department. and these expenses will be stiI
more largely diminished as the reforms In progress
are developed; and wnen tue present plans for .
double track and narrow gauge upon the whole
line shall De carried into effect there Is reason
why the cost OF operating this road in comparison
upon any Of the
OTHER GREAT TRUNK LINES.
We are rapidly increasing our facilities Tor busf-
ness. We have put in this season, already, twenty
miles or sdings, and laid ten miles OF second track
and we nays increased our coal postal and other
grades upon the line; and, when this Is done,
taken in connection with the cheapness Of fuel in
decided advantages over any OF It's rivals or busi-
ness la this State-this company viii be able to
overcome the disadvantages under which it mas
control Of local trarilc. These advantages now
future; ana the day is not far distant when our
proximity to and connection with the anthracite
Ohio win lar mops ops than coanterbaance he aa
vantages heretofore possessed by other lines.
The fupded QeRt Of the road has been increased
during the yea by the addition OF ten millions OF
convertible bonds, OF which eight millions have
already teen sold at par, In currency The re-
s s~S rate as as es
our new construction and equipment now in
progress Assuming all these bonds to be nego-
Reported July I, Observation-Disclosures $50 o4o lao
Total. .............. $40 O40, 140
The stock capital OF the company Is unchanged, as
Ieporteu July, 1877, VIZ. =
common stock,...... 600, 900
freisrreu stocK. S,5S6,9l0
The noating debt Of the company as reported
July /, 1872, was $646a66 20.
a
or equivalent to one months current receipts,
showing reduction since last July OF s. and
The grading for the double track is rapidly pro-
gresslnR Upwards OF forty miles Will be ready for
ther portion OF eighty miles win be completed,
making In all 120 miles to be constructed this
During the present season we EXPECT to
change the existing gauge OF the road from At
tica to Painted Post, distance Of one hundred
and from Painted Post to Waveriy, the third
ran on & the latter being already nearly COM
psson 1ns With ap snc gauge
cite coal fields. As rapidly as is consistent with
an economical change OF our present motive power
gauge OF the whole Of the main line and branches.
Not only Is this change demanded for the pur-
REDUCING WORKING EXPENSES,
but because we cannot so long as our gauge is not
In conformity with that OF our Western, Eastern
and Southern connections, secure large amount
OF tratfc now offered to us, II we could receive and
transport 1t without breaking bulk. The motive
power and rolling stock OF the company is in
more efficient condition than at any previous
period. as is shown b. the increased service which
1t performs. But the imperative demands 0i our
traffic will require, by the time the narrow gauge
track is extended eastward to Waverley, the fmme-
diate addition OF 1000 narr0w-gauge cars and 100
narrow-gauge locomotives, which we are now
about to put under contract. .-
In the month Of February last, in addition to the
annual dividend of seven per centum on the pre-
ferred stock, further dividend Of one and three
quarters per centum on the common stock was de-
The accounts, based upon which this dividend
was declared, have already been published, and
have In addition, been most carefully scrutinized
by committee OF the Legislature. At the time Of
making this dividend sundry important items OF
account had to be estimated, because oil the in
completeness OF the returns aud the backwardness
these estimated items came to be corrected by the
actual returns and the completion OF the accounts
IL was found
overestimated expenses, and, therefore, under
estimated the actual net earnings; and nothing
has since occurred to show, or even to raise Q
doubt that this dividend was not fully earned, or
was not properly declared and paid. On the con-
trary IL Is believed that the system then IN
ansuratsd' ausIar OF carrying the cost, paid from
and equipment OF the road to capital account,
taking care In all cases, to make ample allowance
for the necessary expenditures for full and ieeral
repa alton OF the road its equipment and ma
chlnery In every department, and OF tnen dividing
the whole OF the actual net earnings OF the COM
pany among its stockholders for the time being, is
policy equally honest and wise, and to this policy
OF airly dividing the actual earnings at short In
tervals. say semi-annually, among the whole body
OF stockholders the present Board Is fully COM
mitted upon principle.
AS before stated, iuil report OF all the AFFAIRS of
the company, including its earnings Tor the first
SIX months Of the present calendar year, is neces-
sarily deferred to about the end August next.
All OF which Is respectfully submitted. BY order
OF the Board PETER II. WATSON, President.