New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-25
THE PENNSYL VANIA RAILROAD COMPANY
DEFENDED.
TO the Editor Of The Tribune.

TO the Edifor Of The Tribune.
SIR: beg leave to avail myself of the priv
lege OF your columns TO say few words IN reply to the
article of your correspondent "a B. Co." in reference
10 the affairs Of the Pennsylvania Railroad Company
The object Of that communication apparently to deter
the stockholders from subscribing TO the stock al
lOted hem for which the writer give us no better
reason than his unwDgIess to accept the statements
OF the earnings rendered by the Board OF
Directors To weaken therefore, tho faith Of others In
the veracy and integrity of the Board, he introduces
comparison between the earnings and expenses of the
year 1865 and the year 1872
1t Is remarkable statement IN the history OF any
railroad that 1t should have moved more than double
the number Of passengers and more than treble the
freight tonnage at merely tr1ng percentage increase
OF operating expenses But the author of the communi
cation has entirely overlooked the policy Of the Com
pany declared In its reports The lack Of rghtful
appreciation of this policy which has so often been de-
elared involves either absence OF intelligence
preciate it unwngness to acknowledge It, This
policy up O very late period simply 10 charge all
OF Improvement to the road and Of additional equip
ment to the operating expense account The Board Of
Directors made especial reference to this fact In its
report of Feb. 10, 1868. as follows;
The shareholders referred 10 the statement OF the
Treasurer annexed TO this report for exhibit Of the
comparing 1t with former statements 1t will be seen that
the of the railroad from Harrisburg to Pittsburgh
stands upon the books Of the Company at about the
1309J0 that 1t did In 1854, the year that 1t
opened as continuous single track railway between
those cities Since that time there hGs been added upon
this potion Of the railway, excepting three miles.
second track throughout vita shops sidings depots
&C., sufficient 70 accommodate more than fye times the
traffic that then moved the cost OF which, II carried
10 construction account would have sweled 1t TO
s20oo0oO second track has also been added 10 the
Harrisburg and Lancaster portion OF the line between
has likewise been charged TO expense account The
Philadelphia and COlumOla Railroad purchased OF the
state In dap1dated condition, has had Its supersrue-
jare rene we'd and all OF ts wooden bridges OF Lam
caster removed aud iron structures substituted
while the purchase money has at the same time been re-
cuced from $,50o,0oo its cost, TO t5,S75,OoO.
In this respect. the Pennsylvania Railroad Company
stands exception to every other railroad in the
United States While the cost OF the road Its real estate
and It's equipments stand upon It's books assets OF
sI2 $780, the actual cost tho Company OF the
struction OF the road between Harrisburg and Pl,t
bursh the cost of the Philadelphia and Columbia road
and improvements placed thereon the actual Of i
equipment and OF It's real estate amount to s85O00N
which Is far below Its present value. There not
railroad expert In the country but will agree that
is low valuation for the items above mentioned Here
is an excess OF in favor OF the stockholders Of
the Company This excess has been established as have
stated by charging IN past years nearly everything
pended upon construction and equipments 10 operating
expenses Instead Of construction account also by
the advance in the value OF the real estate owned by the
Company. seeinO TO djSoredit the report
OF the Board OF Directors showing that the net
inss OF the road fol- 1871 Ss2l752 10. II these
gentlemen can be convicted OF willfu misreptesenta-
tons. let the attempt be made but 1t is Board com
posed OF the respected and most intelligent cit
Of Philadelphia mon whose record for honor and
integrity has been sssailed, even where aDeled
wrongs have made them subject 10 the malice Of disap
pointed ambition. Amy one who has any knowledge Of
the affairs Of the Company is aware that 1t up
ward OF s5ooOoeOo-being tho present cash value-of
bonds and stocks OF other cOmpanies the interest
realized from these securities s punctualiy paid and
gives the Company income which nearly meets all tho
interest on Its own Indebtedness. 6IocKHoLDER.
Het0 York, April a. 1873