New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-09-15
about 16 wears,
INVESTIGATING THE PENNSYLVANIA
RAILROAD.

| CONCLUSIONS OF THE CoMMrTTEE-sHRINKAGE IN
| THE ASSETS OF THE COMPANY-UNWISE INVEST
| MENTs CONFERENCE.-THE ROAD STILL ABLE TO
PAY 10 PER CENT DIVIDNED.
| IRON THE REGULAR CORRESPONDENT OF THE TRIBuSE.l
| PHILADELPHIA, Sept 14.-For several weeks
past a Committee Stockholders has been thoroughly
overhaulng the affairs of the Pennsylvania Railroad.
sitting with closed doors and preserving the most rigid
secrecy to It's Developments. The members OF the
Committee were appointed at stockholders meeting,
and the investigation grew out OF an Apprehension III
the Of many stockholders that the directors were
not ging the road with sufficient prudeuce-that
many Western roads had been leased on terms that
we're proving Improbable, and that in short, spirit OF
| unsafe speculation growing which ought to be
| checked. The result Of the investigation is bulky
volume of nearly 300 pages, showing q vast deal OF
| patient work. and concluding with statements and
recommendations of considerable interest to the rail
road public. Confidence In the present management OF
the road will scarcely impaired by the report, but it
Will no doubt tend to the maintenance or
conservative policy in future Such policy has al
ready been inaugurated following necessarily upon
heavy reduction IN business which resulted from the
panic Of year ago. The Committee go carefully over
the assets OF the Company, and put them through
process shrinkage from the values given in the last
official reports. The value of the stock owned by the
Company in the Allegheny Valley Road 10 reduced nearly
onehaf The stock Of the Philadelphia and Erie rated
trhe its bonded debt giving its floating debt only
| nominal Value, COmpanys IN Sne Pltts-
bnrg Cincinnati and st. Louis Road second preferred
stock is reduced two and quarter Millions the Com
mittee holding the first preferred tsock has no
market value No present value IS assigned to the
bonds OF this Road owing the dcpre
of the first mortgage bonds. The Company's interest
stock OF the Baltimore and Potomac Road Is
per share the earnings OF the Road being ia
judgment OF the Committee barely equal gold
interest charge on its mortgage bOLds.
The directors censured for the anomalous double
position OF landlord and tenant occupied
Philadelphia and Erie Road and for saddling the Com
PAW with loss OF S5,0O00O0 by making investments
south OF Baltimore without the consent OF the stock
holders In spite OF these losses and mistakes ability
OF the Company to earn its customary 10 per cent
annual dividend, and surplus beside Is stated as be-
yond doubt The steady dimnution Of loss unproa-
bic eases Is held TO partially justify these transactions
dictate that III the end they may be source OF
revenue
The value Of the Company's extensive Western con-
nections IL discussed In way that brings whole
problem OF the profitable management Of railroads
sparsey settled regions Of the West. The Committee
conclude that farm products will not present price
bear transportation and yield fair profit either
transp0rers or producers, that the tendency such
prices Ia downward that the railroads afford To
reduce rates, and that consequence they would do
better 10 carry less quantity VI freight OF higher
class value.