Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-02-26

become questions worthy OF colsideratton.
ana as They may not be correctly understood. .
lt is wen briefly to state them. The Penn
sylvania Railroad company owns opera teS
or controls 1888 miles of roadway, or about
81 per cent. of the total mileage OF railroads
IN the United States. This mileage repre-
SentS capital Of Ss9S. .261 .615. redirect lines
OF the company have termini at New York
fhlladeIphia, Baltimore, and Washington in
the east. ana Erie, Cleveland. Chicago 81
Louis. Cincinnati. and Louisville in the
west. IL has paid regular dividends of 10 per
cent To its stockholders for many wears In
cludlng the two last years of general depres-
sion, and was able at the commencement OF
the present year tO anticipate. by threa
months, the paymentat at par, principal AMI
Interest. ofitS second mortgage bonds ma
turing in 1875. In addition 10 its widely eN-
tended field of operations. reaching all the
principal cities in the union. its main line
between New York and Pittsburgh passes
through probably the most proftab bic region
Tor railroad traffic on the continent Its con
Struction il second 10 none for excellence and
permanency; its equipment il fuil and com
plete and its terminal facilities are aS per
iect for the economical and prompt tranSac-
ton OF business aS they could well be male
, Probably no American raj road ever pa s~ei
thTough aS searching an ordeal as the Penn
SNlNauld was subjected IN the summer of
1874. when committee of Stockholders wa.
appointed aud empowered 20 examine fully
ana thoroughly into its condition .hnancialIv
anu materially, past, present and proSppc-
tive. AS the result of that investigation the
Committee reported that the total assets of
the company, reduced to their minimum
Nalue, was SlIS.S,l.IsS- and the bonded debt
and capital stock were S121 so. so. leaving "A
surplus TO the credit OF the Company Of
SJ0.Sl0.g30
RESOURCES OF THE BALTIMORE AND OHIO
The Baltimore and Ohio Railroad controls
according 10 the best information that can
be obtained. 925 = miles Of roadway, OF which
253 miles are i'm the state of MARYLAND L.
has terminal facilities at Baltimore, Wash
ngtOn, Pittsburgh aud Chicago-the line
connecting with the last-named city having
been completed last Autumn. 1t pays reg
uIdT dividends oi 10 per cent, but pays this
only on capital stock of SI6,1ll ..lO0-all it,
surplus over the original capital of this
amount being carried as fund invested in
Improvements. rolling stock. new works
and connections, aggregating, according ID
the last report, 80, II. loo. II the system of
accounts OF the Baltimore and Ohio Railroad
were the same a. the New York Central. for
instance, its statement for IS.4 would be
Indebtedness. $50. |. .l3}: net earnings. s.
6.l49-an exhibit by no means as favOra ble
as mat OF the Pennsylvania Railroad Com
pany. n writer i'm a New York paper, ian
commenting upon this account, says =" As
compared with the New York Central or
any other of the great trunk lines. the posi-
non OF the stockholdGr of the Baltimore and
Ohio is simply this: that while Stockholder
IN the former claims not only dividends upon
his original investment. but also on the in
Vestment of his earnings, the stockholder OF
the latter is content with a good regular div
ldend. An original StockhOlder of the New
York Central or Pennsylvania Road has re-
celved more money from his investment
than an original stOckholder in the Balti-
more ana Ohio"
In further exemplihcatiOn OF the hnanci al
policy Of the Baltimore aud Ohio Railroad
Company, and as exhibiting fitting con-
trast with that of the Pennsylvania Rail-
road Company in its dealings with its stock
holders, the annexed extracts from the last
report made by President Thomson have
Ohio Railroad Company, from the necessity
OF applying their whole net revenues TO the
construction OF their railway, and not from
choice, pursued for many years
conservative policy. having paid the share
holders OF its main line dividends averaging
only three-tenths OF one per cent per annum.
per cent for the first 20 years of its existence
an amount Just equal 10 the payments by
this Company in dividends during the first
year OF its organization.
For the following six years the Baltimore
and Ohio Railroad Company paid To the
shareholders or its main line dividends
averaging = sf one per cent per aunum.
amounting in the aggregate TO bat ~ per
cent for the entire period of six years. while
the shareholders Of the Pennsylvania Rail
road Company received for the same periO1
50 per cent from the profits OF the line. and on
the completion or the railroad 10 PittSburg
with single track, there was left from the
net profits of the railroad S2S7 ,i3l.il, which
amount, under the provisions of its charter.
was credited 10 the cost OF construction, thus
reducing To that extent the capital OF the
Company. From 1888, when your line was
opened 10 Pittsburgh, up TO lsI3-twenty
years-the dividends OF the Pennsylvania
Railroad Company have averaged $40 per
cent per annum, the total dividends of the
Company from its organization TO the lst OF
January OF this year having been 23l per
cent"
THE BALTIMORE AND OHIO RESERVE FUND.
The assets composing the boasted reserve
fund Of the Baltimore and Ohio are not al
together OF the most substantial and salts
factory character. For instance. among these
assets are Liabilities of the Parkersburg
Branch road, aggregating, according 10 the
last report OF the Company, - .9i+ 80. 81 while
The same report shows that the branch was
operated, during the year covered by the re-
port, al loss Of Slt0, 1868. and showed a net
falling OF from the business of 1873 OF S2jG,-
Zoo.t6. In these same assets are included stock
of the Washington Branch to the amount of
Sl ,O2i 800, while that branch showed a de
crease OF earnings from 1873 OF SJ7 ,452 y. aud
rom 1872 OF sl07 Sells. This Wash ngtOn
branch stock may be good, but as it cannot
be hypothecated without carrying with il the
control Of the road, il may Justly be claSSeI
as unavailable assets in an emergency. The
washington and Baltimore Rail-
road, lin which," according to Ver11on'S
1.-The Baltimore and Ohio are large
~ mterested,' contributes to these assets. in
Stock ana ponds sSiS and was operated
al an annual loss, during the last fiscal year
of which return is at hand. of 50, ,l2I 80. IL
weuld probably be bO. IN unnecessary and un-
KIND 10 pursue an analyZatiOn Of this vaunt-
ed reserve fdnd any further. Even this haSty
llc very iavorabiy with the financieTing poll
cy or the autocrat OF the Baltimore and Ohio.
ana were all theitems composing Ii subjected
10 tne test OF investigation as 10 basis and
cash value, The result would undoubtedly be
2 reduction in aggregate that would surprise
many who have been satisfied to accept the I
stereotyped reports, which explain nothing,
as all-sufficient.
So far as local traffic goes, the Baltimore
anu Ohio Railroad Company is far behind its
great competitor. West of Cumberland. its
three branches-the main stem to Wheeling
the branch TO Parkersburg. and the ConnellS-
VILE line 10 oPittsburgh-pass through a COM
paratively wild and unproductiye country.
destitute OF large towns, limited in popula-
ton, containing few manufacturing indus
tries, and poor in mineral resources. These
lines are only single track roads. and cannot |
IN any sense be considered up 10 the standard |
0f first class American railways.
One OF the charges persistently made by The |
Baltimore and Ohio management against the 4
Railroad is, that it is a mCnop- i
Oly, using its great power 70 oppress the pub
ic by extorting high rates for traffic and i
travel. To this charge, which comes with /
singular III grace from a corporation having 4
such well-known history as Its competitor i
and assailant, the official figures, accessible
to ALL are the best answer. u the last report \
Df j. Edgar Thomson. the President OF the /
Railroad Compa ny, submitted I
10 the stockholders few mo. tbs before he i
lied he says; "One of the compla ints against /
ailway Companies by the advocates OF cheap 4
IA farsportatiOu is that the railway capifal OF \