The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-04-14
The PENNSYLVANIA Railroad.

The Thirtcth Annual Report of the direct
or- of the Pennsylvania Railroad Company
prpfc-acs to set forth the company's husi-
ness for The year 1876 and its present nnan-
cal condition II contains quantity Of
figures, some elaborate statistical tables
and a great deal Of talk intended to bc on
couragng to The shareholders But Ike
most such documents, il skilfuily avoids
giving in plain and Ineligible manner the
Information which is most important ~
those Interested in the company affairs.
The capital of the Pennsylvania Railroad
Company proper is SG9DlV,OOo. it, bombed debt
S60.Oo0.o01, and its floating debt 100000
In addition. it has leases OF various rail-
roads in different states Of the Union. which
ohgc 1t TO pay lurgc sums for rent annu-
ally. All such lines west Of Pittsburgh were
turned over n few years ago TO a sort OF fic-
titous corporation called the Pennsylvania
Company. and they no longer figure in the
reports Of the PnnsBlcnid Raiirodd Com
pdnv But the railroad company still re-
mains responsible for their rentals, and
must bear any loss that may result
from their working. As the rentals
amount to s7,29l ,ooo, the leases under which
they accrue may fairly bc said TO be debt
81 slonoo,oN. The rentals Of the lines
cast Of Pittsburgh, as nearly as We can
make out fcom the items given, are sG,ooo.or
annually. and. since some of this is for in
torcst ON SIX pcr cent bonds it is fair to call
the leases debt Of s9l,oo),0,o. We have.
therefore, rs the total obligations OF the
company:
Cnfial siork CO. nono
Leases ui nAcs,asto. ............ .Hfuu"
roil....... ............ sJ-4uu0.u
i thus appears that. upon the enormous
capital OF SGs.oll,O,0 u,cie has been
piled up sun moro enormous debt
OF S45j.OOo.Oo. As interest and rent
ais must he paid in full before diyi-
dcnis. it Is plain that diminuiion II profits
tothr amount OF about onc-iifih will leave
nothing for tho holders Of the stock. and
wipe out its value How deeply Interested
they are, therefore, in thr management OF
the concern. it j. unnecessary to say.
If, now. a shareholder turns TO this report
for tine facts he neci- to aid him in JUDGING
how things are q ing. he finds himself
hal'i at every turn. The lines west oi
Pittsburgh are struck cut IL con-ideiu-
ton with merely the simple assurance
that th,ir earnings last year su1lccl
t. pay tAeir ro't Us AMI trile besides.
ihr business ~ Tie limos cast Of Pittsburgh
is mNei up with that of the main limo. $50
thu only 10y an elaborate calculation
can it Joe separated. A loas list is pre-
7en.cd OF bonds and stocks owned by the
company. but nothing is said of their
market value. A hriet account H. presented
of the catniugs OF the several coal and
mining corporations in which the company
is interested. but No. statement is given OF
their capitals and liabilities. A. to the
prospects OF business for the coming year
nothing is Told iin. LIT IL try and AID him
lliti" in uuraveAing the snarl.
The nct surplus oa operating tho ln"s
west Of Pittsburgh is reported at $4,000.
lui this Is exclusive oi the Interest -u.uon-
toal on silnni.lI1 ~ bonds of the Clrvcnul
Columbus and Indiana Central line. for
/ which iA" P'nu-,Nanm ltHlronl disputes
/ it's liability, bat wh.ed it certainly Will have
topay a. soon as the matter reaches the
proper tribunal. This interest amounts to
/ si.ojl.OlJ d year, besides the arrears. We
may therefore. set down the lines west of
/ Pittsburgh a. Involving. an together. a loss
of sl.olndJ last year, and probably more
This year.
ID.l.a- . limos cast ~ pf' 'urgh arcthe
/ Philadelphia and Eric lHrad .lnlrr
/ other branches in p.m-r ,'.n..l. the Ji.,'l
New Jersey railroads. ali the l,,.awlr'all
Rartn Canal o. tho ir-' oi th'-", tine
rental appears Z, Doe only thr unt carnin ---,
/ p, that % involves a. iu-s. Of tine rHn- i-
/ yann lines. TIRE nnt earnings exceeded ih"