The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-09
PACIFIC VANS CONDITION.
Asked for by the Stockholders who Have Been
Watching the Decline.

In compliance with numerous requests
and complaints. tho Pacific Mail Steamship
Company has made public statement OF its
condition. 1t is signed by President Babcock.
and it says: The report Of President Dillon
for the year ending April 80. 1876. showed
gross earnings s5.5O0.Ol3.G9; expenses.
t4.915.ol7.9j; being a decrease in tho earnings
from the previous year OF 1925 637. 90, and in
expenses Of s2.0G2 17l22; tho result being
N,l37, l3il3 in favor OF that year over the pre-
vious one. This report also shows liabilities.
excluding capital stock. OF 1887 .s02.75. and
contingent liabilities Of 1928 1913 in ALL
t2.3jG SEAS. Available cash assets 81 .G47. 535
or Liabilities over cash assets. s7i9.O57.4S. 1t
has subsequently been proved that these sums
contained amounts as assets that can never DO
realized. and also amounts that were not real
liabilities and after eliminating such amounts
we find that at that date the Liabilities were
S2151l5S.l9: cash assets. 5000 .065.67: liabili-
ties over assets. 81 .iG7 .092.s2. These figures
are believed to fairy represent the condition Of
the company nj that time. During tho admin
istration ot President Clyde. for the two years
ending May 81. 1873. no report showing tho
earnings and expenses Of the company WAS
made and. in faot. though these years com
prise the most critical period 81 tho cou,uany's
history. no statement ut assets and liabilities
taken from the books WIS given tho storkhold-
crs. At The end of the first year April 30. 1871
the annual report showed nm apparent decrease
in liabilities of sl.lsjujO hut It omitted 10
state that largo part OF this sum WAS derived
from the following sources. VIZ: Sales
81 real estate at Hong Kong. t206.O0O /;
sales ~ throe old steamers. $4,000 (.
the reduction of coal and stores at agencies of
SlotlN ~. and receipts OF SUBSIDY from the
United States Government 81 f375OuO. amount
ing to $Sl7l39l9. Tho report sets forth in
emphatic language ~" bankrupt condition Of
the country on April 30. 1876. giving MS tho chief
cause the fact that the Panama Railroad Com
pany bad made an exclusive contract with the
II H4 "a ma n rn-
fused 20 DO business with the Pacific Mail Com
pany except at local rates and upon prepay
As tho Panama Transit Steamship Company
from THIS time plays SEQ import mt a uart in tho
history oil tnls company, u url"l history OF ~
career may b" interesting AMI instructive. Its
property consisted OF five steamers 81 ages
| varying from six g. eighteen years. four ~
viii eh " not all. had been cut and frightened.
or additional decks put on. or both, hy which
slmtl" process tho tonnage WIS Increased.
while ia" motive power remained ns originally
designed for the smaller vessels. BY an
agreement. which il j. fair t. ur, sumo WIS
not fu.lr understood hy Us Board Of Directors.
/ th"-o sHiiS wore to run In connection with the
/ ships of this company ON the New York and san
fruucisco lines. the division ~ net earning for
! four months being twu-ilths to the Panama
l,,-U rl'il-' .lp 'oi,pHty ana thrcr- llltir 20
! the Pacific Mail and fpr sixteen months. up To
Tie TIM 4 their sale 10 This COMPANY the di-
| vision 10 De- equal. one-hnlt e. each company.
! Under this nrrangrmcu; the Panama Steam
ship toWpnny took. us is share 90 the net earn
when written up. about $4,000 more than II
was entitled To-. and which amount IL j. conf
| IDENTIFY believed. cfti 10" recovered. On Feb .
! 1873. the famous iNr hasc Of the Panama
Transit ships WIS Hsil" by this company. and.
while 10 IL 81 m 'ult g. characterize this trHusac-
ton US IL deserves IL b. sufficient to- say that the
! sum agreed L. he paid Wis from SIS to $50 per
! ton moro ION the in"r ascd tonnage alluded to-
| than the hrst modern shiis nf rqual tonnage
| could have boon luiit for Ht thai tune
Tho term, of that contract ar" ~i't 'urth in de-
tail. and iruni them the deduction I- made that
the COMPANY was IN u depiurahle condition "
| when tN" present management came into
power. S.u'" then The debt To the Panama Rail
| road Conlruuy has steadily Increased and some
mobilization ~ the contract with that company
must Do" ff'.'trd
Appended 90 the remarks Of Capt. Bahcock is
| q ledger statement IL the company's condition.
II states that tho liabilities over cash assets on
! Dr'. l. l~7s. were 81 N73.Yll.4s hcing an in
cr'nsr slu. Alrii 3i. 1876. NJ to Arril 30. ISIS.
/ o. s9i'2iN.l'. But sin"' that date. ihn time -
iNr H.'+--. "a 90 the tow unuarrrncrf fhe liH' d.
/ iii'~ laNt h."n decreased iy s-3s 4-s u9. Tia"
increase 3D., Liabilities up fp Ana 50. 1878. j. ul-
/ ST tY f.r acquisition of o." Panama trIt~ 10
| -frant-hff- placed ON tu" hooks ~ n $50 uuu,
! l.rf.fl actual decrease ~ Liabilities il mad"
si 1853 o. O' t'.n 100. a.tnin. --. There - oWiil;
/ g. o." banana Railroad Clmltuy PAYABLE
! s-uwh monthly. commencing Feb. y. 1851,
/ 81 IN" 600. anil siiuNn monthly from date
| 81 jWu: ni-n notes maturing monthly o. May
! ls1A, flti4ll75. and Z, tao Panama Tr.u-l'
! Stau.- q tou.pauy. i27O0On. max total ha-
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