The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1879-05-02
One of the Railroads OF the United states.

The Pennsylvania Railroad not only
from the extent and perfect equipment
Of its main line, but from the number
and widespread ramifcations of its con-
nectiOnS. is a work Of semi-natiOnal i'm
portance. 1t embraces in its operations
the most extensive railway system IN the
world. and represents much more than
nne-eighth of the entire mileage of the
whole country IN its stocks and bonds
a large army Of investors are deeply IN
terested. as well in this country as IN
Europe. Any Improvement IN its Imam
ciaI condition or di nmutiOn of its usual
revenues, closely reflect the prosperity or
depression of general trade.
Its reports, therefore, as they are pub
lished from year to year, are of great
significance. and, like those of the wealth
er from Wash ngton, indicate either
clear OF cloudy weather to the holders Of
its securities, and to our merchants and
fnancierS. In the annual report for the
last fiscal year. recently published IN
pamphlet form. all Of these classes may
find much TO encourage and nothing to
excite undue appTehenSions for the pres
ent or the future Without giving in
( detail the long rows of figures, which
I are full and complete, the result arrived
at for 1878 is that after meeting all cur
rent obligations, keeping the entire pro-
peTty III good condition, and making a
large reduction in the floating debt, a
semi-annual dividend Of two per cent,
has been paid, and another and larger
one honestly earned. This, in view Of
the extremely low rates imposed for a
large proportion of railway service dur
ing the period Of transition from imitation
to a specie basis, and the special disasters
to which portions Of all large railway
systems have been subjected by such
events as have characterized the past
few yeals, is not only satisfactory, but
to all parties interested must prove a
very agreeable surprise.
But behind this exhibit of receipts, eX-
penses and profits, there are other points
no less encouraging and Instructive
Necessity NAV be a severe, but it is also
a good teacher. and one of the important
lessons furnished by the statistics of the
report is that the Pennsylvania road can
make money even when the industrial
eXiGencieS require the adoption OF eX-
ceptiOnally low rates on large portion
Of its traffic, and that a very Slight ad-
vance in remuneration would insure as
large dividends as could reasonably be
desired or expected. This has been ef-
fected by rigid economy in the working
expenses. combined with the malnte-
nance Of high standard in everything
relating to the condition of the track
and equipment, and efficiency i'll the
plans of operating.
The condition Of the lines west fof
PittsburE has also been. TO q greater OF
less extent, a source of apprehension,
but in these for 1878 there was gain
over 1877 of $3.50. .G4S.2S, and profit Of
S716. 90. o.. the deficit in 1917 having
amounted to STA. .42S.4 Il. These rail
roads were. therefore. not merely instru-
mental in bringing to the main line and
its branches an enormous amount of
traffic. but were in themselves a source
OF profit.
Thus il viii he seen that the Company,
after fully providing for ali liabilities in
Cured. enhancing the value of its equip
ments, maintaining all its lines in per
feet condition without adding dollar
to The capital stock. but. on. the contrary,
diminishing its bonded indebtedness, the
lien due the State. and mortgages and
ground rents, has resumed dividends
with every prospecto their continuance.
Such an exhibit cannot fail TO strengthen
the faith of the holders Of securities and
the general public.