Millheim Journal. [volume] (Millheim, Pa.) 1876-1984, 1879-06-26

June letll, 1879.
To the Stockholders Of the Lewispurr, Cen
tire 4 Spruce Creek Railroad Company:
Your Directors submit the fol-
lowing Report Of the affairs of your
Company for the fiscal year ending
December lst, 1878:
All the operations of the road
have been under the management
of your Lessee. We believe the
work to have been intelligeutly and
economically performed, yet the fl
nancial result has not met our e6-
pectaiion.
The earnings Of the year were
$37,42S.06 the expenditures, S36,-
351.66, leaving net balance of only
$l,076.4 Al. This disappointment is
. somewhat relieved.by the ifact, that
the causes of the untoward result
are temporary ones. Our Lessee
took. .charge.of the work when in
an III Gnished>condition. The cost
of putting it in order for safe use
was under-estimated, ~and conse-
quently maintenance of way has
been charged with much that prop
erly belonged to construction. But
another anu more formidable cause
of failure was the complete poverty
of trade on the line of the road. The
increase of earnings'Iso Far as re-
ported for this year., are sufficiently
in.advance of;the~Same period last
year, to afford ground for hope that,
with a return of business prosperity,
our enterprise will show more en-
couraging results.
The Indebtedness reported last
year as due contractors for work
done on our late extension has been
paid by transferring to them local
subscriptions at their face Value,
without recourse to the Company
so that all claims for construction
on the finished part of the road are
now Iquidated.
Questions pertaining to adjust
ments for right of way were, by
resolution Of your Board of Direct
ois, placed in the hands Of the Com
pany's solicitor, Hon. Geo. +. Mil
Ter. His report, when made, will
be filed. The payment Of the large
sam of S102, ,034.35 for the privilege
Of locating a road through a region
originally clamorous for its con-
struction. does rot seem to inspire
forbearance on the part of claimants
still unpaid. 1t is matter for re-
gret that lack oT funds las prevent
ed cur solicitor from liquidatiDg ad-
justments agreed upon. Economy
to the road, and good feeling in the
community would both be subserV-
ed by amicable settlements.
The new Depot buildings are un-
finished, and lack conveniences es-
sential to public accommodation.
Additional water stations and more
sidings are required for the proper
working Of the road all of which,
though Involving no very great out
lay, should be charged to con
struction account, rather than to
maintenance Of way.
The entire road, from Montandon
to Spring Mills, is now in good con-
dition.
1t is conceded that the parties
west Of our present terminus at
Spring Mills have, by their early
compliance with the conditions up
on whlch7a finished road.was: prom
Used. entitled themselves to NEST
favorable consideration. In our
last annual report, we urged that
the consent of our bondholders be
obtained to setting apart the net
earnings of the road for its extern
sion. To bring this question more
intelligently b, fore the parties di-
rectlY affected, thorough examin-
alton of our graded road-bed from
Spring Mills to Centre Hall, dis
tance Of $40 miles, was made, i
was ascertained that the cost of re-
pairing graduation, completing bal
lasting, laying track, putting down
siaings, and erecting depot, would
be fraction )vcr forty-tWo thous-
and dollars.
Unfortunately, during most of
the year, current expenses exceeded
receipts, and consequently all nego.
tiations for extension was postpon-
ed. As the prospect for net earn
ilgs is now more hopeful, the sug-
&; stion Of their use for the purpose
heretofore indicated is renewed.
We believe such a concession by |
our boEdholders would appreciate |
their investment. and would do JUS |
lice to Stockholders west of Spring
Mills. II Eet earnings were set