Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1880-02-28
lanraster fntelliget1rer.
SATURDAY EVENING, FEB. %. 1890.
The PENNSYLVANIA Report.

The report Of the operations OF the
Pennsylvania railroad during the past
year is of the very favorable character
generally anticipated. The road has
been doing a very large business and
earning great deal of money. 1t always
has done so, and its business will steadily
increase with the prosperity of the favor
ed region through which it runs. There
has been but one difficulty with
the road and it is the only
thing which can cause prudent men
to decline investing in its stock at the
present price, or even much higher one.
The property honestly and prudently
managed is easily worth far more than
it's market price but the owners of the
stock, remembering their late experience,
must always have lively apprehension
that the revenue of the road will be
steadily skinned by its officers of its
cream as soon as it is rich enough to
bear any. Just now there is comparatively
little complaint against the management
on this score. The road is undergoing a
process of recuperation from the severe
bleeding of past years. But its manage
ment has not the repute of severe honesty
clinging to it, and its stock does not
mount up into the figures which would
he justified by the showing of its report
and the undeniable prosperity of the road.
If Reading stock is worth "a, with
no prospect of dividend, Penn
sylvania, which is certainly earn
ing very handsome one, should be
worth more than So :; and no doubt would
be if there was as much confidence felt
of its income being honestly accounted
for as is entertained of the honest appro-
priation of the Readings receipts.
The Pennsylvania road carried ten mil
lions more tons of freight and one million
more passengers last year than in 1878.
Its increase of gross earnings was nearly
five millions and of net earnings nearly
three millions. OF course the fact that
these figures appear in the report is not
conclusive evidence of increased pros.
perity, since there is nothing so false and
delusive as the arithmetic of a railroad
report but there is nothing to excite
distrust of this statement of increased
earnings, land the increased business done
is matter of common nOtOriety.
The managers give very conclusive
evidence of their habitual lack of frank.
ness in their reports when they admit
that they have marked down the value
of the securities held by the road to the
amount of more than million and a
half of dollars, so as to bring them tC
their true market value. Obviously
if these securities are now worth
so much less than the price put
upon them in the report of 1878, they were
then estimated at much more than mil
lion and half above their marked value
us everybody knows that there is scarce
ly marketable thing in the land that
has not increased in value during the
year. This eXemplification of the relia
bility of the statements of their direct
ors' reports will not tend to induce
the stockholders to place implicit
reliance upon everything they are
told in the report of 1880. But
independently of that they know they
have magnificent property Of wonder
full earning capacity which needs but
decent, wise and honest management tt
furnish rich dividends. They can put
their confidence in this knowledge will
more reason than in the annual figure!
they get, and upon the strength of it b'
satisfied with their investment.