Daily Republican., 1881-05-04
pENNSYLVANIICOMPi ANY.
Issue of $4,000, 600
In4I-2 per cent. Forty Year
FIRST MORTGAGE GOLD BONDS.
ITn1er tho Ahsnluta Gnarantpp of the
PENNSILVA
RAILROAD
COMPANY.
Coupon OF Registered, free from National
and State Taxes.

The Pennsylvania Company is corpora
tion chartered in 1870 for the purpose Of op-
Grating, managing and developing the rail
ways west of l'ittshurY controlled by the
Pennsylvania Railroad Company.
To provide means for the requirement OF
additional property and the further develop
mcnt Of the Pennsylvania Railroad tompa
ny's system. the Pennsylvania Company has
decided to create n First Mortgage to secure
Bonds to the amount of $20ON 900 Of VIII ich
the present issue forms part, bearing interest
at the rate of 4la per cent. per annum, paya.
bic January and July l, the principal ma
turing in 1921, and both principal an inter
est payable in Gold. in the city Of New York,
from National and State Taxes.
The Bonds are issued in denomination Of
81 900 each and EVERY BOND HAS IN
DURSED THEREON THE ABSOLUTE
GUARANTEEDFTHE EPENNSYLVAN
RAILROAD COMPANY FOR INTEREST
AND PRINCIPAL.
The total authorized issue is further secured
by mortgage as a krst charge upon
lst. The leases for 9y9 years held by the
Pennsylvania Company, of the lfttshurg.
Fort Wayne and Chicago. the Cleveland and
PittShurA, and the Erie and the Pittshurg
Hallway THESE LEASES ALONE have
from the twelve years from their date to De
cemhcr 81, 1850, yielded an average yearly
net profit to the Pennsylvania Company cX.
ceedng one million dollars, which sum il
more than double the entire annual interest
on the $40 900, 900 Bonds at present to be is
sued.
ID. The company's valuable real estate in
the cities of pittsburg. Allegheny and thica-
20, and stocks and bonds in its treasury, to
the par value Of about $24. .OOO, 900, being
mainly securities Of lines forming part Of the
Pennsylvania system.
The company further agrees tthe perform,
anccs Of which agreement is likewise guar.
anteed by the Pcnnsy lvauia Railroad Com
pany) to purchase in every year in which
bonds Of this issue are offered ut q price not
above par. bonds equal 10 per cent. on the
then outstanding issue of said bonds and the
annual interest upon such bonds as shall
have been before that time purchased, with
said fund-a provision which should at all
times protect the price of the bonds against
any material decline below the issue price.
The Pennsylvania Company has no other
debts except s. 9Ol. 600 in dcbcnturcS. secured
by deposit of s. 10000 of the pittsburg.
Fort Wayne and Chicago Railway stock part
of the securities enumerated abOVr), and its
Gondcd debt cannot under the law be in
creased beyond the amount Of its full paid
capital stock, which Ht present Is SO 600 0OO.
exclusively owned by the Pennsylvania Rail
road Company.
The railway operated directly or indirectly
by the Pennsylvania Company comprise
system Of S,}64 miles, and the NET EA RN.
lNGS Of that company for the year 1850. af.
ter the payment Of all fiNcd charges, amOun.
ted 10 S3,O1l, ,$BS5
Those Of the Pennsylvania Rail
road Company on its lines east
OF Pittsburgh, after pay ymontuf
all fixed charges, t9,.......... 1885. 5j9ol