National Republican. (Washington City (D.C.)) 1872-1888, 1885-03-21

Your llueS west OF IltthDurg SNOW very
marked decrease in both gross and net earn
ings. This Is due not only to the falling oil IN
the volume of traffic from causes already
alluded to- but also to the very large reduction
in rates, the result OF severe competition Tor
the decreased traffic.
While the expenses were as far as possible
reduced, II was not thought wise 10 permit
any depreciation In the general condition OF
maintaining your entire Western system dur.
ing 1854 of 1851, liz as against profit of
$50, $3.50 In 1888. The freight movement
shows decrease of l,257, $50 tons, and the pas
senger traffic decrease OF 72Ssi in tho num-
Der carried.
OF the issue of So, 200. 900 of the Pennsylvania
company's per cent. bonds, secured by Pitts
burg, Fort Wayne and Chicago Railway Com
pany stock as collateral, 1855 900 have been re-
deemed through tho operation OF the sinking
fund, leaving the amount outstanding ss,44a,-
900. During the year there were sold at favor
able rates 81 25O, 900 OF the Pennsylvania com
pany AZ per cent bonds, making the entire
issue of that series Sl3, 75O, 0O0. The proceeds
| of the 81, 10000 bonds were used TO redeem
the Pittsburg, Fort Wayne aud Chicago Rail
way Company, which fell due March !. 1881,
and to provide the necessary capital for the
betterment of your western system.
The report made by the Trustees OF the sink
ing funds of the first and second mortgages of
the Plttsburg, Fort Wayne and Chicago Rail.
way Company shows that the regular annual
contribution of 100000 was paid TO the Trus'
ing the year $780, 900 of the first mortgage, and
SlO5 900 of the second mortgage bonds, making
the total amount redeemed to Dec 81, 1884;
First mortgage bonds. 800 90
Second mortgage bOuds.."........... l,oOO,OOO W
With a balance of cash In the hands oil the
| trustees uninyested Dec. 81, 1854;
| on account Of first mortgage sink
Ing S2lT,o9 DO
| On account OF second mortgage -
SINKING lund. lo1aoV w
The further sum Of sllo,si2 was also paid
| into the sinking funds provided for the re-
demption of the existing mortgages on the
| other leased lines west OF Plttsbilrg, in addi-
| ton to the amounts contributed directly by
| the individual companies,
Company was able during tho past year. to
earn sufficient to provide for all It's fixed liza
| bllities, and your company was not called
upon to make any advances TO that company:
The land department made sales OF 1871
acres, almost entirely farm lands for S9l
$685., being all average OF SS.47 per acre. The
entire amount sold TO tho close of the year,
after dcductiug cancelled contracts was
i030s.33 acres, and the aggregate price re.
ceivcd therefor was 81 900, GLIB, an average OF
| Sl2 Is per acre Out OF the proceeds such sales
the trustees redeemed during tho year sll4,OOO
| of.the first mortgage bonds OF the company
making the entire amount exchanged for in
come bonds to the end OF 1884, as reported by
the trustee, S2,55l 900,
The suit referred to in the last report as
| having been instituted against tho Grand
| Rapids and Indiana Railroad Company for u
| proper adjustment of the claims held by your
| company and tho Pennsylvania Company
\ has been brought to an amicable settlement
| by which your company, in connection with
| the Pennsylvania Company, have received in
| payment of the amounts due them, with inter
est thereon, 81, 100000 of per cent. bonds, and
| 1881 900 of per cent. bonds, secured by mort
| gage; the former being subsequently, lien only
| TO the outstanding first mortgage bonds These
bonds are believed TO be good security, and
| your company will in all probability be able
to dispose OF them. If it 80 desire so as to be
| fully reimbursed for all the advances hereto.
| fore made TO that road. The assets on hand
Dec 81, 1884, applicable to tho redemption OF
| the first mortgage bonds WERE
Cash in the hands of the trustees. s376,S97 50
| Cash In the hands OF casher.....".. 292l3 "a
| Bills and accounts receivable in
hands OF ashier.'.,..','',"..'".." 4So,2l3 63
Total Se9l,33l %
During the past year considerable eXpendi-
| lures were made In the construction Of addi-
| tional and improved shop facilities at Column
| bus, Indianapolis aud Fort Wayne, and in
| providing az various points additional side
| tracks aud terminal facilities.
During the year there were laid on the
Northwestern lines operated directly In your
| interests 0,di2 tons, and on the southwestern
| lines IL 900 tons of steel rails
The amount expended during the year on
capital account on the lines west OF Pittsburg
was Sl, O52, OOO.Ib,
The aggregate amount Of steel rails laid In
| 1884 on al lines owned controlled or operated
| by your company east and west OF PittSburg
was 6O,6O2 tons.
GENERAL REMARKS.
Under the provisions OF the Trust created
| Oct g. 1878, there has been paid, 70 Dec, 81.
| 1884, the sum OF So 100000, which, with tho in
| come thereirom, has been invested in securi'
ties amounting ut par TO si423,750, yielding an
interest of SO6-l 900 per cent, per annum upon
! the Investment
The subject or the continued Hppro priation
| of S6OOOOJ per annuIn as provided in the trust
| created Oct ., 1878, has had the careful con
| sdeTaton of your board. IL will be seen that
! the par value OF the securities in the trust Is
nearly S,42iOOO, and the income therelrom
! exceeds s3O0,OO0 per Nnnum The principal
| object had IN view ut the time OF the creation
| of this trust namely, an Improvement In the
| market value OF all securities, the principal,
interest, or dividend upon which was guaran'
teed by the Pennsylvania Railroad Company,
has been attained. Your board are OF the
opinion that the income Of the iund ms II now
| stands should continue to DO added TO the
principal and the monthly appropriation OF
SlO0JO bG reduced to AN amount equal TO
perCeutum Of the net income Of the company
| before payment OF dividend TO the sharehold-
Crs. On the basis OF the net income for the
past year the appropriation to tho tund would
have been about $4,000 Instead Of 100000, 1T
this suggestion is favorably received by the
Shareholders your management would recon-
mend that the incoming board be instructed
TO give II least ninety days notice of the tax
ing of stock vote on the approval or dis
approval of this proposed modification Of the
trust,
Tho statement of the insurance fund show
the assets on hand at the end of the year 81
liQ,0900j, being an increase over the previous