Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-01-31
THE P, R, RS DEBT,
How it Has Puzzled Lawyers
and Stockholders.
A REPORTERS SOLUTION.
1t Owes Only S46O,000 and Will
Square Up on July 81 Next.
HOW PAYMENTS HAVE BEEN MADE

1nat d bne laSE OU years cauuOb Ot hEAIteh
reliably, even by an unbiased historian
with all the necessary material at hand.
The Pennsylvania Railroad Company Is
only "A wears old, and it is safe to say that
not one person in l, 900 of the adult popula-
tion OF the State can tell its correct history
nor come anywhere near it. Even lawyers,
unless they have had the company extern
siyely for client, cannot tell it, and yet it
has been the most IaIked-of institution in
the State.
As it seems that for many years to come
the people of this State are not likely to
own good wagon roads, some are inclined to
think that the Socialists, if they are ever to
accomplish anything, might begin by an at
tempt to secure the Pennsylvania Railroad
and turn it over to the people at large;
issue the credit checks suggested by Ed
ward Bellamy and try the effect of their
system on Pennsylvania. If it proved
q success half their battle would
be won. They contend that the
people might run railways and
in fact, almost everything comparatively
Just as well as they do the postofice system.
The purchase Of the Pennsylvania Railroad
is suggested as an experiment. more for the
purpose of testing the soundness of their
premises than anything else. just now,
when seas of mud bound nearly all the
farms in the Commonwealth, 'twOuld be
great relief if a granger could occasionally,
by going across lots, reach the railway cock
his heels up in luxurious parlOr car and whirl
away to the seashore. with no further expendi-
ture of trouble than the presentation of his
number. Even that expenditure might be
avoided. as outsiders must use the road. and
they might be made to pay enough for such
service to make it self-sustaining
THE GREAT ROADS CHARTER
While these enthusiasts are not satisfied that
the road could be had on the terms they were
prepared to offer, they based their hopes on
section . of the charter of the Pennsylvania
Railroad, granted in lS46 which provides:
That if the Legislature of this State shall, at
the expiration of 20 years from the completion
of said railroad make provisions by law, for
the repayment to the SAID company, of the
amount expe aded by them in the construction
of said railroad, and in the construction of
permanent fixtures, and all other appurten-
ances for the use of the same, together with
all moneys expended by said company for re-
pairs, atten Iance and otherwise for the pur-
pos IS of SAID railroad with intel est on such
sum at tn" rate of per cent per annum, after
deducting the amount OF tolls and other
revenue received by said company, for the use
of the same, then said railroad with its fixtures
and appurtenances shall vest in and become
the property of the people of this State, but If
the Legislature shall not at the expiration of the
said period of % years, claims the said railroad
etc, as aforesaid, tn N the said company with
all its said rights and privileges shall continue
for another period Of 20 years, subject to the
claim of the Legislature, as aforesaid, at the
expiration thereof, the same terms and con-
ditions as aforesaid, and so on, from % years to
% years.
IDEAS OF 40 YEARS AGO.
It's safe to say not in LOCO people living in
this State know that there was such provision
in the original charter. Some heavy stock
holders. when asked, acknowledged that they
did not know of it. What damped the ardor
Of enthusiasts more than anything else was the
fear that among the SO or 60 acts passed
relative to the road between the time
of its completion in 1852 to 1874 the
year in which the new constitution was
adopted, some one might be found releasing
the company from its obligations to surrender
under the terms of the charter of 1S46. Any
one who reads that charter will understand
that the lawmakers Of that day had not the
faintest conception of what the road and its
betterments would be worth 40 years later.
The language of the charter would indicate
that the enterprise was measured much on the
scale of the raging canal on whose bosom then
noated all the commerce between the East and
the West. 1t is even related that some of the
backwooos legislators supposed the road would
ascend grades as the wagon roads do, and that
the wheels of the locomotives would be armed
with cogs to fit into depressions in the tracks
Accordingly they thought speed would be low.
IN QUEST OF INFORMATION.
Search was made for several days for infor-
nation as to whether or not the State had legal
power to enforce section o, but it was an up
hill job. Beitel's Titles to Corporations only
increased the searcher's gloom, as references
to acts passed seemed interminable, and the
clause searched for might be but couple of
lines in a seemingly simple act for some other
purpose, and so it proved.
John II. Hampton, Esq, was asked how the
matter stood, and he said he had an impression
that the State had surrendered its original
right to take the road, but he could not say
certainly whether it had or not. He struck
the bulls eye however. by stating that he
thought it was in the legislation of 1857.
d: l. Watson, Esq, was of the same opinion
as MIR. Hampton, and he furnished pointer
which eventually showed that the worst fears
of socialism were well founded.
Under the charter of 1876. the State would
have had power to take possession in 1872 and
again in 1892 To do so might give US a vel
come surcease from the turmoil of politics for
who would descend into the mire of such a con-
test when conscious that he was about to be-
a
globe? To undertake the acquisition would be
a tremendous job, in fact some people think it
doubtful whether the State would swallow the
road or the road swallow the State and they
incline to think the latter would be the case
Were 1t possible that the State could prove the
victor, taxes would be enormous for some
years, for, of course, it would defeat the object
of acquisition to water the stock, so that out
Eiders might get controlling interest
NO DANGER FROM THIS SOURCE.
A telegram from the Harrisburg correspond
ent of THE DISPATCH, January q. says:
The act of March Z, 1861, will give you much
information concerning the Pennsylvania Rail.
road Company's purchases of the public works
On the day of its approval contract was made
in accordance with its requirements Prior to
that the company paid on account of the pur-
chase in 1857, SI79 9SS 75 and in 1885, S222969 o.
It also paid in interest in loans on account of
the purchase in 1855, $50 600; in 1859, SS7OOUO.
and in 1850. 1856 OOO 1t also reduced its original
indebtedness of s.. 500 900 to S7,I0OOO0 by pay
ments of Sl00 600 each in 1855 1852 1860 and 1861
Under the act of 1861 it paid $3.50 600 ON &C.
count of Communication of tonnage tax it having
already paid 100000 to cancel its indebtedness
In 1862 it paid $780, 000 and after that period it
regularly covered into the State treasury $780,
700 and il still owes S46000O S2S0 600 of which is
payable January 81, and S2SO0G0 July 81 next
when the company will have met all its obliga-
lions.
TERMS OF THE AGREEMENT.
This is in the main in the line of the compro-
mise of 1857, though, by the terms of that agree
ment, the company obligated itself to pay more
than the amount stated by the Harrisburg cor
respondent That agreement, embodied in an act
approved May l6 provided that anyone, ex-
cept the Pennsylvania Railway Company,
might buy the public works for S.5OOOOO pro-
vided no one bid more, but if the Pennsylvania
Railway Company were the purchaser at the