Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1893-03-09
The Pennsylvanfa Railroad

1t Ia almost forty-ssven years ago since
the Pennsylvania railroad Was chartered
and little less than that since work was
begun upon what Is to-day the greatest
railroad in the world. This does not dis
parage in any way the New York Central,
which has grown into q magnificent sys-
tenn from the little tramway on which
Thurlow Weed was one of the first pas
sengsrs; the Reading, whose revenues are
second only to those of the Pennsylvania,
nor the Baltimore and Ohio, which was
chartered for the same purpose as the
Pennsylvania-that of surmounting the
peaks of the Alleghsniss and permitting
all rail transit from the Atlantic coast to
the Mississippi. These were all nstions
works in the inception, and they were
aided by the states.
The Pennsylvania Railroad company
stands to-day as the greatest of corPors-
tons In the amount of capital invested,
and its daily receipts and disbursements
are also larger than those of any other
company In the world. The distance be.
tween Pittsburg and Philsdelphis Is only
444 miles, but the earnings of the main
line and branches upon that system east of
the Ohio were last year $4e, TAO, ,1S6, and
| after paying all rentals and interest upon
guaranteed lines, there was left q balance
| available for dividends to the stockholders
| of $40, sos, $40. With the conservatism
/ that has always characterized q manage
| ment in which there has never been q
4 change save by the death of officials,
| there was paid ont of net earnings
last year $50. l79 for the purchase of Sc
curities, 1924, ,7S0 for sinking funds and
81 1858, ,1S6 for Strengthening and improv-
/ ing tracks and grades. After these liberal
i charges to a general renewal and sinking
fund account 6 per cent. dividend was
paid and surplus left of 81 ,s22, 357, which
1 would have sufficed TO give q further
dividend of per cent. more If the direct
ors had thought 1t advisable. This amount
was increased by 81, 127, ,02s by profits on
Il securities sold, returns on doubtful sc-
i counts and the dividend from the Pennsyl-
vsnis company operating its western lines.
i These figures sre repeated In somewhat
J greater detail than would be necessary
were 1t not that the system is so great and
that Its location is such ss to reflect very
accurately the conditions of railway trans
| portstion in this country. Within q dis
| tance of twenty. five miles on either side of
the Pennsylvania system live more than
half the people Of the United States, and
yet the Pennsylvania stops on this eide OF
the Mississippi.
There are two other points In this i'm.
portant report which can hardly be dwell,
upon with too much force. The company
has striven to protect its sc. 900 employees
as well as its stockholders. There was
paid out of the employee relief fund dur
ing the year $6l5, ,27l, or more than $50,.
600 q month, and the average amount
given on death benefits was 1851. The
employees saving fund has already reached
more than q million and is securely in
vested In 4 per cent. bonds.
That such results should have been pos
sible under the conditions of the past yesl
Ia remarkable. The railroads have been
confronted with freight rates 90 low thai
an increase of business has not always
meant increase of profits. For this reason
the directors present 8 very foroIble argu
ment In favor of snch changes in the inter
stats commerce act as will enable them tC
handle their traffic upon business princi
Piles, SO that the service will not be less eff
fsient, nor the rates advanced, but the cos
reduced. The greatest railroad IN Europe
the London and Northwestern, with wage
less than half those paid by the Pennsyl
vanis and quite as cheap fuel, Is operated
at cost to the public more than doubl,
the average rate charged by this grea
American company.