The times., 1898-03-01

wears to run and bearing three and one
half per cent interest. These certificates
were issued by the Girard Life Insurance.
Annuity and Trust Company, of Phladei-
phia. as trustee, and are secured by the
deposit with that company of an equal
of the seven per cent guaranteed
special stock of the Pittsburgh, Fort
Wayne and Chicago Railway Company
The PENNSYLVANIA Company covenants TO
pay the principal and interest of these
certificates. and your company guaran-
tees the performance of that obligation.
They constitute series A of an authorized
issue of 20.pGO.600, and the other series
will he available from time 10 time for
the capital requirements of your Western
lines.
Among the securities to be provided for
through the sale referred to are the sec
ond mortgage bonds of the St. Louis,
Vandalia and Terre Haute Railroad Com
pany, maturing May 1st, 1898. and
amounting to s.. 500, 900 For the purpose
of protecting your interests in that road
i'm which your system has a controlling
interest these bonds will be purchased
aud held until the relations between the
Terrc Hautc and Indianapolis Railroad
Company and its leased lines are further
an justed.
No definite result has yet been reached
in the litigation growing out of those
leases and the guarantees made by the
Terrc Haute and indianapolis Railroad
Company prior to your securing the con-
troll of that system. The property IS
still in the hands of Mr.. V. r. Malott,
as receiver. and has been faithfully and
prudently administered in the interest of
its owners and creditors. But the cur
rent revenues of the system are unable
to meet its obligations and provide for
the renewals and betterments absolutely
essential TO the proper maintenance OF
the property; and it would be greatly to
its advantage if an equitable basis could
he reached, satisfactory to the various
interests involved, upon which its liabili-
ties could be brought more into accord
with its earning capacity.
The rebuilding of the bridge over the
Ohio River at Cincinnati was completed
on the 22d of May, 1891 and the improved
structure furnishes admirable facilities
for rail. trolley and highway traffic. The
reconstruction of the passenger station
at Columbus. Ohio, was also practically
completed on the second day of July, 1897
and it is now fully adapted to the re-
quirements of the passenger traffic at
that point.
The number of tons Of freight moved on
the lines west of Pittsburg was 81 500 .056
an increase of 5.623,9l6 The number OF
passengers was l., ,532, 20 decrease oil
S46.559.
The gross earnings of all lines east and
west of Pittsburgh for the year were
S12S,2TS, 015S6, operating expenses, SS1Gil ;.
03191, and net earnings. $40. $50 ,O54.a5. al
increase in gross earnings, compared
with 1896, of 81 .636. .S1S.56, and in net earn.
iEgs of $5.S25 ll6.04 There were lj9.515
$50 tons of freight moved. being an in
crease of L. .323, 306 tons, and 6S, ,S4S 697 pas
sengers carried, a decrease of 3,0Il, ,163.
GENERAL REMARKS
1t will he noted that there was no in
crease in the funded debt of your Com
pany, and that the obligations issued by
the Pennsylvania Company We're at the
lowest prevailing rate of interest. and foI
the purpose OF redeeming seven per cent
securities about 10 mature on lines form.
ing a part of the system of that Com
pany.
The report of the Managers of the
Trust created October g. 1878 hereto ap.
pended. shows that there has been pait
by the Company to December Il, 1897
the sum of 81. .655 4j6.50 that the total in
come theretrom has been 81, 525 1868. an(
that on that date securities amounting
at par to $s, I20, 40 were held in the Trust
| There was appropriated to the Trust fo
| the year 1891 the sum of s94. 4l0.47.
This Trust having been in operation fo
nearly twenty years. it has become quit,
| difficult to purchase the securities pre-
| scribed by it's terms. its operation beinl
| now confined to bonds or stocks of which
| the principal or the interest or divident
| thereon had been guaranteed by you
| Company prior to its creation. 1t il
| deemed wise, therefore, that its scop
| shall be enlarged So as to include suaran
| tees made since 1878, and its continued ef
| ficency thus assured. \ resolution I,
that effect viii be brought before tn
! stockholders at the next annual meeting
| the notice required by the terms of tn
| Trust making it necessary to defer ac
| tion until that time.
! The assets of the Insurance Fund 1T tn
end Of the year We're g. $50, ,363. 80 being al
| increase of $12& - as compared witt
! 1896.
The membership of the Employees Re
| lief Fund Of the lines east of Pittsburgh
| and Erie at the close Of the year was 43,
| go. the largest since it's establishment
| During the year the members contribute
| $l39 052.21. while the company and its al
| tiliated lines contributed S109 6l9. 50 for Op
| Grating expenses. and $45. go for extr
| benefits to members whose disability ha
continued for over fifty-two weeks an
| who were, therefore. no longer entitled I
| regular benefits from the fund. The tota
| receipts We're $9li. 1912 and the balanc
| on hand at the beginning of the year 1886
| $500. After distributing $3OS 2S431 i
death benefits, and $32G. .933 96 in cases O
| disability arising from sickness and ace
dent and meeting all its obligations an
providing for unadiusted death claims,
balance of $50S, 1865 remained TO the cred
it of the fund as as the result of it's OF
| eratiOns for the last three years. out
which must be paid unadiusted claim
for benefits growing out of sickness {
| accident occurring during that perioC
| There Will probably be a surplus Of $246
| $3.50 after providing for such liabilitie
making its aggregate surplus for the eI
tire period of the fund $616, ,523.1S.
The number of depositors in the En-
ployeS Saving Fund at the end of tn
| year was 5,26I, an increase of 323. ,Th
| amount received from depoStors durin
the year was $479 424 and the balance
| the fund at the close of the year was 81
953111.72. of which 81 500. 600 is invested
securities bearing interest at the aYerag
| rate of four per cent.
| 1t will be remembered. as stated i'm tn
| last annual report, that the heavy r.
ductiOn in traffic and revenue conSeuler
upon the depression heretofore eNistin
in the commercial and manufacturing il
terests of the country. had compelIe
the discoutinuancc of the greater porto
of the work which was in progress in Z,
| Vising the alignment and grades of II
main line As a consequence thereof. II
large expenditure already made RENAME
unproductive. and the work was not 7,
| sumcd until the latter part of 1897. whe
more favorable conditions justified il
| continuance. II has since been reSularl
prosecuted at kinzer on the PHILADELPHIA
| division. and between Lilly and PortaE
| and from Concmaugh Furnace To Nm
| Veh on the Pittsburgh division. while
| has been finished at Rheems, on the 70
mer division, and, except the laying
the track, at Radebaugh, on the latter d
vision.
i'm conseuuence Of the late period in u