New-York tribune., 1899-02-12
finaurial.
FINANCIAL FORECAST.

Some nine years ago. certain individuals owned four
railroads west OF Pittsburgh. At that time the Penn
syvanla Railway Co. did a railroad west OF
Pittsburgh for south-southwes business. The Pennsyi
managers therefore desired secure the control Of
such a property. With that end In view they entered
into negotiations with the Of those four railroads
They asked the four railroads to merge
their interests into one corporation and give the Penn
syyanla Railway Co the control OF that new corporation
To induce such contract and exchange
their old securities for securities the corporation
certain conditions agreed upon In reference 70 'hs
new company. As to dividends the new stock the
following explicit words used The net earnings
Of the company the be found and deoiare1
by the Board OF Directors but otherwise shall be
applied to the payment dividends each year on the
preferred and common stock"
Year after year since that time Directors OF that
corporation have published annual statements 10 the
stockholders and IN those statements have found ana
declared net earnings They have not Ief'
regard to such net earnings They used these
words met earnings 81 s5s,5ssGo" This was FOR year
1897. earnings s4ss4 76 90" This was for year
1898 The Directors made similar statements OF net
earnings for previous years yet in recent years they
have not given stockholders dollar ON the con
trary they have accumulated millions u surplus Now.
We understand the United Courts have been asked
10 appoint receiver for this surplus with View I"
distribution among stockholders.
the those four roads would agree to
consolidation they demanded provisions for improve
mens language in reference to the preferred
and common stock was: The stock OF the new company
shall be issued by the Directors from time 10 time Tor
Improvement Of the companys property the purcna'e
and Of additional railways aud other ia"t
purposes" The Directors have expended many m'''ns
OF dollars additional railway track Pittsburgh 10
Columbus and similar double track IN other localities
and have paid for elevatng tracks IN Chicago and eS
pended other large amounts and yet have not recently
sold one single share preferred or common stock We
understand the United States Courts now asked TO
grant an injunction preventing further Of net earn
ings in this way. and are also asked to require 'ha'
securities shall be sold and the proceeds paid over
to the stockholders originally contemplated
The p. C, c. & ~. l.. stockholders are entitled TO
many millions ot dollars in immediate cash payments
They are also entitled the net earnings hereafter
which will yield them 7. lO9 developments pro-
c-ed.
The pennsylvania management "a now trying to buy
Fort Wayne guaranteed stock at or near 200 when Is
worth more TO that management the Fort Wayne stock
On road controlled absolutely lease 900 years TO run
r Pan Handle stock which they cannot control as they
cbooss eycep, tv violating individual rights? II they
were now, trying to buy Handle shares. they would
be acting more wisely We record the prediction '"a'
y c. C. & -, I. stockholders will receive more money
in dividends during five years than the stock
holders OF New York Central Pennsylvania Railway 81
Paul. Burlington or Rock Island
PENNSYLVANIA. We have called the Pennsyi'snia
Railway property q business miracle When we MINK
OF the relation property bears to the future grow"
OF the United States. It's enormous surplus us oo"pfe
hensys grasp upon the commerce OF this eouNuy anu
ira euded future generally. It seems scarcely nsD''
q, speech 10 call this property a miraculous e'eau'"
7, there are any mlsgylngs the minds OF investors
e. rar1 70 the securities Of this company those mis-
ey,ngs do not relate property Itself but to the
management II the Duke Of Portland and other ''s-
nushea foreigners ar. returning thu shares OF this
corporation to the Atlantic Coast. they cannot 10 s
ernei By doubts about the property ITSELF.
What is the matter with the management II sn''hns'
poes II relate 70 the operating department! IS Univ
something wrong with tho financial management or Is
connected with the department Of equtes' oSh " "e
,ba, the MANAGEMENT has been absorbed with o'"e'
duties a. 10 overlook which should govern IL
an {, D.. that the distinguished attorneys OF ths com"
many have been 50 occupied at Phladepha 'hal ''e'
bsvs not considered obligations of the company "
,ber nsrs OF the country? What relation do the IN
,rs,s of inside individuals have to this great h"A'l
institution and what has been the history or their IN
d,y1ual intrressg the financial history oil ''
Pennsylyania cement its relations 10 INSIDE III
di,sual. on the one hand ard 70 outside holders OF "
inor,tv shares on the other hand. will hereafter 10
undertaken IN this column. The interests herein repre-
sented have acquired shares 10 the value or m"'o" "
,srs in the Pennsylyani Railway Co and the 10 -
9 & St. L. Company and other properties connee'e'
b ,tis system These acquisitions were made because
= WA believed that the net earning power OF these
ronsres had never been shown and much less uhder-
,ood Recent disclosures made appear as thousn
readus,nent ought 10 lie made between the relations
which inside holders OF shares have borne ana arc
y hearing toward the outside holders The interests
rreseuted in this column have the means courage anu
s,r,,ratIou =, force the recognition of their rights