The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-08-31
THE PENNSYLVANIA LINES
Of THE DEVELOPMENT OF
A GREAT RAILWAY SYSTEM.
Monon Directors Approve Report of
President McDoel-No Chnnge In
Control Contemplated.

A complete statement OF the Pennsyl-
vania roads financial condition has been
prepared by Granger Farewell & Co.. IN
connection with which is given the part
taken by this strong corporation In the
OF interests" idea In the
operation OF the different railway systems
of the country. The statement says: III
1899 the Pennsylvania Railroad Company
took the initiative among railroads In the
application, which has since become quite
general, OF the community OF ownership
principle. For years the average rates re-
ceived by the Pennsylvania (and this ap-
plies TO railroads generally decreased with
each year, Notwithstanding in some years
no commercial necessity existed to warrant
such decreases. the industries OF this coun-
try enjoying phenomenal prosperity and
consequently the railroad facilities being
taxed to the extreme. The decline In rates
was offset to a considerable degree. and by
the Pennsylvania more than offset, by IN
creased economy in operation.
With new equipment, heavier track and
bridges, better grades. etc, and the I'M
proved methods Of operation. the cost or
movement OF freight and passengers on the
Pennsylvania system had approached the
minimum To avoid disastrous results an
effort had TO be made to meet the decline
I'm rates, which were the result OF unneces-
sary conflicts between the railway COM
panies. 1t is set forth that the total
amount of Pennsylvania stock outstand,
ing Aug. l last. amounted to $2O2,OO2,5 DIV, all
OF which represents actual cash paid IN.
Dec. 81, 1860, the outstanding stock OF the
company amounted 10 $l3. 26i, 100. The Diff
ference between these ngures represents
the actual development which has taken
place in the system in the interval.
While in 1900 but S,7l6 miles of road were
1frnatlr 4rnrafaI hRr tho DannCNlVanI Kali
road Company, the total mileage of all
railway. ferry and canal lines operated
controlled and affiliated. and in which the
Pennsylvania stakeholder Is interested
aside from the railroads whose stocks are
mentioned above(, was 1924 miles. Inc
syivania Railroad through the ownership,
either by itself or by the Pennsylvania
Company (of which company the Penn
of all or a majority Of the stock OF the
several lines. An idea OF the increase In
business, as well as OF the magnitude OF
the interests represented directly and In
directly by the Pennsylvania Railroad
stock. may be had from the following Off
cial statement giving the total gross and
net earnings for the last three years OF all
transportation companies owned, operated
and controlled by or affiliated in interest
with the Pennsylvania Railroad SYSTEM:
Year. Gross. Net.
1899 152, 900, log 1851. I'll
1898 1876. 49, 72 41.459. AIS
For the first six months OF the current
year gross earnings of the system in
creased 1894 4S. and net earnings 1922,
$50.
Between Sept 1, 1901. and Jan. !. 1913.
more than Sill .00. 900 bonds now bearing
interest at 5 per cent, 6 per cent. and 2
per cent. will mature. Over $24. 0OO,O OF
these are Z per cent. bonds. over sl2.oo0.0O
q per cent. bonds and over $5.000,0o0 . per
cent. bonds. The credit Of the Pennsyl-
vanian Railroad Company will permit of
the refunding of these bonds as they ma
ture on a 3is per cent. basis.