The sun. (Wilmington, Del.) 1897-19??, 1901-01-21
The worlds Best Railroad.

From Delaware County, pa.J American.
| Inc greatest and most permanently
successful OF all railroads is the pennsyl.
| Nahlit, and i is still growing under the
management of Mr. Cassatt. We have
from time 10 time enlarged upon current
earnings and compared them with those
previously reported for both long and
short periods, showing the wonderful Ge-
'clopment Of the Pennsylvania Il. X.
pFopef-tllat Is the eastern lines-but we
now nave Official figures for combined
period ol years withrcsults of astonishing
magnitude, and what is of more import
anee, results which indicate what Penn
sylNanla management" has meant to the
| plant itself and what it must mean to
the owners Thereof.
1t Is shown that for ten years, ending
Dec. 81 last, gross earnings reached the
enormous total Of s657 900, 600, from which
dcdncting si53, 100000 for expenses of
operation, was left the profit total of
S204 OUv,OOO-round figures in each case.
HE Cofnpany's charges for interest,
rentals, ana all other fixed obligations
were rather better than $l55 ,0OO, 900; but
note the fact that it had the offset of no
less than $5G,OO0,000 arising out of inter-
"st on securities owned and from other
sources than those Of actual traffic.
Thus the outcome was a balance Of
Sl95,OO0,O00 which might have been APP
piled TO dividends, but of which $24, OOO-
9OO was appropriated largely for eXtraor-
binary expenditures ON property in the
me Of such improvements as are of
permanent and money saving character.
Nearly $lJ,000,0OO went in this way and
* a -tIiI AL 10 St1
holders, leaving a balance of almost $12,-
VO0,0Oo to be transferred to the credit Of
profit and loss. Dividend payments
therefore have averaged little short Of
$1,OOO,OOO annually for the past decade.
But this is not all. Impressive as these
hgureS are, there remains to be shown
what lie actual dividend earning power
of the property really has been. The re-
iatlon Of expenses to earnings indicates
that 60 per cent of all traffic income
went for operation, a figure which might
easily have been reduced under less con
sentative methods and certainly would
have been had there been any need for
protection to dividend, whose record has
been stead one for So long a time.
HE moderate reduction Of 65 per cent.
of earnings for expenses would have
80 COMPANY tht VI pAV,
100000 more net earnings, and this, with
The $l9,COG.0lO, actually spent in improve
nenta, which under conditions easily con-
eeivable would have been capitalized |
would have raised the surplus available |
FOR the stock TO the extent of $46,000,0O0. |
The case then stands something like |
THIS; That the actual earnings of the |
road have been ut least $125,00,000 in |
excess Of charges, or s12,5000OO yearly, |
indicating That during the past decade. |
which included some rather disastrous
periods, as much as an average of per
cent. could have been shown for the
capital stock, even at its present max
mum figure of $151 100000.
What the future has for the Pennsyl-
7ania it would be idle to predict. As
he system has grown, it has taken on
fact more than ever appar-
mt just now in it's large earnings and in
he known extension OF its influence in
he operation Of other roads. And as its
progress has been marked on the records
hese show no signs of anything but
till more gigantic enterprise, more