New-York tribune., 1905-01-01
The Financial World.
Prosperity saIutes every American investor
with "A Happy New Year,
On no account anywhere is there excuse lof
depression. On every account everywhere !"
warrant for confidence.


warrant for confidence.
Despite misconceiving prejudice the distln-
gushing feature OF modern civilization Is tile
corporation. making possible Achievements WhicH
would be otherwise out of the question, and cor
porate management enlisting the best brain OF
the world Pre-eninent among corporations Is
the Pennsylvania Railroad. with its S0OOVVo'OOV
capital stock representing a trackaSe OF eleNen
thousand miles. The actual business OF TINS
great system is conducted with scientific perfec-
tion no effort is spared to increase efficiency IN
the handling of It's freight tonnage. exceeding
sO0OOOOO0 tons a year. while it's passenger ser
vice is renowned as the acme Of luxury IN travei
certified to by the patronage of over 12oOOO-
600 Messengers annually. These gigantic figures
Give soma faint idea of the Pennsylvania Rail-
road business.
But consideration OF It's finances reveals even
more imposing demonstration. Annual gross m
cor,a annroacbes 100000. .OO0-more than the
ro,,ap,,es Of any but the greatest nations-ahd
thirty per cent is resolved into net earnings
Naturally sbis tremendous development was
innpossfbIe of Accomplishment without increase
of capital and at each expansion loud critlcisli
arose from small souls who cannot grasp I"o
meaning Of such modern progress Even aS
late as 1903, when S75000O00 new stock was OF
fered to shareholders at 120 and the whole issue
forthwith taken. savage bear tactics succeeded
In depressing quotable value 20 11O%-that same
stock being now worth in open market 13S- The
dividend of per cent on par yields to holders
about "a per cent-signifcant testimony to the
esteem in which Pennsylvania Is held by IN
vestors-holders of Pennsylvania stock not ap-
praising it merely at It's yield value. but TAX
ing into account its unceasing business expan-
sion and the magnificent progressiveness with
which its management seizes every opportunity
to adapt the systems affairs to new develop
ments.
The history of Pennsylvania has been one OF
continuous rounding out" From its orsanl-
cation in 1s46 until to-day it has absorbed
within the parent company long list Of related
properties and has acquired control OF former
competitors-notablyi in the case Of Baltimore
and Ohio-not citing Reading-untE 1t holds
within its treasury bonds and stocks OF other
corporations beyond $500. 600 OOO-live assets.
yieIdir the last year a net revenue Of S1O.-
100000 to Pennsylvania-and now about TO
yield vastly more for this Is the time OF ma
terially increasing dividends. Reading and the
Pennsylvania company point the way.
President Cassatt has gathered about him
executive staff unrivalIed in technical training
and directive capacity. In politics it is posi-
bic for incompetents to float TO the top by
cident and mismanage for awhiIe-in the Penn
sylvania Railroad there is possibility Of this;
appointment promotion comes only after
searching test Of fitness. Hence the absolute
confidence OF Pennsylvania stockholders in their
officers; hence the fact that Pennsylvania
methods is a phrase to denote supreme excel
lence And this applies with equal truth to
those in charge of the roads physical proper
ties as to those in charge OF fits finances. Under
Mr.. Cassatts administration not single meas
ure has been adopted which has not proved to
be sound and for the ultimate benefit OF the
stockholders.
In these days OF clanor against corporations
and demand of government supervision Of rail-
roads It is timely to devote some consideration
to what corporation achieve There can
be no contention from any quarter that the Penn
sylvania Railroad fails to give the public the
best of service at the minimum of rates. Its
comparatively modest dividend reveals no ex-
cessive profits-no squeezing of the public
pocket. If the question Of approval or disap-
proval Of Pennsylvania methods could be put to
popular vote through the territory that 1t
serves appreciation would be the sure. swift
sponse-and this territory reaches from New
York to Chicago and from the Canadian frontier
% Virginia
Pennsylvania IS becoming more and more an
investment property-the number Of sharehold-
ers increases every year and is approaching fifty
thousand. Trustees Of estates. trust companies,
saving banks. and fduciary agents generally,
find in Pennsylvania securities the stability and
safety demanded by intelligent conservatism.
In the security market the stock is indeed. get
ting outside the arena of speculation-becoming g
almost exclusively an investment proposition.
This is as it should be, for in all that goes to
make up a SAFE sound property. with inherent
capacity of vigorous growth, Pennsylvania leads
all the rest.
That modern corporations have come to stay
there can be no doubt-through them only is it
possible to conduct the immense operations of
modern commerce and traffic. Rightly con-
Quoted they are no menace tc public welfare
but are mighty engines for good The people of
America may well be proud that in these OPEN
ing years of the twentieth century they possess
in the example-making Pennsylvania Railroad
the premier corporation of the world.
and Pennsylvania accomplishment Is but by way
of illustration of what the corporation in its
best development stands for-Pennsylvania be-
ing our highest type. As the Pennsylvania ex-
ample is followed, so is Pennsylvania success
approached. New-York Central In its new in
vestment popularity is just now exempIifying
this-for there develop certain plans the early
fulhlnent OF which assures a splendid expan-
sion.