The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-19
LOAN TOT. R. R. MADE


aoma ~ them Carried ~ Amsrioa with thia
feeling In Paris and every proapec, ~ n
nicreaaful outcome NJ thu loan from tho
standpoint NJ the French investor ihere IL
certainly an excellent pruspeut II tho diver
slon ~ n considerable part ~ tho great
wealth N France to American securities.
PHILADELPHIA. June is.-pfsaident Cas-
satt ssid tonight that the proceeds Of the
French lonn, together with tho amounts
that will hc available from other resources
81 the compiny will meet the payments
for the "a 100 fifty ton steel cars and 9iS
locomotives which arc being built At n coat
81 sI2. 100000 and also provide the money
for the completion Of the water supply
system. The car trust certificates and
water company certificates which It had
been Intended TO sell will therefore not
now he placed upon the market. but will
be held in the treasury Of the Pennsylvania
Company, The amount realized from the
recent sale Of $50 100000 short notes Ia
sufficient. he said. to complete all the i'm
provements upon the main line and branches
now authorized and also to carry on the
construction OF the New York tunn els
and terminal station during the current
year. iODIlnllnR, iIttlutHt idsSitU Sdlu'
THE improvements now authorized and
under contract include all the heavy work
at present contemplated with the exception
Of the additional relief lines referred to in
the last annual report, and 1t will not be
necessary to proceed with these for several
years except to secure the right Of way,
which is now being done. The company
will not. therefore, as far as can now be
foreseen, have to meet any large capital
requirements for some years beyond what
will be necessary to pay of the $50 o0,o 900
of notes maturing November 1, 1907, and to
provide the money needed after the close
Of this year to complete the New York
terminals. This expenditure, which will
be spread over the years 1907 and 1908, is
estimated at $40 900 900.
1T will perhaps not he considered out Of
place to refer in this connection to the large
increases both in the capital stock and In
the bonded indebtedness Of the company
and to point out the results Of the policy
of liberal expenditures pursued by the man
agement during the past six years.
Since 1000 the capital stock OF the Penn
s~ylvania Railroad Company has been in
creased from Sl29, 900 900 to 1903 ,OOo,o 900,
an increase of STA, 600, 900. The bonded debt
has been increa sed from $ss ,000, 600 to $lo2,-
600, 900, an increase Of $l04, 900. 900, but Of
this amount $l3, OOO, 900 is due to the assump-
ton OF the bonded debt of branch roads
formerly controlledby the company through
stock ownership but which have now been
absorbed, 80 that the actual net increase in
the bonded heb is SOL ,oo0. 900. The aggre-
gate increase in bonds and stock, inolud-
ing premiums on latter, amounts to $780,
900, 1000. OF the proceeds Of these issues
about $122 900 900 was expended on i'm
provements and additions to the property,
which nave been fully described in the an
nual reports of the board of directors, and
all of which were absolutely necessary to
the proper handling of the largely increased
traffic and to the construction OF the New
York tunnels and terminals and the pur-
chase of the real estate connected there
with. About $40, 900, 900 has been invested
in the stocks Of other companies, which are
yielding a satisfactory return and which
are worth much moro than their original
cost. The remainder appears in advances
to subsidiary companies In increased shop
and roadway inventories and in cash.
AS to the results obtained through these
large expenditures: In the first place the
company is now in a position to fully per-
form its public duty, as its large traffic Is
being moved with an ease and regularity
never before attained. The financial re-
suits are equally satisfactory, as will APP
pear from the following brief statement
of facts. In 1898 the gross income OF the
company was 81, 900 900; the net income was
s11. 900, 900, the dividend paid was s per cent.
and the surplus after paying dividends was
81 100, 900. In 1905 the gross income was
$146, 900, O00; the net income was $50, 900 600;
the dividend on the largely increased capital
stock was 8 per cent. n the surplus after
having the dividend was $11, 100000.
"In the six years from 1893 to 1898
inclusive the yearly dividend was s per
cent. and the average surplus after pay
ing the dividend was So, 700, 900 per annum.
In the six years from 1900 to 1905 inclu-
sive the yearly dividend was 9 per cent.
and the average surplus after paying
the dividends was $11 400 900 per annum.
From 1900 to 1905 inclusive $40 900 900
was taken out of income and expended
in improvements to the property. 1t
should be stated, too, that at least $50, 600 900
has been spent on additions and improve
ments, from which no return is yet being
received on account of their not being
completed and in use, though the interest
upon the securities issued to pay for them
has been charged against income.'