New-York tribune., 1906-06-10

States Cr-.
porattOn viii show a surplus at the end of m,
month very close to S100OOOOOO the poiut ;,
which 1t has been said common dividends viii
be resumed
By reason OF the Interstate Commsrcs Com.
MISSIONS inquiry at Philadelphia. attention has
been especially directed during the week toward
Pennsylvania Railroad securities signifytu.
quotation change being scored. Exceptional IN,
terest centres in this quarter. As has receuts
been made clear in this review Pennsyvaals
market valuations are affected by the e,emsr.
or vast expansion; and as was a week ago an.
'cldated. assurance OF effective gain may not al
counted upon from any dividend increases hr
auxiliary cOrpOrationS-the addition OF ] n.
cent to the rates OF Chesa peake & Ohio Nor,
1olk & Western and Baltimore e Ohio Do,
Vlding but one-hfth Of per cent upon Psrr.
sylvania's capitalization. The truth is 1ust n
declared here last Sunday: "PennsyIvanga|
self"
1t was in the middle Of the fiscal wear os 1qqI
(June 9-just seven years ago. that Alexal.s
j. Cassatt was called 70 the presidency OF III
Pennsylvania Railroad. Experienced capa5l
adrOit managers had preceded him On 2S
miles OF road there had been gross earnings
S60,6O0OOO the year before. with net e4rrans
or SlO,IIS,OOO. which represented no rnatenl
nuctuattOn over a period OF IS years. for th0rgU
the mileage in 1881 of 1856 miles had risen
Isl in 1898, net earnings OF $40 29S.000 q
1881 were expanded in 1898 less than hal; j
million dollars. Net earnings were on dead Ger
tire; for though from 1851 to 1898 gross rsvenuat
had expanded from SIT 0O0. 900 to over S65 00l
600, the net result was in 1898 still down barse |
above the level of 1881 and the averag
throughout the Is intervening years had hess /.
often below the 1881 starting point SuecinctT |
the net earnings showing was: 1881 SO
9S1: 1891 S10.99726 1S9S S1OT77 95O-aa
earnings increase > per cent. and mileage IN
crease 90 per cent Responsibility rendered Il
the new president had in it no temptation Il
ease.
Up to the coming Of Mr.. Cassatt railway rats
had downward. ruinOus tendency, traffic PROB
lens becoming more and more complex. diSaslG
being spelt in half a hundred quarters. TIA
average ton mile rate had reached unprec-
dented lOwnesS, drop Of approximately 90 psf
cent in ten years. and practically no oreaA u
the decline for period much longer 10 ths
problem particularly did Mr Cassatt adutes
himself with the result that by the time ne ha1
been in control full year he had lifted rates y
. that they surpassed the best averages ehjvye.
for years preceding At the time OF FresiGen;
CaSSatt'S installation. pTOht per ION hl!V "a
been brought down 10 a point unheard OF oeIorS
a decrease of 80 per cent within ten ys4Is' a.
expenses not COrrespOndingY reduciOie, -
satt appreciation. CaSsatt remedleS' 49, 49,
plans became effective quickly. COhSuuS'..
ness was finally in command-and even ths CaS
ually informed are aware OF the reVOIutOi eVOIu-- -
with wrOught-EaStern trunk me Aai.@s -
coming into new relationships, sehseIess +t,,
titiOn making way for upbuldlnS SV-VtO - =
miscellaneous SeabOard properties orousII - =
auxiliary TO the establishment OF reasJllss ,s
stable rates In 1900 and 1901 BaIll1ro.S II.,srs
Ohio. Chesapeake X Ohio, NOrIolA * .v.sS,,svs
and Long Island came into the new eo, So -. ros
relationship-and Pennsylvania pIohs p,,.rsgs
mile rose within a year 80 per cent a.. SHAWN.
maintained and improved thfOus"
years. r r,sssatts
In illustration of Just what A. J. .~.~sssrts ~rssrts
management 10 the Pennsylvania a., L's[(~ ss,,,nt
consider this division in the raliroal : - toos
ing for the period OF seven years @ siI.~
control and the seven years preceoA1,5os bsScr
During the seven years ending ~ 80 - an In |
Mr. Cassatt took hold OF PennsyIVSss-'Ne, a. Ne,rsrats
crease of 24S miles or 90 per cent - ~ - ar ne
road failed To secure a gain ID So q SIS |
earnings Both showed deCrease--sslO@s @ 4 ( us |
600, or - per cent. net S5S9'oSf' "a
cent ,-.safs's pres-
For the seven wears of Mr.. Cassas;ss or
dencv on an increase Of only I,uoo i9fslsa q
per cent gross earnings increase sOooasa So |
1O4 per cent. and net earnings m -,,~rrsass 8
4sT $40 or 90 per cent And the nse ns rsouirei
enual 10 more than the total diVlueH ,bs eOr' |
az the present rate of per cent 20 sSo5 400 0Oa
Danv's entire present capital stocA - e sssuetea
Net income tfrom which have 70 - - improve |
such aUOtments as may be mace Lo,Sch divF |
ments sinking funds. etc, ana IlOl ,r cached
dends have also TO De deductedl n~Ss ~ ne sese
total as nigh as S11. .OOO.O0 durihs s1T 0OleN \
wears 10 1888 but have been oet%Ss et wear. "a
and $50 OOa OOO for each succeeulsne. haIs-gss
ONLY 1899. when GncIuding tne .Ss uroaso
of Mr.. Cassatt's administration sor, ire
was in process OF being rescueu ,,,ctiv. -[i tbs
struCtTOn Of rate declines Su0S"
III