Every evening, Wilmington daily commercial., 1906-06-19
MISCELLANEOUS RECORD.
PerIoetIng : 80 RaIIroaa.

PerfoounR a Great Railroad.
President A. J. Cassatt Of the pennsyl-
vania Railroad issued a statement last
night announcing that the company bad
completed negotiations with Kuhn Loeb
q Co. concerning the placing by them
with French banks Of The s5OO0000O
Pennsylvania Company 3ai per cent
French franc loan Of 1906. guaranteed by
the Pennsylvania Railroad Co. Prssi- /
dent Cassatt said that che proceeds Of the
French loan, together with the amounts
that viii be available from other resources !
OF the company. win meet the payments
for the $4,000 hfy-ton steel ears and BIB
Locomotives which are being built at a cost
of S42. 100000, and also provide the
money for the completion OF the water
supply system.
In a supplemental statement referring
70 the financial affairs of the railroad.
President Cassatt said "Since 1900 the
capital stock of the Pennsylvania Rail-
road Go. has been increased from Sl29.-
600 OOW to s3O3 100000, an increase Of
STA 100000. The bonded debt has
been increased from sss, 900 900 to Sl92,-
100000. ,an increase of SlOf 100000; but
of this amount sl3OO0O0O IS due TO the
assumption of the bonded debt OF branch
roads formerly controlled by the company
through stock ownership, but which now
have been absorbed so that the actual
net Increase Ia the bonded debt Is SOL
100000. The aggregate increase in bonds
and stock, including premiums on the
latter. amounts 10 s3O0O0OOOO. of the
proceeds of these ISSUES about si22 O00,-
coo was expended on Improvements and
additions TO the property, which have
been fully described in the annual reports
OF Che board of directors, and all of which
wcm absolutely necessary to the proper
handling of the largely increased traffic
and 70 the construction of the New York
tunnels and terminals and the purchase
of real estate connected Herewith. About
Sl4OO0OlOO0 has been invested IN the
stocks of other companies, which arc
yielding "a satisfactory return aud which
are worth much more than their original
cost. The remainder appears in advances
to subsidiary companies, In increased
shop and roadway inventories and In cash.
GAS 20 che results obtained through
these large expenditure In the first
place the company is now in a position
TO fully perform ils public duty, as its
large tmlhciis IS being moved with an ease
and regularity never hciuv attained The
financial results are satisfactory. as Will
appear lromi che following bricl statement
of facts.
"ln 1898 the gross income Of The com.
pany was sal 900 600 the net income wa.
Sif00OO00 the dividend paid was pen
cent and Tire surplus after paying divi
dcnds. was SiOO0OO0 In 1908 Oh,
gross income was Sl16OOOO0O. the NET
income was ,S30OOOOOO. Che dividend on
the largely Increased capital stock was d
per cent and, the surplus. after paying Che
dividend was Sll7O0O0O In the Six
years from 1898 TO lS9S inclusive the
yearly dividend was 3 per cent. and the
average surplus, after paying the divi.
dond. was sB.1OOOOO pcr annum In tho
six years from 1900 to 1905 inclusive Tho
yearly dividend was per cent and thC
average surplus. after paying the divi.
dcnd. was s1i 900 900 per annum. From
1900 to 1905 inclusive $4,000 900 wa.
taken out Of income and expended in inn
proycmcnts to the property It should
BE- stated, too. chat at least 1000 OOC
has been spent on additions and improve.
mcnis from which no return is yet hoina
received on account Of their not being com.
pleied and in use, though tho interest upor
the securities issued 90 pay for them ha,
been charge against income"
While the amounts that have been. and
are still being, expended for permanent
improvements seem vast when set dour
10 figures, the practical results that vii
be obtained are such as 20 clearly cstab
lish the wisdom Of the expenditure. ON,
feature viii suffice to illustrate this fact
the construction Of new line for freight
traffic from the Susquchanna River cast
ward. which involved the exponditur
OF a large amount Of money. But tb
result, according TO competent authority
viii be this; With the same power tha
Is required Tor hauling 200 tons O
iroight over the old line. 1000 tons q
freight may be hauled over The now line
Tho economy Of this improvement q
say nothing Of increased hauling capacity
Is sapparunt
The Pennsylvania Raiload has lon
been noted as the model railroad syster
Of the world, and never was the enerr
capacity and success of iis manaecincu
more signally demonstrated than q
present.