New-York tribune., 1906-06-19
LOAN
Continued from first page.

with these for several years. except 10 secure
the right OF way. which is now being done The
company will not, therefore as far as can now
be forseen. have TO meet any large capital re-
quirements for some years beyond what will Be
necessary 70 pay of the S5OOOO.OOO OF notes
maturing November l. 19U. and 70 provide tho
money needed after the close OF this year 20
complete the New York terminals This ex-
pendtture, which Will be spread over the years
1907 and 1908, is estimated at S4O,OOQOOO
II will. perhaps, not be considered out OF place
to refer IN this connection TO the large increases
both In the capital stock and bonded tnoebted-
ness Of the company, and 10 point out the re-
suits OF the policy Of liberal expenditures pursued
by the management during the last six years.
Since 1900 the capital stock OF the Pennsyl-
from S129 100000 to $3O3. 100000. an increase OF
$174 100000 The bonded debt has been N
creased from SSSOOOOoO 10 l92,OoO,OOO. an n
crease of S1O4, 4,O0O,OOO, but OF this amount S1S,<
100000 Is due to the assumption OF the bonded
debt of branch roads formerly controlled d. the
company through stock ownership, out WIncn
have now been absorbed, SO that the actual net
increase in the bonded debt IS S1OOOOO1 Tne
aggregate increase in bonds and stock. lncluq@
ing premiums on latter, amounts 70 S5V3G0 S5V3GNvgtV.
OF the proceeds OF these issues about S1-%VOJ.-
600 was expended on improvements ana adGl-
tions to the property, which have oeeh IuIy
described In the annual reports OF the board OF
directors and all OF which were absolutely asces-
sary 10 the proper handling OF the Iarge-y N
creased traffic and To the construction OF 10
New York tunnels and terminals ana tHs p.l- puI
chase of real estate connected tnere"iIn- -Ht''Es
S14OOGOO0O has been invested In the ~ stocAs o.
other companies, which ara yielding satls7Ae-
tory return and are worth much more |-41--
their original cost The remainder appoalS n
advances 10 subsidiary companies. IN ncte'7
shop and roadway inventories, ana II ca7A';
As 70 the results obtained through lhsse %
expendttures: In the first place the company "a, -
now in a position TO fully perform is pt0n
duty as its large traffic IS being moved Win w. a.
case and regularity never before attalnsI tIT TI
financial results are equally SATISFACTORY, ~ "" =
appear from the following orle-
facts: -.-,-,rV- yas
IN 1898 the gross income or the coInR Io6 -
sri OOOOOO The net income was SII'OUV'Ooo, - -
dividend paid was per cent, and @ tle oSH 81 -
a1tar having the dividends wRS S4UeSVVV - =.
ToOS he gross income was S146OOOOUO' tno 10
iDcorne was S9U,OOO.OOO, the dtvtden1 on 80 e-s
isrgaIy increased capital stock was per 80 80
and the surplus after paying the cIV'ue1'1' w.
S11,7OOOOO. o, -. 1908 ,,.lusivs
In the six years from 1898 70 1882 LiC--@ 80.
tbe yearly dividend was per cent, ana tHs ~ 20
age surplus after paying the clvIcsld " ,oon fo
T66 600 q wear IN the SIX years troli 1sS .nt
1905 inclusive the yearly dividend vas ~ S;-,
and the average surplus a1ter PAYS go . Ta0S
dend was s11, 100000 a year froul 80 ~ to,o-os
Inclusive $40 900 900 was taken OUT OF N-e -v l.-
and expended In improvements 70 the PLUpSt,f
II should be stated. too that az least SlN.y -
Jons oeve been spent on additions ana iI1p-' -
-oants from which no return IS yet pens ss
oeiyyed on account OF their not belhs So-,-s ss,-i
and IN use though the interest upon me Sa-ga
ties issued 10 pay for them has oeeh Z '
against income.