New-York tribune., 1906-05-27


For variety Of reasons-not all OF ,b.-
spiriting Railway securtt,s. - -
conspicuousness In the current market
vance Is shown for the week 1t is not larya- :.
represents rather crude manipulation O.,
careless and foolish advocates will afYac, =,
view tnat pennsylvania market values ar. -
disturbed by what is coming to pass +ors,.u .u-
the property's public relationshfps-thop,s -
merest sense Of fairness requires prots., -
the bitterness OF assault which In naan1- o,s-.-
is appearing. Quite apart however. fror, -
sideration OF the business morality sIs-,.-.N' '
volved. quite apart from the indictments =, -
low prosecutors. and apart equally r-o--
nauseous penesyrfcs OF retainsrs the ps,,-.
vania record demands 20 be considered r-,-. -
standpoint OF what the corporation "a -
how well it's pledges are being redeer,s6 a
along with the unprecedented stock ara -.
emissions OF the last half dozen vearx -
have been pledges piled pledges Back -
1899, when the Penrsylvania's total capt.ayt.l
tion (stock and bonds together) fell below so4a
100000. compared with to-day's record 40 -
s6oO,OOO.OO0 there was official declaratio, a.
expenditures IN view were planned 40 t,,.r,N
gently and conservattvely that they ro,,z, 80
with produce vastly increased net rsvsnrs. -
hcient not merely 20 warrant the excursion, a
the company into pyrarnidins capital pro,ss.s.
but. It promised. that prospective rasu-t
were certain 70 be SO substantial that tha ~
srty-s policy would warrant more tha, -.
Portable satisfaction. induce enthusiasm \.
was urged that perhaps two or three Or svs,l
four years might be necessary TO unaks nm A.
empnhcation OF the tremendous net rsvsurua h.,.
terment. but that not later than in tha rou-.,
year Of the unprecedented outIays the sYbb,s
was gure TO be amply inspiriting. So, from !.
total bond and stock capitalization OF s21IOO0.
600 In 1899 there was increase TO S240OOO0a
In 1900. expansion to s292OoOOO0 in 1901. and I.
leap in 1902 TO S344. 100000 while the nsxt vaa,
passed the S4Oo.O00OO0 limit until at the end a
the last year virtually S5OOOoOO0O OF coubiust
stock and bond capitalization was pyrara.sd-
an increase in half dozen years Of mors shan
S275.OOOOOO. far and away more than 125 IA,
cent. increase. In most stringent SUMMARIZED
tion. the status OF Pennsylvania capitalization d
just this: That stock and bond totals togethss
are now approximately S6O0O00Ooo- twice the
aggregate capitalization OF but six years asa.
and s6OO0O0OO more additional
These are stupendous fgures-not conprehen-
sible in any orhand consideration Corporation
records never before presented anything ap-
preaching them
Now. Just casually calculate 70 what extsnc
the corporation has made good It's 1899 fore
casts OF profitable return from capital expansion
Then annual dividends fell short ot S6500O00;
then began the preachment OF the doctrine FOR
which PennsyFvania's good name through soma
years doomed declaring the safe and sans
policy TO be the allotment OF dollar for railway
maintenance Improvement for each dollar dis
tributed IN dividend-the 1900 inprovemen:
item approximating SSOO0OO0 as compared
with SS,SO0OO0 paid TO the stockholders, whils
in 1901 some $4,000 was put into improves
ments beyond the total OF dividend payments.
and 1902 still showed excess tie side Of IN
provement appropriations. Those were days %
roseate finance. But the turn came rather sud-
denly. The 1908 record shows CPennsyvania
stock and bonds then rising S20o,O00O00 beyond
the total OF 1897 that as against S95O00O0 fOs
improvements S14.792.OOo had to be paid upon
expanded capital stock While In 1904 the dfys
dend drafts passed S17.9oo0Oo with improves
rnents down TO barely more than S6.0o0O00 laSs
years record caps the climax with less than
SIS, 10000 available for Improvements after the
S1S.OOOOOO required for dividsnds-this unpre-
cedented exhibit now to be distanced trenandf
ously through conditions imposed by the outs
put OF an additional S15OOOO,Ooo new securities
before the end OF the first half OF 1900
Pennsylvania has good management stane3
unapproached as the premier railway corporas
tion OF the world Its resources seem ainos'
nrnitless With national prosperity. PennsyIVa~
MIA prosperity Is bound 10 tower and tower
Good times pay tribute TO il incalculaolys Crs
sades against details OF management WI n''
disturb investment confidence. for IN al ~
current disclosures so much hippodroned !"
where IS there the taint OF treason 10 me c',
poratton nowhere IS there suggestion OF alI
inroad upon either the corporations proper'
or the corporations profits Loot srai- 20
honest appropriation OF Pennsylvania A''s
or income nowhere shows $50 far) 10 tne sAse-'
of a penny. Jealousies there are among '1.-
pers: ouarrels between them; and S0il'
GERS OF the Pennsylvania Railroad ars as
Of prejudice and favoritisrn. such pFe1lHe' -.
favoritisn as can be favoraols 70 VAeA
poeketS-but nowhere shows sign OF selR =,
OF the unisappropriation OF q trust tUil1 - y
far as PENNSYLVANIA stockholders are eo'i'Ns
the misrepresentation OF so much as 0'
earning capacity. as
Under the challenge OF recent history
not difficult TO understand the READINESS ~
picion, the volubility OF accusation' 0u
hysteria is ESQ far) attempting 20 JUSTIFY - .
against any Pennsylvania Railway Inanass
any perfdy involving the present OF piOss a,
safety OF Pennsylvania Railway SeeUi'-'
investment. -
PennsyIvania Investment danger Is elss"n~
is IN the policy Of pyrannidins capital expaI -,
Less than S6,5Oo.OOO provided roF cs,s0 -
IN 1899. IT requires over s2OOo0ooo IN ~"
As In Pennsylvania. 50 in Ions hss 90
stances-so uniforrnly-ls It goins 70 % .ss,s,
cited criticism narrow, nasty anu -ns,s,
must fall short OF sensible influence up0n ~.