The Washington times., 1907-03-05

then a sale Of long-term bonds at the
pdces now prevailing for such securi-
ties.
tbs prompt recognition Of the growing
needs Of the country for increased and
improved railway facilities has resulted
In the greater portion Of the necessary
additions and improvements 10 your road
and equipment having been made on
most favorable terms. both as TO the
cost or the work and the rates at which
the funds were secured. But the de-
mandS for increased capital from other
railways. Influenced by the same reasons
which governed your action. and sub
stantially from all branches OF industry,
have made the present rates for money
exceptionally high. This. together with
the increased cost Of labor and mate
rial, the legislation, both state and mu-
niciPal, 10 Increase taxes, reduce rates
and fares, and force upon the railways
! large expenditures that yield no direct
| return. would seem 70 make IL "a wise
policy on the part OF your Company 20
! reduce its capital expenditures 10 a min
| imum, avoid new undertakings, and re
strict its expenditure for the present TO
such work as is now under way, and
must be completed.
The movement Of both freight and
passenger traffic continues 20 show an
exceptional increase. The volume and
mileage for 1906 being greatly in excess
OF that for 1885, and much the largest in
! the history of the Company.
There was a very slight increase in
the average rate and In the net earnings
| per ton per mile. II will be noted
! however. that the higher scale OF wages
granted 10 your employees only went In
| 10 effect on December 1st, 1906 and that
| there is a steady advance in the prices
/ Of all materials purchased by your Com
pany both OF which must materially az
| feet the cost Of transportation
| After meeting all liabilities and paying
| dividends agregating six and half pei
I ara.HH -
| the car trusts. s., 246, O39. 81 there was q
/ surplus Of income Of Sll.20l. f7454. OF
| which SS,7Ol,fl4.54 was applied toward
/ the Extraordinary Expenditure of Tho
/ year, and $2,5O0O0O.oO transferred 70 ar
! Extraordinary Expenditure Fund
] As already noted. the profit realized
/ from the sale Of securities Of other com.
/ panies was credited 10 your Profit and
! Loss Account: and against this profit
/ there has been charged of on account Oi
/ the cost of construction OF your New
! York Tunnel Extension the sum OF
| $4,000 900. and the balance OF 5000. S4s. s.
transferred 10 the Extraordinary Elk
! pendituTe Fund
The heaviest OUTLAWS during the year
! between Pittsburgh and Jersey City. il
/ addition 70 that involved in the compile
! ton OF this line, were upon your four
} track system yards and other teTmina
! facilities. right OF way and real estate
and the procurement OF a permanen
/ water supply.
One hundred and ninety-eight Iocomo
, ives were added 10 your motive power
I and the freight equipment OF the Com
pany was increased 10 the extent Of %.
SG3 cars, through the issue Of securities
/ under the usual car trust arrangements
] The aggregate EXPENDITURES for con
| struction, equipment, and real estat
during the year upon your Main Lin
between New York and Pittsburgh in
Guiding S4,246. 039.4 paid on account o
the principal Of Car Trusts, were SO. $50.
Of oh.
70 capital account, and $1,000. 81. o
against the income Of the year. Their
was also charged against the incom
for the year the mount Of S641 1856 81 ad
vanced 10 the Western New York ant
Pennsylvania Railway for right of wa,
and real estate the canal and docl
improvements at South Buffalo. and IN
construction Of the EbeneZcr Branch
On the branch lines the main outlay wa
for sidingg and additional terminal IA
cilites. and aggregated S1.SSi. Z94S7
/ The principal expenditures for the cur
rent year viii be In completing the OK
tensions Of the four-track system nov
under way on the Middle Pittsburgh, an
Western Pennsylvania Divisions upO,
the Tunnel Extension into and through
New York and upon the Terminal Sta
ton in that city. upon the right OF Wa
and real estate required for the relic
lines referred 10 IN the last report. an
upon additional motive power an
equipment
| me pIoSItSS upon Lue uuLei EAlen
| sion has been quite satisfactory. an
while the work under the East River
| somewhat slower In progress. that uu
| der the Hudson River was pushed for
| ward so successfully that on the tweIft
| OF September the laying Of one of tn
tubes was completed through from Wee
hawken TO Manhattan and on the mint
| Of October the second tube was I'm place
The work of lining these tubes with con
I crete is now under way
On the section between Harrison. tn
point east of Newark. where the Tur
| mel Line leaves your United New Jerse
/ Division, and the Hudson River. man
Z Of the bridges have been CONSTRUCTED
| COST or ROAD: Being expenditure on
/ Haven 20 Glen Loeb
mauEh. HolIidays6urr
DUQuesne Way ELev