The Washington times., 1907-03-05

and that over the Hackensack River
largely completed while the excavation
on the approach 10 the Bergen Hill Tun-
mel and in TIE tunnel Itself has made
The station site in New York between
Seventh and Eighth Avenues is practi-
cally finished, and she foundations Tor
a number Of the columns necessary 10
support the station and the steel via
ducts are being put In place
The work under the streets between
the North and East Rivers and IN Long
Island City beyond the East River is
about tWO-thirds finished, and also
about one-fOurth Of ne excavation and
lining TOR the four tunnels under the
East River.
Large expenditures were also made
upon the Philadelphia, Baltimore and
Washington, West Jersey and SeashOre.
and Long Island Railroad systems
J. will be noted that the improve
ments, specially referred 70 IN the report
for 1902 as absolutely necessary 20 en-
able ycur traffic 20 be promptly and
economically handled between Pitts
| burgh and New York. have. with few
pleted or are rapidly approaching com
pletiOn- The completed work covers the
! construction of the Brilliant Branch, OF
the elevated railroad along DuQuesne
/ ton at Pittsburgh and the terminal
yards adjacent 10 that city, the con-
( stTuction OF the double track freight
| road between Gallitzin and Petersburg
/ ana of au important part OF the class
! ,EcatiOn Yards located thereon AT Holii-
I daysburg, the building Of the double
/ track low grade freight line between
/ York Haven and Glen Loeb and of the
I EnOla Yard in connection Herewith, the
/ construction Of the double track elevat-
/ ed freight road through the West Phila-
I dclphia yards between the Main Line
| and the Delaware Extension and the
/ Philadelphia, Baltimore and Washing
| ton Railroad. and the reduction Of the
! grades on the Trenton Cutoff.
] There Is no question that but for the
| policy pursued by our management n
/ this direction, IL would have been i'm
I practicable 10 handle the enormous
I traffic seeking an outlet over your sys-
/ TEN. and the wisdom Of making the
/ expenditures necessary 10 accomplish
/ this result has been clearly demOnStrat-
| ed. j must be borne IN mind in this
/ connection that in the five years from
/ 1902 10 1877 the tonnage Of the Main Line
/ and branches has increased from about
] 1900, 900 tons TO over lCl. COO 0J0 tons and
] that of the four Grand Divisions east
l Of Pittsburg and Erie which are Oper-
/ atCd directly by your Company from
about 134.CJ0.0OO tons to over 1IZ,0o0.09O
tons The gross earnings OF the Main
! Line have increased in that period from
/ about S5S, 0J0.000 20 over Ss8. 100000. and
( OF the four Grand Divisions referred to
from about Sll2Op,00o to over $4,000, 600
while the net income OF the COmpanE
\ after meeting interest on bonds, leases
and other liabilities has increased from
about So. 900. 90 TO over So, 10000
/ IN IEQGE 10 LEl IlDI dIllN DIUklue the
capital needed for the heavy eXpendi-
lures made during the past year upon
| your lines east of Pittsburgh and Erie,
il was deemed wise TO utilize the pow
ers Of the Pennsylvania Company and
< thus make il further available for the
purposes of its organization To this end
that Company made an issue May lst.
1906 of S50,O0o,000 Of its four and One-half
per cent eighteen months collateral
notes, guaranteed by your Company
4 The proceeds Of these notes were placed
10 your credit and the Pennsylvania
Company has been reimbursed for these
advances largely through the sale Of
the securities heretofore held in your
treasury
1 The Shareholders have heretofore been
advised Of the necessity for securing
a permanent supply OF good water for
your present and future needs, and Of
the continued pressure for additional
equipment 10 meet the needs or your
/ shippers. As stated in the last report.
. q was intended 20 secure a portion OF
the funds required Cor these purposes
through the sale Of shOrt-term securi-
ties similar 10 the car trust certificates
heretofore issued But an opportunity
having offered 10 place a loan in
France. through banking institutions OF
the highest credit, on satisfactory
terms, the Pennsylvania Company also
made IN issue under date of June
18th. 1905. Of 80 100000 francs. a. chOut
! SIS O00.OoU Of its three and three-Quarters
per cent trust obligations through
b. Z the Glraru trust company as trustee,
running for fifteen years but subject
, 10 redemption at par and interest on
) June 18TH, 1918, or al any interest period
: thereafter. These obligations are guar
, antecd by your Company, and with
, their proceeds. the Pennsylvania Com
: pany has purchased from your Com
7any the Car Trust and Water Certif-
. Gates 10 an amount substantially equal
+ | 10 the proceeds Of this loan
? The charges to CAPITAL ACCOUNT
. during the year were as follows