The Washington times., 1908-03-03

!
~ refsrenes 70 the general balance sheet
| taiized on account Of The New YORK Tun-
! mel Extension 70 December o. 1901 is sss.-
sums charged OF from time TO time against
| income and profit and loss accounts These
/ latter sums aggregated $4,000, GOO prior %
/ 1871; and as from adjustments made during
| the year already noted large credits accrueF
| 70 your Profit and Loss account, al oDPor-
| tunity was afforded 70 charge on the fur
| he Tunnel Extension lnaklEg the total
| charges to date against Iucosne and PROFIT
| and Loss accounts SO. e00, coco. There VIA
also be substantial credits 70 the cost u this
| Work arising from the sale or surplus real
estate not PerEnaas ntly required Tor Tie uses
OF the Tunnel Company During 1907 over
81, 600 GO % was received from this source, the
| main item being the consideration pain ~
| the United States Government Tor the post
| Vdics site conveyed 20 IL on Eighth Avenue
! between Thirty-first and Thirty-third streets
The Companies engaged in is construction
! namely, the Pennsylvania. New YORK ana
| tom Of the State Of New York ana ths
| Pennsylvania, New Jersey and New YORK
Railroad Company a corporation Of the state
| Of New Jersey, were. pursuant 10 the laws
/ a both States. consolidated and merged on
june g. 1907. into the Pennsyivania Tunnel
| and Terminal Railroad Company.
! Large expenditures were also made uDon
| the Philadelphia. Baltimore. and Washing
| ton. West Jersey and Seashore, and Long
| Island Railroad Systems the funds Tor which
have been temporarily advanced oy your
1 Company
The prosperity which had existed for
number OF years IT. ali branches OF industry
and which had so exceptionally increased the
| traffic upon me railways met with a severe
check IN November last which is nOU largely
affecting the revenues Of your system Mhle
| a number Of causes seriously DISTURBED pub
| lie confidence. and thus brought on the hnan-
ciai panic which has 20 sharply afettsd the
business interests OF the county, ar ini-
portant che undoubtedly was the fear that
as the result Of recent Federal ana stare les-
islation. the regulation Of the railways had
approache 50 nearly 70 an effort 10 con
troll their management and revenues. that
the investments therein were not assures OK
thas protection to which they are Justly e1-
titled Eventually il may be ASSUMED the
questions that arise will be fairly ABUSED.
but in the meantime, the railways have .
face the loss Of revenue consequent upon the
enforced idiensss Of a large portion q their
equipment while 70 a pIopoTtionaie nuuueF
Of their employees. this has necessarily
brought about either an entire loss Of eiat-
pioyment or a material reduction IN their
hours Of labor
| In Pennsylvania Notwithstanding the legal
maximum charge vas three cents per mile,
| adjusted Fl ON time 20 time, upon a careful
consideration OF the extent frequency ana
the average rate received upon your lines was
only about two cents a mile. a bill was
passed. under which the railways OF the state
were forbidden 20 charge under any circuEn-
stances. more than that rate for transpSr-
I tstion within the State IN order 20 earn
the average rate heretofore received -
would have been necessary 90 advance tbs
special rates OF Communication ana excursion
business. which are specially authorized By
the Constitution. had been long IN force, and
had furnished the basis upon which COM
lmunitiss had been built up. values fixed and
methods Of living established whloh pIo-
NOTED the health and comfort of the pubiics
| or IN default Of such action. the rate nIe1
! by the law referred 70 would have reduced
your earnings below a fair and proper re-
! turn upon the capital Invested
| For tllese reasons. legal proceedings we're
| instituted in the Court Of Common Pleas OF
IL HH-NF a. aHH
| enforcement Of this law After an exhaus-
tive examination OF the data and facts sub
mitted. Il was decided 10 be unconstitutional
by reason Of the fact that under its pre-
visions injustice would be done 10 the own
| ers q the railways. ana this decision was
affirmed on appeal By the Supreme Court
Of the State
/ In pursuance OF the action taken by the
| Shareholders at the last annual meeting, the
| PHILADELPHIA and Erie Railroad has been
merged into the main line: and IN further
pursuance Of the policy Of acquiring tbs
| minority interests in roads in your SYSTEM
| where such acquisition promotes enleleney
and economy Of operation and Is 70 your
general advantage your Board has purchased
on satisfactory terms All the indlNlocai II
terests in the Balls Eagle Valley Railroad.
which extends from a point near Tyrone
on your main line 10 Lock Haven on your
| n has siso been deemed sdvisabls 20 sb-
sorb the Junction Railroad three miles IN
the city OF Philadelphia between the Fhila-
deiphia Baltimore. and Washington Rail
read. your Main Line, and the PeilsdelP Pa
interest wherein Is owned by your Company
land also the Southwest Connecting Railway.
a small branch. about q mile and three
quarters long, in the ConnellsyiHe coke re-
| Your approvaf Will therefore be asked %
| tHo necessary agreements covering The alb
| sorption OF the Bald Eagle Valley Railroad.
| Junction Railroad and Southwest Connect
| ing RailwGy properties. -
| The charges 10 CAPITAL ACCCLSs@ 49,
Ing the year ver9 as folioWs.-