Evening star., 1909-03-02
GENERAL REMARKS.

In pursuance of the authority conferred by the
stockholders in March. 1907. an Issue of $50 400
600 Of your Consolidated Mortgage Bonds was
made on 1st May. 1908. running for forty years
and bearing interest at four per cent per
annum. the issue being made in dollar anu
sterling bonds In substantially equal amounts
When the ncgotiat ions Of these bonds was hrst
considered the conditions which had forced upon
! the railways the issue of short term obligations
still prevailed to a very large extent 1t was not
| to your advantage to meet capital requirements
| by the further issue of temporary obligations at
high rates Of interest; but 1t was found to ne
IimpraciCable to sell the desired amount OF Dohds
In this country. and It was not until Enghs n
investors had agreed take onc-half of the Issue
that the sale could he consummated. 1t was not
only gratifying to the management that the high
credit of your Company enabled the securities TO
be disposed Of at a more satisfactory interest,"
rate. but this negotiation marked the return OF a
more normal market for railway obligations. ana
in that respect was OF material service to your
general interests.
| An examination of the Balance Sheet will
show that the cash in your treasury will in all
probability be sufficient meet the capital re-
quirements of the current year. But IL VIII De
necessary to make timely provision for the $780,
100000 Of your short term notes which mature
18th March. 1910. well as for the $2o.ooo.oo"
of General Mortgage Bonds. which mature LIST
July 1910. The stockholders have already author
lied the Board of Directors to increase your cap
ial stock. when in their judgment it may be sd-
visable; and like authority will be asked as TO
the Indebtedness. at the annual meeting, 10 tne
extent of $S0.OO0.00O, In order that the company
may be in u position to meet its maturing obli-
cations, through the issue at the proper time. or
either stock or bonds, OF both. as may be to lis
best interests. .
The Industrial depression referred TO in the
last Annual Report continued throughout the
entire year. and still prevails. Its results are
clearly shown I'm the abnormal decrease both In
your traffic and revenue. The volume OF your
while your Ton mileage and the gross earnings
therefrom show falling of Of about twenty one
per cent Your passenger traffic shows Teduc-
tiOn Of about ten per cent In mileage and over
seven per cent in revenue. This necessitated
drastic reduction in expenses In all department Is
of your employees. and a material decrease IN the
hours of labor of many Of those retained in the
service.
| 1t will be noted that the average rate received
for the transportation of passengers was less
question that the railways are not receiving a
reasonable compensation for the service per-
formed and for the comforts and facilities fur
nished to the travelling public. in connection
Herewith. one sufficient to afford fair return
on the capital invested in this branch of their
business.
1t is gratifying to note that more con.
scrvative spirit prevails in both the State aud
National legislatures In regard to me nnuas ts
to defer further legislation until an opportunity y
has been Afforded to ascertain the practical eneet
appear to be wise in the interest of the general
public as those who in good faith have invested
In such enterprises and from whom the necessary y
capital must be obtained to enable the railroad
companies to furnish the facilities required for
! the accommodation of the public. cannot rea-
/. sonably be expected to continue to make such
Investments unless they receive the same pro-
! lection that is accorded the owners Of othe
property.
After meeting all liabilities and paying divi-
dends aggregating six per cent and 3d. I99. 266 o6
ON account Of the maturing principal OF Car Trust
Certificates there was a surplus of So l9S 112.25.
| of which S3 SIS. $50. W was applied toward th'
Extraordinary Expenditures OF the year. 81 900 O0o
applied toward the cost of the New York Tunnel
Extension and 1853, 49, .33 credited to your Profit
and Loss Account.
| The extraordinary expenditure for the year wa
limited to such necessary to complete
work already under way. and was substantially
confined TO the extension of the fOur-track sys-
tenn on your main line. purchases OF right of
way for your relief freight lines. the improve
ment of yards and terminal facilities at various
points the further elimination of grade crossings,
and improvement and equipment.