The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-03-02
GENERAL REMARKS.


Ia pursuance Of the authority conferred b
the ST jckh0ldeTs In March, 1907, an issue OF
So 90. O1g OF your Consolidated Mortgage
Bonds was made on LIST May. 1908. running
for forty years and bearing interest at four
per cent per annUm, the issue icing made IN
dollar and sterling bonds in Substantially
equal amounts
When the negytiatIon OF these bonds was
first considered, the conditions which had
forced upon the railways the issue Of snort
term obligations still prevailed 70 a very
large extent Il vas not 10 your adv .int5iso
20 meet capital requirements D. the IurLile-
issue Of temporary obligations at hign rates
OF interest but &C. was found 20 be lEnpTdc-
tIcable 90 sell the desired amount OF bonds
I'm this country. and IL was not until English
investors had agreed 10 take Oue-hah OF the
issue that the sale could be cOnszImInated- Z
was not only gratifying 10 the management
that tIe nlgn credit or your company t4-
a5led the securities TO be disposed Of at a
more satisfactory interest rate, but this
rtiaLi1n marked the return OF more
normal market for railway Obligations, and
in that respect was OF material service 70
your general interests.
An examination Of the Balance Sheet a..5i
show that the cash In your treasury VIII IN
alI probability be sufficient 10 meet the cap
iJaI requ -emenLs Of the current year. But
g. will be necessary 10 make timely proFi-
sion Tor the $50. 90 OF your short term
notes which mature 18th March, 1870 as We'll
as for the 500 O0..011 Of General Mortgage
Bonds. which mature 1st July. 1910 The
stockholders have already Authorized Lse
Boa7d OF Directors TO Increase y7-Ur CAPITA
stock when in their Judgment = may De
advisable; and like authority VIII De asked
as 10 the Indebtedness, at the annual meet
ing, 20 the extent Of 100000 in order that
the Company may bS IN a position 10 meet
its maturing obligations. through the issue
AT Ire proper time. or either sll,h OF Do-I1S'
or both as may Do 10 its best interests
The Industrial depression referred 10 IN the
last Annual Report continued throughout Inc
entire wear and stiu prevails It's results
are clearly shown in the abnormal decrease
both in your traffic and revenue The vol
UDe OF your freight tonnage decreased over
{ eighteen per cent WINE your TON mileage
and the gross earnings tLsref1on show
falling orr OF about twenty-one per cent
Your passenger traffic shows a reduction OF
\ about zen per cent in mIIeag and over seven
per c. ~. IN revenue This neCeSsitated d
drastic reduction In expenses in all depart
ueu-s and compelled the discharge OF many
thousands Of your employees. AMI a material
decrease IN the hours OF labor OF many OF
/ tacse retained in the service
e VIII be noted that the average lal- re-
ceivcd for the transportation Of passengers
: was less than two cents per mile Ihere
can be no question that the railways are
not receiving a reasonable compensation tor
( the service performed and Tor the comforts
and facilities furnished % the tTaEeiing pub
ll- IN connection herewith or one sum-
Gent 20 afford a fair return on the capiIAl
invested lu this branch OF their business
u IS gratifying 70 note that a Illo'o CON
/ snrvativo spirit prevails IN both the state
and National legislatures in regard 10 the
/ undue regulation Of railroads and that the
/ -s-re7Oy. is to defer further legislation until
n CDU1rTTsnf-T has Deen dlLlT4rtl 10 49,
! tain fba practical effect OF the laws nov
/ IN fore This would certainly appear 70
/ b. wise IN the interest OF the general public.
( ss those who in good faith have invested
! In such enterprises and from whom the
/ necessary capital must De obtained 10 en-
/ able the railroad companies 70 rurniSh me
1 facilities required for the aCcoEmoda ton OF
! the public cannot reasonably be eNpected
/ 10 continue 10 make such investments unless
/ they receive the same projection mat Is
( accorded the owners OF otne- property
| A4fer meeting ell liabilities ard paying div
! fdcnds aEEreza9ing six per cf4nt, and 81 49,
! ~ Ks on account OF the maturing principal
! % Oar Trust Certificates. there vas 2 s'iTpluf
/ ~ SS 1sS 10 =. OF which &5S8SS 0S2 were
/ ar,-lia5 toward the extraordinary ENpendl
/ t+yrss 81 the wear. $4,000 applied toward
/ me cost Of the New York Tunnel Extension
! and $50. IS7 3 credited 70 your PROFIT an-
/ Loss Account
| we ex-raorlinary expenditure Tor the yeal
I ms F'.oited 70 such was necessary .
/ r,-7rlere work already under way, and WA
/ Substantially confined to the extension q tn
| r0-1---rack system your main line pur
/ ~bsses Of right OF way fOr your relief freigh
/ rf-as ne frnproveTneIt Of yards and teT-ntna
4 facilities at various points, the further elm
/ luar{1n % grade crossings, and lrnproV el1len
! Of equipment.
me aggregate expenditures for constrTIo
ton. equipment ana real estate on your mai