The Washington herald., 1909-03-02
GENERAL REMARKS.

GENEEAL REMARKS.
In Ts-rs,ance of the authority conferred hy the
stoekhoiders Z 1lGrri. lSo-. al issle x So 5000
of yo1z Coasohdstei Mortgage Bonds vas made
- Is; Nay. lss. running for forty yesrs and bar
ing Interest al pr oeut per anuun. the issue
beng made IL dollar and steriiHs bonds n sz5-
s-zntislly equal amounts
Wbs1 The negocistion q thess boD5s vzs srss
considered, the oooditi1us which hae forcsd v7.,7
tie railways The issue of short tern Oblztio1s stn
prevailed 70 a FsEy lErge extent L was uot 70
y01r advantage % ueet opi:aI re7zirsaeu;s by the
further issue q temporary ohgalio-s a. hEh rsrss
q interest: but It szs found 70 Be irru7r,irabs
70 sell the desired amount q bonas IL this CON
u. and Il vas not until English irvesto-s lad
aETeea 20 take Oas-hsf o. the issue thzt TIE sale
ooGld Be o1ns1nmzted Il vas nor only -a.ay..v
70 ths mEnAsunut that the high credit oE yoar
COMPANY enabled the securities 20 Be disposed q a.
uore sstisfactoTT interest rate bzs Ibis nesvtis
ton maEked the rstsU1 of a ro-s no-usl narkss
for railway obliEsiiozs and n tAzt respect Vas
& material service u yOT Eens1l interests
An examination of the Balance Shser VII sbow
that tAs cash IN yoT trsaSlry VII in al r-pbabEl
~ be sufficient 70 meet The ezpstsI rscuirsue-,s
q The clrrsut yea-. But il VII y nezsssrT 70
make timely provision for the Sso.oooc0o of yOr
short term notes which mature 18th March. 1910 a.
vel as FOR the S0.oo.ooo of GenerzI Nor4zgs Bo,5s
which mature lst July. $50. The ssocahode-s have
already authorized The Board q Directors 70 IN
TeASe y0uT capital stock When IN their judgment 4
nay Be advisable; and Ike zatho-ity VII be asked
a. to the indebtedaeSs. 81 the annual zeesin~- n
the extent Of ooa. IL ozde- that The Conrsuv
nay BE II a position 70 1eet its maturing o6,iza-
tionA thToush TIE issue. a. the proper tus og
either stock or bonds. or both, as nay Be % ia
best interests
Ths industrial depression referred 70 n Ii. i.<.
Annual RepoCt continued Throughout the sutie rear
and SUI prevails rs results are clearly sbcrn in
Tie Abnormal decrease. both IN yo,- trzrc and
revenue fhe volume q vour freight to7nsgs d.
creased over is psr cent while your ton mileage sns
ne sross earni1ss theTefron shuz falling % q
aoout peT cent YCT passenger trsHc sbors a
red1ctioa q about 10 per csat In mileage and o~sr
Per cert IN revenue. This -so,ssitatss 5-.s.fc
rs11cs1on in eIpeDSsS n al deparns1ts ard cyn-
PEELED the dischargs q many thousznds oF vo-r
enpaoyes. and q material decrease N TIRE houn n
iabo- of mary q those retained IN the se-vics-
L VII Be noted that the sverige rzte reossrsd
tT the transportation q passenEers Vas lcSs thar
cents per nile. There os1 be DO question thst
the railways are not ru0CiTinz 4 r5as0u1bls on
pensatio1 for TIE serTics performed ard for tbs
czafcrts and facilities furnished 70 the traysIsnr
public, n connection thsTswith o. ors Ercseut 70
sford fair return OF the capital invested IN this
branch of their business
Il Is g5tifying 20 rots thst nors enass-vstfrs
spirit grsvails IN bogh The STATE and Hatsosl lszs
atares IN regard 70 the undue reputation Of rzfl-
roads and that tho tendency Is u dsfe- frrsher
legislation until an oppoTtunity has ben Afforded
to ascertain tie practical elect q the laws nov II
force. This world certainly appear % Be- viss IN
the Interest Of TIE general zblie Is those who IN
good faith have invrsted n s1ah suts-r-ises ard
non whom the necessary capital mzss b obtained
70 eoahe the Tzilroad Companies 70 nz-uish the
facilities required fcT the aooounodzsiou q the
public. cHnOt rsasunzbly be sxvccyed % co1tf1as 20
make such investments unless they recesre tbs sane
p-vtectiou that is accorded the o-nes q oths-
property.
After meeting ali liabilities and paying diriSsnds
assresatins per cent. and S.Te eSs5 % account
Of the maturing principal of Car Trust Certificates
there vas surplus q 5Iss IlZz5. q which g 5E.-
ao.2e vsre spliied toward the Extraordinary Ex-
penditaFes of the year s. O0e00 Guplisd toward ths
onst of the NeT York Tunnel Extension. and sa
ISIS credited TO Jour Pruht snd Loss Account.
The extraordinary expsndiblrs for TIE yesr was
limited to such as was Necessary 70 cunpIsts work
already under way, and was Substantially cozsnsd
to the extension Of the f0Ur-trsek system on y01r
main Ire. purchases of right e wsS fer yos- r.
lief freight lines, the inpTovers1t of yaTds and
terminal facilities Al various points. the further
elimination q gTsds cTosSin1s and improvements
Of cqsipment
The aggregate ezpendturss for construction equip
meut and re.l ss,ass cn yUur Ensia lins between
New York and Pitts51-sh, Including 3 S,55.72s g %
accont o. the Principal Of Oar Trusts ard 80 90 on
account of the principal q Water Trust certifcatss
were Slss7. .i5all Of which s. s55z vas charged
to Capital Account. 90 e47.4s against the Incone
q the ysaT. 81 go against your Profs ard Los
Account. and SzlS es4-S6 against the Extzor5inaSy
EdpeDditurc Fund In view q the unsatisfactory
operating results q the Western. Ssz Toss snd
Pennsylvania Railway. and q TIE fact that its
nst ssrn4nEs vers not sufficient - nes. tAs n