The Washington herald., 1914-02-28

tbs nznssrn<ut has been esnsiderinx ths nkviu
spmy q asesrifsing that PARTON Of the Main Lin
bet.sen Altoona &C he foo< Of ths eastem acps
ALLEGHENY Moastsins. q di.tanc. q sbont tairty
| hvs utirs, vhere there b Q frequcnt and bean
| trim movement over heavy rades. From prs
hm,nsry esumstcs h would appezr that . ssrin1
could be edsvted which would cnnpensats ~
Company for making the expsndinrs. but ths
! subject must Sfl receive much further exzuina
1m. and 4 also lxrssiy dcp<ndnt upon N inn
warrant raising The new capital required for ths
project-
| In the City Of PhilAdelphia the greater porfios
/ OF your hpes are constructed above or beiov ~
between the Delaware and schuyIkin Ri,er,. Ths
| necessity for the dcselopment Of several suuara
miles IN this section Of the City. including M
Improvement q conditions along ths nsx 'front.',
| ezuSd the municipal authorities to decide upu1
the elimination Of nearly all existing ads erossings
Of Jour siirosd. and n the lines of the PhiIadeB
/ phia. Baltimore and Washington Railroad and oi
l the Baltimore and Ohio Railroad Companies, and
in asking the railroads 10 eooperate the City has
agreed TO bear equitable share Of the large ez.
| pendffures. Under this arraDgement this CompanS
WI be rcquired to elevate and relocate the presni
running uacks. yards and facilities On the portiod
| Of the Delaware Extension with its Girand Point
| and Schuylkill River Branches, from the Arsenal
Bridge over the sehuyTkin River to Delaware Axenus
| and Queen Street. and In lieu thereof the mes
| tracks Of the Delaware Extension when eleszted
between the Arsenal Bridge over the Sehuyld1
| River and Twenty fifth and Mexican Streets and Z
| new two-track elevated line extending generally
| along Point Brrezs Avenue. rwenfy-nintI Street,
and the Back Channel north Of the LeagIs Island
Navy Yard 10 terminal yard TO be located Be.
tween Broad Street and the Delaware River. from
which point the line will remain at grade along the
north side Of said yard and on Delaware Avenue
10 Bigler STREET, and the present. tracks and facih.
tics on that AEenue will be relocated far north
| as Queen Street The Baltimore & Ohio Railroad
Company. which viii likewise reiocste and elevate
its preseut tracks in that Secton of the City viii
oerITs . new location adjoning the relocated trae1
Of yOnr Cotap4ny. from Pssyunk Avenue TO and
! along Delaware Avenue This portion q the hnt
will be operated as joint fOur-tTs9 rairuad WITH
pruFision fer its use a belt line Under this
agreement the tracks and facilities Of the PhiIade
phia. Baltimore and Washington Railroad Com.
psny along Washington Avenue viii also be elevated
as q three-track railroad to Broad Street. and As
dOable-track line east thereof II Is expected that
this important project viii be eumpleted in hy,
years and when the City and the Railroad Com
psnirs prJride the funds requisite therefor.
The construction 90 the New York COnnectiui
Railroad. owned isiBtly by this Company ans
the New York. New Haven and Hartford Railroad
Company. and FUZZY described in preyiOus annual
reports. is satisfactorily progressing. and IL %
expected will be eomTIeted by the sumner Of 1915
The increasing traffic the Chautaupna Branch
between Rufao and oil City the ine of ths
Western New York and Pennsylvania Railway.
has. IN connection with similar improvements -
your Allegheny Division. necsssitatsd the revision
of grades. and alignment and longer passng SD,
10 the Western New York and Peunsslranis
Railway by this Company TO meet its Constructs,
and Equipment expenditures. which sum was
charged against the net income Of the Leeses
COMPANY.
IL has been deemed advisable TO shsorb tbs
Hollidaysburr Bedford and Cumberland RAilroa1
Company. ulIich Is owned and oGer1ted by this
Company in connection with its main line Tbs
necessity for maintaining that Company as
separate eorpor4tiOu no longer exists. and Tn:
agreement providing for its acquisition viii. 10
-. 9N@@ r..
holders. be submitted for approval at the annual
meeting.
During the year your Company made advances
10 the Long Island Railroad Company asgre
rating A1oDe. for the improvement Of its rail.
road and facilities. and the construction of neS
lines and ,equipmsnf. for which II viii receive
securities a that Compsny.
In accordance with the policy heretofore an
no1nced as to the proposed sale Of this Conpanyf
security holdings in the anthracite coal companies
owning pTupertiss served By hs System. namely tho
susluehanna Gal Conrany Mineral KalTosd apa
Mining Compauy. and the Summit Branch Mtnina
Company your Board deemed II desraeis TO inst
compact the ownership Of the securities and prope-
ties Of these coal eoupanie5 into the sIsluehanns
Coal Company. Therefore. there has been sold to
the Sus1uekAnna Coal Company the Capital Stocs
and dett Of the Summit Branch Mining ConpanJs
held By your Company. and upon the transfer % its
property and rights to that Coal Company. the Sum
NIT Brunch Mining Company viii Be dissolved
Your Company " also the owner Of one-thrd Of the
Capital Stock Of the Mineral Railroad and Minina
Company. the bAlsncs being osuet b the Nortnas
lands leased from the Northern Central Railway
Company and from the Manor Real Estate and Trust
COMPANY. hut being unable for many years 70 rSy
the pre-4ibed royalties its transferred its sfyear
leases TO The susquehanna Coal Company. ehectira
January lst eH and steps have beru taken iooEiDs
TO the Dissolution Of the Mineral Railroad and MIN
ing Company The lands OF the Manor Re7l Est.ts
and Trust Comuzny operated By the Mineral Rail-
mad and Mining Company, have ben scd to ths
susauehanna Coal Company. and nesotiations oon-
cuded for the sale TO Il Of the other lands oper7ied
bJ the Mineral Railroad and Mining Company re
the Northrrn Central Railway COMPANY subject 70
fixing the nnaI price. Under the forcsoin- ar7nSe-
nseut rayment for aid lands will Be made 6y ths
FireYear Gold Bonds. which are eIchanscabie foe
its First Mortgage Bonds II and when the same are
issued by that Company.
The purpose Of restns the Ownership Of thess
pruperties in the SrSqushanna Coal Company " to
insure the continued OPERATION Of the unpnonsbie n
we'll as the TrO6tsble mines. and thereby eouserye
the coal surply and 80 that should a purchaser bs
found for the securities Of the susluehanna Coal
Comrauy held by your Company and the Nerthern
Central Railway Company. the new owners will oh
tain possession Of the properties subject to these
mining obizatioDA
Til. Company has for S1me year, desired 10 Ss1
the balance Of its bUhbI=s Of Common ard Pre-
fcrrvd Stocks of tho BsHimOrr and Ohio Rsilrcsi
Cnurany consisting Il 81 20 shares of the Common
having a total par value of Sls9s.so The fcrN-
going shares represent les than ODch half of yorr
original ounershp in that Company. and they have
lecu retained since 1906 only Investment
Awaiting a favorable opportunity for their diSIss-
lion Therefdrr when ofcr vas made to cN-
,Ian-e them for III I3s shares. par valu- SIlJso
n the C1rital Stock Of the Southern Pacific COM
rany on which six per oent. dividends were being
raid II was deemed advisable 10 make the cZ-
.banre. In consmmating tho transaction the stock
4 the Southern Pacific Company was valued at par.
tbe Common Stock Oi the Baltimors and Ohio
Railroad Company at the sane figure. while the
orr mr. cent Preferred Stock Of the latter Company
vas valued at 50 per share. which was its ApprUNl-
nate market value This accounts for the Induction
n the rar value of the investment. although the
,mrany will On the basis q the present dividends
,rrriye rrrater returns from the ownership Of tbs
Sryr,bsrn Pacific Company Stock. and also have .
.r-1rity that can either Be sold when conditions
,r-rnit or held a. an investment as may be deemed
he most advantageous to yCyr Company. Durna
he wear the Norfolk and Western Railway Com
,any issued its Convertible le5 year ps per cent
Bonds and your Company as shareholder sub
.r-ited for its share Of the allotment, amounting
/, 81 20 900 par value. Your Company sn1uired tbs
apital stock of the Cornwall and Lebanon kairoad
q miles long. which copnscts your Philadephia
1ivision a. Cnuexago with the manufacturing tosu
Z Lebanon Pa.
me .r-,r;ties h.id ~ the Com1ny. D-crmoa
lst ISIS At . valuation cf 1,sD,s5 proineed Q
rect income during the year Il 24ep.sI
sAMUM HDk