Evening star., 1917-03-06

position. and, therefore. there has been a eeri-
Gus decline in constructing mileage. new
equipment and sufficient facilities accommo-
date the shippers and the public. With the in
creased traffic in the past eighteen months this
condition was somewhat improved. but the needs
Of the situation have not yet been satisfactorily
met The common carriers a whole for many
years !, have had to depend for new capital
the increase OF their debt and mortgage obliga-
tions. rather than by the sale Of Capital Stock.
so fhnt II is evident their credit is yet
curely founded. Therefore serious responsibility
| rests upon this Congressional Committee to make
thorough. prompt md impartial investigation
OF the entire transportation problem; and recon-
mend legislation that will insure sound credit
for the railroads: reasonable rates and adequate
service to the public: and replace conflicting
ana wnsteful regulation with unified, responsible,
regulation by the Federal Government under
which the railroads will be permitted TO earn a
the public transportation service. and sufficient
to attract the additional capital requisite to
tracks. equipment and other facilities in adVape:
of actual commercial requirements.
FINANCIAL.
On December 31st. 1916 the Company had
go. 3ss stockholders. whose average holdings were
ITO shares. All Of the stock is held in the
The Capital Stock outstanding was increased
by 1000 through the sale Of that amount Of
stock held by the Company.
The funded debt. equipment trust obligation
mortgages and ground rents payable show a net
decrease of over s., 900. This is due chiefly
to redemptions OF bonds through the various
Sinking Funds: to the conversion Of ConsoIi-
dated Mortgage Sterling Bonds into Dollar
Bonds: and and to to the maturity and payment Of
The increase in current liabilities (which is also
renected In the company's assets. is due chief
notes. which mature in April. 1917
The siockholders. In pursuance Of notice al
in the authorized indrhtedness Of the
Company TO the extent Of $4,000. .00o. If ar-
proved. the Board Of Directors will thereafter
be enabled through the issue of bonds secured
by the General Mortgage, by such other form
Of security at the time may be most ad-
vantageous to the Company. through the issife
and sale of previously authorized Capital Stock,
to procure the funds necessary to meet maturing
cent Nine Month Notes issued for capital pur-
poses during the year. which will mature in
April. 1917 and to provide the necessary capital
e1Ienditures on your constantly expanding prop
erty.
1t has been deemed advisable to acquire the
property and franchises OF the Harrisburg Ports
mouth, Mt Joy Lancaster Railroad Company.
the railroad Of which Company extends from
Lancaster to Harrisburg and forms integral
part Of the main line Of your Company. This
line is operated under nine hundred and ninety
nine year lease. Your Company owns over
80 per cent. of the Capital Stock. and the
necessity for maintaining II n separate
porati"n no longer exists. agreement providing
for its acquisition WILL in accordanc. with notice
given to the stockholders he submitted for ap-
proval af the annual meeting.
Your Company the majority stockhoder In
the Long Island Railroad Company. and with THE
view Of obtaining the shares which il does not
now hold amounting at par TO s5,eo2 100. has
y
ture Bonds Of the Long Island Railroad Company.
which. IL the plan be consummated your Com
pany is to receive in part payment for advances
to that Company. II satisfactory number OF
the minority shares of that Company will
opernte 10 make such plan effective. your
Company is also willing TO accept additional
Common Stock of the Long Island Railroad COM
pany in settlement Of the hnlnnce Of its indebted
ness that the fixed charges of the Long Is
land 1.aroad Company may he materially
duccd and its credit strengthened to finance its
future capital requirements.
ROAD AND EQUIPMENT
The report shows that the Company has con-
tnued its large program of expenditures for the
enlargement and improvement OF its railroad and
the purchase of additional equipment. relying
upon the public TO that higher rates are
paid to Justify continuance of such policy:
and Equipment the PENNSYLVANIA Railroad
and Lines directly operated by IT,. Of which
Income for the year. Several pages Of the report
are devoted 10 description of the improvements
20 epsions d ali over the system The eanipment
purchased during the year consisted Of 264 loco
motives, 4oS passenger cars and 6'2o2 freight
cars.
PENSION DEPARTMENT.
Your Company hns 3272 pensioners on its
rolls and the pensions paid during the year
amounted TO 81. .042. .Os0., incrrnse OF 1877 pen
sioners and s7c.o74. in the payments made.
FEDERAL VALUATION
The valuation Of your lines. under the drec-
ton Of the Valuation Division of the Interstate
Commerce Commission. IN which your Company
Is constantly cooperating continued throughout
the entire year. The field work preparatory 10
the inventory of the property. has been practi-
rally completed for the Northern Central Rail-
way which is leased by your Company. and for
various lensed lines in the State of New Jersey.
c considerable work of this character also
lone during the year on the Western New York
md Pennsylvania Railway, which is also leased
by your Company.
The cost TO your Company in carrying out this
work during 1916 S169. .926.5 30 and the total
10 December 3lst. 1916, was $314.o45.1I. The
.xpendi lures OF this character by the Lines East
If Pittsburgh amounted TO $293. 764 .0s for the
rear and aggregated S5S6.57S.4o 10 December
list 1916. and for the entire System East and
Vest of Pittsburgh $6.3 1869 for the year
md 81 .099 OIO.U7 to December 31st. 1916.
SAMUEL REA.
President.
)F THE ANNUAL REPORT COMPLETE. BY