Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-03-06

tracks. equipment and other facilities in advance
of actual commercial requirements.
FINANCIAL
On December 3Ist. 1916 the Company had
oSss stockhoders whose average holdings were
ITO shares. ALI of the stock is held in the United
States except less than 8 per cent.
by $1,000 through the sale of that amount of stock
held by the Company.
The funded debt, equipment trust obligations.
decrease of over s5,<6oo00 This Is due chiefly
20 redemptions of bonds through the various
dated Mortgage Sterling Bonds into Dollar Bonds;
and to the maturity and payment OF over 81 6es.OO0
in current liabilities (Which Is also re rejected % IN
issae Of sso'6oo.ooo q short term mote notes. which
The stockholders, in pursuance of notice al
ready given. will be asked to approve Of increase
IN the authorised indebtedness Of the Company
70 the extent of s75.o00,o0o. II approved. the
Board of Directors will thereafter be enabled
through the issue of bonds secured by the General
Mortgage. or by such other form of security Is at
the time may be most advantageous to the Com-
pany. or through the issue and sale OF previously
neeessary to ness mstSrns 'ns Senaas ,Snas
S2O.OOOOOO of 3H per cent. Nine Month Notes
issSed ior capital purpose. during the year. which
necessary capital expenditures on your constantly
expanding property.
II 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
part of the main line of your Company. This line
Is operated under nine hundred and ninety-nine
year lease. Your Company now owns over 90
per cent. of the Capital Stock. and as the neces-
sty Tor maintaining 1t as 9 separate corporation
longer exists; an agreement providing for its
acquisition will. in accordance with notice given
TO the stockholders. be submitted for approval at
the annual meeting.
Your Company. as the majority stockholder in
Island Railroad and .zrse sha
vlew of obtaining the shares which it does not
noid. amounting At par TO .2o2, 100. has offered
OF the Long Island Railroad Company. which, il the
plan be contaminated your Company is to re-
eeive in part payment for advances TO that Com
pany. IT satisfactory number Of the minority
shares of that Company will cooperate to make
such plan effective. your Company is also will
ing to accept additional Common Stock of the
the balance of its indebtedness, SO that the ixed
charges of the Long Island Railroad Company may
be materially reduced and its credit strengthened
to finance its future capital requirements
ROAD AND EQUIPMENT.
The report shows that the Company has con-
unued its large program of expenditures for the
the purchase Of additional equipment, relying
upon the public to see that higher rates paid
to Justify continuance OF such policy. Nearly
ment on the Pennsylvania Railroad and Lines
directly operated by it. of which si2.e2S.7II
was ehsrEed ssanst the Surplus Income for the
q
description of the improvements to the railroad
stations yards, and track extensions all over the
System. The equipment purchased during the
year consisted OF 264 locomotives 403 passenger
cars and 6,252 freight cars
PENSION DEPARTMENT.
Your Company has 3.272 pensioners on its rolls,
and the pensions paid during the year amounted to
Sl,o42, ,oS0., increase of 1877 pensioners and
$T6,21z. in the payments made.
FEDERAL VALUATION.
The valuation Of your lines. under the direction
OF the Valuation Division of the Interstate Com
merce Commission. in which your Company is
constantly cooperating continued throughout the
entire year. The field work preparatory to the
inventory of the property, has been practically
completed for the Northern Central Railway,
which is leased by your Company. and for various
leased lines in the State of New Jersey. Consider
able work OF this character was also done during
the year on the Western New York and Pennsyl-
vania Railway. which is also leased by your Com
pany.
The cost to your Company in carrying out this
work during 1916 was Sl69. 1926 50 and the total
to December 3lst, 1916. was l4,545l7. The
expenditures of this character by the Lines East of
Pittsburgh amounted to S293, 764 0S for the wear
and aggregated S5S6. .57S42 to December 3Ist
1916, and for the entire System East and West of
Pittsburgh 1928 346.5 so for the year and 81 O99-
040.07 to December 3lst. 1916
SAMUEL REA.