The Washington herald., 1917-03-06

vas sunewhat improved but IN. need. n, IN. ,i,.,,
uon nave not yet been satisfactorily uri T,e ,,-,
Ss cs1Iles As whole for many yesrs have he'd %
oepeno i0 new capital the increase a. 'B.-r
oeot ano mortsaEe obligations rather than h, rb.
As 0 Capital Stock. % that i Is srident -i,.ry
% cron not Jet securely founded. TTrer~furr
Committee to make q Thorough, rr0nrr aDg in,. -
hl Investigation OF the eutirs trsDspor-srro
problem: and recommend legislation thai IN IN. ~.
c1eait Tor the railroads; reasonable rs,rs and
adequate serTce to the public: and rrplac c-usI-.
ing and NAaeful regulation with united rrsrc,sirrs
regulation By the Federal Government, under vbjch
the railroads viii be Permitted 10 an fsr rrfu-n
On tne optal already inverted Ia the rrflIi- rrsr
portanon service, and sufficient to Ittrsc- tn rT
uoosl capital requisite TO regularly enatse and lan
IFoEe their teruinss trscks equiument and r;h.-
lsclass In advance Of actual comnercisl rrqrir.-
nentA
FINANCIAL. .
On Decsmbes Nst. lNs the Conpsny had e ~
stSchoAdoN vhose Syerzss holdin1 were no shsrs.
An o. me stoek 10 held In the United Stster sEoep.
The Capital stoA outstanding vas inc7c,se5 h~
Sooo through the ssle q that anoant Of soc1 he'd
BY the Company.
The funded debt. equipment trut obl,s.uou.
mortgages and ground rents payable SHOW -
decrease Of over S.+0.oml This is due ehicAv -
redenpaoos Of bonds thruush the ysrioss sinking
Funds; 70 the conversion Of Consolidated Mc-ts=s-
Sterling Bonds into Dollar Bonds; and 10 --s
maturity and payment Of over Nss 90 Of ,q~i.-
ment trust Obligations. The inc-ea@ in c-lr-psr.
liabilities (which "a also renected in ID. Coursrvs
.ssnl. h due chiefly to the issue of so oooO0 o
short-term notes. which mature IN Arzil Iel7
Tee Stockholders in pursuance o[ motto, ALREADY
s.'cn. VII be asked to approvr Of an increase il
TIE authorized indebtedness Of the Company to the
eItent Of SSm ~o II srprOTed, the BOsrd -
Drectrs will thereafter be Enabled throurh rhs
issue Of bonds secured By the General Mortgage ~
by such other form Of security as at tn. time rr,r
be most advantageous 70 the Company. or throrzh
the issue and sale Of previously authorized Csrfa,
Stock. TO procure the funds necessarv to p.st m,
turing obliEItions including SD ooOoo Of 81, -
cent Nine Month Notes issued for czpital r1rrcses
during the yeat; which vii mature in AriI Io'-
and 10 provide the Necessary capital expenditure on
your constantly expanding property
II has been deemed advisable to acquire the r-cr
eTty and franchises Of the Harrisburg Portsmouth,
Mt. Joy a Lancaster Railroad Company, the r1T
road Of which COMPANY extends from Lancaster to
Harrisburg. and forms an inteeTsl part Of the mai
lire Of yoUr Company. This line is operstra un6e-
nine hundred and ninety nine year lease Your Com.
psny now owns over % per cent Of the CAPITAL stct
and as the necessity for maintaining IL a. serarafs
corpp1hon no longer exists an ageement proyodins
for Its acquisition will. in accordabce with noted
nren to the sockhohsrs. Be Submitted for Ipp-urI
at the annual MEETING.
Your Company, as the majority eockholder in IN.
Long Island Rsihtsd Comrany ard with the view
Of obtaining the sAH-es which it does no' nov
hold. amounting at TSr to $50 loo has offered a
like amount Of Five Per Cent Debenture Bond, Of
the Long Island RSilrusd Company, which, ~ IN.
plan Be- consmn1ted your Company IL TO receive
lf
Q atisactory numbeT ot the minority shares q thai
COMPANY will oooperlte to make such O p1Gn
effective your Company is also willing 10 srcept
additional Common Stock OF the Long Island Rail
road Company in settlemrnt q the balance Of its
Indebtedness. % thst the hIed charFes Of the Long
Island Railroad Company NAV be materially ~
duced and its credit strengthened to finance iI tu-
ture capital requirements
ROAD AND EQUIPMENT.
The report show that the Company has continued
In lEFe proE1m OF erpeodtmes for the enlarge
ment and improvement Of its railroad and the rufL
chase Of additional equipment, relyns upon the pIh
he 70 zee that higher rates are paid 10 Su.tify q
continuance Of such . policy. Nearly SBep 0e
was expended for Road and Eauipment on The
Pennsylvania Railroad and Lines directly op--.t~d
by it. ct which H2s7.7ll was charged aEzinst the
Surplus Income for the year Several pages Of th,
report are devoted to dc-crrtion q the improve
ments to the railroad. stations. yards and track
extensions all the system The eouirment rvr--
chased during the year eonsisted OF o4 IocomOtirz
scS passenger cans and G2H frylsht arS
PENSION DEPARTMENT.
Your Company has Se72 pen-doners 90 q, ron,
and the pensions paid drring the year amounted 20
s. oieoO. an incTease Of Isl pensiooeu and sc 70
in the payments made.
FEDERAL VALUATION,
TIE valuation Of your lines. under tn, direction
Of the Valuation Division Of the Interstate Com
merce Commission, in which your COMPANY ia eop-
SANITY coapersting continued throuRhout IN. .n,-.
year. The field work TTepautory TO the inventory
Of the property. has been practically cunpleted fo-
the Northern Central Railway, which IA Ies--d by
Company. and for various lea ased lines in the
State Of New Jersey. Considerable won Of tins
character was also done during the year on DE
Western New YORK and Pennsylvania Raiiwsy
which is slso leased by your Csnpsns
The coS 10 your COMPANY in Carrying out this
work during 1876 was ncs.eB2 and th, total 10
December Slst. 1875. vas sSltSsr. The exp-ndI-
Of this character by the Lines East q Ptf,-
burgh amounted 10 sec 7H6 for the year and asrr,-
gated SSs ~ to December Slst lsS ana fcT N.
eu;ire System East and wcs Of PttshsrrRh 81 yS y
fur the year and N.ce2.6loU 10 December slss Isda
SAMUEL REA,
PrsadsnL