Year: 1879

The Pennsylvania Railroad, not only from
the extent and perfect equipment Of its main
line but from the number and widespread
ramifcations Of its connections, is a work of
semi-national importance. 1t embraces in
its operations the most extensive railway
system in the world, and represents much
more than one-eighth of the entire mileage
of the whole country. In its stocks and
bonds large army of investors are deeply
interested, as well in this country as in Eu-
rope. Any improvement in its financial
condition or diminution of its annual reve-
nues, closely reflect the prosperity or the
depression of general trade.


Its reports, therefore, as they are pub
lished from year TO year, are of great signi-
fcance, and, like those OF the weather from
Washington, indicate either clear or cloudy
weather to the holders of its securities, and
10 our merchants and financiers. In the an
nual report for the last fiscal year, just pub
lished in pamphlet form, all of these classes
may find much to encourage and nothing to
excite undue apprehensions for the present
or the future. Without giving in detail the
long rows of figures, which are full and COM
plete, the result arrived at for 1878 is that
after meeting all current obligations, keep
ing the entire property in good condition,
and making a large reduction in the floating
debt, semi-annual dividend of two per
cent, has been paid, and another and
larger one honestly earned. This, in
view of the extremely low rates imposed
for large proportion of railway
service during the period of transition
from initiation to a specie basis, and the
special disasters to which portions of all
large railway systems have been subjected
by such events as have characterized the
past few years, is not only satisfactory, but
TO all parties interested must prove very
agreeable surprise.


But behind this exhibit of receipts, ex-
penses and profits, there are other points no
less ssencouraging and instructive. Necessity
may be a severe, but it is also goodteacher,
and one of the important lessons furnished
by the statistics of the report is that the
Pennsylvania road can make money even
when the industrial eXigencies require the
adoption of exceptionally low rates on
large portion of its traffic, and that very
Slight advance in remuneration would in
sure as large dividends as could reasonably
be desired or expected. This has been eff
fccted by rigid economy in the working ex
penses, combined with the maintenance of
high standard in everything relating to
the condition of the track and equipment,
and efficiency in the plans of operating.


The condition of the lines west of Pitts
burg has also been, to greater or less ex-
tent, a source of apprehension, but in these
for 1878 there was a gain over 1877 of
$3.50, 64S 4S, and a profit of SIG, 520.07,
the deficit in 1877 having amounted to
Sl14,12s41. These railroads were, there
fore, not merely instrumental in bringing to
the main line and its branches an enormous
amount of traffic, but were in themselves
source of profit


Thus it will be seen that the Company,
after fully providing for all liabilities in
Cured enhancing the value Of its equip
ments, maintaining all its lines in perfect
condition without adding a dollar to the
capital stock, but, onthe contrary, diminish
ing its bonded Indebtedness, the lien due the
State, and mortgages and ground rents, has
resumed dividends with every prospect of
their continuance. Such an exhibit cannot
fail to strengthen the faith of the holders of
securities and the general public.