Year: 1867

Equipment of the Line, which has cost $40, $685.
559.55, is now represented at SO, 81, ,2l4'93.


The Sinking Fund, which cost 81, 996, ,367'6S,
it is believed is ample, with its accruing in
come, to take up at maturity the debt of the
Harrisburg and Lancaster Railroad Company,
the Second Mortgage Bonds of this Company,
and still leave in it all the stocks that it is inn
portant that this Company should retain for
the security of its traffic. This conservative
policy has been pursued in view of the adven-
titious character of the traffic of the line dur
ing the past five years, and for the purpose of
giving to the Company financial strength
which will render the continuance of its divi-
dends certain, independent of the action or
policy of rival lines.


The Company has been placed in this strong
position while it has, at the same time, TO a
larger extent than any other corporation of
the kind, promoted the development of the
interior of the Commonwealth by aiding the
completion and extension Of other railroads,
where private capital would not incur the
risks of such investments,


The Pennsylvania Railroad was commenced
under the sanguine hope that it could be COM
OEs


The efforts of the Company in this direction, in
view of the great abuse that had attended the
financial operations of the earlier corporations
of this State, were eminently wise, and worthy
of an earnest effort to carry them into effect.
But after some years of persistent labor it be-
came evident that the enterprise was too great
for the local capital of this city, without sub
mitting to a delay in its completion which
neither the commercial prosperity of Philadel-
phia nor the interest of the shareholders of
the Company would justify This policy was
therefore abandoned for one which limited the
mortgage Indebtedness of the Company to it's
capital stock.


At the commencement of its work, the views
of the Company extended only to the construc-
ton of a railway between Harrisburg and
Pittsburg. But in operating such line in
connection with the uncertain and frequently
adverse management of the Philadelphia and
Columbia Railroad, under the State authori-
ties, it became evident that it must fail to
meet the Just expectations of its projectors, un-
less an independent connection could be made
with its commercial depot, or lease or purchase
of the existing lines effected. After many
abortive efforts, this object was accomplished
| by lease of the Harrisburg and Lancaster
! Railroad, and the purchase of the State inn
| provements at a high price, but upon salts
| factory credit. The great point, however, of
| securing harmonious action throughout the
| line, from Philadelphia to Pittsburg, was ac-


complished, which at once impaired new life
| and vigor to the enterprise, and insured its
| prosperity.


| 1t was early foreseen that trunk line, in
| tended to accommodate the traffic between the
| East and West, would fail in its object if
| wholly dependent upon the uncertain naviga-
| ton of the Ohio river as a feeder. The earlier
commencement of the other trunk lines had


already diverted the routes of the railroads in
progress from the commercial centres of the
West towards the East, to their works. To


overcome this disadvantage, it became essen
| tial that other lines connecting your road with
| these trade centres of the West should be
commenced; and to effect this, direct


and efficient aid by this Company towards
their construction was necessary. So fully
impressed were the shareholders of this Conn
pany at the time of the importance of this
movement, that, in voting such aid, they ex-
ceeded the views of the Directors The three
principal lines selected for such aid were one
to Cincinnati, a second to the centre of
Ohio, at Columbus, and a third towards
Chicago. The connection with Cincinnati
via Marietta was adopted, and failed
from the inadequate means provided
to construct a line over what proved
to be an unexpectedly rugged country. The
line to Chicago was only saved as an invest
ment, after the failure of the credit of that
Company, by much labor and large additional
outlays by this Company to secure its compile
ton. These efforts were crowned with entire
success, and the enterprise, both financially
and as a feeder of your main line, has met our
most sanguine expectations.


The line to Columbus-which also afFo rded
an equally good connection with Cincinnati as
that via Marietta, though leaving a large dis
trict OF country tributary to another railway
after long delays, growing mainly out of a
failure to procure adequate legislation in Vir-
ginia, has recently been brought into efficient
use, and promises satisfactory results. The
Pennsylvania Railroad Company will own as
preferred shareholder more than half of the
capital stock of this line.


The eastern end of this line. known as the
Pittsburg and Steubenville Railroad, extend
ing from Pittsburg to the Virginia State line,
was commenced under the patronage of the
city OF Pittsburg and Allegheny county, but
owing to the absence of any legal right to ex-
tend its road to the Steubenville and Indiana
Railroad across Virginia, it failed to obtain a
credit that would justify any responsible indi-
viduals in undertaking its construction. A
further increase of its capital stock was there
fore impracticable


A contract was entered into by the Pitts
burg and Steubenvie Railroad Company,
with parties of insufficient capital, for the com
pletion of this line which, as might have been
expected only resulted in still further en-
barrassing the condition of the Company by a
disproportionate increase of its indebtedness
compared with the work done. After further
efforts TO secure other parties to build the
road a contract was entered into with the
Western transportation Company for that
obieot~-a corporation in which this Com