THE DAILY EVENING TELEGRAPH PHILADELPHIA TUESDAY, EBUUAUF 21, 1871. 5 rEKNSYLVAMA KAILKOID COMP1XT. THE ANNUAL MEETING OF STOCK HOLDERS AT CONCERT HALL. The Report af the nsardof Managera. Phr Ibk I lie Oprrnttena of the M reitt Cor lrnlloa far the Year IMJO. This morning at 10 o'clock the twenty, fourth anuual meeting of the stockholders of the Pennsjlvauia Railroad Company was held In Concert Hall. The attendance wan large, and the proceedings of the greatest interest. Mr. John V. Derbyshire moved that the Mayor, Daniel M. Fox, take the chair. This was agreed to. The Major then called the assemblage to order, and announced the first business in order as the reading of the annual report by the Secretary, Joseph Lesley. Office oy tub Pennsylvania Railroad co., l'HII.ADKl.PHIA, Feb. 19, 1911. j To the Shareholders of the Pennsylvania Rallroal Company : Your directors have the pleasure to submit to you a very satisfactory report of the results of the business of the company for the past year. During that period the operations of the company have been very extensive, and have been attended with gratifying suocess. THE EARNINGS Of jour Main Line and Branches were: From Passengers ts.Mrs ST1-20 EnitKiant Passengers. l2,tTl2 Mails 140,i4:V45 ' Ex preM Matter RIO,7s.v79 General KreiChtS 12,73,10 4T MiEie:iaaeou Sources 974-00 117,631,705 S2 Amount brought forward 82,631,70S-S2 EXPENSES. For conducting Transporta tion f:i,r02,os4-C9 For Motive Power s,i24o,60o-C9 Maintenance of Cars... 11R3 94.V1T " MalntenanceofRoad... 3,or3,os.V7s General Expenses 811,702 88 11 ,560,095 -15 Leaving net earnings for 1370 of 88,271,621 -67 The total amount of revenues compared with last year is: 1870 . .....fl7,fi31, 708-82 18C9 17,250,811-73 Increase l?8095-09 The changes in the sources of revenue are shown below: Increase In first-class passen- gers fttr.,300-14 Increase la Rmtgrants Bl,i)5-99 " Mails : 87,781-64 ' Express Matter.. 8,13124 " Miscellaneous " fcources 257,672-59 1 120,891 -60 Decrease In freights 139,490-41 Increase as above stated $30,895-09 The only item of income that shows a de crease is from freights, and this has occurred under an increased tonnage of 401,0(i0 tons, and is mainly accounted for by the reduction of freight charges without any legitimate object during the past summer and autumn, by the New York lines, t3 a point much below the cost of transportation. The gross revenues for 1S"0 are equal to $4 8, 9 71 ''" per mile for the main line of railroad. The whole number of passengers carried in 180'J was 4,22'.,yt3, and in 1870, 4,352, TW, an increase of 123,400, or nearly 3 per cent. The average distance travelled by each pas senger was 34 05-100 miles, being 43-100 of a mile greater than in ISO!). The number of tons of freight moved (in cluding 370,050 tons of fuel and other ma terials transported for the company) was r,804,051, embracing 2,550,380 tons of coal. It was last year G,402,11)1 tons. The average charge per not ton per mile rjpon freights, during the year, was I 549-1000 cents, against 1 718-1000 cents last year, and 1 9-10 the year previous; and per passenger, 2 49-100 cents per mile, against 2 51-100 cents last year, or an average decrease in freight charges of 9 8-10 per cent., and in passenger charges of 8-10 of one per cent, per mile. The actual coBt of operating your railroad. including branch lines, in 1870, was 59 15-100 per cent, of its receipts. The earnings of the Philadelphia and Erie Railroad in 1870 were: From passengers 800,438-81 " freights i,4f9, 154-52 " express matter 83,mn5 mail 85,000-OH w HilBceilaneous sources.. 80,339-93 Total (nearly tll.OOO per mile of road) 11,144,04-71 Amount b.ought forward S3, 144,044-71 me operating expenses curing tae same period were: V or Cond uctlt g Transporta tion I712.179-2S For Motive Power 738,920-64 For M aim e n nce of Cars . . . . SCO. 7 10 -23 For Mainu nauce of Way.... 807.912-25 2,577,72 -42 Showing a balance of credit of P. & E. It. K t5W,31-29 The nnmber of tons moved over this rail road during the year was l,Glt,287 against 1,302,041 tons in 1809. The average charge made per ton per mile on freights was 1 290 1000 cents, which is within 304-1000 cents of the actual cost of its transportation. The road passes through a sparsely populated re gion and meets the direct competition of the Erie llailway. the rates upon which have not for many years been adjusted with a view to dividends to its shareholders. The revenues of the lines operated by this company and the amounts paid for their working expenses, interest, and dividends are as follows: From the Pennsylvania Railroad and branches 117,531,705-82 from the Pittsburg, Port Wajne, and Chicago Railway 8,118,595-00 From the Kile and Pittsburg Hallway (ten iuont list 67C,653-23 From the Philadelphia aud Erie Rail road 8,144,044-71 1 29,015, 200-88 Amount brought forward 23,OC5,208-8 And the expenses of operating these lines were: Pennsylvania Railroad 111,200,035-15 Pittsburg, Fort Wayne, and Chicago Railway, luclu. ding rent, t-to 7,052,011-95 Erie and Pittsburg Fail wsy, Including rent, etc., (lomontliB) C42,2-78 phlladelpbl and Erie Rail road (including &06,310-29 net earnings paid to that company) 8,14l,oii7i The Ions upon advances to the Columbus, Chicago, and Indiana Central Ita.ll way Company, to meet Its floating tlvbt, etc., aud on the opt rations of the lease of the lines of and com pany lor 1970, amount, under an agreement and .lenient with the lea. Leaving the net profits of the j er into upon an the operations of the Com pany H.r.9.s 95 From which deduct divi dends declared In May and November (each 6 per cent.) with the taxes paid thereon 8.456.357-50 Balance to debt of interest account and tho amount allowed discount on sale Of Bonds 1.799.101-3J Due for the lease of the 1 1 arrlsburg and Lancaster Railroad 134.921 99 Annual psyment to the State Of Pennsylvania on account of interest and principal due upon the purchase of her works between Pittsburg and Philadelphia 400,000-00 15,949,340-77 Leaving a balance of credit to profit and loss of sr5(,oi3-09 It will be noticed that this balance is the result of the business of the year, without bringing forward a similar surplus in 1809 amounting to $103,533, and after charging to expense account the additional cost of sub stituting iron bridges on the main line of your road for those originally constructed of wood: the change of steel for iron rails; the cost of the straightening of the old Philadel phia and Columbia Railway purchased of the State, and the extension of the shops at Altoon8; neither of which items of expendi tures will add to the productive capacity of your railroad, but they may prevent serious interruptions to your trattlc, aud in time materially reduce the cost of operating the line. The operations of the Pittsburg, Fort Woyne and Chicago itHiiwajs continue, to snow 1H0 i.ivoratiie results confidently anticipated at the time the lease of the road was made. Tho earning during the veor 1870 were $s,iis.sn5-60 And the operating expenses 4,371,997-63 Balance 8:i.74iJ. 603-07 The annual rent, with Interest, on the bonds or the company, expenses of maintaining the organization, an nual contribution to the sinking fund, etc., etc , amounted to 8,00,024-42 Showing the surplus of the lease to be. 11,0130,593-05 The earnings of the Erie and PI tsburg Railroad from March I to December 31, 1870 ten months (operated under the General Manager of the Pittsburg, Fort Wayne and Chicago Railway), were 1370,859-23 And expenses for the same period were 333,425-76 Balance i97,4;i3-47 The interest on the bone's of the company, expenses of maintaining organiza tion, etc., etc., during this period, amounted to. . 259,875-00 Showing a profit of 923,570 47 Giving a profit on the Leases of these two roads ol $1,295,180-12 The net revenues of the Pennsylvania Railroad Company from investments in other lines, it is confidently expected, will, after 1871. yield an amount fully sufficient to meet the interest upon the whole mortgage indebt edness of the company a source of income which may be expected to continue and annu ally increase. It is not the intention of the directors that the mortgage indebtedness of the company shall be increased beyond the thirty-five mil lions of dollars already authorized, as they consider that the other assets of the company, after exhausting this issue, will be ample to meet any enlargement of their works that may be required to comply with the public demand for transportation facilities. The value of the existing Sinking Fund in stituted for the payment of the second mort gage bonds will not only be sufficient to can cel the bonds issued under it when due, but a balance will be left which, if judiciously ad ministered, will also pay olf at maturity not only the first mortgage bonds, but also thoae cf the general mortgage; while the lien of the State upon the Philadelphia and Columbia Railway is being paid off by the annual re ductions of its principal, in accordance with the act of Legislature, to an extent which will extinguish it before its maturity. From this summary the shareholders will notice that the interest npon the mortgage debt of the company, after 1871, may be pro vided from the interest upon instalments out side of your railroad, and that this debt may be all cancelled at maturity by the existing sinking fund, leaving the net earnings of your railroad, which the past year amounted to $ 0,271,02107 (after meeting the annual payment of $400,000 to the State), for the btockholders. The Treasurer's statement, annexed to this report, will exhibit the condition of the finances of the company at the close of the year. The discount allowed npon the large amount of general mortgage bonds Bold in this country and Europe, to take up the com pany's debentures and meet its other obliga tions, has been met, as heretofore, by the net revenues of the company for 1870, in stead of charging this item, as is usual with other companies, to the cost of the invest ment. To meet the demands npon the treasury during 1871, to complete the works ia pro gress that are deemed essential to protect the existing interests of the company, and pay the debentures amounting to iyl, 109,224 fall ing due in July, the board propose to give to each shareholder the privilege of subscribing for one share of stock for every six that may be standing in his name upon the books of the company on the 30th of April, at par. Under the terms of the general mortgage there can be issued only one million one hun dred and ninety-two thousand dollars of these bonds in addition to those already sold, until the debentures due in July are cancelled, and further payments are made upon the State debt and prior mortgages upon its line, when an additional issue equal to buou re duction and payments may be made. The net revenues of the company in 1 870 were in ex cess of the amount required to meet dividends of 10 per cent, upon the proposed increase of capital, and there is no reason to expect less favorable results in the future. To enable the company to provide for this distribution cf 6tock, the directors accepted trie provisions of the General Act of the Assembly of Pens pylvania, approved December 29, 1809, autho- rizing me increase 01 me capital 01 uu rail - . m 41. . : a 1 .11 :i way companies 50 per cent. E'lhe directors, in their last annual report, referred to the motives which induced them to depart from their original policy in extend ing their direct control of railways west of Pittsburg. As this change has been the sub ject of mucn public comment, the board will be pardoned if they again briefly refer to it In consequence of the failure of the mixed M'stciu of canals and railroads of the Com- ... - v , ... inonweaun 01 i ennByivania, and tneir con necting lines beyond Pittsburg, to attraot reasonable share of the trafiio between the Pafat and West, or successfully compete with the avenues built by New York, all the lines of railw ay that were first built in the West to reach the Atlantio market were directed towards Buffalo as the then best and cheapest route to the Fast, leaving to this company, if it entered the list of competitors tor tins dis tent traflie, to endeavor without delay to secure in its interest railway connections with the commercial centres of the West as feeders to your main line. Sensible of the prejudice against large corporations since the failure o' the United States Rank, the policy of this company was first directed to the procuring of these connections by securing the organi zation of the independent railway companies, and their construction by such pecuniary as sistance as was required to effect this neces sary object nnder contracts for the mutual interchange of business. This course it was confidently expected would meet the objects desired without involving this company in the direct management of distant enterprises. It however soon became evident, after se curing such feeders, that their suocess in diverting the traffic of the West from the cbannels it bad become accustomed to fol low stimulated the older rival interests to endeavor to overcome it by obtaining the control of such feeders with a viow to embarrass our business and augment their own. The efforts proved nearly suc cessful, and were only prevented by jromptly meeting the exigency by securing tLe absolute control of these lines for this company. The board think that they wonld bnve been derelict in their duty if they had yielded to timid counsels and permitted this opportunity to secure their object to pass un improved. This control was effected by the lease for nine hundred and ninety-nine years of the Columbus, Chicago ond Indiana Cen tral Railway, and of the Little Miami Rail road, through the Pittsburg, Cincinnati and St. Louis Railway Company, which your com pany controls by the ownership of a large majority of its shares: and the direct lease of the Pittsburg, Fort Wayne and Chicago, and the Erie and Pittsburg Railways. Under the lease of the Tittsburg, Fort Wayne, and Chicago Railway this com pany became possessed also of one-half the shares of the Indianapolis and St. Louis Rail road Company (between Indianapolis and Terre Haute), which had a lease of the old line between Terre Haute, Alton, and St. Louis. The Pennsylvania Railroad Company bad previously acquired a majority of the shares of the new line between Terre Haute and St. Louis via Vandalia, thus completing our connections with St. Louis. Under the amended lease of the Columbus, Chicago, and Indiana Central Railway this company felt morally bound to assume its obligations to the Indianapolis and Vincennes Railroad Company, of which it is now nearly the sole shareholder. This enterprise is at pret-mt unprofitable, but will ere long prove a productive work, and when extended to Cairo, the grading of which is in a great measure finished, it will become a line of national importance. It is not proposed nor is it desirable to manage these lines in a manner to divert traffic from its natural markets or channels, but solely with a view to secure to this com pany its fair share of the business of the West, which it was found impossible other wise to obtain. The result of the operations of all these lines for 1870 shows a small profit, which nnder judicious management must annually increase. Their net profits for 1871 it is con fidently expected will be very satisfactory. With a view to give greater simplicity and efficiency to the management of this large Western interest, and as far as practicable return to our former policy, a charter was obtained from the Commonwealth of Penn- svlvania incorporating the "Pennsylvania Company, " to which all the interests above- mentioned of the Pennsylvania Railroad Company will be transferred on the first of March next, and $8,000,000 of the pre ferred capital stock of the Pennsylvania Company received therefor, which amount covers fully all of our expenditures in this connection. The whole capital of the Pennsylvania Company will consist of $8,000,000 of preferred and not exceeding $4,000,000 of common stock. All the profits of the corporation during 1871 after meeting tne obligations 01 tne lines leased are to be used by the managers in perfecting aud equipping the railroads transferred to it. After 18d the preferred shares of this com pany will yield at least G per cent, on their par value. in aaamon 10 me interests 01 me company in the West to be transferred to the Penn sylvania Company, it still holds twenty-two thousand shares (a largo majority; of the stock of the Cleveland, Mt. Vernon, and Delaware Railroad Company whose line is partly fin ished and the remainder in progress nnder the judicious supervision of its President, Judge llurd, of Mt. ernon, Umo. Ibis interest was received with the lease of the Pittsburg, Fort Wayne, and Chicago Railway, and promises to become a profitable invest ment; also one million and forty-nine thousand dollars of the bonds of the New Eort and Cincinnati Railroad bridge, now eing erected to connect the Little Miami Railway with the Kentucky system of rail roads; four millions four hundred and forty- six thousand dollars of the General Mortgage Bonds of the Pittsburg, Cincinnati, and St. Louis Railway Company; one million seven hundred and sixty-six thousand dollars of the Second Mortgage Bonds of the Terre flaute, andolia, and St. Louis Railway Company; and eight hundred and seven thousand dollars of the First Mortgage bonds of the Cincinnati and Mas kirgnm Valley Railroad Company the line of which is built from Zanesville to Morrow, 132 miles, and is being extended from Zanesville 10 miles to Dresden, on the Pittsburg, Cin cinnati, and St. Louis Railway. The inte rest upon all these bonds (amounting to $8,00s,000) will be duly met from the reve nues of these works. This company also holds a majority of the Bhares of the stock of the Chartiers Railway Company, whose, line between Pittsburg and Washington is now approaching completion, and must soon become a profitable invest ment. The liabilities of the Pennsylvania Railroad Company in the West, as guarantors, arise wholly under the leases that it has made or guaranteed, and extend to four millions of dollars of the first mortgage bonds of the Grand Rapids and Indiana Railroad Company as required by the terms of the lease of the Pittsburg, Fort Wayne and Chicago Railway. The Grand Rapids and Indiana Railroad Company, besides its lands pledged for of these bonds least at eight millions of railway, holds the payment valued at dollars, and they cannot, therefore, reasonably beoome a charge npon this company, even if the rail way should prove unproductive an expecta tion whieh is not justified by the revenues of that portion of the line already built; to the bonds of the Indianapolis and Vincennes Railroad Company, amounting to three mil lions one hundred and fifty thousand dollars upon 114 miles of road, which will doubtless earn, after 1872, ample revenues to meet its interest and provide for the prinoipal when due: to the interest upon thirty-six millions seven hundred and twenty-four thousand and fifty-two dollars of the bonds of the Pittsburg, Fort Wayne, and Chicago Railway Company and the Erie and Pittsburg Railroad Company; and to fifteen million eight hundred and twenty-ouo thou sand dollars of the bonds of the Columbus, Chicago, and Indiana Central Railway Com pany. These works, as a whole, now yield net revenues more than sufficient to meet the in terest upon all of the obligations mentioned, while the operation of the sinking fand of the Pittsburg, Fort Wayne, and Chicago Rail way Company, the terms of which have been faithfully complied with and the semi-annual amount due charged to running expenses, will pay off the whole of its mortgage indebt edness, amounting to $UVG:S,0D0, before the bonds are due. From this general review of the interests of the company in the West, it will be per ceived that, while securing to the company and this city uninterrupted communication with the trade centres of that region on and east of the Mississippi river, the board has at the same time also invested the means re quired to secure that objeot, so that they will jield satisfactory direct returns to this com pany. The difficulties encountered by this com pany in securing hnrrnonious railway connec tions with the West have also been met) in its efforts to open communications with the capital of the Union with which the Northern Central Railway, and your road have formed the most direct route of travel to and from the North and Northwest. The Northern Central Railway Company fell for a time nnder the control of the presi dents of the Baltimore and Ohio and the Phi ladelphia and Reading Railroad Companies, who represented interests adverse to those of this company, rendering the object we de sired of no easy accomplishment. Daring the monetary panic in Baltimore, however, immediately after the election of President Lincoln, the interest of the first-named pprty and many other shareholders in the Northern Central Company was thrown upon the market and imme diately taken up by this company. The remaining shaies required to make a majority of the Btock of the company wore purchased in London. This arrangoment secured to this company a satisfactory con nection with Baltimore; but to reach Wash ington the Baltimore and Ohio Railroad had still to be used. Every effort to obtain rea sonable terms connecting our route with the national capital failed. Neither the sale of through tickets, the right to cheok through passenger baggage or to ran through trains would be yielded, while the rates demanded upon freight passing over this line were quite prohibitory. These dis advantages were submitted to until tho Balti more and Ohio Railroad Company determined to extend a branch of their line to Pittsburg, when further forbearance, it seemed, would be construed into weakness, and steps were at once taken under the auspices of the Northern Central Railway Company to build an independent line from Baltimore to the Potomac, at Washington. Thi3 road is new njgarly ready for the rails, and will be imme triMfciy extended by a tunnel nnder Baltimore to the Northern Central Company's Depot, and thus open to the capital of the Union direct and uninterrupted communitioa with the North, Northwest and Northeast. Ihe products of the anthracite coal fields and the white pine lumber regions of Penn sylvania consumed in Washington and vioi nity, that have heretofore been excluded from the Northern Central Railway by the exac tions referred to, will, when this road is com pleted, furnish a large and increasing trafiio to that line. To make this enterprise com plete arrangements have been made to extend tne road across tne Potomac, through Alexan dria, to a junction with the Richmond, Frede ricksburg, and Potomac Railroad northeast of I redencksburg, thus forming a direct aud continuous line of railway between all import ant points in the Southern Atlantio States with those of the North and East. On reaching the Richmond, Fredoricksburg and Potomac Railway, however, we unexpect edly met the restrictive policy which has heietofore governed most of the seaboard railroads south of New York, a policy whioh btlongs to the past and whioh we trust will soon be abandoned as inconsistent with the interests of the public and permanent inte rests of the shareholders of that oompany, and traffic be permitted to reach its destina tion and market whenever it will leave margin of pront to tne transporter. J. he privilege secured to the shareholders of the Harrisburg and Lanoaster Railroad Company, tinder the lease of their railroad to this company, to convert their shares at par into the shares of the Pennsylvania Rail road Company, terminated on the twenty ninth day of December last, leaving 7050 shares, equal to $S'i2,800 of the capital stock of that company, still in the hands of indi viduals, npon which semi-annual dividend of three and a half per cent, have been guar anteed by this company. The gradual alignment of the old Philadel phia and ColumbiaRailway is still in progress, end will be continued until the whole line is brought to the standard of modern railroads. That portion of the line between this city end steamboat btation in unoster county, where the most numerous and abrupt curva tures were laid, will be rebuilt and ready for use by tne autumn of 1872. uradmg upon this end other portions of the main line at points best suited for the purpose has been commenced for a third track to avoid the vexatious detentions that now ocour ia f massing trains in the same direction, travel ing at different rates of speed. There has not been much progress made by the Allegheny alley Railroad Company to wards the extension of its railroad (known as the "Low Grade Railway ) to the Phuadel pbia and Erie Railroad at Driftwood, except its relocation under the direction of John A. Wilson, Usq., Chief Engineer. His survey demonstrates the entire practicability of con tinuing a maximum gradient of eighteen feet per mile on straight lines from Columbia, Lancaster county, to near the summit of the Allegheny Mountains, and thence reaching the tunnel under the mountain by a short exceptional gradient of only thirty six feet per mile, in favor of the heavy grade. The desoent from the mountain to the Allegheny river is ac complished with a maximum gradient of six teen feet per mile. We here have a line crossing the rogged Allegheny Mountains at an extreme elevation 01 oniy mu zeei aoove tide water, with lower gradients than are found necessary in passing the plains of the Mississippi Valley. Upon such a line, when completed, freights in large quantities may be moved at one cent per net ton per mile with a sufficient margin of profit to the trans porter. This rate must draw to the line all the traffic south of the lakes which now seeks the New York Canal. The main objeot in the organization of the Pennsylvania Railroad Company was to pro mote trailio between mis city ana tne west. This obiect has been kept steadily in view. and is not inconsistent with the best interest of the shareholders. It was confidently expected on the completion of your railway that the enterprise and capital of the citizens of Philadelphia would have been at once enlisted in marketing the produots brought to their doors, ana the means fur Dished to distribute them to points of con sumption. But it soon became evident thtt this could not be depended upon, and that our cars must pass to New York to meet pur chasers of their contents or the business of the company would become dwarfed to that of a second-class railroad a fate which the interests of the shareholders would not permit. lo remedy this difficulty, this company, at an early period, offered to join the citizens or corporate authorities in establishing lines or steamers between this port and Liverpool, but without eliciting any favorable response until the present time, when the required stock subscription to such a line has been made. The success of the project now depends r.pon the purchase of one and half millions of the bonds of the steamship company guaranteed by this company. The board has agreed to take a majority of the stook of this com pany not exceeding $100,000, and make this guarantee, and now submit their action for your approval. In the success of this enter prise the board has the fullest confidence, nd it may be stated that the delay that has occurred in the organization of the line is not without its compensating advantages, as it w ill enable the ooEipany to profit by the very grat improvements that have been made within the last ten years in the construction of steamers and their machinery, whioh have rendered almost obsolete steamships built previous to that date. Lven with the aid or this line of steam ships, the tonnage capacity of your railway will be far in advance of the ability of this city to market, and the surplus must continue, es heretofore, to seek New York and other cities. In the adjustment of rates of freights from and to the West, the differences due to the shorter distance to Philadelphia have always been maintained. This discrimina tion, however, depends altogether upon the action of your board for the time being; but arrangements may be made by the corporate authorities of Philadelphia by which these differences will be permanently adhered to. 1 our directors have had under considera tion for some months the propriety of leasing the railways and canals of the joint com panies between Philadelphia and New Y'ork, but have not as yet come to a satisfactory conclusion in relation to this very important question. The principal object desired by this company is to secure ample facilities for the accommodation of the large trafiio that we can send to Jersey City, aid its prompt delivery at that point. These joint oompanies have been unable or unwilling to give us the facili ties desired, and our business is consequently restricted in its development, and the termi nnl expenses unnecessarily increased. The effect of such a lease will not be detrimental to the interest of this citv, as it is intended to maintain the discrimination in rates of treffio that has always existed in her favor, w hile its influence upon the prosperity of your company must be material if the lease i - . . m is ouiamea upon sausiaciory terras, ine rate at present demanded is greater than the joint companies have derived from the net profits of their lines for some years. 1 our Directors take much pleasure in ac knowledging their indebtedness to the Gene ral Superintendent of the Pennsylvania Rail road, A. J. Cacsatt, Esq., and his assistants, for the freedom from serious accidents on the road during the year, and for the very satisfactory reductions that have been made in the cost of operating the line, notwith standing the inorease of its tonnage. They also mention with commendation the success of the General Superintendent, W. A. Baldwin, Esq., of the Philadelphia and Eiie Railroad, in the management of his line under the exiremeiy low rates that it has been compelled to accept during the year. To the General Manager of our leased lines beyond Tittsburg, J. N. McCullough, Esq., we are especially indebted, for the very satis factory profits that have been realized from the railways committed to his charge, uudor the low rates upon through freights that have prevailed during a larger portion of the last season. Respectfully submitted. By order of the board, J. Edgar Thomson, President. The Bualoesa of the Irleetlnc. The Secretary read, la addition to the report of the managers, the Treasurer's statement, which enters Into the details of the Investments of the funds of the company, the receipts and expenses. Mr. Isaac lUzlehurst offered the following reso lutions: J.ohtil,TMt the report of the Board of Dlrestors for the year 1870 be and It Is hereby accepted by the ttockholders, and that It be published la pamphlet form. Itesolvtd, That the act entitled "An act to autho rize corporations to Increase their bonded obliga tions and capital btock, " approved the 2'Jth day of liecember, A. 1). 1S09, be aud It is hereby accepted by the giotkhohUra of this company, aud that the acceptance of the said act by the Board of Di rectors, and their action thereunder, be and the tame la hereby ratiiled and couilrraed. iUeolvtd, That the action of the Board of Direc tors, in agreeing to subscribe for 1 100,000 of the capital Block of the American Steamship Company of Philadelphia when organized, and in agreeing to endorse the bonds of said company to the extent, of 11,600,100, in pursuance of authority conferred by law, be and the same Is hereby ratinud and con firmed. Mr. John Ilulrae said that the stockholders had Just heard read a mans of figures which no one could understand or comprehend upon the simple hear ing, lie attended the last meeting when the report was read, and which was accepted by a limpla reso lution. Not one person arose to put an Inquiry ; not one aked a quebttou as to whether It was correct or not. Mow lie thought that the stockhol'iers had been engaged in a mutual admiration society long enough. Ii thought tiie time had now come when the stockholders had a right to Investigate the actions of their agents, Ihe ofllcera. lie therefore effered the followiug resolution: Jtetolved, That the report of the President and Directors or the Pennsylvania hailroad Company for the year 1870, Just read, be reft rred back tu the said President and Board of Directors first to make out a clean and comprehc-nslve balance Mheet of the liabilities of the company and of luan ieu; staring also all Its guarantees, all or Its pure hates, all tuo cost and receipts of roads controlled by the Pennsyl vania Jtallroad Company, all of the itonds, mort gages, etc., held against the company and thoae held In its favor, with a detailed statement of the salaries paid to the olll cers of the company, etc. tto. Mr. llulme then wut on to say that the stock holders should not be content to listen to a lumped statement of a mass of important figures hastily read A Member Speak louder, Mr. llulme! Mr. llulme 1 speak louder than the Secretary did when he lead th report. The stockholders should have the opportunity or becoming familiar wlih the operations ol the minor roads under the control or the Pennsylvania Kallroad Company. Ha then went Into quite a detailed statement, showing In seven years a prodigious Increase of capital stock, a great increase In Its expenses, aud a fulling off In ha receipts. lie regarded the plan of fanning out the privileges of the road to palace-car companies, aud other outside organizations, as aa outrage. (Applause.) If these outside orgaul KatiuDS, which he characterized as t'10 para sites ot railroad companies. Increased, they would soon control the organizations or whi--U at first they only asked privileges. Be cautioned the stock holders that they should no lontter remain In Itmo ranee of the policy and opraii ua of the President and Board of Directors of tiie Pennsylvania Central. 1 hey should not have Implicit confidence In their agents, leBt this company, like othentrun similarly, would llnd Itself on the verge of. bunkraptcy. lie did not now own any stock of the road, havinj sold out from "lack of confidence." Mr llulme contruded. as he had stated In one of Ma resolutions, that the, repou iho Ud be put la Dsinnhlet form and distributed among the stock holder at least two weeks before the adjourned meeting to be held la June next. Mr Theodore Cuyler arose aud declared that lie could not remuln silent after having heard the re. marks of the gentleman (blr. llulme) who had just taken his seat. We heard him Mate that ho was not a siucklioklcr. Then why is he here? Djoa he come here as a citizen of the city of PhlUdolphi, that has subscribed five millions to the stock of this rr ad? I tell Mm that the has been paid back amply. Does he come here aa an owner of properly? 1 tell hlra that this road has quadrupled that property in vsloe and has more than doubled the numborof onr citizens. Twentv foiir vesrs ago this road was bout between this city and Pittsburg, VM) nilltni In length; bnt slnre fhat time Its Influence has se cured more than Beoo miles of road tributary to the city of Philadelphia, (Applause And thtse stock holders are to-day favored with the knowledge that they have no debt upon their Bhoulders. And ia yiewof this fact Mr. llulme had the Impertinence to stand up here and say the "poor stockholders" should know who they were growing poorer! May lleaven shower npon my head such poverty as this. " he resolutions of Mr. llulme are Bimpiy resolutions cf censure. In closing Mr. Coyler moved to lay the resolu tions of Mr. llulme on the table. Mr. J. W., Derbyshire - Mr. Chairman, as the gen tleman has no stock In this company, he is not privt lrp d to ofler the resolution. Mayor Fox As the gentleman (Mr. llulme) stated, tic had stock in a concern controlled by this com pany, I deem, he has a right here. Mr. llulme I am no orator, and therefore am unable to cope with my learned friend in buncombe. But he asks, "Why ami here?-' Mv right f.ere Is stronger than Ms own, for whereas i own stock, he Is only a paid attorney by this road, and therefore I might well say he has no right to mingle in this ailair or discussion. 1 have been for 10 years a director of this road. Then he lmputrns my figures, but I say that the figures of the report are false. 1 do not come to snch a respectable meeting as this with my eyes blinded. Then he sya that 1 am crazy on fast express trains, in ray belief that they are the parasites of the company. But I ressHertthlB. Mr. John M. Kennedy said : The matter of ex press trains I do not propose to discuss, but I want to be understood as afllrmlng my deliberate convic tion that the occasion which Induced the company originally to resort to them has continued and does exist to the present time, and that its results have been highly profitable to the interests of the public and to the company also; and I am not yet prepared to admit that the time has vet arrived when this company may advantageously abandon that policy, though that the time Is coming when It will be necessary so to do I can rendily perceive. If, as Mr. llulme desired, a minutely detailed state ment of the affairs of the company was prepared, he himself could not understand It. Do you think, gentlemen, that It would be policy to allow the general public or say the Baltimore and Ohio Rail roadto get an insight to the workings of this road? (Krsponsesor "Not' "No!") Mr. Hulme What are you afraid of ? . Tho Mayor then put the motion to lav the reso lutions otieredby Mr. llulme on the table, and this was almoBt unanimously agreed to. Mr. Joseph Jones otl'ered this resolution; Htstihtd, That the transfer of the securities of the Pittsburg, Cincinnati and St. Louis Railway, hell oy this company, to the Pennsylvania KaU'oad Bureau be deferred until the stockholders of the Pittsburg, Cincinnati and St. Louis Railway Company have had an opportunity to. express their sentiments in relation to the said transfer. Mr. Cliff, of New York, a stockholder, asked la formation on these points. lie heard rumors that this road was the owner defarto of the Union Pacific Railroad. That it controlled the stock. That there was a combination to absorb all the lines which this company now controls west of Pittsburg. And, further, that the Pennsylvania Railroad Company was to lease the Camden and Amboy Railroad Com pany. Thomas A. Scott, Vice-President of the company, arose to reply to these inquiries. First, he said, the Pnnsylvaiila Railroad has no interest In the Union Pacific Railroad. Second, that the extensions of the Pennsylvania Railroad Company now are limited to Chicago, St. Louis, Louisville, Cincinnati, and,, as leading from these centres, others forming con nection with New Orleans, and lines to the Pacific const. Is there any other inquiry T Mr. Cliir Yes; regarding the .Camden and Am boy company. Mr. Scott Oh ! that Is such a smtll matter tint I ovei looked It. Well, there are pending negotiations for the lease of that road which we think will be highly beneficial to this company. Mr. Hazlehnrst's resolutions wero then adopted without a dltscntlttg voice. Mr. Jones' resolution, on motion or A.J. Derby shire, was referred to the BoaM of Directors. A resolution of thanks to the Mayor for the able manner in which he fulfilled the post ot chairman was passed. The meeting then adjourned. JAY COOKE & CO., PEILADELPniA, HEW YORK and WASHINGTON. m cooxe, Mcculloch is co., LONDON, BACKERS AMD Dealers In Government Securities. Special attention given to the Purchase and Sale of Bonds and Stocks on Commission, at the Board of Brokers In this and other cities. INTEREST ALLOWED ON DEPOSITS, COLLECTIONS WADE ON ALL POINTS. UOLD AND SILVER BOUGHT AND SOLD. In connection with our London House we are now prepared to transact a general FOREIGN EXCHANGE BUSINESS, Including Purchase and Sale of Sterling Bills, and the issue of Commercial Credits and Travellers Cir cular Letters, available In any part of the world, and are thus enabled to receive GOLD ON DEPOSIT, and to allow four per cent. Interest la currency theieon. Having direct telegraphic communication with both our New York and Washington oincc-s, we can offer superior racllltles to our customers. RELIABLE RAILROAD BONDS F03 INVEST MENT. Pamphlets and full Information given at oar office, 8 8mrp No. 114 S. THIRD Street, Phllada, A. XEQAL INVESTMENT Having sold a large portion of the Fexmiylvinia Railroad General Mott gage Sondi, The undersigned offer the balance for a limited pe riod at 95 and Interest added In currency. These bond are the cheapest Investment for Trus tees, Executors, and Administrators. For rurther particulars, Inquire of JAY COOKE & CO., E. W. CLARK 4 CO., W. H. NEW BOLD, SON 4 AERTSESf. C. AH. BOM E. fSllm THE STATIONERY HOUSE OF THE UNITED STATES. VVM. H. HO8KIN8. GENERAL JOB PRINTER. Wf ddirg Card Engraver, Copper-Plate Prlntej, 1 1 inn ertial Engraver. Wedding-Envelope Manufacturer, flue Cut aud Color Printer, Hu Honor, Wholesale and Hetai', Commercial Envelope Manufacturer, PuU'i'hlet l'l Inter, luit.al Stamping and Illuminating, No. 1S A11C11 Street. AlVANTAQE. All the above branches dons in tiie building uuocr the immediate auperviaion of the pri'piUtor. We therefore save the manufacturers' and Jobbers' prolit, which our customer get tuo Uuint of. Ill imwSp
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