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