IB im m i n kxd FUBLISBEP BVEBY FRIDAY BY J. B. PER ANNUM IN ADVANCE. : t •o. « amow the® iDVt — —««•..j w .**o | oe eo^j^i I The net. en’pntnrra rtf »t»rt rmjpe A***'' VOLUME V. jhr 2?eam S&dUal. T radical is published every Friday morning .-e following rates; )N ~yeab.(payable in advance,) Movrns, l,OO 5O V»,QLE COPIES j 05 - ‘. soerg discontinued to subscriber* at the expire of their terms of subscription at tbe option of iTnahlishcr. unless otherwise agreed upon. Sessional or Business Cards, pot exceeding 10 of this type, 18,80 per Annum. . uertisements of 10 Hues of less, fl.oo for one snd 3 cents pet line for each additional - rtdve rti6ementB, whether of displayed or blank . " measured by lines of this type. Advertisements by the month, quarter or year ;ved< and liberal deductions made In proportion to :en?tb of advertisement and length of time ol VJotlceB inserted among loca. Items at 10 c cal news and matters of general Interest pom abdicated by any correspondent, with realnam inclosed to the publisher, will be thankfully re w.7ed. Local news solicited frorb every part ol toe county. - Publication Office: In Ths Radical Bdildiso Co-uer Diamond, Beaver. Pa. J. S. RCTAN, Proprietor. A'l communications and.bnsiness letters should h. addressed to SMITH CURTIS, Beaver, Pa. PENNSYLVANIA RAILROAD twenty-sixth annualbkpokt Owes OF THE Pennsylvania Rajlwm* ' company. Philadelphia, March 10,18*3. ) 7., ,a: stockholders opthe Pennsylvania!Railroad Company. Your Directors have much pleasure in submitting to you the following very sat miictorv statement ot the business of sour Riilwiys and Canals for the past mr The earnings of your Railways and R-aacles, between Philadelphia and Pittsburgh, were : ta>*Pt**Bgen Emigrant Paaa’g're 349,005 08 Moiu... . 154,914 78 Express Mattel— 349,037 03 General Freights.. 10,355,891*1 M i.-ncons Sou.ccs. _ „„ 545 27 ((inducting Trans’ n $4.964,933 75 Motive Power 3,826.940 40 Maintenance of Cars 1,303.899 83 Maintenance of Road 3,337,724 69 tGeneral Expenses . m 1 -a-. mg Net Earnings in 1372.. $8,247,882 18 : :.,1 Earnings of these works in 1871 vwrp »o for is:*. ;.' 22,012,525 27 Showing nn increase in 1872 of 0) t!ie above earnings, there was re ceived from tne 358 miles of Main Line: h I*7o 1 : j «j;; ; from the Main Line 1 id from the Branch Lines i'i '-T;! —420 miles in length.. »7i—373 miles in length.. Ik ’OdsC W earning* ot the Branch Lines i; erated hy vour Company in 1872, '-s!re:idy -tated. were $2,001,706 47 if itpenseg of operating them in | duij Kents ol Leased Branches, ■''Si ■ ,i = ' a n* 1 ! direct profit in operat s; :he i HjOijO ce nts, against 1 3887-10000 Cr: u Ust year, and per passenger 3 45 100 c ' per mile, against 2 53 100 last year, 13 avv nge increase in the rate of freight \ in 1872 above those of 1871 of ' i'j I O'wo, or a little over a quarter of a 1 Per ton per mile; and in passenger ‘ ur ges i df-crease of 81-10 of a mill per ; per mile. nc average cost of moving freight was Vvi " Pi“) 0 cents per ton per mile, and for Wengers l 837 1000 cents per passenger Qe actual cost of operating your rail ay, including branch lines, in 1872 was 62 • >• per cent, of its receipts ; excluding 58 P 2-100 per cent, i er uioro detailed statements of the re- I' l! ' i expenses of your Main Line, ll '',' ! ‘ ar '-in;de r s ire referred to the full J reports of the General and Controlu-r. ik ik EXPENSES $3,293,688 42 $30,010,618 80 . 17.338,834 28 $2,071,994 52 $2,001,706 47 1,381,012 67 1,994,121 84 $302 748 44 83.613 96 2.804.886 90 7,031 66 87.277 45 7,441 01 $3,293,688 42 The earnings of tbe^PbMNlP^ a JSrie Railroad in 1872, were: . From Passenger*- $647,8740$ . “ Freight!....... 8,177,54858 . “ Express Matter 41,817,87, “ Mails 87,67880; “ Mlscellan’s sources. 38,438 TO ...$2,00 Total (nearly $13,883 per mile qf - road) |8,980,7»W The operating, expenses during the same period were: For Conducting Transpot- ' - tatlon.. .$841,998^81 For Motive power 975,7*1 *P , “ Maintenance Of Cars:. 3SP.tif I* “ Maintenance of Way.. 1,199,948 07,_ " —-—■ ——sB,BBB,ols9l Showing « balance to the credit of / . . . Philadelphia and Erie Railroad of.. $591,78696 The number of. tons > of freight moved upon this line during the year was. 3,038,- 568 tods, against 1,828,491 in 1871, 1,614,-: 387 in 1870 and 1,302,041 in 1869, show- I ing a steady annual increase of traffic. The average charge made per mile on freight was 1 190 1000 cents per ton per mile, add the actual cost of its movement 0 941-1000 of a cent per ton per mile, leaving a margin of profit of only, one- quarter of a cent per ton per mile. The increased tonnage in 1873 over 1871 was 300,077 tons, and the increase in rev- enue from freights • was $377,190 61- 100, and from passengers, $61,298 53100„ The total increase of revenues for the year being $438,489 14-100 ; but the expenses, chiefly owing to the -destruction of the Linden bridge by fire and the unusually large amount of iron required to keep the track in good condition, more than absorbed this increase. The net earnings of the Philadelphia and Erie Railroad have disappointed the expectations of its friends and projectors; not in the extent of its tonnage since the modification of the lease, but in the rates of freight that it has been ablfc to com- mand for what it carried. This line be- ing longer from the commercial centres of the east to all important points of the west than its competitors, and traversing a sparsely populated country, with gra- dients unfavorable for cheap transporta- tion, the cost of conducting its passenger business baa usually exceeded the income from this branch of revfitrno.- Tl»s ■■ it shows a loss of $37,933 73. In working this railway it early became apparent that the contihuence of the old lease which exacted thirty per cent, of the receipts without regard to the rates of freight that could be procured, must re sult in the adoption of charges by the lessee that would render any participa tion in the lake trade at Erie, or through traffic from west of the mountains, impos sible. For such business the New York and Erie Railroad Company, the chief competitor of this line charged that yielded it little or no profit, and the Lessee consequently had no other resort but to meet this competition, or abandon the through traffic,and rely upon the local business of the line for its support,at rates of freight which would leave a sufficient margin for profit on its transportation, to meet the terms of the leases. $620,693 DO Before adopting the policy here indi cated, which appeared to be opposed to the interest and expectations of the pub- 7,584 63 lic, the question of a modification of the lease, to meet the difficulty thus develop- ecf by the character of the traffic of the line, was brought before the shareholders of the Philadelphia and |Jria Railroad Company, who, with great unanimity .con firmed the alterations proposed. Under the modified terms, the Lessee agreed to work the line at cost, giving to the share holders whatever profit rhe enterprise might develop. This change in the lease has permitted the Pennsylvania Railroad Company to develop the resources of the country tra versed, meet the interest upon its bonded indebtedness, and preserve the properly to the shareholders, that they may be able to reap from their investment what ever advantage the future has in store for them, from an increase in the population and wealth ot the country traversed, or that may become tributary to the line. Before the lease was entered into, the shares of the Philadelphia and Erie Rail road Company had only a nominal val ure, being freely offered at five per cent, of par. They are now marketable at over fifty per cent, (an increase of a thousand per cent.,) clearly demonstrating that the lease has not bad, as represented, a de pressing influence upon the stock of the Company. The lease of this line was only offered to the Pennsylvania Railroad Company after it bad been declined by the officers of the Philadelphia and Reading Rail road Company, and after all other means for raising the funds requited to complete the work—that did not involve the sacri fice of the stock of the Company—haiL. failed. The failure ot this enterprise to become at Once profitable, is due* first, to its bat ing been sorted with insufficient capital;' :- 'V '■ : ■ • BEAVER, PENN’A, MARCH 21.1873. I ' < ■ ■ f.j ‘ • - ’ u second, that It was located without refer ence to the capabilities of the country it .was to traverse, to yield a sufflclnt traffic for its support. .Instead of crossing (he .valuable coal deposits of the Allegheny . Mountains it passed north of tnero. Rnd in doing so avoided also the stilf more impor tant oil deposits of Penn* sylvania—the existence ofwhichttjtstiMDi unknown—being Influenced in. .the adop tion of the prmmt toots inslgutt rant local subscriptions; thirdly, by commencing apg coqtlntjingthe work Of construction at both ends» when .the,means of the Company were insufficient execution of any considerable ’ portion of either end—a policy which has mined many other extended enterprises, and by the temporary adoption of which by the Pennsylvania Railroad Company, the early success of ’ that enterprise was |eop* ardized; fourthly, from its financial sacri fices incurred In secure an early opening of the road, through which mainly its cost with a single track has amounted to $75, 744,00 per mile; while that of the Pennsylvania Railroad, ' with a doable track throughout, and a-third track for a portion of the distance, traversing a vastly more rugged country, was but $71,908,00. . In strong contrast with this policy, it may be stated that all- financial sacrifices made during the construction of the Penn sylvania Railroad, as well as the interests that bad been paid to the shareholders and others until the railway was finished to Pittssburgh, were charged directly to the expense account, until returned from the net revenues of the railway, instead of, as |n the Philadelphia and Erie, and many other cases, having been charged to the cost of construction. The only way, it is bell the stock of the Philadel Railroad Company can be ble, is the employment of i open np the resources of tl turally tributary to it; this done, and H Is hoped wi it to earn dividends to its The earnings of the Uni TJ| W iT»»saj>, Trenton Railroad, excludi Belvidere, Delaware Railroad and Flem ington Branch were, in 1872: From Passengers “ Freights '• Express Matter “ Mails '• Miscellaneous sources EXPXSSXS. For Conducting Transpor tation 13,755,690 75 For Motive Power 1,595.096 62 “ Maintenance of cars.. 379,637 17 “ Maintenance of road. 1,224,007 03 “ General Expenses.... 50.735 31 56,005,166 78 Leaving Net Earnings in 1873 12,361,060 02 The earnings of the Belvidere, Dela ware Railroad, sizty*eigbt miles in length, and Flemington branch of twelve miles, were in 1872: From Paeeengeas “ Mails •' Express Matter “ General Frieghts MisccUaneons sources For Conducting Transporta tion $125,906 60 For Motive Power 146.434 90 For Maintenance of Cars... 44,84009 For maintenance of Road... 198,349 89 Showings balance to credit of Befvldere Railroad tor 1872 of $148,861 70 The earnings of the Delaware and Rar itan Canal in 1872 were : From tolls $938,832 00 “ Steam Towing “ Miscellaneous EXPENSES. For maintenance of Canal $378,930 53 For Canal Operation, includ ing drawbacks of $lO9 448 80 393,388 27 For Steam Towing accounts 443,718 70 1.016,037 49 Leaving Net Earnings in 1872 $508,667 75 After deducting drawbacks allowed to shippers in 1872, and also in 1871, the actual revenues Irom the Delewarc and Bari tan Canal, were in 1872 $1,415,156 44 And they were In 1871 1,280,736 84 Showing an increase of The earnings of the Philadelphia and Trenton and the United Railroads of New Jersey,Belvidere,Delaware Railroad, and Flemington Branch, and Delaware and Raritan Canal in 1873 were; From United Railroads of New Jer- iej He ....'. $8,206,22680 From Belvidere,' Delaware Railroad, and Flemington Branch 664,398 IS From Dele ware and Raritan Cana1—1.624*605 24 EXPENSES. For United Railroads of New Jersey —56,005,166 73 For Belvidere, Delaware Railroad, and Fleming ton Branch, including net earnings (146.- 861 70 )....: 664.393 18 For Canal 1,016,037 49 Total Net Earnings of Kailroadand Canal in 1872. {2,789,637 77 The Gross Receipts from these works in 1871 were And those for 187*2 An increase of. The amonnt reqnired to pay Interest on /Bonds and Dividends to the shareholders of the United New Jersey Railroads and Canal, under the lease, is To which add the interest of seven per cent; upon the average estima ted amount of additional capita! id, by which $1,673,319 32 3.263,293 Btt 236,554 96 49,485 00 144,580 47 $8,266,220 80 '4'.... $154,479 88 >.... 4,319 26 3.787 31 499,499 83 2.357 45 EXPENSES. $1,524,605 21 $10,455,225 22 $1,003,301 $3,292,087 ; conducting the boai : na« Of tMjßoad, >‘11,740,890 93,” eixaoaafc... 80,93114 Add inUawß Op loaa in operating road, injßW; ‘‘f93o,SBB«3,'V one a« 65,110 67 53,419,03515 Tto- et M»e edto from :■. ftom 171,63903 —— 435,118 04 . 'tnet earnings of ate 3,769,89777 It in 1873....... *94,38984 occurred up to 960£8893 '^wS^SwiTe' „i,iBrra. was 91,15t,537 67 jrltatement it will be charge has been made ,esa of the New Jersey ; Hie of the care of the .ailroad company engaged traffic over those railroads, ac the managemeat of the worksof'yoor Company, in due pro- Ita own and leased Hoes. \tetion of the extensive Huneuced at and near evcooslraction of the addi nlelnplated along the line, jat the cost of moving and ghts and passengers will be reduced that we shaH,be able Jto meet the terms of the lease /profits of tbe works, but to grad itypttlngolsh the large deficit that has aajuttjulated. : Without the additional facilftteMlwady provided, the increase of thehtiiUMaof the past year could not reci Ri Pev in ti or ti coat whoi whic porli On imr from, the west, destined to New York and ®9-eaat. the small.profits apon the trans portatloh of which were not considered by the lessors oftheae railways and canals of sufficient importance to induce them to incur the heavy terminal expenditures re quired for its prompt and economical delivery. Tfaf number of passengers carried over the United Railroads of New Jersey in 1873, was and the average dis tance travelled by each passenger was 31 39 100 miles. The number of tons of ’ Jreight moved was 3,536,304 tons, including 55,733 tons of bituminous coal for shipment ht South Amboy and 78,027 tons of material trans ported for the Company's use. The average charge per net ton per mile, upon freights during the year, was 3 55 100 cents, and per passenger 2 52 100 cents per mile. ! The actual coat of operating the Phila delphia and Trenton and the United Rail roads of New Jersey, In 1873, was 72 64- 100 per cent, of its receipts, which high rates is mostly due to the want of facili ties at the termini of the road for handling economically the large traffic of the line. The number of tons of freight moved on the Belvidere Delaware Railroad, and Flemington Branch, was 914.833 tons, of which 842,749 tons wab anthracite coal. The average charge per net ton per mile upon the freight carried over these Hoes in 1872, was 111100 cents, and the cost of moving it was but 0 819 1000 cents per ton per mile, reflecting much credit upon the General Superintendent, F. W. Jackson, Esq., and the Superintendent in mmediate charge, Mr. John A. Anderson, fur the efficient and economical manage ment of the line. As the accounts of the business of these railways have not heretofore been enter ed in the form and the detail with which those of the Pennsylvania Railroad Com pany have been,kept we have no reliable data for comparing the resuits of the bus iness of 1872 with those of previous years. The Lease of the New Jersey improve mepts, between Philadelphia and New Yqrk, includes, also, the Delaware and Raritan Canal—the water line between cities. This work is under the charge of General I. J. Wistar, as Gen eral Superintendent, in place of John G. Stevens, Esq., elected General President of;the several Companies in New Jersey whose lines you have leased. This canal, tbpugh its coal tonnage fell off materially in/1872, has yielded, however, an increase ih'Jts net profit oyer the previous year of o/er $134,000. /With the lease of the New Jersey j Railroads and Canals this Company also j Received property represented by shares $064,393 18 515,531 48 567*053 99 18,71919 134.4119 66 7,685,597 45 8,959,157 06 9,962,461 96 in and bonds of Branch Railroads, Street Railroads, Turnpikes, Bridges and Fer ries over the Delaware and Hudson riv ers, amounting at par to $5,714,444 25, valued at the time of tberr delivery at $4,065,326 45, and believed to be now worth about that sum. These securities yielded in 1873 a net revenue of $171,- 629 93 but they cannot be sold without injury to the general interest of the Com pany. This leaves the means necessary to make the:lmprovements so urgently demanded for the accommodation of the large and increasing business of these railways at Philadelphia, Jersey City and along the line, to be obtained from other sources. These improvements, consisting of additional tracks for passing, trains, sidings at the termini, shops, engine booses, passenger stations, warehouses, wharves and stock-yards, the construc tion of which could not be longer delay ed, have been commenced and will be prosecuted with vigor. Their completion will require a heavy outlay which, if it had been incurred some years since, would at this time have added materially to the revenues of the Company, and to a greater extent have diminished the ex penses of managing Us business. The live stock traffic of the Pennsylva nia Railroad Company destined-to Jersey City, New York and points in the East, for want of facilities for Us accommoda tion at Jersey City, has for many years been forced to leave the Pennsylvania Railroad at Harrisburg, 106 miles west of Philadelphia, and reach New York, over the east Pennsylvania and New Jersey Central Railroads, thus losing the profit of its transportation for about 200> miles out of 450 miles between Pittsburgh and New York. The New Jersey Central Railroad Com. pany, in consequence, it is supposed, of the crowded condition of its line, has recently demanded specific rates for the transportation of live stock over its, rail i»teB^ob.: talnablein competition with other routes, movement cessity of at once incurring afieavey ex penditure which ought to have been made some years since by the New Jersey Companies. The estimated expenditure for all these works during 1872,1873 and 1874, Includ ing the rebuilding of the Trenton and Brunswick bridges with iron, has been estimated at $5,250,090. To meet this sum the Joint Railroad Company of New Jersey have delivered to us of their Gen eral Mortgage Bonds $3,000,000, the in terest, upon which will have to be added to the annual payments to be made under the lease. The revenue of all the lines operated by your Company in 1873, between Pitts burgh and Jersey City, and amounts paid for their working expenses, interest on debts and dividends to shareholders, are as follows: From the Pennsylvania Railroad and Branched $22,012,535*27 “ Philadelphia St Erie Rail road United Railroads ofCiew Jersey 8.366,226 80 '• Belvidere Delaware Rail road, including the Fletn _ington Branch. _..... 664,393 18 “ Delaware & Raritan Canal 1,524,603 24 -• Dividends on stock in Pennsylvania Company, from April 1 to October 1. 1872 240,000 00 Total Of the Penn’a Rail road and Branches... $18,7&1,673 00 Of the Philadelphia and Erie Railroad, including net earn ings 3,980,7*2 37 Of the United Rail- roads of New Jersey 6.003.166 78 Of the Belvldere Dela ware Rrilroad. and the Flemington Branch. including net earnings 664,393 18 Of the Delaware and Raritan Canal 1,016 03T"49 —525,431,033 41 Net profits for the year npon all the lines operated by the Company.... $11,257,479 95 From which deduct dividends declared in May and Novem ber, (each 5 percent.* with the taxes paid thereon $4,711.497 00 Interest paid by the Company, after de ducting interest and dividends received. . 434.145.95 Paid for the lease of the Harrisburg and Lan caster Railroad - 135,056 34 Annual payment to the State of Pennsylvania on account of interest .» and principle due npon tne-pnrchase of < the works between Pittsburgh and Phil adelphia 460.000 00 Dividends and interest paid on account of the United Railroads and Canals of New Jersey in 1872 ($B,- 299,987 84.) after de ducting interest re ceived from invest ments transferred with the lease, ($l7l,- # 629 OS.) showing an outlay in operating them under the lease, in excess of their net receipts of $234,289 34 $3,121,357 M 58,862,056 71 Balance RECEIPTS .3,930,738 87 831),688,503 36 KSPSNSB9. f 2,305,423 34 NUMBER 12 This balance represents the net results of the operations of your several lines of railway in Pennsylvania and New Jersey for tbe year 1673, and they are thus stal ed,, that yo>% may folly understand the value of your property, nothing having been entered to the expense account ex cept tbe regular transportation charges against the business of the Company. In former years, the expense account was ia creased annually by considerable payment that might. .have been charged to con struction account, which, had they been divided: as prpfhet. would- to tha? extent . have increased the present indebtedness of the Company. The Pfennsylvafita Railroad Company has also a large amount of property that is at present practically unproductive, each as a controUingdntereal in 23,19hacrua of Anthracite coallands, stock m> the ' Pennsylvania Canaan din Railroads; the profits of which tn< a ahort time will add largely to its net revenpest bat which at present are small, aodt have been devoted to their improvement.. It will be seen from the preceding state meat, that the surplus net. profits of the Company in 1812,' without including those from the soaroea- Minded to, were sufficient to have paid a dividend at tea per cent,, upon an additional capita! stock, of nearly and- there is every reason to believe from the daily indica tions of the future business of the Com/ pany, that without farther outlays tbe profits of 1673 would be equally satisfac tory. But as it istbe duty as well as tbe interest of the Company to meet the legit imate demands of tbe public for increased transportation facilities, the means neces sary for that object mast he provided. Tbe amount required in 1873 for addition al tracks, equipment, shops, wharves, de pots, &c., &c., to meet the demands from tbe increasing tonnage of the Company and Us existing obligations is estimated at f23tP(M),PO(h -; T The'increase ,of of 1871 iS in 1873 t increased amount.. could ham beenfurihexincreasedbythepoaaeasiqnor sddinanai Tomng n&l facilities. The amount of rolling stock, &c., added in 1873, though deemed ample to meet tho wants of the public, proved inadequate to that,object. A further increase of equipment involves also large extensions of third track, sidings, warehouses, and all other facilities that a railroad requires, the business of which is already crowd ing all of its departments. To raise the means desired to provide for this antici pated increase of traffic, your Directors have concluded that inasmuch as the sur plus profits of |he year were largely in excess of the amount required to pay the usual dividend on its existing capital, the most acceptable mode of raising the sum would be by a distribution of an addition al number of shares to the extent of percent, of their present ho|din|g3, rau bly among all of the Stockholders whose names may stand upon the books of the Company on the first day of April next, one half to be paid in between the Ist and 24th of May, and the remainder (50 per cent.) to be called for on sixty days’ notice, in instalments not exceeding 25 per cent, at any one time. The increase of the tonnage ot the Pennsylvania Railroad was chiefly due to the local traffic of the line. This increase of traffic, pot however in so great a ratio, will it is believed continue for some years to come. To meet these annual requirements foe additional funds, the Directors have thought it best to adopt a revised finan cial plan, and with that view they have procured an Act of the Legislature au thorizing an increase ot the Capital Stock of the Company one hundred per cent, with the privilege of raising by bonds, to be secured by mortgage, an equal amount. A certified copy of said act is submitted to you with this report for your action. An application for an Act to increase the Capital of the Company, and its mort. gage indebtedness in 1869, elicited such strong objections in consequence of its apparent magnitude, from those who could not appreciate the extent and. ra pidity with which the traffic of the Com pany would increase, that it was thought expedient to cut down the amount asked for to $35,000,000, an amount which ba,a already proved to be wholly inadequate to the requirements of the- Company. It has therefore been thought advisable to discontinue the sale o£ the present gener al mortgage bonds at the sum of $30,000. * 000, and provide by an additional gener. at mortgage an amount sufficient to meet the future necessities of the Company. c * /' r