' SECOND PART. THE PITTSBURG DISPATCH. Forty-Fourth Annual Report. Orrics or the Pennsylvania Railroad Company. Philadelphia, March 2, 189L J The Board of Directors submit herewith their report for the year 1890: Main Line and Bbanches. Philadelphia to Pittsburg. Earnings $40,043,670 J6 --"& .). .' S4U,IH3,67U -id Expenses 25,894.108 03 Net earnings .. SI4.149.564 13 Add interest from investments (in cash), also Xor use of equipment and from other items 5,365,730 84 t, Total 119.515.294 97 Deduct rentals paid branch roads, interest on equipment, interest on bonded debt, State tax on dividends, and other items 8,484,893 56 Net income Pennsylvania Railroad Division , $11030,401 41 Philadelphia to Sew Yoke and Branches. PITTSBUKG-, TUESDAY, MARCH 189L PAGES 9 TO 12. .- a- mwmmt I COMPARISONS WITH 1889. EARNINGS AND EXPENSES OF ALL LINES EAST OP PITTSBURG AND ERIE. Rentals Gross and In- Net Earnings. Expenses, terest on Earnings. 1890 . 166,202,259 83 844,880,554 67 $10,421,046 18 $10,800,658 98 1S89 61,514,445 11 41,096.805 64 10,042.17173 10,575,467 78 Increase $4,687,814 72 $3,883,749 03 378.874 45 $425,19124 The assets on hand Dececember 31, 1890, applicable to the redemption of the first mortgage.land-grant bonds were: Cash in the hands of the trustees . j? mi m 5 Cash in the hands of cashier !J2079 17 11 lis and accounts receivable in hands of cashier....'" "" "" """." 451 176 17 Hills receivable and securities in hands ot trustees . ....... 245451 60 Total. .$2,75X780 05 SUMMARY OF LINE3 OWNED OR CONTROLLED EAST AND WEST OF PITTSBURG. The cross earnlnrs nprmilA rooniiBrt from thn Main I.lnn fXSS miles, in 1890 wr $87,031 14 Inl8S9were 81,713' 65 Earnings.. Expenses.. ...... $18,938,897 18 , 14,283.078 46 Net earnings from operating g 4,655 818 72 Add interest from investments and rents.... ...........1. 479,157 83 J income S 5.134,976 55 Deduct payments on account of dividends, interest on equipment, etc.. 4,738,091 16 Net profit under the lease of United New Jersey Railroad and Canal Company's property 396,885 39 Showing an increase of., ,M ..$5,317 49 The percentage of operatic? expenses to earnings on all lines east of Pittsburg and Erie was 67.94 for 1890 and 66.81 for 1889, showing an increase for the year 1890 of 1.13 per cent. The aggregate coal and coke shipments over the Pennsylvania Railroad division amounted to 20,158,877 tons, as against 17,170,842 tons in 1889, an increase of 2,988,035 tons, or 17.40 per cent. The total shipments of oil over the Pennsylvania Railroad division daring the year 1890 amounted to 4,489,193 barrels, against 4,678,004 barrels in 1889, showing a decrease of 188.811 barrels. The following table shows the revenue and cost per ton per mile on each division oper ated by the company, as compared with 1889: Gross earnings from traffic " Gross expenses, excluding rentals,interes.,aiyidends.'etc Showing net earning. 1890? $133,521,622 56 92,003.364 77 $41,518,257 79 1889. 5122,917,337 39 83,811.127 5 $39,106,209 64 INCREASE. $10,604,285 17 8,192,236 92 $2,412,043 25 FREIGHT TRAFFIC. 1R90. 1889. NUMBER OF NUMBER OF NUMBER OF NUMBER OF TONS TONS TOMS. ONE MILE. TONS. ONE MILE. LiUm frPi-E."S aDd EriB- B-Fei 872l69l.7i 82.240.457 7.621.926.314 Lines west of Pittsburg 44,532,623 4,131,799,223 39,923,661 3,6j2!238,746 Totals 137.416.985 lg 653.493.967 ' 122.164.118 H,27,165.C60 Total $11,427,246 80 Philadelphia and Erie Railroad. Earnings j 7,219,692 49 Expenses 4,803,370 18 , Net earnings $2,416,322 31 Deduct payments on account of rentals and interest charged for use of equipment 2,417,96681 Loss on Philadelphia and Erie Railroad Division, including branches operated in connection therewith 1.644 50 Balance $11,425.642 30 From this balance of income for the year. $11,425,642 30 the following amounts have been deducted, viz.: Payment to fund for tbepurchaso of securities guaranteed by the Ponn- Ejlvania Railroad Company...... $ 93 498 12 Pennsylvania Railroad Company's consolidated mortgage bonds, sink ing fund account 324,800 00 Allegheny Valley Railroad Company. Payments on account of guaranty of principal and interest of bonds.... 119,005 02 Extraordinary Repairs. Amount expended in straightening and revising lines and grades, and for other purposes not properly chargeable to capital account 1,632,024 65 : 2.169.327 79 Balance.......... .......................................... ...... ,. .... $9266.314 51 Out of winch was paid a dividend of 5f per cent ."......."....".."..r..rj 8,21L873 00 Amount transferred to credit of profit and loss for the year 1890 $ 3,014.441 51 Ironi which deduct extraordinary expenditures, debited to profit and loss on'ac- count oi nooas, June, l&ss, and in settlement of bundry accounts .. 1,064,704 05 Pennsylvania sion Railroad Divl- Average Earnings per ton per mile from TRANSPOR TATION OF FREIGHT. 1800. 0.601 United Railroads of N. J. Di vision Philadelphia and Erie R. R. Division All lines east of Pittsburg and Erie: 1157 0516 0.655 1889. 0.626 L178 0.556 AVE B A G E CO ST OF TRANSPORT ING EACn TON OF FREIGHT ONE MILE. 1890. 0.401 0.987 0.346 0.6S6 1889. 0.401 1.023 0.352 AVERAGE Profit per TON PER MILE. i89a C-.200 0.170 0.4S3 0.47S 0.170 0.192 1SS9. 0.225 0.155 0.204 0.213' Length Road. 1890. MILES. 1440.52 447.54 54G.66 2434.72 18S9. PASSENGER TRAFFIC. 1H. 1889. NUMBER OF NUMBER OF NUMBER OF NUMBER OF PASSENGERS PASSENGERS PASSENGERS ONE MILE. PASSENGERS ONE MILE. Lines east of Pittsburg and Erie. 66.199,752 1.171,328.701 67,857.729 1.110,971.446 Lines west of Pittsburg 17.912,708 428,203.644 16.269,228 405.72898 . Totals. 84,112 460 1.699.534,345 78.126.957 1,516,698.344 1 l MILES. 1403.19 440.22 546.66 2390.07 From the above table it will appear that the result UDon all lines east ot' Pittsburg and Erie was a reduction in the earnings per ton per mile of 31-100 of a mill, a reduction in ex penses oi 10-100 of a mill, and a decrease of 21-100 of a mill per ton per mile ia the net profit from freight. The following table shows the eardings and cost per passenger per mile on each of the divisions as compared with 1889: Add amount to credit of profit and loss December 31, 18S9 20068X55 83 Balance to credit of profit and loss December 31, 1890 $22,017,793 29 The foregoing statements show a net income of Sll, 425,642 30. After deducting; from this sum the amounts properly chargeable thereto, there is a balance for the year of 59,256, 514 51, out ot which there was paid a dividend of 5 per cent, being an increase in the amount of cash distributed to the shareholders of 5914,603, as compared with the year 1889. After de-iucting the sum of 51,064,704 05, representing thearannnts properly chargeable to profit and loss during the year, there was a balance of 51,949,737 46 carried to the credit of that account, making the aggregate at the end ot the year. 522,017,793 29. All the repairs made necessary by the flood of 1889 have been completed, and your properties at such points are now in a much better condition than they were previous to'that disaster, iron bridges having been replaced by stone structures, and the roadway otherwise improved. It may not be amiss to state in this connection that it was the conservative policy pursued in the management of your property, and the high standard of efficiency thus reached, that enabled your company to continue the payment of its regular divi dends, notwithstanding the heavy losses that it directly sustained, and the tenons inter juption to traffic arising therefrom. The cost of the securities of other corporations now held by your company is $113 -183,734 23, and the direct revenue received therefrom was 54,439,403 85, which ts in excess of the interest on your funded debt. The wisdom oi continuiug to make such investments is demonstrated, cot only by this result, but by the continued increase of traffic tbat is thus secured to your Main Line. The magnitude of the Pennsylvania system, and its growth during the 44 years since the orgamzition of your company, are shown by the fact that that system isnowcomposed of 120 corporations, which, with few exceptions, are in good financial condition, and earning tair returns on the capital invested. These corporations represent 7,yi5 miles of j-muju auu uuai. mm a M.aru anu oonueu capital oi over tUU,U00,O00, which in 1890 earned more than 5133.000.000 gross, and moved over 137,000,000 tons of freight and 4,000,000 passengers. Their lelations are so closely interwoven with the communities through which they pass that their prosperity may safely be taken as an index of thj penerai condition of the large section of country which they serve. It willle s.et.n, from the magnitude ofitbeseyiterests. how-essential it is that a strong couscivative po.icy should be pursued in their management, and that "any legislation which would change the relatious which have so long existed between the transporting an commercial interests of the country should be most carefullv considered beiore action is taken thereupon. There hat been a very large increase in the amount of traffic moved, as compared with 1SS9. without a corresponding increase in the net revenue therefrom, a result attributable directly to the reduced lates prcrailms during the year, as more fully appears by the statements hereinafter contained, and which would seem to show that the average rates re ceived for transportation by railroad companies cannot be further reduced if their prop erties are to be thoroughly maintained and the public served in a satisfactory manner. In this connection the criticism has been made, that while there has been a very large l eduction in freight rates in the past decade, there has not been a corresponding reduction in passenger rates. Although the reduction in freight charges has been apparentlv much grcatei than in passenger rates, yet the demands of the public for increased service "higher speed, and the comforts of parlor, sleeping and dining cars have more than counterbal anced this apparent difference, while the cost of these additional facilities, together with the expense attendant upon the interlocking and block systems and other'appliances for increased safety, hss precluded the possibility of making greater reductions in the pas senger rates, without rendering the entire traffic unprofitable. This is shown clearly by the fact that wnile the cost of moving freight per ton per mile on-your Main Line has been reduced in the past 20 years from 9 8-10 to about 4 mills, the cost per passenger per mile has only been reduced fiom 19 4-10 to 16 mills. The New Jersey division shows an increased surplus of net revenue after meeting the obligations connected therewith. During the past year large expenditures have been made in the improvement of this property, notably in elevating its tracks inthecitvof Philadelphia to avoid street crossings at grade, in preparing for the fourth track through Trenton, ai.d in secunug additional right of way at various points. The largest expendi tuie, however, has been in the work of elevating and rebuilding the tracks and passenger station in Jersey City, in the construction of train-shec-sat that point, and or a ne'w round house and yard tacihties convenient thereto. The principal portion of this work will he completed during tne current year. The Philadelphia and Erie Railroad shows a large increase in its gross earnings- but the exceptionally low r.ite3 realized upon its traffic prevented a corresponding increase in its net revenue. The property is in a very satisfactory condition, and shouldthe commer cial prosperity of the country continue, more favorable results mar be anticipated The final payment of 5635,654 94. being the principal and a'cerued interest then due the State of Pennsylvania, through the purchase of theMaiu Line, was made July 3L It'JO. Tne entire payments made to the State on accouut of this purchase amount to $15 W3.654 94, of which the principal was 57.500,000, and the interest 53,065 654 94. The contract made with the Commonwealth for the purchase of this property in 1857 has been laith ully carried out by your company during a period of thirty-three years and no de lault has at any time occurred either in the payment of interest or of any instalment of the principal sum. Under the provisions of the consolidated mortgage of the company Wi 800 were set apjrt on the first day of July last, out of the net income, asa sinking fund for the redemp tion of the outstanding bonds secured by that mortgage. Ouly three of these bonds aggre gating 600 sterling, could be purchased under the terms of the trust, and the balance of iti-fund was placed to the credit of the trustees for investment under the terms of the mortgage. ii.cre are now in the sinking fund, for the redemption of the obligations of the various companies forming the United New Jersey Railroad and Canal Companj' securities of the par value of 54,002,000, and a cash balance, uninvested bv the trustees ofS17 91 OR m.t mg an aggregate oi 54,019,921 0S.J ' ' na' The trustees of the sinking fuud for the redemption of the trust certificates issued for the purchase of the shares of the capital stock of the Philndelphia, Wilmington and Balti more Railrond Company were able to;purchase only 5174,000 of these securities during the past year at the limn fixed in the trust agreement. The total amount of these certificates purchased and cancelled to December 31, 1890, is 52,085,000, leaving outstanding 57,913,000. ' There has oeen expended for construction, equipment, and real estate as follows: 1'ennsvlvania Railroad and branches 1 , --. . . UmtedKailroadsofNewJerfev . a......." " fnSS ft Philadelphia and Trenton Railroad K29Q9 la And for improvements and extensions un branch and auxiliary lines'operate'ttL'v rh rnmnnnv J J 6,717.907 69 average Earn- average pro- INGS TRANSPORT KR m,ra,M, EACH PASSEN- ING EACH PAS- SEN G EB, PER "saiiTHOFBOAD GER PER MILK. Mf E K P E R MILE. 1890. 1889. 1890. 18S9. 1890. 18S9. 1890. 1889. Pennsylvania Rail- cents, cents, cents, cents, cents, cents, miles, miles. road division 2.197 2.210 1.598 1.650 0.599 0.560 1440.52 1403.19 United Railroads of N.J. division 1.919 1.920 1.372 1.372 0.547 0.548 447.54 440.22 Philadelphia and Erie Railroad di vision 2.405 2.438 1.630 1.876 0.573 0.562 646.66 543.66 All lines east of Pittsburg and Erie Z077I 2.082 1.504 1.527 0.573 0.555 2434.72 2390.07 ane aggregate amount of new steel rails used in construction and repairs in 1890 on SioSes awned- controlled or operated by your Company east and west of Plttsbnrg was 83,130 tons. GENERAL KEMAEKS. There has been paid to the managers of the trust created October 9. 1878, to December 31, 1890, the sum of 54,063,694 86, which, with the income therelrom, of 3,138,755 44, has been invested in securities amounting at par to 57,125,050, yielding an interest of 6.54 per cent for the year. There was ap propriated to that trust for the year 1890 the sum of 593,498 12. The assets of the Insurance Fund on hand at the end of the year were 52,525,39101, year ol It will be seen from the above that the result upon all hues east of Pittsburg and Erie was a decrease in earnings per passenger per mile ol'ClOO of a mill, a decrease of 23-100 of a mill in expenses and an increased profit of 18-100 of a mill. The average distance traveled by each passenger in" 1890 was 17 8-10 miles, and in 1889 was 18 1-10 miles, a decrease of 3-10 of a mile. The following tables show the gross earnings, expenses and net earnings of the coal ompanies in which your company is interested for 1890, as compared with 1889, and Iso the amount of coal mined and sold, and the price received for same at point of sale : Totals Compared with previous year.. Gross Earnings. 1890. Dec. $7,889,233 15 213,936 44 Expenses. 1890. Dec. 57,631,090 97 291,493 12 Net Earnings. ISM. Inc. $303,142 18 . 77,56168 Total tons mined in 1890. 2,348,906.18;" Decrease compared with' previous year, 69,273.03 tons. The average receipts per ton at point of sale, aggregating the results of the four coal companies for 1890, were 53 06 73-100, as against 53 32 2-10 in 1889. LINES 'WEST OF PITTSBUBO. The following statement gives the result of the lines west of Pittsburg operated by the Pennsylvania Company and the Pittsburg, Cincinnati, Chicago and St. Louis Rail way Company : the company., Total. On account of these advances there has neon received from those companlesiu USUm.I.... a.......a....a.......a. a ...a...... ............ ......,...,..... S 10,511,627 92 941.622 8S Total amount exponded on capital account in 1890 c 9.570,004 04 On account of these advances to branch and anxiliary lines there have been received in securities of those companies, 5281,150 00. There were used on the Main Line, in construction and repairs, 29,364 tons of steel rails and 1,307,339 ties; on the United Railroads of New Jersey division. 5,814 tons of steel and 417.G22 ties; on the Philadelphia and Erie Railroad Division, 5,479 tons of steel and O 531 ties makings total of 40,637 tons of steel, and 2,045,492 ties. ' xnere were Dniit at Altooua, ana your other snops east of Pittsbur" and Erie for the . -" Muu..it ,Uauo ... JUU. -"--i..,va. ji..a. ..iiuacfjoir account, 13a locomotives 110 paisangers cars, 23 baggage, express, and mail cars, 2,202 freight cars, 8 refrigerator cars, ana 39S cabin aud maintenance of way cars. " The following statement shows the condition of the car trusts under which the equip ment has been furnished for the lines of your company as bereinatter specified no addi tions having been made thereunder during the past year: ' 1 he 27,246 displaced on your lines east of Pittsburg, through the system of Car Trusts, represent a cost of The 16.503 cars west of Pittsburg. ".. " The cars subleased to afflilatnn Hnu vijl? 3.706 cars Northern Central Railway Company. i) cars Allegheny Valley Railroad Company 15)2 cars New lork. Philadelphia and Norfolk: Railroad Company.... cars Philadelphia, Wilmington and Baltimore Railroad Company WO cars Pennsylvania and .Northwestern Railroad Company. The total earnings of the Pennsylvania Company on lines operated d. rectly by it were Expenses ; Leaving net earnings From this deduct: Rental, interest and liabilities of ajl kinds chargeable thereto Netnrofit on Pennsylvania Company's lines The total earnings of the Pittsburg, Cincinnati, Chicago and St. Louis Railway Company on lines operated directly Dy it were 1890. $21,498,991 98 ia,SS4,S73 23, Leaving net earnings. From this deduct: Rentals, interest and liabilities of all kinds chargeable thereto., Net profit on Pittsburg, Company's lines Cincinnati, Chicago and St Louis Railway Net profit on lines west of Pittsburg for 1890.. Net profit on lines west of Pittsburg for 1S89.. Comparative increasn on lines west of Pittsburg for 1890.. $ 7,914,118 75 6,832,160 34 1890. $18,079,818 48 13,445,723 91 $ 4,633.894 57 1015,237 06 $1,081,958 41 618,657 51 $1,700,615 2 1.-34,684 85 The other lines west ot Pittsburg, on accouut of which 8 4fio 931 f t Vour comnauv hu a.. i ., , . ,. . , , . . l"a a J .1- t . UBBUUJ.U direct uLMia.iuus, ur iu hhiuu as laiyeiy .meres. eu turougn ownersnip ol securities but which are operated through their own organizations, are, the St. Louis, Vandalia ' and Terre Haute Railroad; Grand Rapids aqd Indiana Railroad, and roads operated through its organization; East St. Louis and Cardondelet Railway; Cincinnati and Muskingum V.iUey Railway; and the Wavnesburg and Washington Railroad. wo- ism The aggregate gross earnings of these roads were $5,685.280 51 Expenses,., 3.883,279 42 Net earnings $1,802,001 09 Deduct rental, interest, etc 1,723,157 94 Frofit $78.843 15 Of this profit your company, under existing contracts, is entitled to $56 310 S4 Which, added" to the profit shown In the above statement. '.'.'."'. 1700615 92 Leaves a net profit on all lines west of Pittsburg for 1890 xi 7 on ah Profit on lines west of Pittsburg for 1889 280.363 21 Showing a comparative increase for 1890, compared with 1889, of. $476,569 25 $14,3S9.S05 00 8,386,995 00 $1,827,200 00 137,500 00 2UU.000 00 235,000 00 2.JO.UO0 00 Total, 4S.997 cars ToUl aniuu.it oi cortlncates redeemed Yo"iJecei.ibcr"31. follous: Amount paid in fnll paymentof 15714 cars Amount paid on account of 33,283 cars. ...".U....V.... 2,649,700 00 ISM, , $25,420,000 OJ $8,37.000 IK) 8,70U,IKIU 00 Balance of certificates outstanding December 81, 1890 $8.8X9,000 17.037,000 00 00 The western lines show an increase of 4,608,962 tons in their freight traffiV nnrl 1 ui 480 in the number of passengers carried, but the average freigbt rates show a slight decrease as compared with the preceding year. Large expenditures were made io providing freight-yards and other facilities at ter minal points; in the construction of second and third track and passing sidings- in the erection of viaducts and other structures; and in the completion of the connecting bridge over the Ohio river at Pittsburg. Extensive additions were also made to the motive power and equipment, TtBd to your holdings of real estate at the termini of the various divisions. The amount expended daring the vear on capital account on the lines west nf Plif burg was 53,627.888 52. r"ls' There were used in construction and repairs on the northwestern lines operated directly in your interest 11,833 tons, and on the southwestern lines 14,447 tons of new steel rails. There have been redeemed through the sinking fund 51,657,000 of the issue of 53 200 -000 of the Pennsylvania Company's 6 percent bonds, secured by Pittsbnrg Ft Wayne and Chicago Railway Company stock as collateral, leaving the amount'outsiandin" 51,543,000. A further issue was made of 52,500,000 of its 4J per cent bonds for the pur" pose of providing for construction and other capital accounts on the lints west of Pitts burg, making the amount now outstanding the full sum authorized under the morti'ni'p 520,000,000. Of these bonds 5533.000 have been retired through the operations of tn ffnir' ing fund, leaving outstanding at this date 519,467,000. rations 01 the sink- The report made by the trustees of the sinking funds of the first ana secondmortgages vi mc jrinouurp, jet. navneauu uiuuxko .nauway uompanr shows that the regular annual payment of 5104,100 was made thereto. They redeemed during the year S70 000 of the first mortgage and 581,500 of the second mortgage bonds, making the total amount re deemed to December 31, 1890 : lunu'iimajiis UUIIUS HI K71 "VM lYl becond mortgage bonds 3041000 00 With a balance of cash in the hands of the trustees, uninvested, December 81 1890 : On account ot first mortgage sinking fund I9mii2 2S On account or second mortgage sinking fund ................a.:.:......:: 672.591 17 The further amount of 5171,025 38 was added to the sinking funds provided for the redemption of the existing mortgages of the Cleveland and Pittsburg Railroad Com pany, in addition to the amounts contributed directly to other sinkin funds bv the indi vidual companies. 3 The earnings of the Grand Rapids and Indiana Railroad Company were more than sufficient to meet the interest 0.1 its entire funded debt and the losses ou its leased lines, lnelaud department made sales of 10.948 acres o farm IjnH. .n 17 tm :. .1.11 O- . ' .. . " - ' ,434 the KOQ 11C a, a." J If " - MVa U.B BWal.Up IUI1US T.imZIl tO, WaS 75'nr acr"' anith? "Surest price received there.'or was 56,828,891 17, an average of 513 0j per acre. No bonds could be purchased by the trustees during the year out of the K louh "I", mo there are now outstanding 53,934,000 of the guar.nteed and 5503.C00 ot the unguaranteed nrst mortgage land-grant bonds o( the company. cmg an increase over the previous i-Ci-J,Vil 01. There was contributed to the Employes Relief Fund by your company and affiliated lines during the year 569,838" 01 for oper ating expenses, and in addition thereto the sum of 516,673 for extra benefits to members of the fund whose disability bad continued over 52 weeks, and who were, therefore, no longer entitled to regular benefits from the fuud. The amount contributed by the em ployes was 5440,103 83, and the receipts trom interest were 54,949 27, which, with the contributions by the companies, as stated above, 586,511 01, made a total of $31,564 11. This added to the balance on hand at the beginning of the year, 8149, 106 86, aggregating 5680,720 97. Of this amount there was paid to the families of employes in death benefits, and for sickness and accidents, the sum ot 5466,294 11, lor expenses $69,838 01, leaving a balance' of $144,588 83. After deducting therelrom the amount of outstanding unadjusted claims, there remained a net balance ot $22,104 89. The number of persons receiving death ben efits was 341, making an average in each case of $560 23. There were 22,984 members of the fund ut the close of the year. The Employes' Saving Fund continues to show its value to your employes, in -affording them a safe depository for a portion of their earnings. The number of depositors has increased during the year from 2,130 to 2,390; the amount ot deposits received dur ing 1890 was $344,152, and.the balance at the close of the year was 5674,066 01. Of this amount, $600,000 have been securely in vested in 4 per cent bonds. During the past year there was expended upon the main line between New York and Pittsburg the sum of $4,793,720 23, the principal items ot which were as follows: Additional yard facilities at Harrisburg, Altoona and Wall's; freight car repair shops and transfer stations at the latter point; the elevation of the tracks and pas senger station at Jersey City, and the pur chase ot additional locomotives, passenger and freight cars and real estate. The new locomotive shops at Altoona are now in use, but are. not entirely equipped. They have been constructed upon the most approved plans, and are fur nished with the best modern machinery and tools. The elevation of the tracks in Jersey City has been vigorously prosecuted during the past year; this improvement will add largely to the comfort, convenience and safety, not only of the passenger travel, but also of the residents of Jersey City. There was also expended in the construc tion of branch and auxiliary lines the sum of 55,717,907 69, of which amount $941. 622 88 were reimbursed to your company in cash. Of this amount, 53,142,323 24 were ex pended in the construction of the Trenton Cut-off, referred to in the last annual report, and which it is expected will be completed during the present year. It is being built in a mott substantial manner, on low-gradi-auts, with special reference to the cheap and expeditious movement of through traffic. On account of the topography of the country, and the cost of right of wav, the line is ex ceptionally expensive; but it is believed that the company will be fully compensated by the economies that will be obtained in the movement of traffic. The other important items of expenditure were: The work upon the New York Bay Railroad, a line which is intended to reach a rapidly improving portiou ol Newark, and at the samo time furnish an alternate line for your freight trains through that city; the construction of additional branches to the Southwest Pennsylvania Railway and the Western Pennsylvania Railroad; the providing of additional facilities on the Pennsylvania Schuylkill Valley Railroad, the Philadelphia and Erie Railroad, and the Pittsburg, Virginia and Charleston Railway, and the construction of the Mc- Keesport and Bessemer Railroad a line intended to connect the Pittsburg, Virginia aud Charleston Railway with the manufac turing industries of JU-Keesport, and neces sitating the building of a bridge over the aUonoDgabela river at that point. The amount expended for the above pur poses on your lines east of Pittsburg and Erie was $9,570,005 04, which is about the sum anticipated in the last report. It is confidently hoped that so large an outlay will not be required of your company dar ing the present year; but at the same time your management are fully impressed with the necessity for liberal expenditures of capital in this direction, not only to provide the equipment, tracks, yards, etc., necessary to properly, care for the existing traffic, but to iurtner develop tne territory and secure to your lines traffic naturally tributary thereto. The Columbia and Port Deposit Railroad, extending from Columbia on your Phila delphia Division to Port Deposit, Md., hav ing been sold under foreclosure of its mort gage, March 4, 1890, a new corporation was organized May 29, 1890, under the name of the Columbia and Port Deposit Railway Company, by which that road is now operated. TbeDowningtownand Lancaster rtanroad, referred to in the last annual re port, was completed and opened for traffic in the early fall. During the past year the principal lines forming your southwestern system, to wit, the Pittsbnrg, Cincinnati and St. Louis Railway, Cincinnati and Richmond Rail road, Jeffersonville, Madison and Indian apolis Railroad, and the Cnicago, St. Louis and Pittsburg Railroad, were merged into a company, under the name of the Pittsburg, Cincinnati, Chicago and St. Louis Railway Company. It 13 believed that through such consoli dation 4 stronger financial basis has been secured upon which the capital needed for the develnnmpnf nf tflSA nr-nrHM -in hft . obtained, and through such unification of ships will be avoided. The consolidated line covers an aggregate of 1,516 miles, in cluding leased roads; the issued share capi tal amounts to $43,820,650 24, and the fund ed debt to 541,944,500. It is one of the most important portions ot your system west of Pittsbnrg, as through it your main line has a direct connection with Cincinnati, Louisville, St. Louis, and Chicago, and reaches the territory south and southwest of those cities under the most favorable condi tions. The new bridge across the Ohio river near Pittsburg, referred to in the last annual report, was completed in the latter part of the year. It has fully realized the anticipa tions of your management in relieving the yards in Pittsburg, and facilitating the prompt movement of freight traffic between your eastern and western systems. Mr. John Whittaker, Assistant General Freight Agent ot the Company, died sud denly on the 30th of April, 1890, after a direct connection of twenty-three years with your service, and for ten years prior hereto with lines allied to your interests. Mr. Whittaker's marked ability, sterling integ rity, and unvarying courtesy in the perfor mance of his duties, make his loss one to ba deeply regretted. Mr. Charles A. Chipley, formerly Division Freight Agent of the Main Line, was appointed June 1st to fill the vacancy thus created. The company also lost ou the latter date the services of Mr. Robert E. Pettit, Gen eral Superintendent of the Main Line, who, after an association of nearly a quaiter of a century with your system, resigned from the service to secure rest and recreation. Mr. Frank L. Sheppard, formerly Super intendent of Motive Power of the Pennsyl vania Railroad division, was appointed to fill the vacancy caused by Mr. Pettil's resignation. Your board desire to place on record a minute of the death, on February 8, 1891. ... .mi. v. j.-. .uiuvaui.ougn, jursi vice irresi dent of the Pennsylvania Company, and of the Pittsburg, Cincinnati, Chicago and St. Louis Railway Company, who, lor a third of a century, had been prom inently and closely identified with the roads embraced in your Western system. While not directly connected with the lines east of Pittsburg, Mr. McCullough's un wearied labors on your behalf, and entire uevuiiD.. mj too interests connaea to him, make it eminently fitting that the board should acknowledge the deep obligations under which the company rests toward a tried and faithful servant, who only ceased with his life to faithfully guard the trusts committed to his charge. Your board desire to acknowledge the efficiency and fidelity with which the duties entrusted to the officers and employes have been discharged during the past year. By order of the board, G. B. Roberts, President. We were stationed at the little village of Z. The life of an officer in the army is well known. Drill anu tne riding school in the morning; dinner with the colonel or at the Hebrew restaurant; and in the evening punch and cards. At Z. nobody kept open house, and there was no girl that anyone could think of marrying. We used to meet at each other's rooms, where we never saw anything but one another's uniforms. There was only one man among us who did not belong to the regiment. He was about 35, and, of course, we looked upon him as an old fellow. He had the advantage of experience, and his habitual gloom, stern features, and his sharp tongue gavehlmgreatinfiuence over his juni ors. He was surrounded by a certain mystery. His looks were Russian, but his name was foreign. He had served in the Hussars.and with credit. No one knew what had in duced him to retire and settle in this out-of-the-way little village, where he lived in mingled poverty and extravagance. He al ways went on foot, and wore a shabby black coat. But he was always ready to receive any nnlucky evening the thought that his honor was tarnished, and that it remained so by his own choice, never left me; and this pre vented any renewal of our former intimacy. I was ashamed to look at him. Silvio was too sharp and experienced not to notice this and guess the reason. It seemed to vex him, for I observed that once or twice h hinted at an explanation. But I wanted none; and Silvio gave me up. Thenceforth I only met him in the presence of other friends, and our confidential talks were at an end. The busy ocoupants of the capital have no idea of the emotions so frequently ex perienced by residents in the country and in country towns; as, for instance, in await ing the arrival of the post. -On Tnesdaya, and Fridays the bureau of the regimental' stall' was crammed with officers. Some wero expecting money, others letters or newspa pers. The letters were mostly opened on the spot, and the news freely interchanged, the office meanwhile presenting a most lively appearance. Silvio's letters used to be addressed to our regiment, and he usually called for them nimself. On one occasion, a letter having been handed to him, I saw him break the THE OFFICEB SEIZED A BRASS CANDLESTICK:. A VILLAGE TORN UP. COLORED COUHCIXMETT CH0SE1T AT ITS FTEST ELECTIOIT. A Quarrel Among the Whites Is Responsi ble for the Trouble, and Now the Obnox ious Councllmen May Be the Occasion of a Race War. Atlanta, March 2. The whites and blacks of Keysville are greatly stirred up, and serious trouble is apprehended. All the trouble is due to politics. Keysville is in the northwest corner of Burke county, 26 miles from Augusta, on the Augusta, Gibson and Sandersville Rail road. Some of the residents of the vil lage, thinking the prospects lor developing the town good, commenced preparing for a boom. Last summer, while in Waynesboro, E. J. Goodman aud several other gentlemen of Keysville called on Representative Davis, from Burke county, and requested him to make application to the Legislature for a charter to incorporate Keysville. In accordance with the request Mr. Davis secured a charter for Keysville, but lost the letter that mapped nut that part of town that the whites wanted incorporated, which exciuaeo tne negro settlements. So Mr. Davis had Keysville incorporated in tne charter for half a mile In each direction from the academy, which included the negro settlement. On the first Tuesday in January an elec tion for the first Mayor and members of the Council was ordered. The general under standing was that Mr. Goodman, who had taken such an active part in having the town incorporated, should be elected Mavor. The night before the election the friends of Mr. Tom Daniel held a caucus and decided to run Mr. Daniel on the quiet. The result of the election was that Daniel was elected Mayor, with E. J. Goodman, R. C. Clark, R. J. Cook and Dr. W. R. Jones, Counciltuen. Goodman and Clark being disappointed at the way things turned out declined to serve in the Cnnncil mm.. I queutly an election was ordered to fill both vacancies on January 20. The negroes nomi nated Elbert Walker and Joe Young, both colored, for Council. A majority of the whites refused to vote at the second election, so both negroes were elected. This was done to mortify the incumbents. Ever since the negroes were elected the greatest dissatisfaction has prevailed, and trouble in the municipalities has been brew ing. Both negro Conncilmen several days ago received a letter iroin "Red Shirts" ad vising them to send in their resignations at once, and if tbey refused to do so they would not be responsible for the terrible retribution tbat tbey would bring upon themselves. Upon receipt of the letter from the "Red Shirts," Walker and Young, the negro Conncilmen, addressed a letter to .Mayor Daniel and Dr. Jones and T. J. Cook, the two white Conncilmen, telling them that their election had been by questionable methodsi and as members of the same hon orable body they had been advised bv "Red Shirts," also by the best citizens of Keys ville, to resign, which they were willing to do, provided their colleagues would do the same thing, rrt UT... -:.: .- .. tbe system any conflict of interests that I tioned Mayor Daniel and his Council to re night have arisen through diyeitt owner J tlgn bo the negroes could be got rid of. of our officers; and, though bis dinners, cooked by a retired soldier, never consisted of more tUan two or three dishes, champagne flowed at them like water. His income or how he got it no one knew; and no one ventured to ask. He had a few books on military subjects and a few novels, which he willingly lent and never asked to have returned. But, on the other hand, he never returned the books he himself borrowed. His principal recreation was pistol shoot ing. The walls of his room were riddled with bullets a perfect honeycomb. A rich collection of pistols was the only thing luxurious in his modestly furnished villa. His skill as a shot was quite prodigious. If he had undertaken to shoot a pear off some one's cap, not a man in oar regiment would have hesitated to act as target. Oar con versation often turned on dueling. Silvio so I will call him never joined ia it. When asked if he had ever lougbt, he an swered curtly, "Yes." But he gave no par ticulars, and it was evident that he disliked such questions. We concluded that the memory of some unhappy victim of his terrible skill preyed heavily upon his con science. None of us could ever have sus pected bim of cowardice. There are men whose look alone is enough to repel such a suspicion. An unexpected incident fairly astonished us. One afternoon about ten officers were dining with Silvio. They drank as usual; that is to say a great deal. After dinner we asked our host to make a pool. For a long time he refused on the ground that he seldom played. At last lie ordered cards to be brought in. With half a hundred gold pieces on the table, we sat round him, and the game began. It was Silvio's habit not to speak when playing. He never disputed or explained. If an adversary made a mis take, Silvio, without a word, chalked it down against him. Knowing bis way, we always let him have it But among us ou this occasion was an officer who had but lately joined. While playigg he absent-mindedly scored a point too much. Silvio took the chalk and cor rected the score in his own fashion. The officer, supposing him to have made a mis take, began to explain. Silvio went on dealing in silence. The officer, losing patience, took the brash and rnbbed out what he thought was wrong. Silvio took the chalk and recorrected it The officer, heated with wine and play, and irritated by. the laughter of the company, thought him self aggrieved, ana, in a at 01 passion, seized a brass candlestick ana tnrew it at bilvio, who only just managed to avoid the missile. Great was our confusion. Silvio got up, white with rage, and said, with sparkling eyes "Sir! have the goodness to withdraw, and yon may thank God tbat this has happened in my own house." We could have no doubt as to the conse quences, and we already looked upon our new comrade as a dead man. He withdrew, saying that be was ready to give satisfaction for his offense in any way desired. The game went on for a few minutes. Bat feeling that our host was upset we gradually left off playing and dispersed, each to his own quarters. At the riding school, next day, we were already asking one another whether the young lieutenant was still alive, when he appeared among us. We asked him the same question, and were told tbat he had not yet heard from Silvio. We were astonished. We went to Silvio's and found him in the court-hard popping bullet after bullet into an ace which he had gummed to the gate. He received us as usual, but made no allusion to what had happened on the previous evening. - Three days passed, and the lieutenant was still alive. "Can it be possible," we asked one another in astonishment, "that Silvio willnot fight?" Silvio did not fight He accepted a flimsy apology, and became reconciled to the man who had insulted bim. This lowered bim greatly in theopinionof the young men, who, placing bravery above all the other human virtues, and regarding it as an excuse for every imaginable vice, were ready to over look anything sooner than a lack of courage. However, little by little all was forgotten, and Silvio regained his former influence. I alone could not renew my friendship with him. Being naturally romantic I had sur passed the rest in my attachment to the man whose life was an enigma, and who seemed to me a hero of some mysterious story. He liked me; and with me alone 'did he drop hit Iurcsiuc tone ana converse simpiy ana most agreeably on many subjects. Bat after this seal and, with a look of great impatience, read the contents. His eyes sparkled. The other officers, each engaged with his own letters, did not notice anything. "Gentlemen," said Silvio," ''circum stances demand my immediate departure. I leave to-night, and I hope yon will not re fuse to dine with me for the last time. I shall expect you, too." he added, turning towards roe, "without fail." With these words he hurriedly left, and we agreed to meet at Silvio's. I went to Silvio's at the appointed time, and found nearly the whole regiment with him. His things were already packed. Nothing remained but the bare shot-marked walls. We sat down to tails. The host was in excellent spirits, and his liveliness communicated itself to the rest of the com pany. Corks ponped every moment Bot tles fizzed, and tumblers foamed incessant ly, and we, with much warmth, wished oar departing friend a pleasant journey and every happiness. The evening was far ad vanced when we rose from the table. Dur ing the search for bats Silvio wished every body good-by. Then, taking me by tha hand as I was on the point of leaving, he aid in a low voice: "I want to speak to yon." I stopped behind. The guests had gone, and we were left alone. Sitting down opposite one another, we lighted our pipes. Silvio was much agitated; no traces of his former gaiety remained. Deadly pale, with sparkling eyes and a thick smoke issuing from his moutb, he looked like a demon. Several minntes passed before he broke) silence. ' "Perhaps we shall never meet again," he said. "Beiore saying goodby, I want to have a fe words with you. You may have remarked that I care little for the opinions of others. But I like you, and should be sorry to leave you under a wrong impres sion." He paused and began refilling his pipe. I looked down and was silent "You thought it odd." he continued, "that I did not require satisfaction from thai drunKen maniac. You will grant, how ever, that being entitled to the choice of weapons I had his life more or less ia my hands. I might attribute my tolerance Ik n Here Is a Memento of Our Duel. to generosity, but I' will not deceive yon. If I could have chastised bim with out the least risk to myself, without the slightest danger to my own life," then I would on no account have forgiven him." I looked at Silvio with surprise. Such a confession completely upset me. Silvio continued: "Precisely so; I had no right to endanger my life. Six years ago I received a slap in the face, and my enemy still lives." "Did you not fight him?" I inquired. "Circumstances probably separated you?" "I did fight him," replied Silvio, "and here is a momento of our duel." He rose and took from a cardboard box a red cap with a gold tassel and gold braid. "My disposition is veil known to yon. I have been accustomed to be first in everything. From my youth this has been my passion. In my time dissipation was the fashion, and I was the most dissipated man in the army. We used to boast ot our drunkenness. I beat at drinking the celebrated Bourtsoff, of whom Day idoff has sung in his poems. Duels in our regiment were of daily oc currence. I took part in all of them, either as second or as principal. My comrades r i WM iLSir
Significant historical Pennsylvania newspapers