'
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
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