Newspaper Page Text
-The Pennsylvania General Office, Br The Board of Directors submit herewith to th pany a synopsis of their Annual Report for the j* The gross earnings of all lines directly operated w Operating expenses Net earnings from operation. Deduct rentals paid roads operated on basis of net Net operating earnings of Tbe Pennsylvania Hailr To mhtch a<ld: Interest from Investments Rental of equipment, and other Items (Irons Income. Deduct: Fixed rentals of lessed roads ?... Iuterest on bonded debt Net Income From this amount the following deductions have 1 Payments account Sinking and Trust Funds Trusts Extraordinary expenditures Dividends aggregating 9^ per cent Amount transferred to Extraordinary Expenditure Amount to credit of Profit and Loss December 3) Profit from sales of Stocks and settlement of sund: Deduct amount applied toward construction of N< tnnnel line.. Deduct amount transferred to Extraordinary I ture Fund Amount to credit of Profit and Loss December 81st GENERAL BALANCE December ASSETS. 3ost of road, equipment, and real estate f^oi.Yntf.KW 01 lecurltles owned 197,039,121 12 Leasehold Interest In liarrlsburg, Portsmouth, Mt. Joy and Lancaster Railroad 1,882,550 00 lccounts receivable: Sale Norfolk and Western and Chesapeake and Ohio stocks 15,492.G85 00 Securities received with the lease of the U. N. J. R. R. and C. Co.. 3,283.400 25 Loans for Construction and Real Estate pur)>oses to various eontnillcxl pnmna n ioa O At\A TO New York Tunnel Extension 28,833,033 26 CTRREXT ASSETS. Due from controlled companies for advances for construe- ^ tlon and other purposes $9,010,383 01 Due from agents 9,054,745 05 Bills receivable and miscellaneous assets 6.075.250 02 Materials 9.328.030 90 Cash 43.170.122 85 77.238.522 43 Sinking Funds. Trust Fund, and Insurance Fund 7,448,147 90 Total $593,515,894 36 FUNDED DEBT. The amount of funded debt, Including mortgages. real estate and ground rents, December 81st. llM*;. was $191,5(11.270.82, being a decrease of $291,176.67. SECURITIES OF OTHER CORPORATIONS. The entire cost of the securities of other cor porauous new ny your company, December 31st, 1906, was $104,709,719.01, and the direct reveuue received therefrom during the year was $11,741,184.33, being 0.03 per cent, upon the cost thereof. It will be noted that there has been a large decrease In your holdings of the securities of other corporations. This is due to the fact that as the object sought through their purchase, viz., the promotion of a more conservative policy In the management of some of the large railways reaching the seat>oard, and the doing away with unjust discriminations between shippers, had been largely accomplished, and through the passage of recent amendments to the Interstate Commerce law and the enforcement of its provisions, the maintenance of tariff rates had been practically secured. It was deemed advisable to sell a portion of the securities heretofore acquired. This sale covered all of your Chesapeake and Ohio Railway Stock and a majority of your holdings in the Baltimore and Ohio and Norfolk and Western Railways, and as a result thereof, a large profit has accrued to your Company, which, as nerore noted, has been credited to jour Profit and L088 Account. CAR TRUSTS. In order to supply the equipment needed for CAPITAL STOCK AND FUNDED DEBT?LINES WEST OF PITTSBURGH. Tke prosperous condition of the manufacturing Interests of the country, and the great Increase In the consumption of ore, coke, coal and other materials, as well as In the output of the finished ftroduct. has forced upon the lines on which the arge iron and steel Industries are located an exceptional expenditure for tracks, equipment, yards aD<t other terminal facilities. This is especially the case upon the roads embraced In your Northwestern svstem; and in order to meet these demands and supply the Pennsylvania Company with the working capital needed for Its general corporate purposes for several years, an issue was made April 2d. 1906, of twenty million dollars of four per cent, collateral Trust Certificates, running for twenty-five years, with the right of redemption by the Company at any time after fifteen years. These certificates are guaranteed, principal and iuictrai, uj jum vuuiJiail.Y. It will be noted that after paring a dividend of tlx per cent, for the past jear. making large contributions to Its various Sinking Funds, and transferring $2,500,000 to an Extraordinary Expenditure Fund, the Pennsylvania Company carried a substantial balance to the credit of Its Profit and Loss Account. The Pittsburgh. Cincinnati, Chicago and St. Louis Railway Company was also able, after making the payments required by Its Sinking Funds and applying a substantial sum toward the principal of Car Trusts and to Extraordinary Expenditures, to increase its dividends to five per cent, on its preferred and three and a half per cent, per annum on its common stock and further add to Its Profit and Loss Account. The Vandalla Railroad Company also increased Its dividend to four aud a half per cent, and apGENERAL REMARKS. The Employes' Voluntary Relief Department, the Employes' Saving Fund and the Pension Department show excellent results and are fully meeting the purposes of their organization. It has been found to the advantage of the Company. In the operation of the Pension Fund, to retire a more liberal percentage of the employes who have, after thlrtT v^trs' wrflrp ? sixty-five and sixty-nine year*. and the demands thus made upon the Fund will necessitate a larger appropriation. Your authority will therefore be asked to Increase the annual sum get apart for tfcat purpose from $900,000 to $500,000. It having Total authorized Issue Outstanding December 31st. 190fl.. Amount required for the <x>n version vertlble Bonds of 1902 and IS Amount required for the acqulslt Cumberland Valley Railroad C Amount required for the acqulslt Philadelphia and Erie Rallr< Amount required for acquisition < gheny Valley Railway Compi Balance available for issue For the purpose of meeting the future needs of the Company, and in pursuance of the notice already given, the Shareholders will be asked to authorise additional stock to an sggregate of |100,000,000 snd Its Issue from time to time, under ni>h rpambtloD* aa rH a# " **'" prescribe. But as it maj^be to the interest of the nompaoy to meet its corporate requirement* through the issue of obligation* bearing a lower rate of Interest rather than through the Issue of stock, authority will also be requested to increase Its indebtedness, from time to time, to the same aggregate amount. In such f<*rm as may be found most available at the time of issue. The capital requirements of the Company for the current year will be met through the issue of $60,000,000 of three-year Ave per cent, collateral notes; this being deemed more advisable than a sale of longterm iMintls at the prices now prevailing for such securities. The prompt recognition of the growing needs of the country for inereaaed and improved railwsy facilities has resulted in the greater portly of the necessary additions aud Improvements to your road and equipment having beeu made on most favorable terms, both as to the cost of the work and the rates at which the funds were secured. But the demands for Increased capital from other railways. influenced by the same reasons which gov e i ]! -<) juur acnon. ami puiiKTiniiaiij in MU in branches Of industry. have wade the prevent rate* fur money exceptionally high. This together with the Increased rout of labor and material, tbe leg' Islatlon. both Kate and muulcl|Ml. to Increase taxes, reduce rates and fare*, and force upon tbe railways large expenditures that yield no direct return, would seem to make If a wise policy on the part of your Company to reduce Ita capital expenditures to a minimum, avoid new undertakings, and restrict Ita expenditure for the present to such work aa la now under way. and most be completed. The increment of both freight and passenger traffic continues to ahow as exceptional Increase, the relume and mileage for 1006 being greatly In areas at that for 1906. and much the largest la tha history af the Company. \ Railroad Company. ?ad Street Station. PHILADELPHIA, lit March. 1907. e Stockholder* of The Pennsylvania Railroad Cotnar 1900:? ere I148.230.8S2 44 101,808.644 25 $46,434,238 10 t earnings 7,800,809 20 oid Company $39,133,338 90 $12,087.293 27 686,908 92 12,784,262 18 $51,917,001 18 $4,140,592 35 7,887,652 11 >n car trusts, taxes, 4c. 4,715,055 92 16.243.300 38 $35,674,300 80 Seen made: . and principal of Car *4.0Wi,lU3 31 8.701,474 54 13,304,640 05 122.368.660 75 10,869,660 75 *2,500,000 00 Fund 2,500,000 00 1st. 1905 $24,725,484 36 ry accounts, etc $15,200,848 66 w York $13,000,000 00 ?ip?ndl ^,^W,CMO W $15,200,848 G0 , 1906 24,725,484 36 SHEET. (Condensed.) 31st. 1906. LIABILITIES. Capital stock $305,951,350 00 Funded debt (Including mort* gages and ground rents) 191,561,270 82 Guaranteed stock and bonds of the Harrisburg, Portsmouth, Mt. Joy and Lancaster R. R. Co.*.... 1,882,550 00 Securities received with the lease Oi.the U. N. J. R. R and C. Co.. 8,283,460 25 Car Trust Principal and Taxes charged out and awaiting settlement 8,002,102 14 Pennsylvania Company Deposit Account 13,709,163 32 Extraordinary Expenditure Fund.... 4,700,848 06 CURRENT LIABILITIES. Pay rolls,# vouchers and net traffic balances $21,689,487 31 Due controlled companies other than ! traffic balances 9.453,984 47 Due Saving, Relief. and Insurance Funds, etc 1,065,400 91 Interest accrued, ma- ? tured, and uncollected, and dividends uncollected... 1,098,488 50 Miscellaneous liabilities 1,460,099 55 35.368,000 74 Sinking Funds and Trust Fund.... 9.331,004 07 Profit aud loss 24,725,484 30 Total... $593,515,894 36 jour traffic, a large additional issue of car trust securities was made during tbe year. This Issue embraced the remaining certificates of the Pennsylvania Steel Rolling Stock Trust. $2,700,000; all the series of the Pennsylvania Steel Freight Oar Trust, less the amount matured. $9,300,000: all the series of the Pennsylvania Steel Equipment Improvement Trust. $10,000,000. and twenty-two series of $1,000,000 each, and $218,000 of the twenty-third series of the issue of liKH) of the Pennsylvania General Freight Equipment Trust Association. This latter Association has been created for the purpose of supplying through one instrumentality the equipment for the lines in the Pennsylvania Railroad system, and hereafter its certificates will be issued in series which will be designated not only by the letters of the alphabet, but by the year of issue. The total number of Car Trust cars now in service is 94,873, and the Car Trust certificates outstanding December 31st, 1906, aggregates $71,018,000.00. TRAFFIC. The number of tons of freight moved on the four grand divisions east of Pittsburgh and Erie in 1906 was 172,371,063, an increase of 15.367,296, or 9.79 per cent; the number of passengers was 62,108,708, an increase of 6,326,890, or 11.34 per cent. Tbe other Railroad Companies east of Pittsburgh and Erie in which your Company is interested show satisfactorv results- TtotallMl I ments of their operations will be found in their I respective annual reports, as well as in the full ' report of jour Company. nroprlated out of Ks surplus Income $400,000 to an Extraordinary Expenditure Fund. This Company sold an additional $3,000,000 of its Consolidated Mortgage four per cent. Bonds, due 1955, In order to provide the necessary funds for Its capital expenditures. and recoup its treasury for the amount expended in the redemption of $600,000 Terre Haute and Indianapolis Second Mortgage five per cent. Bonds. CAPITAL EXPENDITURES. The amount of Canital Exnenditnrps dnrfnv year on the Lines west of Pittsburgh for construction, equipment and real estate was $9,781,235.44. In these expenditures were Included large outlays upon track elevation iu Chicago and Allegheny, upon the revision of line and extension of the double-track system on the Pittsburgh, Cincinnati. Chicago and St. Louis Railway, the improvement of yards, dock* and other terminal facilities, the Increase of Hidings, and especially upon additional motive power and equipment for both your Northwestern and Southwestern systems. TRAFFIC. The number of tons of freight moved on the lines west of Pittsburgh was 142,370,099. an increase of 17.184.42h. The number of passengers carried was 30,413,560. an increase of 2,153,125. The gross earnings of all lines east and west of Pittsburgh for the year 1906 were $295,898,165.24, operating expenses, $211,543,766.03, and net earnings. $84,354,399.21, an increase in gross earnings, compared with 1905. of $29,828,567.48, and an Increase in net earnings of $10,385,149.87. There I wen* doa.voo.az# tons or rreignt moved on the entire system, being an increase of 37,978,938 tons, and 140,513,364 passengers carried, an increase of I 14.500,825. also been determined that it is to your interest that the limitation on admission to the service shall be fixed at forty-five instead of thirty-five years, your approval of t'uat change will be requested. It will be recalled that at the meeting of the Shareholders In 1903, the uecessary authority was KiTrn lor an increase or (be capital atock to (400.(100.000. After setting aside the amount required for the rourerslon of the three and one-half per cent. Conrertible Bonds of 1902 and 1B03, there la. as appears from the following statement, but a amall residue arallable for jour corporate purposes. $400,000,000 *300,051,350 i of the 3V? per cent. ConOS 80,702,350 :lon of the Stock of the Sompanj 1,694,400 tlon of the Stock of the >ad Company 4.485,300 >f the Stock of the Alle>nr 164.000 7.002,700 $400,000,000 ^ There was a Tory alight increase Id the average rate and io the net earnings per ton per mile. It will be noted, however, that the higher scale of wage* granted to your employe* only went into effect on December 1. 1906, and that there Is a steady advance In the prices of all materials purchased by your Company, both of which must materially affect the cost of transportation. After meeting all liabilities and paying dividends aggregating six and a half per cent., and the maturing principal of the car trusts, $4,246,039.34. there was a surplus of Income of S11.2D1.474.54- nf which $8,701,474.54 was applied toward the Extraordinary Expenditure of the year, ahd $2,500,<100.00 transferred to an Extraordinary Expenditure Fund. As already noted, the profit realized from the sale of securities of other companies was credited to your Profit and Los? Account; and against this profit there has been charged off on account of the cost of construction of your New York Tunnel Extension the sum of $13,000,000. and the balance of $2,200,848.04 transferred to the Extraordinary Expenditure Fund. The heaviest outlays during the year, between Pittsburgh and Jersey City. In sddition to tbftt 1^ Tolved in the completion of this line, were upor your four-track syntcm. yards and other terminal facilities, right of way and real estate. %pd the procurement of a permanent water supply. One hundred and ninety-etch* locomotive* wam added to xoor mottTe power, and the freight equipment of the Company wti Increased to the extent of 23.803 car*, through the issue of securities a Oder the aaual ?r truat arrangemeuta. The aggregate expenditures for construction, equipment, and real estate duriug the Tear upon your Main IJne between New York and Plttaburgh, Including $4,246,039.34 paid on account of the principal of Car Truatt. were 30,868,802.81, ef which $17.411,788.73 was charged to capital account, and (12,300.157.01 against the Income of the year. There was also charred agalnat the income for the yaar the amouM of i047.aH.tT advanced to the Waatsra New York and Paenaylaaala Kallwaj / t for right of way and real estate, the canal nnd dock Improvement! at Sooth Buffalo, and the construction of the Ebeneser Branch. On the branch line* the main outlay was for sidings and additional terminal facilities, sod aggregated |l,884._iM.87. The principal expenditures for the current year will be in completing the extensions of the fonrtrack system now nnder wsy on the Middle. Pittsburgh, and Western Pennsylvania DlrMons. upon the Tunnel Extension into and through New Yirk and upon the Terminal Station In tbat city; n|>on the right of way and real estate required for the relief lines referred to in the last report, and upon additional motive power and equipment. The progress upon the Tunnel Extension hss t?en Quite satisfactory. .and while the work nnder the feast River la somewhat slower In progress, tint tinder the Hudson River wis pushed forward so successfully that on the twelfth of September the laying of one of the tubes was completed through from Weehawken to Manhattan, and on the ninth of October the second tube waa In place. The work of llnlnt these tabes with concrete Is bow nnder way. On the section between Harrison, the point east of Newark, where the Tunnel Line leaves your United New Jersey Division and the Hudson River, many of the bridges have been constructed, and that over the Hackensack River largely completed, while the excavation on the approach to the Berren Hill Tunnel and In the tunnel Itself has made substantial progress. The excavation for the station site in New York between Seventh and Eighth Avennes is practically finished, and the foundations for n nnmber of the columns necessary to support the station and the steel vla.ducts are beln* Dot in nlnre. Tbe work under the streets between the North and Enst Hirers and In Lone Island City beyond the East River is about two-thirds finished, and also about one-fourth ot tbe excavation and lining for the four tunnels nnder the East River. Large expenditures were also made upon the Philadelphia. Baltimore and Washington. West Jersey and Seashore, and Long Island Hallroad systems. . It will be noted that the Improvements, specially referred to In the report for 1902 as absolutely necessary to enable yonr traffic to be promptly and economically handled between Pitts Mirjcil nnu flfw Kill, iMTr, Wltu n ?t-\> riair Mono, either been actually completed or are rapidly approaching completion. The completed work covers the construction of the Brilliant Branch, of the elevated railroad along Dnquesne Way, together with the new freight station at Pittsburgh and th* terminal yards adjacent to that city, the constn.Vtlon of the double track freight road between Oalllt/ln and Petersburg and of an important part of the classification yards located thereon at Hollldayshurg, the building of the double track low grade freight Hue between Tork Ilaven and Glen Lnch and of the Rnola Yard in connection therewith, the construction of the double track elevated freight road through the Weat Philadelphia yards between the Main Line and COST OF ROAD: Being expenditure on Low Grad York Haven to Glen Loch, on P Conemangh. Hollldaysburg, Moi Dnquesne Way Elevated Road. Trai'K STBiriu i>11 .nam uim, uuu Pennsylvania Division and on E tion? and other facilities Cost of South-West Pennsylvani Co?t of York Haven and Rowenn EQl'IPMENT: Portion of cost of 198 locomotives.. REAL ESTATE Total charges to Capital Account for 1900 The increase of CAPITAL STOCK daring the year Issued In exchange for Convertible Ho nils of 18 In exchange for Convertible Bonds of 18 In ?kv/>liin(T0 fnr Prufprred Stock l?f Alle Under allotment of Stock of 1900 In conversion of Dividend Scrip of May The attention of the Shareholders has already j been directed to a Resolution passed by the Congress of the United States, on the seventh of March, 1P00. tmder whfch the Interstate Cora- f merce Commission was instructed to investigate j and report, among other matters, whether common carriers by rail were interested In the ownership of the coal carried over their lines, and whether any officers or employes of such carriers, charred with the duty of furnishing cars or other facilities to shippers, were interested as owners or otherwise in the coal so carried. It having been alleged in the course of this investigation, which was made ex parte, and without the safeguards incident to judicial proceedings, that employes of your company had failed to do their full duty to the Shareholders of th*? Company and to the public, and that this had resulted from their ownership of interests in corporations doing business with your company or over its lines, a special commmee or uvi* uun iwn ?>?n aiMn/uuru r to thoroughly inquire Into nnd report upon the matters referred to. This Committee has made an exhaustive Inquiry extending over several months and reported Its findings to the Board, and a copy thereof, as well as of their preliminary report, .has l>een sent to each Shareholder. The Committee finds, as the flnnl result of its examination of the whole subject committed to it, that with few exceptions the officers and employes of the companies constituting the Pennsylvania Railroad system have been faithful to duty. As a matter of policy, however. It has been determined that it is to the interest of the Company that none of Its officers or employes shall have any ownership, direct or indirect, in any company, or By order ? Attest: LEWIS NEILSON. Secretary. STOCKHOLDERS MAY OBTAIN COPIES OF * ?*? T?n?i KWVP AXT A DDT TC iTIftV- 1 &M?.n >)lO aiAft'vIl, A LTV I, Uil A1 * SON. SECRETARY. ROOM 268 BROAD STREET CIVIC IMPROVEMENT BUSINESS TANSACTED AT MEETING OF COMMITTEE. The comm/ttee for street decorations and civic improvement held a meeting last Saturday evening at the new rooms, 1704 O street, and discussed topics relating to the spring season, and the part citizens might take along the line of-assisting In b^iutifying the thoroughfares of the city. Ti *U,R \f oortain cucirM. XI Vttut llic Upiun/ii kiiub ?*. vv* WM --on Hons for individual house and lawn adornment were put in printed form and circulated many might co-operate with the socalled committee of the whole and help develop the esthetic values that. It Is pointed out, lie at their doors. Mr. U. 8. Dunbar gave a brief description of th? statue of Governor Shepherd, and Mr. W. S. Wlndon and others remarked that the parks here will soon be ornamented by a large number of statues, as six or more additional ones have been authorized by Congress and are In the course of construction. J. W. Holcomb spoke of the attractiveness of terraces in park spaces in front of houses in certain thoroughfares. Mr. Edward T. Bates indorsed the suggestion, which broadened into a general discussion, and the fact was brought out that some cities in England have adopted terraces in certain residential sections with very good reaulta nnrt that the same misht be true here If the surroundings were properly studied. Bare and Unsightly Spots. Mr. Z. D. Blackistone discussed the growth of the proper kind of plants and grasses in parking along the streets and avenues, which developed the fact that certain trees kill all forms of vegetable growth beneath them, causing bare and unsightly spots, and it was suggested that certain forms of foreign grasses might be made to grow and cover such bare places. Mr. E. A. Hill supported the suggestion by adding that the many breathing spaces made In the concrete walks for the trees along the curbs and avenues by the District authorities might be treated In a similar way and thus made more attractive. The L'Enfant map (the original layout of Washington) was produced by Mr. Frederick D. Owen, the chairman, and the many at fra Otivp fojLt.lirPa nnlnftnl nnt and av_ plained. It was observed that the older part of the city affords a much better opportunity for beautificatlon than many of the new sections, and that the purchasing of new parks in the new sections was a logical thing for Congress to do. Therefore. It was agreed to be the duty of every citizen to assist in some way In making the national capital cleaner, healthier and more beautiful. ATTRACTS KANT VISITORS. Attendance at Corcoran Gallery of Art Since Exhibition Opened. There has been no diminution in the throngs visiting the Corcoran Art Gallery to view tne paintings of the first American salon, and since the exhibition opened, just a month ago. 46,131 persons have visited the gallery. Sunday there was a steady flow of art lovers to the big white building on 17th street, and when the doors were closed in the evening an even 5,000 persona had passed through them during the day. It had been planned to close the exhibition next Saturday evening, but it is probaable It will be continued over Sunday next. Monday next the special exhibition pictures will be removed and those of the permanent exhibition will be rehung. While this la being done the gallery will be closed to visitors. The President and Mrs. Roosevelt have made several visits to the gallery during the special exhibition, and many other distinguished persona have also viewed the picture*. the Delaware Extension and the Philadelphia, Baltimore and Washington Railroad, and tbe reduction of the grades on tbe Trenton Cat-off. There Is no auestion thnt but for tbe pollcj pursued by tout management in this direction, it wonld bare been Impracticable to handle ttM enormous traffic seeking an outlet OTer your sy? tem; and the wisdom of making tbe expend! lores necessary to accomplish this result has beer clearly demonstrated. It must be borne in mini In this connection that in tbe fire years frott 11)02 to 1007 the tonnage of the Main Line anc liMtiolioa Hob (noma aiwl fmm ahnnf 77 fWlfl flfifi trim to over 101,000.000 tons, and that of the foui Grand Divisions east of 1'ittsburgb ?nii Erie whirl are operated directly by your Company fron about 134.000,000 ton* to orer 172.000.000 tona The rroii earnlnjra of the Main Line bare In created In that period from about $08,000,000 t< over 188,000,000, and of the four Grand Division! referred to from abont (112.000.000 to over 1148, 000,000. while the net Income of the Ootnpanj after meeting Interest on bond*, leaaes and othei liabilities has Increaaed from about $28,000.00* to over $35,000,000, In order to temporarily provide the capital needed for the beavy expenditures made dnrlni the past year upon your lines east of Pittsburg! and Erie, It was deemed wise to utilize the powers of the Pennsylvania Company and thus mak< It farther available for the purposes of Its organ lzatlnn. To this end that Company made an l?u< May 1st, 100?, of $50,000,000 of its four and one half tier cent, eighteen months collateral notes guaranteed by your company. The proceeda ol these notes were placed to your credit, and thi Pennsylvania Company has been reimbursed foi these advances largely through the aale of the securities heretofore held In your treasury. The Shareholders have heretofore been advised nomult* fc>r &m>npli,r k Tw?rmanent stinnlj of good water for your present and future needs, and of the continued pressure for addition-' equipment to meet the needs of your shipper*. Ai stated Jn the last report. It was Intended to secure a portion of the funds required for these purposes throngh the sale of short-term securltiei similar to the car trust certificates heretofori issued. But an opportunity baring offered tc place a loan in Franco, throngh hanking lnstltntlons of the highest credit, on satisfactory terms, the Pennsylvania Company also made an Imm under date of June 15th. 1906, of 250,000,00C francs, or ahont $48,000,000 of Its three and threequarters per cent, trust obligations, through thf Glrard Trust Company as Trustee, running foi fifteen years but subject to redemption at pal rind interest on June 1Mb. 1918, or at any Interest period thereafter. These obligations are guaranteed by your Company, and with their proceeds, the Pennsylvania Company has purchased from your Company the Car Trust and Water Certl8rates to an amount substantially equal to the proceeds of this loan. The cliarces to CAPITAL ACCOUNT during th? year were as follows:" le Freight I>lne from itcairn. Shire Oaks, TTille and other yards, extension of fourible tracking West ranches, shops, sta $14.039.126 88 a Railway, absorbed. 3.020,300 00 la Railroad. Absorbed 1,300.000 00 $18,365,510 88 2.622.075 86 - 540,080 29 $21,738,178 73 was as follows:? 02 $342,900 00 05 246,050 00 gheny Valley Railway Company.... 2,812,900 00 1,500 00 31st, 1893 50 00 $3,404,000 00 interest in any firm or with any individual owning or operating mines located on your system or dealing in coals produced therefrom, or In any other business where such holding might In any way conflict with their duty to the Company or the Company's duty to the public. The necessary measures have been taken to enforce compliance with this regulation. The Board have to record with deep regret the death on December 1C, 1900. of Mr. Amos R. Little. who had served continuously as one of your directors since 18S8 and whose kindly personality and devotion to the interests of the Company had won the warm attachment of his associates. On the twenty-eighth of December the Company ! also lost by death its President. Mr. Alexander J Cassatt. who had filled that position since June 0, 1899. The minute adopted by the Board refers ! briefly to the lifelong connection of Mr. Cassatt ! with your service, and especially to his exceptionally important labors during his occupancy of the office of President. While that minute endeavors to record the value of his work not alone to your Company but to the general railway interests of the country, it is difficult for words to ! express the feeling of regret and personal loss which the sudden and unexpected death of Mr. roaantt lirnnirhf tr? all thnRP who wer?? associated with him in the management of your affairs To fill the vacancy thus caused, Mr. James McCrea was elected President on the second day of January. 1J>07. Mr. Henry C. Frick was elected a director on the twenty-sixth day of December, 1906, in the place of Mr. Little, and Mr. Chas. E. Inpersoll on the twenty-third day of January, in the place of Mr. Cassatt. f the Board. JAMES McCEEA, President. THE REPORT IN PAMPHLET FORM ON AND N PERSON OR BY LETTER TO LEWIS NEILSTATION. PHILADELPHIA. CENTRAL LABOR UNION CRITICISM OF CONTRACT WORK ON GOVERNMENT VESSELS. At the meeting of the Central Labor Union last night the matter of the affiliation of the Railway Brotherhoods was taken up for discussion, resulting in Secretary De Nedrey being instructed to write a letter to the locals of Washington and vicinity extending to them an Invitation to unite with the central body. Mr. George L. Cain of Lynn, Mass., president of the "National League of Employes of Navy Yards. Naval Stations and Arsenals and Gun Factories of Continental America," was Introduced to the central body by Vice President McHugh. Mr. Cain addressed the delegates, explaining the objects of his organization, and among other tmngs saia: "Tne government loses money every time it 1ms a ship built in the private ship yards of the United States; that the employes of many government yards are kept busy patching up the blunders of the privately built government vessels; that the Cleveland, Des Moines and Rhode Island were badly built, and that on the : latter vessel in many places where steel rivets should have been used the holes were filled with candle tallow and covered-with red lead to give the appearance of steel having been used." Mr. Cain, as he progressed in his talk, stated that the Connecticut could not stand a broadside from the vessel of an enemy without sinking because of her faulty construction and that thousands of dollars were expended upon the Louisiana to make her safe for President Roosevelt to travel on to Panama and return. Appeal to Central Body. He appealed to the delegates to aid in welding together the seventeen links where government work is done into a great chain and thus "revolutionize shipbuilding In the United States." Mr. Cain is a representative of the National Civic Federation, of which PreaI ident Gompers of the American Federation of Labor is vice president, and is in charge I of the "welfare" work of the Civic Federa ; nun. xi*? id *xicu o uinuuvi ui iuc iiitenia,t tional Association of Machinists. The organizer for the American Federation of Labor reported to the Central Labor ; Union that the American Lighting company of Baltimore and Washington is continuing its work of discharging members of the Lamplighters' Union, because of their membership in a labor organization, and asked the Central Labor Union to appoint a committee to confer with the president of the company and endeavor to atop the wholesale discharge of its employes, and ask for the reinstatement of those already discharged.. James L. Feeney of the bookbinders, Charles Pfau of the clerks and Henry C. Stein of the carriage and wagon workers, were selected as a committee,with Instructions to call upon Mr. Caiswell in Baltimore today. uiscnarge or lamplighters. Members of the LarapUg-hters' Union reported that three of the men were discharged last night. The matter of Invoking the law In the aid of the men thus discharged was discussed, one delegate stating he did not understand "why there was no course of action against a company In the District, when the other side was resortinflr to all kinds nf law law unions of the District." The lamplighters have retained the services of a prominent attorney, and upon the report of the Central Labor Union, it will be determined whether or not to appeal to the courts. The amendment to the constitution consolidating the office of organiser with that of the central body was laid upon the table. The plumbers reported that taking the award of the board of arbitration recently made In the controversy between the Journeymen and the master association as a [ whole the journeymen considered that It | was In the nature of a victory for them. -? . HWo clubsasgijkTs ! Gridiron of Washinaton and Five I w O'clock of Philadelphia. i. HAMPTON MOORE AS HOST ' Representatives in Congress From I Pennsylvania Also Present. ??EX-SECRETARY SHAW HONORED t i . Addresses by Speaker Cannon, Senator | Scott, Representative Burton and ' a Number of Others. I | One of the notable banquets of the winter i was that given last night by Representative J. Hampton Moore of Pennsylvania, at j which the Five O'clock Club of Philadel> phia, the Gridiron Club of Washington and \ a large number of men prominent In congressional and official life, were guests. Mr. Moore, while one of the younger members of the House In point of service, is well known in Washington, and during his term in i-unsrt-Ks nas aaaea to nis aireaay large i list of friends and admirers. The occasion of last night was for the main part to bring together prominent Phlladelphlans, Including the Pennsylvania delegation In Congress and the members of the rivers and harbors committee of the House, to talk river improvement, a subject in which Philadelphia is deeply interested through efforts for a thirty-five-foot channel In the Delaware; and to Introduce to each other 1 - JraSN Representative J. Hampton Moore. the members of the Five O'clock Club and the Gridiron Club. The dinner, served in the large banquet hall of the Raleigh, was beautifully appointed. and Mr. Moore ma.ic a charming host and toastmaster. Serious speech was Interspersed with song and jest, and the merriment continued until close to midnight. An interesting incident was the farewell of ex-Secretary Shaw, who left the hall before coffee was served to catch a train for New York, where he will take up Ills new post. Mr. Shaw was called upon for a speech, and was given an enthusiastic ovation. When he left the hall the entire company arose, and those nearest the exit crowded about him to bid him good-by. Pretty Menu Card. The menu of the dinner was carried in a beautifully engraved booklet, which contained. besides half-tone photographs of Representative Burton, chairman of the committee on rivers and harbors; President Blankenburg and Vice President McCall of the Five O'clock Club. President Blythe and Vice President Henry of the Gridiron Club, several witty verses touching upon the guests of the evening. The Five O'clock Club was toasted afe follows: "This Is the club that holds rincwn In the good did, rare old Quaker town. Its Joys are many. Its worries few. And it does lust about as It ought to do. The care and the cant of the world outside May enter not In its festal tide. To the Gridiron Club it makes Its bow, Aod balls for aye the glorious now." A averse was also devoted to the Gridiron Club. The members of the Pennsylvania delegation were thus apostrophized; "These are the men of the Keystone state. Whose forjf*?s hlaxe and whose mills vibrate. Her industry makes for the busiest hands, I The happiest homes in the fairest of lands.\ Come, drink t%> her riches, her honor and fameAll hail. Pennsylvania! Glorious name!" Addresses and Music. After ex-Secretary Shaw made his speech and departed Representative ?Burton was called upon and talked in most interesting vein lor nan an hour on the general subject of river and harbor appropriations, giving the result of his experience of twelve years in the committee. Speeches were also made by Mayor-elect John E. Reyburn of Philadelphia, Speaker Cannon, Senator Scott of West Virginia, Representative Cushman, Representative Champ Clark, Representative Hobson, Representative Longworth, Judge Beeber and Presidents Blankenburg and Blythe of the two clubs, respectively. Maj. Stofer, assisted by the Gridiron oKnfua ooncr thrt "Wutnrmillinn" an<f nfVior HIUI Uf?, Ouil^ Hit > wvviHuuawu Ut.U VIUVI songs. A delightful feature of the evening was the rendition of "Brown October Ale" by the two vice presidents, Mr. James S. Henry and Mr. Joseph B. McCall, each singing alternate verses. List of the Guests. In addition to the members of the Gridiron Club, those present were: Joseph G. Cannon, Speaker of the House of Representatives. Leslie M. Shaw, ex-Secretary of the Treasury. Nathan B. Scott, senator from West Virginia. Boies Penrose, senator from Pennsylvania. _ _ # Theodore Jtc. Burton, representative irom Ohio. Edwin S. Stuart, governor of Pennsylvania. John Sharp Williams, representative from Mississippi. John Weaver, mayor of Philadelphia. John E. Reyburn, mayor-elect of Philadelphia. Charles H. Grosvenor, representative from Ohio. Williams Alden Smith, senator from Michigan. Champ Clark, representative from Missouri. John W. Yerkes, commissioner of internal Vespasian Warner, commissioner of pensions. Williams C. Fox, United States talnister to Ecuador. Members of the House committee on rivers and harbors, as follows: John H. Bankhead, Roswell P. Bishop, George F. Burgess, James H. Cassidy, James H. Davidson, Blackburn B. Dovener, George P. Lawrence, James McLachlan, J. H. McGann, Joseph E. Ransdell and J. Adam Bede. Members of the Pennsylvania delegation in the House, as follows: W. W. Foulkrod, George D. McCreary. Irving P. Wanger, H. Burd Cassel, Charles N. Briiram, John M. Reynolds, Daniel F. Lafean, George F. u..? A ?i ? m T n XXusA.i Alien r. ^uvpci, AI IUUI M ija ico, Joseph G. Beale, Nelson P. Wheeler, William M. Graham, James Francis Burks, Andrew J. Barchfeld. Edward De V. Morrell, Ellas Deemer, Edmund W. Samuel and Gustav A. 8cheebell. Members ot the Ftva O'clock Club?William M. Barrett, Rudolph Blaoksnburf, Abraham M. Battler, Dr. M. G. Brumbaugh, Alexander P. Coles berry, Joseph Culbert, Samuel Disston, Joseph R. Grundy, W. W. You Will C (idii nail T Sold Only in Sei Trial packet, 10c. HIGHEST AW A! Glbbs, Joseph M. Huston, J. R. Jones. Joh: Lt. Kinsey, John Kent Kane, Joseph B. Mc Call, v.ol. M. Richards Muckle, J. Hamptoi Moore, Richard G. Oellers. Charles A. Por ter, James Pollock, John B. Parsons, Ma: Rlebenack. John 8. Stevens. William Henr: Staake and Col. William H. Sayen. Representative J. Warren Kelfer, Repre sentatlve Richmond P. Hobson, Represen tatlve J. A. T. ?Iull, Representative J. T McCleary, Representative Francis W. Cush man, Maj. J. C. Sanford, Praf. Willis L Moore, Representative Washington Gard ner. Representative John Wesley Gaines Assistant Secretary Wlllett N. Hays, Rep resentatlve James E. Watson, Representa tive H. C. Loudenslagfer, Representatlvi James R. Mann, Representative David J Foster, Representative Nicholas Longworth Dnn>AOAX?n?l?n ?r D D iv^^tcouuiaiivc ?? . i). iULrviiurjr, x\cpiCDeu tattve A. B. Capron, Representative WU Ham Richardson, Representative Albert S Burleson, Alexander McDowell, John R Williams, ex-Senator John M. Thurston Dr. H. W. Wiley, William S. Bennett. Johi P. Dwyer, Wesley R. Andrews, William H Andrews, William J. Browning, Dimne Beeber, Richard Campion, Hampton L. Car son, Charles W. Campbell, Angus A. Erly John Charles Eversham, Ferruclo Oian nlni, J. S. W. Holton, G. W. Hobbs, A. J Halford, Asher C. Hinds, F. B. Lyon, Rep resentative C. V. D. Joline, Representative Ira W. Wood, Frank D. La Lanne, Willian Loeb, jr., Tulio Larrinaga, Angus McSween Joseph C. McElroy, William H. Moses. Wll liam S. Greene, Maurice Splain, John W Weeks and William A. Patton. Souvenirs of the occasion In the form ol beautiful little desk clocks were presentee to all the guests. LAND OF THE MIDNIGHT SUN. Last Elmendorf Lecture of This Lenten Season. A large audience greeted Mr. Dwighl Lathrop Elmendorf at the National Theatei yesterday afternoon for the concluding lecture in the present Lenten season. The attendance was regarded as a testimonial to the famous traveler as well as a substantial verdict of approval of the entire series of charmtng afternoon functions. The subject exploited on the canvas and explained by Mr. Elmendorf was "Norway?The Land of the Midnight Sun," and the views were presented with strict fidelity to nature. In deed, the pictures were a revelation to many whose impressions of the far north have always been confined to hearsay 01 books. Mr. Elmendorf has a most refreshing and original way of taking his company along the route without the fatigue and tedium of the customary description and the pictures are presented so opportunely that one is for the time so completely absorbed as to make himself oblivious to time and surroundings. From Tromsoe the passengers on the ship Moltke sailed northward to Hammerfest, the most northern city of Norway. Here a nne view was given ox me narDor anu the great fishing interests. A Laplander'! camp was visited and many of the characteristics of these curious people were vividly portrayed on the canvas. From Hammerfest the party sailed to Spitsbergen and the North Cape and here the real charrtis of the trip were unfolded in views that evoked the spontaneous applause of the audience. Probably no series of views provoked keener interest that those showing a whaling vessel In chase of a whale, its capture and final beaching. It was intensely exciting from the moment that the big leviathan of the deep spouted until he wae towed up alongside the ship. The splashing of the water and the tumbling of the huge fish was brought so close to the view of all that it seemed as If one were actually on the deck of the whaler. Tha r*rntrnino- faotnro tho lantiiro wifl the midnight sun. The striking combinations of sky and water colon outrivaled an artist's conception and the strange soft glows of the midnight sunset and sunrise were revelations to the lover of nature and her unique settings. Interest in the scenes were heightened by Mr. Elmendorf's charming descriptions. From the land of eternal snows and miles of glacial mountains the party returned southward to Norway, visiting some of the beautiful fjords of that country. Here again the beauties of landscape and waterfalls were brought out most effectively by Mr. Elmendorf's lenses. The stern grandeur of the hills and rock-ribbed cliffs revealed many beauties in colors and vistas. and some of the most beautiful flowers were shown growing among the rocks and along the hillsides. In bidding farewell Mr. Elmendorf announced that instead of going to Japan this summer as originally planned he would remain in mis country ana prepare a new course of lectures and views composed of all American subjects. CHANLER'S FLEA DENIED. ?i Decision by the United States Supreme Court. The Supreme Court of the United States yesterday denied the application of John Armstrong Chanler, formerly of New York but now of North Carolina, for a writ prohibiting the New York courts or their officers from molesting or arresting him while un a. uuuicuipi*ikra visn iu new luni whiui Mr. Chanler desires to make for the purpose of prosecuting a suit which he has Instituted to secure the restoration of his property now In the hands of Thomas T. Sherman as guardian. The property is estimated to be worth about one million dollars and was turned over to Mr. Sherman ten years ago as the result of the proceedings to test Mr. Chanler's sanity. Auxiliary to Xt. Calvary Commandery The officers of Mount Calvary Commandery, No. 4, Knights Templar, recently Invited a number of friends to meet at the residence of Mrs. M. V. Golden, 533 Spruce street, for the purpose of organising an n..vl1in?<r TKa f^llnn.inrr ntAt>A ouAina i jr, a. iic luiiuTTiiig ncic cicv. uiiicers of the new organization: Mrs. M. V. Golden, president; Mrs. Nellie Williams, vice president; Miss Janie L. Cox, recording secretary; Mrs. Clcelly J. Dandridge, financial secretary; Mrs. Florida Minor, treasurer; Mrs. Elisabeth Anderson, chaplain; Mrs. Sarah C. Turner, .sentinel. Committees -were appointed as follows: On bylaws, Mrs. Clcelly J. Dandridge, Miss Janie V. Cox, Sir James O. Babfleld and Sir Charles H. Young; on badges, Mrs. lAicy A. Stewart, Mrs. Lotta Cornish, Mrs. Susan Jefterds, Sir John P. Turner and Sir A. L. Cornish; on entertainment, Mrs. Sarah West, Mrs. Susie E. Smith. Mrs. Dolly Jones, Mrs. Florence Marshall, Miss Annie Cox, Mrs. Mildred Beeney, Sir Stephen Anderson and Sir John S. Beeney. The purpose of the auxiliary is to assist the commandery In making ready for Its pilgrimage to Boston, Mass., September 10, 1908, on which occasion the colored Masons nt that ctafA will oelehrnte the 100th an nlversary of the Prince Hall Grand Lodge. $10,000,000 to Fight Yaquis. GALVESTON, March 5.?A special from Parral, Mexico, saya that Pedro Alvarado, the rich mine owner, haa offered the government $10,000,000 to be devoted to a campaign to rid Mexico of the bloodthirsty Yaqul Indians. Alv&rado say* Mexico can never progress as a nation until these redskins are exterminated. He proposes equipping a regiment of picked fighters to run down the JTaquis. Alvarado Is the man who offered to pay the Mexican debt two years ago. A few months ago he gave $10,000,00a to the poor of Mexico. The new offer has been sent to President Dims by a commissioner from Alvarado. P S m - ?~? -* 4 )eiight In the Fine Flavor of mammmmm rnmmwa^m EA iled Lead Packets. At all grocers. KD ST. I.Ol'IS. 1004. ! MEAtuwtiUt SOCIALISM 1 ? I ADDRESSES BT MILLIONAIRE STOKES AND MRS. STOKES. J. G. Phelps Stokes, a New York mll lionalre. and his wife, Mrs. Rw i 'ator , Stokes, a former factory employe, each ad" dressed a large audience at Masonic Tem~ pie Sunday night. In which they end<\ivore<# to make plain the meaning of so-iaUsm. , They declared that overcapitalization Is th? - -greatest evil of the day and Is responsible " for the Increasing poverty. They suggested . * the public ownership of all the great la, dustries and public utilities as the only i means of relief or remedy. Mr. Stokes was the first to spe*k. He is over six feet In height and > exteremely thin, and was attired In a l.iose. fitting brown suit. Kverythlng about him sug. gested plainness. He was equally as plain . in his sneech as in his attl m? taiir ? ? earnest and he easily convinced his auditors j that he Is sincere in his purpose and well versed In the subject of his address. His 1 voice Is not strong and it was necessary for him to raise it to an extremely high pitch to make K carry over the larg<' lual). j During his deliverance he never once smiled 1 or told a story that would have amused the audience. It was business from start to finish with him. The Negative Side. He began by telling what socialism does not stand for, explaining that 1U meanings have been so wrongly interpreted and ml?, quoted by the public press. "It docs not [ mean equalisation of all things." he s^id. "It does not mean that an Individual s.iould not be allowed to accumulate an much wealth as Is In his power, as long as the Individual accumulates It by his own i*n?er and not by the brain and brawn of others. , The fundamental principle of socialism Is that the material things of life should b? made accessible to all the people. The workmen of an Industry should be permitted [ to say what disposition is to be made of the , net. income or the Industry, Inasmuch as It was due to their labor that the Income?or surplus as It might be called?was acquired. "The census statistics show that the . laborer last year received about one-fourth In wage of the amount he really earned I for the Industry which employed him. "This Is the Injustice we hope to abolish. We socialists recognize the capitalist and brain workers. They are Just as essential , as the physical and manual workers, and , we contend that those who produce wealth should be permitted to enjoy it." Mr. Stokes then discussed the Introduce , tion of steam and electric driven machinery to take the place of human laotir. H* I stated that their Introduction !n many ways was a great improvement and denoted pro*| ress, but the great injury came when private Interest begun to monopolize the machines. Because of the great army of unemployed workmen, he said, the owners of | these machines are able to compel the workmen to labor for smaller wages. This was the beginning of the factory evil, ha , said, and from that day to the present time It has prevailed and even increased. Ha concluded his address by again explaining that socialism does not mean the abolition of capital, but simply the access to material things to all people, and he made an earnest plea to his audience to seek further , information on the subject in certain hooka the names of which he mentioned from th? platform. Mrs. Stokes' Address. Mrs. Stokes next spoke. She was as | plainly dressed, If not plainer, than her hue. band. She Is below medium height and I slightly built and was dressed in a dark green silk waist and green cloth skirt. She wears her hair parted in the middle and brought down low over her forehead, colling it in a knot on tier neck. She lias a pleasing voice and was more impressive than Mr. Stokes. When she walked to the a front of the platform she was greeted with much applause. Her talk was chiefly about "wage slavery," comparing It to slavery before the war. She declared that socialism Is organized for the purpose of abolishing this slavery. "Wage slavery," she declared, "has caused socialism, the same as slavery before the war caused the war of rebellion In the United States. The present slavery Is responsible for the bulk of all the misery and poverty of this great country. This slavery is brought a.hout by the evil of over-oapitallzatlon. We are progressing, It Is true, but poverty, at the sam* time, is increasing on every hand. We must eliminate the cause. In their haste and progress the people have overlooked prevention, and a serious and evil condition has arisen. W# do much toward curifig poverty and misery by charities and Institutions, but we mak* the mistake of not doing anything to prevent it." Piles Cored Free i Get Rid of Your Piles Right Vow. Pyramid Pile Cure Can Do It Quickly and Painlessly. FREE PACKAGE .SENT TO PROVE IT. Half of the suffering and torture of piles has never been told. But no inntter. Whether yoat particular ease of piles In almost too excruciating for any mortal to bear, or if you are fearfully tantalized by unreachable itching, or whether you have only a moderate case of pile*, there to positive relief, and quick, too, in Pyramid Pil* Cure. You need not take for granted all ire ourselves ay about our Pile Remedy. We want it to speak for itself. We want you to send for a free package. today, of the marvelous Pyramid Pile Cure. We want to prove these statements to you personally, so that vou will feel the result yourself. Pyramid Pile Cure I ins cured the worst form of piles known. We prove it. Instant relief can be gotten by using the marvelous Pyramid Pile Cure. It immediately reduces all congestion and swelling, heals all sores, ulccra and Irritated parts. The moment you start to use It, your suffering ends snd the cure of your dread disease is lo sight. Here Is one of the many thousand letters we get about tills great cure: "I bare been a terrible xufferer of piles for fourteen (14) years and during all tbla time you can bare an Idem of bow nisnjr kluda of medlclna I tried. But 1 found no relief whatever. "Now, after trying but one treatment of roar 'Pyramid*,' I am free, free to tell all sufferers of tbla dreadful disease to try tbla medicine- the Pyramid Pile Cure. It will cure wban all other* fall. Sincerely yours, George Branelgtat, Schellburg, Pa." The Pyramid Pile Cure la put op la tbe form ( "eaay-to-nae," specially made auppoaltories. Tfcey are aootblng, painless. Instant and certain. A trial treatment will he aent you at once by mall. In plain, aealcd wrapper, witbmrt a cent at expense to you. If yon aeud your same and ad* aren to r/raoiia ltui v_u., oo r/nuu nuuuiug, h Marshall. Midi. After you rwlie the aample, you can got |H rciulir-ilie package of Pyramid Plla Can at J*W H drogslata for 50 cents, or If lie haan't It, md M H the money aad we will aend tt to ftm. |H