Newspaper Page Text
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Office of the Pennstlvaxia Bailkoas Compact,
, Philadelphia, March 1, 1889.
The Board of Directors submit herewith their report for the year 1888.
Maix Iaxe and Branches, Philadelphia to Pittsburg. '
Expenses 23,526.578 85
Net earnings -j , ......513.171,60199
Add Interest from investments (In cash), also for nse of equipment and
from other Items '. 4.714,537 63
Total W7.8S0.1U 82
Deduct renUls paid branch roads, interest on equipment, interest on
bonded debt, State tax on dividends, and other items 7.9I6,4fc0 86
Net income Pennsrlvania Railroad DiTision..... 8 9.909,66170
Philadelphia to New Iork and Branches.
Net earnings from operating....
Add Interest from investments..
Total income s .729,282 37
Deduct payments on account of -Dividends, interest on equipment, etc.. 4,889,763 20
Nrt loss under the lease of United New Jersey Railroad and Canal
Philadelphia and Erie Railroad.
Tpt p-aminns .......................".-
Deduct interest charged for use of equipment
Net earnings payable to Philadelphia and Erie
Netincome Pennsylvania Railroad Division 8 rS'SX i?
Net loss New Jersey Division iw,aw bj
Balance after deducting loss on New J ersev
From this balance of income for the year. 9,b09,160 93
the following amounts have been deducted, viz
Payment to fund for the purchase of securities guabak-
teedbytnepesj.sylvania railroad company. 5 71,120 s3
Pennsylvania Railroad Company's Consolidated Mortgage
Bonds, sinking fund account Sh.sOu j
Allegheny Valley Railroad Company. .
Defiriencv in meeting interest guaranteed by Fennsjl- .,,.
vania Railroad Company 8 696.115 00
Less amount refunded uy receivers, unoer oraer
American Steamship Company.
Interest guaranteed by Pennslvania Railroad
83,000,323 56. to enable it to meet its obligations to its leased lines,
and for other purposes, of -which there has been charged to the in
come of the Pennsylvania Railroad Company. 1,020,000 00
Amount expended in extraordinary repairs and improvements, not
properly chargeable to capital account. 1,161,547 28
Out of which was paid a dividend of five per cent
Leavinga balance of 1'7iS'S2S
Deduct amount charged off in settlement of sundry accounts 93,272 01
Total amount transferred to credit of profit and loss for the year 1888 8 1.620,120 81
Add amount to credit of profit and loss December 31st, 1SS7 17,608.947 52
Balance to credit of profit and loss December
' While the preceding statements show a continued improvement in the gross revenues
'r of each of the main divisions, yet, on account ot the lower rates forced upon your Company
by the severe competition thatprevailed during the greater portion of the year, the profits
resulting from the operation of the road were not correspondingly increased. The inter
est from investments being materially less in 1888 than in 1887 (when it was exception
ally large), the balance of income was 59,809,160 93, as against 510,213,295 86 or 1887.
Deducting from this sum the amounts properly chargeable thereto, the net income for the
- year was S7,040,9C2 82, as compared with 57,783,738 6G for 1887. Although the causes
first stated existed to an even greater extent in the territory tributary to your lines west
of Pittsburg, vet the deficit otthe Pennsylvania Company in meeting its fixed liabilities was
inconsiderabfe: but that company having been required to make large expenditures for
betterments and improvements of your leased properties, for which you are directly re
sponsible, a portion of the anfountadvanced by your Company tor that purpose has been
charged directly against your income account. Notwithstanding these necessary deduc
tions, the amount carried to the credit of profit and loss, after paying a five per cent divi
dend, was 51,620,420 81, making the total amount now standing to the credit of that ac
count, 519,229,368 33.
From the tabular statement in a subsequent part of the report it will be seen that the
gross earnings of all the lines embraced in your system east and west of Pittsburg
- amounted to $116,509,292 59. and that their operations covered the movement of 113,346,894
tons of traffic and 74,000,086 passengers. These results not only show the large annual
increase in both your freight and passenger traffic, but also the magnitude of the railway
system managed in your interest. It mav be noted that the cost of the securities now held
by your Company amounts to 5109,296,039 59
Both the New Jersey and the Philadelphia and Erie Railroad Divisions show con
tinued prosperity, though the expenditures on the former property continue to be' excep
tionally large inimprovlng the facilities for traffic between the important commercial
centers of New York and Philadelphia.
The funds for the expenditures, properly chargeable to capital account, on your
main, leased, aod auxiliary lines east of Pittsburg, having been obtained from the sale
of 53,000,000 four per cent "bonds of the "Western Pennsylvania Railroad Company, guar-
4 anteed by your Company, and of Car Trust certificates held in your treasury, there was
no increase of your share capital or funded debt for that purpose.
The principal of the debt due to the State of Pennsylvania on account of the purchase
of the Main Line, which was charged to capital account, was reduced during the year by
the payment of 5383,906 40, leaving a balance of 51,232,757 43. The final payment of
5635.654 94 upon this debt will be made July 31st, 1890.
Underthe provisions of the consolidated mortgage of the Company there was set
apart, on the first day of July last, out of the net income, $324,800 as a sinking fund for
the redemption of the outstanding bonds secured by that mortgage As their market
value was too high to permit of their purchase, that amount was placed to the credit of
j The trustees of the sinking fund.
The aggregate amount so placed with the trustees or the fund for investment since
the commencement of the trust, including the income from first mortgage upon
real estate is 83,127.616 00
of which there has been invested as follows: '
Bonds secured by consolidated mortgage purchased to date,
at par value 81.769,1(70 00
First mortgages upon real estate..., 1.247,900 00
Cashonhand December 31st, 18SS
Under an arrangement made -with the "Western Pennsylvania Bailroad Company its
general mortgage securing 55,000,000 of five per cent, bonds was cancelled, and a new
mortgage created securing the same amount of bonds at lour per cent, interest. Your
Company having surrendered the five and six per cent, bonds held by it, aggregating 52,
975,000, received, in partial payment therefor, the 53,000,000 of the new four per cent,
bonds hereinbefore referred to.
The Philadelphia and Erie Bailroad Company, in order to provide the means for the
payment of its $3,000,000 of seven per cent, bonds, maturing July 1st, 1888, and to fund its
il per cent, debentures, amounting to 51,455,000, issued $4,555,000 of four per cent, bonds
secured by its General Mortgage, and guaranteed by your Company.
There are now in the sinking fund, for the redemption of the obligations of the vari
ous companies forming the United New Jersey Bailroad and Canal Company, securities
of the par value of 55,018,400, and a cash balance, uninvested by the trustees, of $20,515 44,
-, making an aggregate of $5,038,915 44. During the current year, $5,866,000 of the out
standing six per cent, loans of these companies will mature, making, with 5154,000 of de
bentures that fell due last year, a total of $6,020,000, which wiH be provided tor by the
issue of four per cent, bonds under their general mortgage of April 20th, 1871.
The trustees of the sinking fund for the redemption oi the trust certificates issued for
the purchase of the shares of the capital stock of the Philadelphia, "Wilmington and Bal
timore Bailroad Company were only able to purchase $85,000 certificates during the past
year at the limit fixed in the trust agreement, and therefore returned to your treasury, of
the amount aDDrooriated for that Duroose. 5182.477 47. The total amount of these certifi
cates purchased and cancelled to December
There has been expended for construction,
Pennsylvania Railroad and branches-
United Railroads of New Jersey.
Philadelphia and Trenton Railroad,
And for improvements and extensions on branch
On account of these advances there has been
Total amount expended on capital account
s On account of these advances to branch and auxiliary lines there have been received In securities
of those companies, S3G3,800 00.
There were used on the Main Line, in construction and repairs 20,975 tons of steel
rails, and 975,543 ties; on the United Railroads of New Jersey, 4393 tons of steel, and
341,918 ties; on the Philadelphia and Erie Bailroad, 2349 tons of steel, and 206,864 ties,
1 making a total ot 27,717 tons of steel, and 1,524,325 ties.
There were built at Altoona,afldyourother shops east of Pittsburg and Erie.for the Main
Line and other roads in your interest on capital and reDair account, 125 locomotives, 46
passenger cars, 11 baggage and mail cars, 2807 freight cars, and 120 cabin and maintenance
i of way cars.
I Under the Car Trust system a further issue of 53,000,000 of four per cent certificates
. was authorized for the equipment of your roads and affiliated lines. Under this author-f-
itr. and that heretofore conferred, there were furnished during the year" 100 box, 6 retrig-
Gb - . 3 nnnn , J 1 ! .1...
' erator, ana zwv nopper goauQiaotre wz mc iuaju .uiuc, uw xuiig guuuuiaa jur me lines la
which your Company is interested west of Pittsburg, 500 long gondolas, subleased to the
Northern Central Bailway Company, 500 long gondolas, subleased to the Philadelphia,
"Wilmington and Baltimore itailroau (Jompany, ana wai nopper gondolas, subleased to the
Bell's Gap Bailroad Company.
The outstanding certificates of Series C.
i-Pennsylvania were paid and cancelled during the year. These certificates represented
x 1000 box cars and 1500 hopper gondolas for your Main Line, at an original cost of $1,435,-
1 000. and 1000 box cars lor tne Pennsylvania uompany, at an original cost ol $573,uuo,
f and upon their cancellation the equipment became the property respectively of your lines
east and west of Pittsburg.
iThe 25.671 cars placed on your lines east of Pittsburg, through the system of Car
! Trusts, represent a cost of. 813,389.305 00
I The 15,703 cars west of Pittsburg... .................. ... 7,947,995 00
iThe cars subleased to affiliated lines, viz.:
3706 cars Northern Central Railway Company. 81,827,200 00
"250 cars Allegheny Valley Railroad Company 137,500 00
(152 cars New York. Philadelphia and Norfolk Railroad Company. 100,000 00
F.wi ,. Philadelphia. "Wilmington and Baltimore Railroad Company.... 235,000 00
&500 cars Bell's Gap Railroad Company.
Total. 45,482 cars
nw.V onnnnt at certificates redeemed to
f Amount raid in full payment of 15,714 cars
I4m:S.Mo,?nntof 31768 cars
Balance of certificates outstanding December
COMPABISONS "WITH 1887.
''EARNINGS AND EXPENSES OF ALL
8 4,029,365 55
. 8 4,373,042 30
Railroad Company as
8 1,471.550 23
Division 8 9.809.160 93
oi coun. . ij.d uu
8 7,040.M2 82
- 5.K.7.Z7D 00
31st, 1888, is $1,911,000, leaving outstanding
equipment and real estate as follows:
and auxiliary lines operated by the
recen ed from some of the companies in
In 1SSS. ,83,877,403 65
If.!. T . KArt l.... .. Jl f .L. 12 1
D. E and F of the Bailway Car Trust of
December 31st. 1888. as follows
81st, 1888 .810,225,000 00
IJNES EAST OF PITTSBURG AND ERIE.
The gross earnings per mile received from the Main Lino (358 miles) in 1888 were STJ.fjM
In 1887 were .76,625 66
Showing an increase of .' 81,009 18
The perc entage of operating expenses to earnings on all lines east of Pittsburg and Erie was
67 61-100 for 1888 and 66 62-100 for 1&, showing an Increase for the year 188S of 99-100 per cent.
The aggregate coal and coke shipments amounted to 21,040,918 tons, as against
17,796,708 tons in 1887, a gain of 3,244,210 tons, or 18.23 per cent.
The total shipments of oil during the year 1888 amounted to 3,942,266 barrels, against
3,038,138 barrels in 188",, showing an increase of 904,128 barrels.
The following table shows the revenue and cost per ton per mile on each Division op
erated by the Company, as compared with 1887:
Eabningspee Average cost Average Length of
ton per mile of transport profit per road.
fromtran8- ing each ton ton per mile. (miles.)
portation of of freight
freight. one mile.
1888. 1887. 1888. 1887. 1888. 1887. 1888. 1887.
Main Line and branches ()l)0 OlOOO OlOOO OlOCO OlK OlOOO 1617'48 1S91-'S
Ust!!.lfr..'.e.r: 1i83 1 liSSi I188 0i$ 0 -70 466-93
Philadelphia and Erie Rail- ( 519 n 513 f 320 n 324 (m 219 w M 2S7 56
road.... UlOOO UlOOO UlOOO UlOUO UlOUO UlOOO '37a "M
AH lines east of Pittsburg and rt 693 f730 f 432 f 497 fl 211 fl 233 ojjgn 2346 34
Erie UlOOO UlOOO UlOOO UlOOO UlOOO UlOOO """" '"i0"
From the above table it will appear that the result upon all lines east of Pittsburg
and Erie was a reduction in the earnings per ton per mile of 37-100 of a mill, a reduction
in expenses of 15-100 of a mill, and a decrease of 22-100 of a mill per ton per mile in the
net profit from freight.
TABLE SHOWING TONNAGE AND PERCENT AGE OF THBOUGH AND'
Through Through r,AT Framm- Local increase.
Freight. Freight. LmKI' freight Fewgiit. increase.
Tons, age of Tons. age of Tons.
18SS. 1887. 1888. 1887. 1SS8. 1887. 1888. 1887. Through Local.
Main Line and
branches.... 2,240,282 2,315,460 6.48 7.51 32,323,804 28,532,175 93.52 92.49 Dec75,178 3,796,629
Jersey. 3,295,913 2,979,359 26.05 26.09 9,354,720 8,442,083 73.95 73.91 316.554 912,637
Erie railroad l,O74,C0J 983,809 12.66 12.67 7.414.122 6,780,411 87.34 8733 90,396 633,711
All lines eastof
and Erie.-. 6,610,400 6,278.628 11.87 12.55 49.097,646 43.754.669 88.13 87.45 331,772 5,342,977
On the Main Line and branches the through freight east-bound decreased one-half of
one per cent., and west-bound 8 82-100 per cent.
The local freight shows an increase of 16 73-100 per cent, east-bound, and 7 82-100 per
cent, west-bound. It will be noted that on the Main Line and branches the local ton
nage represents about ninety-three and one-half per cent, of the entire traffic.
The following table shows the earnings and cost per passenger per mile on each of the
Divisions as compared with 1887:
Average Cost of Average
Earnings trans- Profit Length of
from each porting per pas- road,
passen- each pas- senger (miles,)
gee senger per mile.
per mile. per mile.
1888. 1887. 1888. 1857. 1888. 1887. 1888. 1887.
Main Line and branches 2l000 2l000 1 inn llOW OlOOO OlOOO 16"M 1S91-
United Railroads of New Jersey. j& OlOW OlWO 46t70
Philadelphia and Erie Railroad 2S& 23w 2 $0 2l000 OlOOO OlOOO " -
AnilneseastofPittsburgandErle.... 2lW 2lW0 llWO 1 1000 OlX) OlOOO Z1- 2346-3i
It will be seen from the above that the
Erie was a decrease in earnings per passenger per mile of 33-100 of a mill, a decrease of
34-100 of a mill in expenses, and an increased profit of 1-100 of a mill.
The average distance traveled by each passenge in 1888 over the Main Line and
branches was 18 1-10 miles, and in 1887 was 18 8-10 miles, a decrease of 7-10 of a mile.
The following tables show the gross earnings, expenses, and net earnings of the ooal
companies in which your Company is interested, for 1888, as compared with 1887, and also
the amount of coal mined and sold, and the price received for same at point of sale:
Gross Earnings. Expenses. Net Earnings.
1888. 1888. 1888.
Totals. 810,243,580 59 89,225,723 51 81,017,857 08
Increase as compared with pre- -
viousyear....... 1,422,88166 3,249,353 03 173,508 63
Total tons mined in 1888, 2,792,612.04. Increase
The average receipts per ton at point of sale, aggregating the results of the four coal
companies lor 1888, were $3 59 3-10, as against 53 59 4-10 in 1887.
LINES "WEST OF PITTSBUBG.
The following statement gives the result of the lines west of Pittsburg operated by
the Pennsylvania Company and the Pittsburg, Cincinnati and St. Louis Bailway Com
The total earnings of the Pennsylvania Company on lines oper
ated dtrecuy oy it were.
Leaving net earnings ,
From this deduct:
Rental, interest, and liabilities ot all kinds chargeable thereto...,
'TCatinMnn Pennsvlva.nlaComnanv'8 lines
The total earnings of the Pittsburg, Cincinnati and St. Louis
Railway Company on lines operated by itwere ,
Leaving net earnings ,
From this deduct:
Rental, interest, and liabilities of all kinds chargeable thereto ,
Net loss on Pittsburg, Cincinnati and St. Louis
Net loss on lines west of Pittsburgh.
Comparative decrease on lines west of Pittsburg for 1888 I 81,351,582 59
The other lines west of Pittsburg, on account of which your Company has assumed
direct obligations, or in which it is largely interested through ownership of securities,
but which are operated through their own organizations, are, the Chicago, St. Louis and
Pittsburg Bailroad, and roads operated through its organization; St. Louis, "Vandalia and
Terre Hante Bailroad; Grand Bapids and Indiana Bailroad, and roads operated through
its organization; East St. Louis and Carondelet Bailway; Cincinnati and Muskingum
Valley Bailway; and the "Waynesburg and "Washington Bailroad.
1SS8. 1888. 1887. 1887.
The aggregate gross earnings of these
roads were...?. 810.493.908 30 811,253,840 99
Expenses. 8.219,985 62 7.913,035 13
Net earnings 82,273,922 68 83,340,806 80
Deduct rental and Interest. 2,311,400 70 3,184,25140 j
Loss 837,478 02 Profit, 815654 46
Of this your Company, nnder existing
contracts, is responsible for. . 18,739 01 Profit, 78,277 21
Which, added to the loss shown in the
above statement ., 151,406 86 Profit, 1,200,186 23
Leaves a net loss on all lines west of
Pittsburg for 1888 170,145 37 Profit.81,278,463 47
Net profit on all lines west of Pittsburg
for 1887. . 1.278.463 47
Showing a comparative decrease for
1888, compared with 18S7, of - SL448.608 84
It will be noted that your western lines show a comparative decrease in net-results of
51,448,608 84 as compared'with 1687. "While the freight movement shows a gain of 1,062,
051 tons, and the passenger travel an increase of 1,655,521 in the, number carried, there
was a general reduction in the rates on all classes of traffic. Large expenditures were
made in the purchase of real estate and in the increase of facilities at terminal points, the
renewal of bridges, the construction of branches and sidings, and upon freight and pas
senger stations and new equipment. The condition of the properties was fully main
tained. The amount expended during the year on capital account on the lines west oi Pitts
burg was $2,047,095 02.
There were used in construction and repairs on the northwestern lines operated di
rectly in your interest 8,444 tons, and on the southwestern lines 10,674 tons of new steel
There have been redeemed through the sinking fund $1,321,000 of the issue of $3,200,
000 of the Pennsylvania Company's six per cent, bonds, secured by Pittsburg, Fort "Wavne
and Chicago Bailway Company 'stock as collateral, leaving the amount outstanding $1,
879,000. There was a further issue of $2,500,000 of its four and a half per cent bonds for
the purpose of providing for construction and other capital accounts on the lines west of
Pittsburg, so that the 'entire issue to date is $17,500,000. Of this amount $533,000 had been
retired through the operations of the sinking fnnd, leaving outstanding at this date $16 -967,000.
The report made by the trustees of the sinking funds of the first and second mortgages
or the Pittshurg, Fort "Wnyne and Chicago Bailway Company shows that the regular
annual payment of $104,100 was made thereto. They redeemed during the year $68,500 of
the first mortgage and $135,500 of the second mortgage bonds, making the total amount re
deemed to December 31st, 1888: '
First mortgage bonds,
Detenu mortgage ponos,.,,
- THE PITTSBURG DISPATCH.' MONDAY." MARCH 4 1889. - v- . ;f
result upon all lines east of Pittsburg and
compared with previous year, 466,558.05 tons.
j 2,l5,0Q0 00
monpay" mabph 4 1889- 1
"With a balance of cash in the hands 6f the trustees, uninvested, December 31st, 1888:
On account of first mortgage sinking fnnd . $686,958 32
On account of second mortgage slnkmg fund.. .'..... ,448,691 11
The farther amount of $148,587 was also added to the sinking funds provided for the
redemption ol the existing mortgages of the Cleveland and Pittsburg Bailroad Company,
in addition to the amounts contributed directly to other sinking funds by the individual
The earnings of the Grand Bapids and Indiana Bailroad Company, owing to a reduc
tion in rates, were not quite sufficient to meet'the interest on its entire funded debt and
the losses on its leased Ones. The land department made sales of 6,078 acres of farm
lands and 10,889 acres of pine lands for $360,87 38, being an average price of $21 27 per
acre, lhe amount sold to the close of the yearjafter deducting cancelled contracts, was
474,355 acres, and the aggregate price received therefor was $5,983,329 91, an average of
$12 61 per acre. No bonds could be purchasedlby the trustees during the year out of the
proceeds of such land sales, and there are now outstanding $3,934,000 of the guaranteed
and $505,000 of the unguaranteed first mortgage land-grant bonds of the company.
The assets on hand December 31st, 1888, applicable to the redemption of the first
mortgage land-grant bonds were: I
Cash In the hands of the trustees . 81,394,75128
Cash In the bands of cashier, i. 44,641 25
Rills and accounts receivable In hands of cashier,....! 260,028 46
Bills receivable and secunties in hands of trustees,... 227,171 00
Total i , 81,926,491 99
It will be noted that the sinking funds
Bailway and Grand Bapids and Indiana Bailroad Companies, in which your Company
is deepfy interested, contain over three millions ot (dollars, which the trustees are unable
to invest in the securities for the redemption of which they are pledged.
SUMMARY OF LINES OWNED OR CONTROLLED EAST AND WEST OF PITTSBURG.
' 1888. 1887. Increase.
Gross earnings, from traffic 1116,509,29259 8115,515,506 19 8993,78640
Gross expenses, including rentals, interest, dividends, .
4c....... 7. 180,737,33553 77.238,08223 3,499,25330
Showing net earning Ig35.771.957 00 833,277.42398 D.2.505.466 90
' FREIGHT TRAFFIC.
Lines east of Pittburg and Erie.
Lines west of Pittsburg
Lines eastof Pittsburg and Erie..
Lines west of Pittsburg
The aggregate amount of new steel rails used in construction and repairs in 1888 'on
all lines owned, controlled or operated by your Company east and wtst of Pittsburg was
There has been appropriated to the Mana
gers of the Trust created October 9th, 1878,
from the creation of the Trust to December
31st, 1888, the sum of $3,907,140 58, which,
with the income of $2,243,970 45, has been'
invested in securities amounting at par to
$6,069,950, yielding an interest of 6 86-100
per cent, for the year. There was ap
propriated to that Trust for the year 1888
the sum of $71,120 83.
The assets of the Insurance Fund on hand
at the end of the year were $2,072,111 61,
being an increase over the previous year of
$257,667 11., ,
It is grat(ying to note the increasing
traffic on your Main Line between New
Xork and Pittsburg, although large expen
ditures were required to properly provide
therefor. The amount thui expended dur
ing the year was $3,013,881 37, the principal
items of which were additional locomotives,
passenger and freight cars, the extension
of third and fourth tracks, and increased
facilities at terminal points.
In view of the probable increase of
traffic, it will be necessary to continue this
policy during the coming year, and espe
cially in increasing the facilities in Phila
delphia and Jersey City, and providing for
the safer transportation of traffic through
the larger cities. It is confidently hoped
that within a short time, your New York
Division will, like your Main Line, be en
tirely relieved from grade crossings within
the city of Philadelphia.
There was also a considerable amount ex
pended in the extension of branch and aux
iliary lines, necessary for the proper devel
opment of the traffic tributary to your
system. The principal expenditures upon
these lines were: on the Pittsburg, Virginia
and Charleston Bailway, in the purchase of
additional real estate, and construction of
double track, with the view of transferring
to that road a portion of the traffic now pass
ing through Pittsburg, and thus relieving
both your Main Line and the streets of that
city from the annoyance and delay attend
ant thereon; on the South "West Pennsylva
nia Bailway, in the development and exten
sion of branches, and the completion of a
new connection with your Main Line; on
the "Western Pennsylvania Bailroad, in ex
tending the double track; on the Schuylkill
Valley, in the extension of tracks and settle
ments for right of way; and in the construc
tion of the Cambria and Clearfield Bailroad
in the bituminous coal region. The aggre
gate outlay therefor was $1,293,473 84, on
account of which your Company has re
ceived from those lines in cash $429,951 56.
It may be noted in this connection, that the
revenues of the Pennsylvania Schuylkill
Valley Boad, built for the purpose of secur
ing a fair share of the local traffic of that
territory, were more than sufficient during
the past year to pay the interest on its entire
Among the new undertakings contem
plated during the present .year, are: the
construction of a bridge over the Ohio River
immediately west of Pittsburg, for the pur
pose of further avoiding the very expensive
and dangerous transfer of the constantly in
creasing volume of. traffic through the cities
of Pittsburg and Allegheny, the cost of
which will probably amount in the aggre
gate to $1,500,000: the providing of neces
sary yards and transfer facilities at a point
about fourteen miles east of Pittsburg,
where the traffic to and from your western
lines will naturally be transferred from and
to the Main Line, the land for which was
purchased mat., years since, and its im
provement commenced during the past year:
the change of grade as already noted
through some of the important cities on
your line to avoid the dangers of street
crossings: and the erection of locomotive
shops at Altoona, to be devoted exclusively
to the building of new engines, the time
having arrived when the present shop facili
ties at that point are inadequate to properly
care for the motive power and supply the
additional locomotives required by the in
creasing traffic, the outlay for which will
probably be $1,000,000. I
There was contributed to the Employes'
Belief Fund, by your Company and affili
ated lines during the year, $55,901. 50 for
operating expenses, and in addition thereto
the sum of $8,137 80 for extra benefits to
members of the Fund whose disabilityyhad
continued over fifty-two weeks, and -who
were, therefore, no longer entitled to regular
benefits from the Fund. The amount con
tributed by your employes was $341,620j 03,
and the receipts from interest were $8,739 24,
which, with the contributions by the com
panies, as stated above, jw.usli so. madte a A
total of $414,398 57. This added to the bal
ance on hand at the beginning of the vear,
$192,157 56, aggregated $606,556 13. Otft of
this fund there was paid to the familie i of
employes in death benefits, and for sick; less
and accidents, the sum of $283,512 10, ind
for expenses, $55,901 50, leaving a bah nee
of $267,142 53. After deducting there! rom
the amount of outstanding unadju ;ted
claims, and setting aside a proper resdrve
fund to meet liabilities growing out of "the
increasing age of the members, there re
mained a net surplus of $170,532 06. The
number of persons receiving death benefits
was 250, making an average in each case Vf
$523 27. xnere were ly.aaz members of tne
Jb una at tne close oi tne year.
The Employes Saving Fund referred t
in the last annual report is now in succcsi
ful operation--and during the year, 1,807 o
vour employes availed themselves of thi
Atiwifnnttif a nantma iTarmtilnpa itinHtn
The amount of deposits received during the
ing &t the close of the year was $364,390 66 J
1 01 fhb wount f3Q0,QQ0 have beea inTwteJ
of the Pittsburg. Fort "Wavne and Chicago
in the four per cent bonds of the Philadel
phia and Erie Bailroad Company.
The rates received for freight traffic show
a continued annual decrease, even more
marked in 1888 than in previous years; the
partial failure of the crops in the "West,
having affected the volume ot through traf
fic, and stimulated an active competition
among the western roads for that business
at unremuncrative rates. This disastrous
competition finally extended to the eastern
trunk lines, and found expression in an
open and severe reduction in the west-bound
tariff by one of the principal Bailway Com
panies, to meet what it believed to be' the
secret rates of some of its competitors. Your
management, not unmindful of the ad
vantages that have accrued to your proper
ties from the conservative policy uniformly
adopted by it, endeavored to maintain rates
at a just and remunerative standard; but
were reluctantly compelled to meetthe tariffs
made by other responsible lines, in order to
protect the commercial and manufacturing
industries situated upon your roads, and
prevent a severe depletion of the volume of
The continuance of this unfortunate con
dition of affairs induced a widespread feel
ing of uneasiness, not only in financial but
in general business circles; and has called
forth a renewed endeavor on the-partof
those entrusted with the management of
railways to arrive at some method, in har
mony with the Inter-State Commerce Law,
that will regulate such competition. That
law having now been in operation for nearly
two years, an opportunity has been afforded
to judge, in some measure, of its effect upon
the interests of the public and the railways.'
While in many respects it has been bene
ficial, yet it has tended to complicate and
render more difficult the management of
the transportation interests of the country,
since it has undertaken to regulate and pre
scribe the manner in which the public
should be served by the transportation com
panies, .but has failed to provide any method
which would ensure the maintenance of
just and unitorm rates, and properly pro
tect the railway interests.
The difficulties attending the profitable
management of railways have been further
aggravated by the reckless construction of
competitive lines not necessary for the ac
commodation of the public, but built large
ly for speculative profit. The capital for
these enterprises has been frequently lurn
ished by shareholders in the existing rail
ways, and bv financial agencies that in pro
moting their construction were unmindful of
the fact that they were destroying the prop
erties in which they were already interested.
Until the different States cease to authorize
the building of such lines, or the evils re
suiting therefrom prevent the furnishing of
capital for their construction, the responsi
bility for the present complication must
justly rest elsewhere than upon the mana
gers of railways.
The enactment of hasty and unjust laws
in many of the "Western States is seriously
affecting the value of railway property in
that section, and seems plainly to indicate
that no further investments should be made
by your Company in those States, except to
protect capital already invested, until a
more liberal and just policy is pursued to
ward the existing roads.
Your Company lost, by resignation, on
June 30th, the' services of Mr. Edmund
Smith, your First Vice-President, who had
been connected with your Company for over
forty-one years, and had in that time filled
many responsible positions. Mr. Smith's
familiarity with your system and thorough
devotion to your interests had earned for
him the confidence and high esteem of his
associates, and made the severance of his
official relations with your Company an oc
currence to be deeply regretted.
Mr. Frank Thompson, formerly Second
Vice-President, was promoted to fill the
vacancy thus caused, Mr. J. N. Du Barry
promoted to be Second-Vice President, and
Mr. John P. Green to be Third Vice-President.
Mr. John S. "Wilson, your General
Freight Traffic Agent, having resigned that
position October 1st, Mr. William H. Joyce
was promoted to fill the vacancy thus
caused, and Mr. John "Whittaker appointed
Assistant General Freight Agent.
It is with great regret that your Board
have to record the death, on September 17th,
1888, of Mr. John Price "Wetherill, who
had been one of your Directors for over ten
years. His ability, and devotion to your
interests made him a trusted and valued ad
viser, and in his death his colleagues lost a
warm personal friend. Mr. Amos E. Little,
of Philadelphia, a gentleman long identified
with the mercantile interests of the city,
was elected to fill the vacancy thus created.
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. BOBEBTS.
Wash Goods Department,
100 new styles arrived this week of Ander
son and fine American ginghams; choice
novelty combinations in imported zephyrs.
MWTSU HUOUS &HACKE.
Barsnlns Id Portlerei",
Greatest variety-, beautiiul designs, from
53 to $8 50 a pair. Extra large, all chenille,
$10 to $12, twn importation; best valuesever
offered. Eosenbauji & Co.
65 and 75 cents to-day for 27-inch India
silks choicest bargains pay you to see
these new etjlyfi f Bqcjgs gs Buhl,
Continued from Firtt Page.
stubby rooms, no bigger than a box, easily
command $25 a night.
"Waiters who are rejoiced at $3 aweek and
perquisites now can start modest bank ac
counts on the tips they receive. It is a
knock-down-and-drag-out fight to get: into
dining rooms, and in some of the hotels a
constant flow of cash must be on tap to get
anything. The waiters are working 20
hours out of the 24, but there are only a few
instances of surliness. They work ahead
with doggedteadiness, spurred on by lavish
CONOBESS A HOLY SHOW.
The galleries of the Senate acd House
were a spectacle. They were crowded to the
doors, and there were thousands struggling
for the place of every departing visitor. The
guides reaped young fortunes in showing
the. visitors about, when they could get
through the jam.
"Washington is no place for people with
out money. All the favored ones can have
ti-carth, but they have to pay roundly for
it. Prince Harry New, with his friends
irom Indianapolis, are a striking example
of this. They have apartments provided by
Prince Harry, and all the dainties, but
there wl be a frightful hole made in the
young man's pile because of the lavishness.
There has been a great outcry all day be
cause the pnblic buildings were not open.
They would have given shelter to more
struggling thousands who were perforce
thrown into the streets. People wbo can
have slabs .thrown over a bathtub and rest
their weary bones on them think themselves
particularly fortunate. It is not an extraor
dinary sight to see a traveler stop in a door
way and change his collar and cuffs from
the satchel he carries.
Another great army came in to-night,
and they added to the general demoraliza
tion of neatly everything and everybody.
The most encouraging sight that greeted
them was the signs of the sausage peddlers.
TOUR FILL FOR 10 CENTS. !
But there will be only one night of the
general misery. To-morrow, after the in
augural ceremony on Capitol Hill, there
will be a mad rush for the cars. It will be
the climax of the jam.
O'MAEA SHO-W1NO THEM HOW.
The 500 extra policemen sworn in on
"Wednesday are a travesty. They could no
more handle the crowds than a little dump
ling girl could defy the Prussian army.
The local detectives" are out in force, and
they have plenty of work keeping track of
the regiments of crooks. Bob Pinkerton,
of New York, and Eoger O'Mara, chief of
the Pittsburg detectives, are showing them
how. There are detectives here from all
the big eastern cities, and squads of them
are detailed to the railroad depots.
Some of the hackmen are fully alive to
Hunting for Lodgings at 3 A. M.
the situation. Several of them are in jail
because of their superior animation. Ladies
who came to town alone have handed them
$20 bills and received no change. "When
arrested the hackmen were mighty anxious
tec refund the money,-in view ofr the har
vest to them on every side, but they have
been incontinemlyi jugged just the same.
But with all the miseries of the day, it is
doubtful if thee are many substantial re
grets at being oa..hand for the great cere
mony. It is a thoroughly American
army, disposed to make the best of the situ
ation, and forget the pains and aches of
weariness and hunger in contemplation of
the grand spectacle of the morrow. All day
long organizations, military and civil, have
been arriving, and they got ont their bands
and paraded around the streets, and are do
ing it to-night. The came from nearly every
city in the Union.
A UNIQUE ABBIVAIi.
The corn palace train was one of the
unique arrivals of the day. It came from
Sioux City, and was intended to demon
strate the progressiveness of the people of
that corn-growing country. Nailed to the
cars were different samples and shades of
corn in the cob, in the kernel, the stalk, the
brown, silken tassels, the cob and the husks,
and they are so blended in color and ar
ranged as to bring forth the prettiest speci
mens of rustic art that can be imagined.
Bat one of the funniest exhibitions is the
Bucktail Club of the Twenty-second As
sembly district of New Yorkj There are a
couple hundred of them, all with deertails
hanging from their derby hats, and when a
squad of them wheels into line and fetches
up at a bar with the utmost precision, the
tails are in the line and the symmetry main
tained as they lean over and tell the bar
keeper of their wants.
But there are other interesting sights than
the visiting organizations. George "Wash
ington's chair is here. General Harrison
is to occupy the chair before he takes the
oath of office. Every brass-headed tack
which fastens time-wrinkled leather to the
age-polished wood of its frame and every
quaint carving of its arms and legs testifies
to its ancient dignity. It is the chair in
which George "Washington was inaugurated
A CHAIB WITH A HISTOBY.
E. B. South wick, of New York, its owner,
says that "it has been in the personal
charge of "William Coventry H. "Wallace,
now deceased, for over 50 years. It was
given to him upon his receiving his first
commission as United States MarshaLfor
the Southern district of New York, from
General Andrew Jackson, in 1831, and by
him presented to me, his nephew. In 1875
this chair was used at . the second-term in
augural ceremoniesof General Grant, and
in 1881 at the inaugural ceremonies of
James A. Garfield."
Then there are the men who fought with
Hanison. They have come irom half a
dozen States to act as an immediate body
guard to the President-elect in the inaug
ural parade, to-morrow. It is the remnant
of a veteran Indiana regiment. There are
145 of them. Among them are representa
tives of various States beside Indiana,
whence they have drifted since the war.
Nebraska, California, Iowa, Kansas, Ark
ansas, New York, Pennsylvania, Illinois
and Missouri are all represented. Colonel
Merrils, successor of General Harrison in
command of the regiment, originally its
Major, is in command,
On every block you elbow well-known
men, and in all the resorts they are as thick
as huckleberries on the hillside. Bill Nye
and James "Whitcomb Biley, like the
Siamese twins, stick together, and Francis
"Wilson, Pauline Hall and Marie Jansen
are equally exclusive. They are all
jumbled in with the great milky way of
GBEATITESS ELBOW3 EACH OTHEB.
General Alger stumbles upon Mr. Blaine
and Mr.t"Windom, having a bite in John
Chamberlin's, and they all greet John S.
Clarkson in a most neighborly fashion.
Mayor FitIer,of Philadelphia,Chas. Emory
Smith's pride and glory at Chicago, has for
gotten all the pangs, and nods and chats
with National Committeemen Hobart
and Halsey, of New Jersey, and
Asa Dickinson, of Jersey City, is here
ready to resume his place in the customs
service oi tne country, ooan si. otarin, as
chipper as a schoolboy tells of harmony that
is to reign in New York; so does A B.
fVYnitney. jar. wnitneyio-aay lnviiea jjou
Fava and Bloat Fassett and Mike Dal v to
ytt tae fjam Eepubiican. Club in. KewJ
street. Mr. "Whitney says that the tronbla f
has been" that both sides have wanted the
universe. Mr. Daly and his Brooklyn men ,
would walk to Newport to accept the mvi- ,
tation, so happy are they at the selection of
General Tracy. . .
Few have any idea of the expense that an
inauguration is to the Senators and Con
gressmen. The Senators, particularly, need .
big pocketbooks. There are only two to' -every
State, and it is customary for some or
them to entertain their constituents on thesa
occasions. They set up a cold luncheon, ,
with something to drink, and practically
keep open house for a week before and -
day or so after the inauguration". ',
KNOCKED OUT, YET JOLLY.
Senators Morrill and Edmunds have re-i j
ceived an avalanche of Vermonters, and al-
though Palmer is knocked out of his Cabi- "
net aspirations, he, in a very jolly way, re-
ceives all Michiganders, of every complex-"
ion of politics. So do other Senators. They
may be droning away their time in the Sen
ate chamber, listening to the monotonous
announcement oi Mr. Ingalls, but their
houses have open doors for the people from
their States, just the same. But it is a sin
gular fact that the only Evart does not
Tavor this promiscuous hospitality. Ho
shrinks within his great overcoat and
rumpled silk hat, and stands aloof. Senator
Hiscock does not apparently believe in the
felicitous custom, either. "When not crowded
dewn in his arm chair in the Senate, he is
at the Arlington roaming through the cor
ridors trying to see General Harrison.
There is an undefined report to the effect
that he doesn't get nearer to the General's
apartment than the first lobby.
The Congressmen have more friends than
they know what to dowith. They are very
busy men just at this time, but all Demo
crats and Bepublicans go in and make it as
pleasant as possible for their visitors.
Everything is ready for the great parades
to-morrow, and the flambeau clubs and their
bands are marching around town to-night,
practicing for the competitive drill to-morrow
'The final details of the inaugural ball in
the Pension building have been arranged.
The dear ones, white and black, and their
beaux, are just about ready to go down oa
their knees for fair weather.
expected of the
old fashioned way
of blacking ths
shoes? Try tho
new way by using
and the dirty task
becomes a cleanly
REQUIRES NO BRUSH.
Sheds Water or Snow. Shoes can be washed
clean, requiring dressing" only once a Week
for men, once a Month for women.
It is also an Elegant Harness Dressing.
IT IS WONDERFUL!
THAT LITTLE p V- f tf TABLET
And the Cures it L. r.LV.I. effects.
Dr. Make R. Woesanntr-nag made theBrfoT'a,''
years be has prescribed them for more than
35 years they have been sold to the public f ot
a QUARTEiroF A CENTURY, and never in the
whole time has theTe been a case of
where DYSPEPSIA KILLERS
have failed to CURE. 25 and SO cents a box
Sold everywhere. Mailed anywhere f or th e prica
DOOLITTLE & SMITH, Selling Ageats,
24 and 26 Tremont St., Boston. Masi.
For Sale by Geo. A. Kelly 4 Co., Pittsburg.
Custom or Prejudice prevent youn enjoyluz
the now well attested benefits of the
"IDEAL" IN NATURE,
as slight familiarity will prove. Becommenaed
by Prominent Dentists everywhere, anions
them Dr. T.B. Arnold. 127 W. 31th t,N. T"
writes: "It has no equal for Polishing the Teeth
and Hardening the Gomi."
AT ALL DRUGGISTS.
ONEY TO LOAN
u uw b"2 vu lliiui'f f CIA 4 CA COvAaww f f t OUulv
of $1,000 and upward. AppW at
DOLLAB SAVINGS BANK,
fel-22-D No. 121 Fourth avenue.
tin mrtrtrntireta An mnvmnul Mai isii J m
9311 IfENX AVJSNUE. P1TTSBUKO. rA,
As old residents know ana bade flies ot Pitts,
burg papers prove, is the oldest established and
most prominent physician in the city, devotlnz
special attention to all chronic diseases. From
jonsibjepersons NQ jr;
of energy, ambition and hope, impaired mem
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dizziness, sleeplessness, pimples, eruptions. Im
poverished blood, failing powervorganlc weak.
riage, permanently, gaiety and privately cured,
BLOOD AND SKIN .feioS
blotches, falling hair, bona pains, glandular
swellings, ulcerations of tongue, mouth, throat
ulcers, old sores, are cured for life, and blood
poisons thoroughly eradicated from the system,
II Rl MARY Muney and bladder derange
Unillrtll I i ments, weak back, gravel, ca
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painful symptoms receive searching treatment
prompt relief and rel cures.
Dr. whlttler's life-long; extensive experience
Insures scientific and reliable treatment oa
common-sense principles. Consultation free.
Patients at a distance as carefully treated as U
here. Office hours 9 a. x. to8p.se Sunday,
J0A. X. tol F. H. only. DR. WH1TT111R. m
Penn avenue, Pittsburg, Pa. leSD3uw
A CORE GUARANTEED HEALTH.BS
ERQY and strength secured by usinjc Am
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six boxes is the complete treatment and with ' "
every purchase of six boxes at one time we wta , :
give a written guarantee to refund ths money ''
if the wafers do not benefit or affect a-penna- -'
nent cure. Prepared only by the BOSTON
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FLEMING.. M Market street, Pittf. -r
burg. Pa.. P. O. box 37 aplO-k56-xWTsa
raftering from the f.
tecta ot youthful er
ror, e&rlr decar. lmt
Buu&ood , etc.
& Talo&ttee treatise ( sealed
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PftOF. F. C. FQWbERi MOMM MHeJ
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