REPORT PRESIDENT AND MANAGERS PHILADELPHIA AND READING RAIL ROAD COMPANY STOCKHOLDERS. JANUARY 12, 1847. PHILADELPHIA: ISAAC M. MOSS. 1847. PRESIDENT. John Tucker. MANAGERS. Chas. H. Fisher, Samuel Norris, John Towne, Wm. R. Lejee, Christopher Loeser, of Orwigsburg, Matthias Richards, of Reading. SECRETARY AND TREASURER. Samuel Bradford. To the Stockholders of the Philadelphia and Reading Rail Road Company. The managers have the pleasure of stating that the profits derived from the business for the year ending November 30th, 1846, are even greater than they pre¬ dicted at your last meeting. They can also state, that there is still the same desire to secure the facilities which the company possess for the transportation of coal, as existed at the close of the previous year. A table of the anthracite coal trade (prepared by the Philadelphia commercial list) for the year, is appended. It shows an increase in the consumption over that of the last year, of 297,626 tons, of which 153,159 tons have been furnished from the Schuylkill region. The usual statement of the treasurer, showing the financial position of the company, is herewith submitted. Also, an account of the profits resulting from the busi¬ ness. It will be observed that the net revenue for the year is $1,037,795 21, showing an increase over that of the former year of $530,490 22. The expenditures for new machinery and for neces¬ sary and consequent permanent improvements, are fully explained in the accompanying statements, with the ex¬ ception of the following items, viz: 50,087 05 Rail road iron, for 8| miles new track, sidings, &c., ----- Land damages, and settlement of claims previously unadjusted, strictly apper¬ taining to the business of previous years and the cost of the road, - 28,799 68 S78,886 73 The disbursements for other purposes are given in such minute detail in the reports annexed, that further allusion to them here is deemed unnecessary. The increase in the receipts over those of last year, from the transportation of coal, is 713,728 00 or 80 p. c. “ “ merchandize, 76,995 78 “ 127 “ “ “ passengers, 38,337 94 “ 37 “ §829,061 72 The managers regard this result, as showing conclu¬ sively the propriety of the expenditure by which it was produced. During the ensuing year, it is not the intention of the managers to increase the quantity of machinery further than to obtain the four locomotive engines, authorized at the last meeting, which were then ordered, but have not been received by the company, in consequence of a de¬ parture from the terms of the contract. The policy of gradually changing the wooden bridges into stone or iron, as they require extensive repairs, will be continued. The propriety of this course cannot be doubted, as the saving when thus changed is vastly more than the interest on the increased cost. They are now in such good condition that it is not, at present, proposed to alter many of them. 5 The expenditures will therefore be small during the ensuing year. The managers, for the first time, have now the plea¬ sure of calling your attention to the subject of a dividend. The profit and loss account of the year results as fol¬ lows, viz: Gross receipts from all sources, - - 1,900,115 35 Deduct all expenses, - 862,320 14 “ Interest, - - 571,119 93 “ Taxes, &c., - - 16,380 19 “ Commissions & charges, 43,672 61 “ Sundries, - - 4,330 19 -1,497,823 06 Balance, applicable to a dividend fund,- or upwards of 12| per cent., - - $402,292 29 If the proprietors had taken stock at par as contem¬ plated by the charter, to provide funds for the payments for the new machinery, which you directed should be obtained at the last meeting, and for other consequent improvements, this fund would now be in the hands of the treasurer. But as no such provision was made, the revenue has been applied towards the payments for this new pro¬ perty, and a dividend in money is therefore impracticable. Under these circumstances, the question of the pro¬ priety of a dividend in shares, has had the serious con¬ sideration of the managers, but as they do not feel themselves authorized to create new stock, without your sanction, they refer this subject to you and ask for your instructions. While the debt remains so large, the managers urge upon you the importance of adopting at present and for the future such permanent course in reference to the 6 subject of dividends as will give the company (to the extent of its profits) the means to pay the bonds as they mature, or insure the conversion of the debt into stock. The policy of making dividends in stocksT insures a gradual decrease of the debt. This course is subject to no well founded objection, and is common elsewhere with the most prosperous institutions. The profits are thus reserved for the diminution of the debt, or for the acquisition of new property to increase the revenue, and thus each successive year the company is placed in a more independent and prosperous position. By the adoption of this system, the stockholder may confidently expect to receive more than the bondholder, while the latter cannot but approve of the measure, as the profits are applied to the liquidation of the debt, or to increase the property of the company, by which the security of the creditor is enhanced. With these views, the whole matter is submitted, as one peculiarly within your province for decision. The managers think it not improper to remind you of the accuracy of the estimate made a year since of the business and profits. The period, for which the estimate was made, was from January 1st to December 31st, 1846. The tonnage (coal and merchandize) transported dur¬ ing that year, differs only - 27,566 Tons. Through passengers for same time, - 8,061 Profits, or revenue from the business from Dec. 1 , 1845, to Nov. 30, 1846, - $49,775 21 (The profits for December, 1846, not yet made up.) In each item, the anticipations then expressed have been exceeded. The managers feel that the permanent prosperity of the company is fully established. Their past predictions of the capacity of the coal machinery and of the cost of transporting that fuel to market, have been fully con¬ firmed, and they deem it unnecessary for them to give any detailed estimate of the future business, farther than to express their confident belief, that the report of the ensuing year will he not less satisfactory than that they now present. By order of the Board of Managers, JOHN TUCKER, President. Office of the Philadelphia and Reading Rail Road Company, Philadelphia, January S th, 1847. TABLE, 10 12 REPORT OF ENGINEER AND SUPERINTENDENT. John Tucker, Esq., President of the Philadelphia and Reading Rail Road Company. Sir: —The following Report of the Transportation, Roadway, and Construction Departments, for the year ending November 30, 1846, is respectfully submitted. TRANSPORTATION DEPARTMENT. The business of the road, including coal and mer¬ chandize tonnage, passengers, and receipts from these sources, is contained in statement A. The receipts from coal have increased SO per cent.; from merchandize, 127; and from passengers, 37 per cent, over the same items last year. The gross and net expenses of this department are comprised in statements B and C; the former containing the total expenditures for wages, and all materials; and the latter the apportionment of these expenses to the various branches of business for which they were con¬ tracted. The running machinery will be found in statement D. Since the date of my last report, 19 locomotive engines, all of the first class, including two of great power and efficiency, for the Falls Grade, have been purchased by the company; 4 second class engines, hitherto light and inefficient machines, have been rebuilt in the Company’s work-shops at Reading, and now work with power and efficiency increased over 100 per cent. The car force of the road has also been largely in¬ creased. During the past year have been added 1522 iron coal cars, 76 freight cars, for merchandize and use of road, 1 baggage and 1 new ladies’ car, 3 second class 13 passenger cars altered to double their former capacities, and 33 eight wheeled coal engine wood tenders. 548 wooden coal cars, originally of 3f tons capacity, have been enlarged to carry 4 T V» tons, as alluded to in my last report. Every locomotive engine owned by the company, with its maker, present condition, &c., is recorded in state¬ ment E, and their cost of repairs and working, in state¬ ment F. The repairs of coal, merchandize, and pas¬ senger cars, are exhibited in statement G, with the items of wages, materials, &c. The cost of hauling coal for the past year is shown in detail in statement H. It has amounted to 38 t%f cents per ton. The chief causes of this increased cost of l T ”o cents per ton over last year, are, the great decrease of coal tonnage from the cessation of business of some of the lateral rail roads, in consequence of the freshet in May; and the great falling off in demand for coal in August and September, thus diminishing our business, while the causes were too temporary to justify a discharge of men. Other causes contributed to the same result: the in¬ creased cost of wood—the irregularity in the coal busi¬ ness, by a larger proportion of coal being consigned to the city of Philadelphia, causing engines and their crews to lay over more frequently for want of trains—and the increased cost of repairing engines at night, and over hours, rendered necessary from the failure of delivery of four first class engines, contracted for last winter, to be received by June 1st of this year. The cost of trans¬ porting passengers and merchandize is contained in de¬ tail, in statements K and L. Statement M shows the items of cost of transportation over the State rail road for the past year. A table of the supply of coal from the various sources in Schuylkill County, with the points on the Reading 14 road to which such coal was consigned, will be found in statement N. The necessity for adopting, and using almost exclu¬ sively, anthracite coal for fuel, has engaged, for several years past, the most serious attention of the undersigned. Numerous experiments have been made to burn this staple of the road in its locomotive engines, but hitherto without that success which would warrant its adoption in engines of the present build. An engine and boiler for this purpose, invented by the undersigned, on prin¬ ciples entirely new, are now building in the Reading workshops, and with every prospect of success in accom¬ plishing the above result. ROADWAY DEPARTMENT. Comprising repairs and renewals of track, bridges, depots, water stations, &c., for year ending November 30, 1S46. Total cost of repairs and renewals of superstructure of bridges and road-bed for the year. Wages of all laborers, including foremen - §60,890 11 Do mechanics, - 15,936 45 Iron, steel, tools, &c. ... 4,537 50 Timber for renewals and repairs - - 19,319 49 Clearing snow - 887 62 Masonry ----- 4,327 27 Watchmen in tunnels - - - 784 56 Sundries, oil, rents, &c., &c. - - 3,527 26 §110,510 26 To which must be added, what would have been the cost of repairing and strength¬ ening of wooden structures, replaced during the year with stone and iron bridges 4,460 50 Actual cost of repairs of track and bridges §114,970 76 15 Engines, Cars, and Stationary Machinery, Transporting, Sawing, and Preparing Materials, Engines, cost of wages, repairs, fuel, &c., 7,431 20 Cars, repairs, oil, tallow, &c., - 1,204 52 Sawmill, repairs, fuel, attendance, &c, - 1,006 14 Stationary engines, and other machinery, materials and work, - - - - 1,601 00 Si 1,242 86 Water Stations, Depots and Engine Houses—Cost of keeping in order- Timber, iron, painting, &c., - - - 134 11 Workmanship, masonry, roofing and mate¬ rials, . - - 890 14 Sundries,. 167 49 Total, §1,191 74 Superintendence and Office Rent. Salaries of all officers and agents, - - 3,028 67 Stationery, printing, &c., - - - 247 44 §3,276 11 Rail Road Iron. This item of expense has been in exact proportion to its original quality of make. The total number of bars removed and replaced, during the year, has been 1506; of which 1249 were of the 60 lbs. rail, and 257 of the lighter rails, varying from 45 to 55 lbs. per yard—equal to 235 tons. Of these, 1851 tons were relaid in tracks at 16 Reading and other depots and sidings, leaving 491 tons of iron unfit for main tracks or sidings, worth $35 per ton as old iron. But the actual cost of these 1506 bars re¬ placed, may be thus stated:— *First cost of 235 tons of iron replaced, at $70, - - - - $16,450 00 Cr. By 1851 tons of above, relaid and used, valued at $50, - $9,275 00 “ 491 “ “ worth, as old iron, $35, - - 1,732 50 Deduct 11,007 50 Loss on above 1506 bars, $5,442 50 Equal to four-tenths of a cent per ton on the tonnage of the road, for the year; which entirely confirms our pre¬ dictions and anticipations on this subject. Watchmen at Bridges and Depots. Wages of all watchmen at bridges, - - 9,529 01 Do. do. Pottstown depots and yard, - 549 32 $10,078 33 Recapitulation of Roadway Expenses. Maintenance of way, track and bridges, - 114,970 76 Engines, cars, and machinery, - - 11,242 86 Water stations, depots and engine houses, 1,191 74 Watchmen at bridges and depots, - - 10,078 33 Rail road iron,. 5,442 50 Superintendence and office rent, - - 3,276 11 $146,202 30 * This iron was purchased, some years since, at less than SCO per ton. 17 Brought forward, §146,202 30 Deduct, value of materials on hand, viz: On hand, Nov. 30, 1846, 17,367 86 Do. Dec. 1 , 1846, 14,133 10 - 3,234 76 Total cost of Roadway Department for year, §142,967 54 In concluding the report of the Roadway Department, I would state, that the road and bridges are at present .in excellent order, after passing a tonnage amounting to 1,507,291 tons. Construction Department. Comprising all expenditures for new work, as stated and explained below. Track. Including cost of grading, superstructure, and laying down of main and turnout tracks at the following points: Feet. At Mount Carbon, for coal cars and workshops, 722 “ Schuylkill Haven, for coal cars and workshops, 1,122 “ Orwigsburg, for do. and wood cars, 450 “ Pt. Clinton, do. do. 768 “ Hamburg, for coal and freight, 813 “ Mohrsville, “ coal cars, - 2,060 Between Mohrsville and Reading, for coal, lime, and ore,.1,054 At Reading, for coal and freight cars, coal shutes, wood train, and shops, - 8,073 “ Baumstown, for coal shutes, ... 500 “ Pottstown, for coal and merchandize busi¬ ness, shops, and timber tracks, - - 2,554 3 18 At Norristown, for coal cars, 2,142 “ Conshehocken, for connection with Norris¬ town Rail Road, &c., - 3,445 Between Falls and Plane, part of double track, 6,300 At Richmond, on North and Spur wharves, - 9,942 And new engine house and workshops, - - 3,847 At other points, ------ 2,645 Total, 46,437 Or 8 T V» miles. Total cost, including iron (except the rails) sills, labor, grading Pottstown yard, making 102,469 cubic yards embankment at Richmond North wharves, and all materials for above new tracks, coal shutes, and switches, &c., ----- $82,172 18 Richmond Wharves- The northern tier of wharves, hitherto supplied with coal cars by horses, from the siding where left by the engine, at a great cost and delay, have been made to correspond with the new southern wharves. Long and convenient double tracks, of a total length of 8,570 feet, for this purpose, lead upon each wharf, which are worked altogether by locomotives, thus attaining the greatest economy and dispatch, when compared with the old method by horses. A new spur wharf, 686 feet long, has been added on wharf No. 14; and new scales, shutes, planking, &c., with all the requisite fixtures, have been laid down on several of the other wharves. Total cost of all above work, .- $32,756 19 19 Bridges. Under this head are included building stone arches, wing walls, and parapets, under the following bridges, originally of wood:—Irish Creek, §4,890 53; Big Dam, $10,704 75 ; Shaeffer’s, $5,535 35; Pottstown Bridge, in¬ cluding nine stone arches and long side walls, 42,676 04; Phoenixville, $2,255 43; and Manayunk, $6,314 60. Of these, five bridges are now nearly completed; and, when entirely so, will be rendered permanently secure, and relieved of all future charges for watchmen and repairs. Heavy arch pieces have been added to the Falls Bridge, which is now in excellent order. Total cost, including filling in of earth, $89,789 25. Engine Houses, Depots, Workshops, Water Stations, Reservoirs, and Buildings generally. The business of the road for the past season, increas¬ ing far beyond the facilities hitherto afforded under these heads, rendered immediate and extensive additions essen¬ tially necessary. Serious interruptions to the working of the road, in¬ volving delays to the coal trade, had been experienced during the past year. Engines have been frozen up and subjected to heavy repairs in consequence of exposure to the weather, for want of engine houses and workshops: great expenses have been incurred at the Reading and other depots, by the employment of a large force of hands, required 1o change locomotives, freight, wood and passenger cars on the lurnout tracks, between the main tracks and the workshops and freight houses. The business of the road, and the passage of trains, had been stopped for want of water at one of the princi¬ pal stations on the line, (since supplied with a stationary steam engine,) and, in some instances, loads of freight have been refused, for some days, at the old Reading freight house, previous to the erection of the present commodious merchandize depot. The road is now relieved of such delays and most of their contingent expenses. One large engine house, capable of holding, at the same time, 20 first class engines and tenders, and most conveniently arranged for entering and leaving, water¬ ing, &c., has just been completed at Richmond; as also buildings for the same purpose, of less capacity, but pro¬ portioned to the wants of the stations, at Mount Carbon, Pottstown, and the Falls. At Reading, where the main workshops of the Company have been located, the fol¬ lowing important and efficient improvements have been constructed during the year. A merchandize depot, 124 feet by 84 feet, standing 350 feet from the main track, furnished with doors allowing 11 wagons to be loading and unloading at the same time, and approached from either end of the line by two tracks forming a Y. A shop for repairs of iron coal cars and boiler iron work, 104 by S2 feet. An addition to the main machine shop, 190 by 67 feet. A reservoir, holding 700,000 gals, of water, supplied by a steam engine, for the use of the workshops and passing trains. A time-keeper’s office, water and wood stations, &c. The stations at Port Clinton, Mohrsville, Douglass- ville and Pottstown, have been furnished with an ample supply of water, by stationary engines, worked at trifling expense from the refuse fuel of the stations; at which points large and convenient wood sheds and cisterns have been also erected. Efficient workshops, connected with the engine house, 21 221 by 63 feet, have been built at Richmond, for repair¬ ing and refitting engines and cars at that terminus of the road; and at Pottstown, where the work of the Roadway Department is chiefly done, spacious shops have been built, one 151 by 81 feet. The road will therefore commence the business of the coming year, with facilities for every branch of its ope¬ rations of the most ample character, requiring a trifling, if any, future expenditure. Total cost, §123,727 24. Transportation of Materials. Including wages of men, fuel, oil, water, repairs of engines and cars, and all expenses of transporting mate¬ rials for Construction Department along the line, such as stone, timber, brick, iron, &c., &c. Total cost, §15,840 36 cts. Vertical Walling. Expenses of completing Valley Forge walls, and re¬ building wall at Falls, rendered necessary by use of double track, 8 8,081 42. Iron Bridges. Including construction of 6 bridges, built with the “Howe” iron truss, in all 220 lineal feet; and 3 bridges now making, of 187 lineal feet. Amount §15,439 47. Tunnel Arching. Of Pulpit Rock Tunnel, at Port Clinton, roofing 180 feet. Cost, §6,700 44. 22 Machinery , Turning Platforms, and Hardware. Including new lathes, boring mills, drill presses, tilt- hammers, vices, and tools of all descriptions, for shops at Schuylkill Haven, Reading, Pottstown, and Rich¬ mond. Files, wrenches, anvils, leads and paints, &c. &c., in amount, $38,538 78. Lumber. For yard and depot, fencing, switch sills and frames, wood sheds, &c. &c., amounting to $13,041 67. Sundries. Switch watchmen, during construction of stone bridges, stationery, and all items not included in above heads, 84,862 95. Recapitulation of Expenditures of Construction Depart¬ ment for the year. Track, ------- 82,172 18 Richmond wharves, - 32,756 .19 Bridges, ------ 89,789 25 Engine houses, depots, workshops and water stations,. 123,727 24 Transportation of materials, - 15,840 36 Vertical walling, ----- 8,0S1 42 Iron bridges, - 15,439 47 Tunnel arching,. 6,700 44 Mach’y, including turning platforms, Reading Rail Road, Construction Department, Reading Rail Road, Roadway De¬ partment, 552,603 264,595 | 76,484 893,682 2,429 | 21,355 20,737 Total, Reading Rail Road, On Lateral Roads in Coal Region, 5 15;309 2S5,900 43,631 6 *482 ! ^59*422 Total, 567,912 329,531 j 116.659 1,014,102 Total No. tons hauled one mile, exclusive of engine or tender, 253,816,540 Average wt. of loaded coal trains down, do do do 602 T S 5 Do do empty up, do do do 197,1, Do do passenger trains, do do do 37^ All tons of 2,000 lbs. COST OF REPAIRS OF ENGINES. Wages of mechanics, ..... 827,001 86 Materials, iron, steel, brass, &c. kc., - - - 15,926 S4 Superintendence, tools, paints, oil. &c., - - - 4,302 90 Total cost,. 847,231 60 Total number miles ran by all engines owned by Company, from May, 1838. to November 30th, 1846, - - - 3,285,067 Total number tons hauled one mile between same dates, - 640.855,755 35 STATEMENT G. Cost of Repairs and Renewals of Coal, Freight and Passenger Cars on the Phila¬ delphia and Reading Rail Road, for the year ending November 30th, 1846. COAL AND FREIGHT CARS. Wages of all Mechanics, - - . §28,773 79 Iron, steel, brass, and all metals, - - 33,937 30 Timber, ----- 7,550 14 Superintendence, tools, paint, oil, &c. &c. - 7,026 10 Total, $77,2S7 33 No. gallons oil used by Coal and Freight Cars, during year, including train lamps, - - - 20,393 No. lbs. tallow, do. do. do. 35,016 COST OF REPAIRS AND RENEWALS OF PASSENGER CARS. Wages of Mechanics, , - $2,310 70 Iron, steel, timber, &c. - - - - 2,230 23 Superintendence, tools, paint, varnish, &c. - 567 59 Total, $5,108 52 No. gallons oil used by Passenger Cars, during year, - 575 “ lbs. Tallow, - - - ■ - 38S STATEMENT H. Bans of Cost, in detail, of Hauling Coal, on the Philadelphia and Beading Bail Bead, for year ending November 30th, 1846. Per round trip of 188 miles, from Coal Region to Tide Water, and back with empty Cars: transporting an average load of 360 tons of Coal each Train. A>o. " Do. Do. AYood for Fuel,. Oil for Engine and Tender, including j id Tallow for Cars.. rs of Engine and tender, - - of Coal Cars,. -Renewals of Sundries, Ropes, Lamps, 1 , /H d; &c. Supplying Water,. Assistant Engines at Falls Grade, - Car Couplers and Greasers, Tim keepers, Dispatchers, and Tumii Allowance for Engines laying oi Assistant Engines in Snow Sion Sundry Expenses, chargeable to : Equal to 38^ cents per Ton. STATEMENT L. Items of Cost, in detail, of Running Freight Trams on the Philadelphia and Reading Rail Road, for year ending November 30, 1846. Equal to 75^ cents per Ton. STATEMENT M. Cost of Hauling over State Road, for year ending November 30th , 1846. Amount paid State for Tolls,.$28,643 50 Do. do. City Corporation for do.. 350 00 Cost of Hauling across Schuylkill Bridge, - 1/1GG 38 Wages of Brakemen over Stale Road,. 673 15 Do. “ Agents in Broad Street,. 540 50 Repairs of Coal Cars over State Road,. 1,389 50 Do. “ Passengers do. do. do.. 330 26 Do. “ Freight do. do. do.. 675 70 Cost of Engine, Hauling Coal Cars, and arranging Trains for State Road Engines, at junction with State Road, - 5.444 25 Sundry expenses during year, &c..331 62 40 STATEMENT N. Points of Supply and Distribution of Coal on the Philadelphia and Reading Rail Road, for the Year ending November 30 tk, 1846. Amount of coal received from various lateral rail roads in coal region. West Branch Rail Road, at Schuylkill Haven - 472,633 Mount Carbon and Port Carbon Rail Road, at Port Carbon, from Valley and Mill Creek Rail Roads ----- 405,329 Mount Carbon Rail Road, at Mount Carbon - 228,497 Little Schuylkill Rail Road, at Port Clinton - 81,799 Total 1,183,258 Where delivered on line of Reading Rail Road.