The Portland daily press., 1873-07-11
Railroad Consolidation.
A Chapter i'm the History of Maine Rail-
ways-PracticaI Workings of CousOlida-
tiOn-Why it has failed-Fncfs ana Fig
To the Editor of the Press

WayS-FFaCthCal w OfAhhSs
tion-Why it has faiIed-Fncfs and Fig
ures,
To the Editor Of the Press:
The sale by Mr. Dunn of a majority of the
stock in the Maine Central Railroad Company
to parties in Boston in the interest OF the East
ern Railroad Company, and the consequent re-
tirement of Judge Rice from the Maine Cen
trail Company, closes an important chapter in
the history of railroads in Maine IL Is good
time to consider and examine the working of
the consolidation scheme for the past three
years, and to compare it with the working
of the roads previous to consondation I'M
der their separate management. The argu-
ments used with the stockholders Oh the va
rious corporations entering into that plan,
were that the roads could be worked
more efficiently and economically under one
organization and management than under
three separate, and in some repects COM
peting arrangements, and that the public
would be better accommodated. Such have
been the results in other States where the
consolidated companies were in capable and eff
ficient hands and ma naged by men who had Or
ganizng power and executive ability These
arguments prevailed, and early in 1870 the two
principal roads were united, and early in the
year following the Androscoggin, and Leeds
and Pennington followed, and the whole were
put into the hands of Judge Rice with unlimit-
ed power of management.
The Maine Central at the close of the year
next previous to consolidation, to wit, on Dec
Of 10 in foo
$2,4O3,S 14 in bonds, 100000 at per cent in a
lease of the Dexter and Newport railroad The
whole length of this line was 124 miles and it
earned in the year closing Dec. 81, 1862 $685.
637 about 141 per cent on its entire capital of
$4, ,694 and it took SO per cent of its earn
ings of that year to operate the road keep it in
repair and make the additions to its rolling
stock and other improvements necessary
Nothing was carried in any shape to capital
account. One hundred and eighty three thou
sand passengers and ninety seven thousand tons
OF goods were carried over it in that year.
The Portland & Kennebec R. r. operated
the Somerset & Kennebec road that year by a
lease at rent of $685. per annum and their
capital was as follows:
In stock and bonds of various
classes $1,971 ,292
Som. & Ken r. r. leased 100000
$2,571, 1872
represented by road ITO miles long, and
it earned for the year 1869 as appears from their
report $631 1907 or 24a per cent on the above cap
ital. 1t expended for operating the road, for
renewals, various Improvements and without
anything carried to capital or Improvements
accounts $445 452. 56 or about 20 per cent OF the
gross earnings-and it carried during that year
321 Az passengers and 163, S26 tons of freight
While the Androscoggin R. r., with it's lease
of the Leeds and Pennington r. r. had a cap
ital of about $1,1OOOO0 representing road of
20 miles, it earned in the last full year pre-
vious to its entering into consolidation $212,-
292 or about 193 per cent on its capital and it
spent in operating the road Improvements,
carrying nothing to capital account $137, 1882
or about 67 per cent of its gross earn
ings, and it carried in the year $1,000 pas
sengers and 1896 tons of freight. Each
of these roads were in excellent condi-
ton and we'll equipped at the closeof uhe year
next previous to their entering into consolida-
ton, if we may judge from their several reports.
Their rolling stock was ample to do the bust
ness offering and the public was well satisfied
with the manner in which their business was
DONE Thus it will be seen that the companies
entering into consolidation had a combined cap
ital of about 5000, 1856 to about 3O4 miles of
road. Their combined gross earnings for the
year next previous to consolidation were 81 ,435,
156 or about 17a per cent on the entire capital
and its cost to operats them and make renew
ais and improvements with nothing carried to
capital or improvement, accounts to 1888, 1858, 25
or about SO per cent of the earEings-leaving
SAG, 300.75 of net earnings or about 81 per cent
on the entire capital. They carried in that
to the general satisfaction of everybody.
The year 1870 and much of 1871 were spent
in completing consolidation, changing the gauge
of the NJ G. road and its rolling stock and in
the organization of the various lines of road
embraced in the scheme Of consolidation, as
Dahvfhlfe f1 u ainmSberfand and in building mile
of new track in Westbrook. During the same
year also, the Belfast road (33 miles) was COM
pleted and united to the other roads at a capital
of 100000 at 6 per cent, while in1871 the whole
road from Bangor to ST. John was opened for
use and the road from Bath to RoCkland, Civ
ing to the consolidated road all the benefits of
these extended lines during the year 1872 Now
it is the results of this year 1872 as stated in
the report of the directors that enables one to
Judge somewhat of the working OF the CONSOLE
Qatl0Q SCn61no anu Oh Tue SUCCESS Oh Tile mali
agement. 1t appears by this report that 1856
miles of road were operated during the year
1872-ffty-two miles more there were operat-
ed separately the year previous to consolida-
tion-to wit: the Belfast 80 miles, the extern
sion line Is miles and the mile in Westbrook-
and these $50 miles of road represent capital of
about $12, 1874, 1856 26, after adding to the capt.
tai as stated in the report the capital of the
Dexter & Newport 100000, and of the Bel
fast road 100000, on which the consolidated
lines paw interest. Of this capital So .634, $50
is stock of the Maine Central Company the
residue of the capital bears interest at and
per cent The 356 miles of road represents an
average cost of over $4,000 per mile and an
interest bearing capital of over $4,000 per
mile. Whereas the average cost of the 3O4
miles of road prior to consolidation was frac-
ton over $4,000 per mile.
This vast increase ga, S41 $500 in the capital
Of these roads between January 1, 1870 and
January 1, 1873 is made up in part as follows,
81, 916,6OO of stock given to the stockholders of
of the p. & X. and of the Androscoggn
railroads to induce consolidation and of $780,
600 of interest-bearing scrip giUen to the stock
holders of the M. G. and of the Androscoggin
railroads to induce them to consolidate, and
$33, 1888 to the last named company for the same
purpose. In addition to these sums which rep
resent nothing in the way of neao road or equip
naent, the capital of the Belfast road $500, 900
and the cost of the extension line 1888 OOO and