The Portland daily press., 1874-02-03
The report continues

1
Balance. ......... s5ss,27e 65 ss22,s95 50
| The report continues:
| From comparison of the foregoing state
| ments it will be seen that while the total earn
ings from all the business of all our roads show
an increase this year over last of $115 OIL 80 the
receipts from passengers have fallen off $48-
94558 This loss arises from the loss of pas
senger travel on the Portland. Saco and Ports
mouth Road by reasons of the completion of
the Boston and Maine extension as an indepen-
dent line into Portland. and would appear
greater than it is if the falling off here were not
| in part compensated by an increase in our local
travel. This loss in passenger travel we have
not been able to follow BY proportionate re-
duction in the number of our passenger trains
and our train expenses, because the competition
between the Eastern and Boston and Maine
Railroads has compelled the directors to con-
tinue the same number of passenger traias as
heretofore, when we re carrying all the pas
sengers.
The receipts of cur freight business for the
same period have increased $163,99553 The
growth of our freight business has compelled us
to add to our freight trains, which accounts for
the increase in the train expenses; while the
amount paid to the Boston and Lowell Road
for the use of thei. freight grounds in Boston,
get into our own freight grounds in Charles
t9MR accounts in part for the increase in onr
The cost of operating our road during the
year has been about IS per cent; of the gross
receipts. This Increased percentage is to be
cribed to the extr aOrdinarily heavy expenses of
the diminished business, the effect of the great
fire; the severe winter, and the prevalence of
small poX, and to general rise in wages ard
the price of supplies.
During the past year we have built six and
one-half miles of new sidngs, have laid 1882
tons of iron rails and 2507 tons of steel rails,
making in all nearly fifty miles of new rails.
We have now on onr main line, between Bos
tot and Portsmouth. forty-three miles of steel
rails, and AL onr track is in very good cendi
ton. -1t = = u
We have added to our equipment during the
year four new locomotives, two of which were
built in our own shops; have bought seven pas
senger cars, and built three baggage cars and
four snow pows and increased our freight cars
by the addition ST two hundred and forty two
cars, of which eighty two were platform cars,
twenty-five OF which were built in our own
shops. We have made the necessary repairs
npOn all our equipments and it is all in good
order.
CONTRACTS WITH OTTER COMPANIES.
The Directors have made an agreement with
the Maine Central Railroad uniting the bust
ness interests Of the entire line between Bos-
ton and Bangor, a copy of which is submitted
with this report. 1t requires the sanction of
the stockholders, and the Directors recommend
it to their approval. 1t has already increased
our freight business beyond the present capac-
ty of our freight grounds, and compelled us,
until we can get the use of those recently Sc
cured at CharlestOwn, which are spoken of
later, to avail ourselves of the Boston & Lowell
freight grounds.
The basis of traffic contract which is be-.
lieved to be mutually advantageous has been
agreed upon between this company and the
railroads comprising the Portland aud Ogdens>
bnrg Railway Line. The fual agreement is
not yet ready for action, but memorandum
embodying the substance of it has been execut-
q
Negotiations have been in progress for sever
al month"; between committee of our Dr.
rectors and a committee of the Directors of the
Boston and Maine Railroad for the purpose of
endeavoring to perfect some plan on which
both parties could agree, which would stop the
present contention between these two COM
panies. Your Drectorsare known to be in
favor of any equitable settlement, and they ara
not without hope that some such adjustment
may at last be reached.
THE MAINE CENTRAL CONTRACT.
Appended to the report is the contract be.
tween the Eastern and Maine Central roads,
The contract is for 500 years, and provides that
the roads of either party and those controlled
by them shall be operated as one road and upon
the following basis, to wit:
II The net earnings arm Of all the business Of both
ments of interest, taxes, salaries, the rents of
the leased roads of both companies, and all
other authorized disbursements, shall be divid-
ed between the two companies, so that the
Maine Central Railroad Company shall receive
for dividends four fifths as much for each share
of Its stock as the Eastern Railroad Company
receives for dividends for each share of it's
stock and that of the Eastern Railroad of New
Hampshire and the Portsmouth, Great Falls
and Conway Railroad. ~ee
And when aver a consoli lation of these com.
panles can be legally effected it snail be done
upon the basis OF values above stated, share
OF the Maine Central stock being mt into the
consolidated corporation at four-fiftbs of the
value OF share of the stock of the other rail.
roads named above.
AGREEMENT WITH THE BOSTON & MAINE.
The President gave the details of the agree.
ment with the Boston & Maine, as follows:
The Committee of the Directors of both cor
porations have agreed that the business at and
between the competing stations upon the two
roads OF the two companies shall be transacted
under the direction of an Executive Com mittee
composed of three directors of each company
who shall have the general charge of that bust
ness This committeel,shall regulate the hours
of the through trains between Boston and Port
land running over either road; shall fix the
rates of freights and fares, and shall transact
the business which each sha possess,
The road which does the business shall re-
ceive percentage agreed upon, which as near
ly as oan be computed or ascertained is the act
nsl cost of doing that particular business, not
OF doing the local business on the road. If
aany'hlpg, it is rather less than cost. The pro
Nus are to be divided between tn, two roads
edu hn There is to be joint auditor appoint
ee e ~ ouIn companies to examine the accounts
y. Snc business and to determine whist is and
what is not competing business, and make al
lowance for over charges, drawbacks. &c. &c.
II TINS s scheme works well there is but little
ment that will extend the business aas, &c De-
land. The arrangem MT will save the exnanses
of advertising, competition, ETC., by reason Of
combination of interest Ne"''" VI
Those who are familiar with the subject state
that the saving VIII be ten per cent of the gross
receipts of the two roads, which will not be less
than 100000 year.
The meeting was generally harmonious, al
though there was little sparring between one
Mr. Felt and the President, in which the form