Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-09-20
THE EASTERN RAILROAD.
lErnm the BOSTON Herald Of Saturday. J


The Eastern Ra ilroad is again in trouble. 1t
has had in the Of its existence enough trou
BILE to i'll any two ordinary roads. But it has
had and still possesses, wonderful recuperativc
capacity, and will yet-with good management
rise superior to all its misfoI tunes. The later
troubles of this road have arisen mostly from the
greed and jealousy Of the stockholders and d.
rectors, and rivalry with the competing road to
Portland. The first great mistake made was when
the Eastern stockholders, having acquired most Of
the stock of the Portland, Saco & Portsmouth
road, in 1870, revoked the lease of that road to
the Boston & Maine road and released it to the
Eastern. This involved payment os $50, 900 TO
the Boston 4 Maine road. The old lease was
made ct per cent. Of the 81 500, 900 capital Of
the Portland, Saco & Portsmouth road, and this
was divided between the two competing roads,
The new lease to the Eastern gave to the Portland,
Saco Il Portsmouth 10 per cent. on the capital
stock, or $3.50, 900 per annum. In addition to this
the Eastern undertook to keep the track of the
Portland, Saco g. Portsmouth in repair, which ex.
pense, under the former lease, was also divided
between the two roads. The Boston & Maine,
practically cut off from it's Portland connection,
extended its track to that city, and became still
more active and dangerous rival of the Eastern.
The latter road, however, with what would have
been stroke Of genius if successful, pushed on in
to Maine, and obtained control Of the Maine Cen
trail road which it converted into feeder Of its
line in New Hampshire and Massachusetts,. This
hold ON the Maine road, however, soon weakened,
and after couple of years of monopoly the d.
rectors of the latter broke the lease with the East
ern and made new arrangement, by which both
it and the Boston 4 Maine were placed on the
same footing as regarded freight and passenger
traffic. The lease to the Boston 4 Maine was
given for six years and was q strong document.
In the early part Of the present year: at the an.
nual meeting Of the stockholders of the Maine
Central road, it became apparent that the Eastern
road and its friends had acquired majority of the
stock, and when the time Of the meeting came con-
troled the election by putting in directory ia
vorable to the Eastern and its purposes.
But the victory was barren one, the relations
of the Boston 4 Maine not being materially affect
ed by it. The war between the competing roads
in question has been long and bitter one; and it
has lately been question Of endurance on the
part of one Of them -.
tons of the Eastern directory the lease Of the
Great Falls & Conway road. The bonds Of this
road have become greatly deprecated, and taken
up at their lowest figures by the late Samuel
Hooper and others Of the directory. By their in
teed the interest ON its bonds besides guarantee
ing to keep it in repair. This road has become
at least not paying inyestment for the leasing
corporation. .
In July isst the Bo.tsn, Revere Beach & Lynn
was opened, and Immediately diverted from the
Eastern considerable amount of passenger traf-
fc. II 10 said that about $4,000 per month is
renlized by the new road on the passenger tarfic
between Lynn and Boston that would otherwise
go into the Golfers Of the Eastern road. The es-
Enlistment of this new road could not of course,
materially affect corporation like the Eastern il
it were otherwise strong and sound but if it were
already weakened by unwise Investments and q
competition that forced it 10 run on unrenumcra-
tive tariffs such an event might have its influence,
as it probably has had, in the general depression
of securities
In the returns Of the Eastern Railroad Company
to the State railroad commissioners for the year
ending Sept 80. 1874, it appears that the total
debt liabilities were 4l2 1926 .452,7. The amount
Of debt liabilities, after deducting' cash, sinking
funds in the hands Of trustees and such securities
and debt balances O. do not represent permanent
Investments, is laid down at 81 1888 682 so. The
net debt per returns Of 1873 was $3.50, 769.6S,
and the actual increase of this debt during the
year was ~ 43S 1850. OF this increase 81 ,4O3,.
a2S7 ii was in the shape of advances to the other
roads: The paid-up capital stock of the road was
81 1897 600. This does not include the capital
stock Of the Eastern (New Hampshire road, which
is S492, 900. The funded debt, consisting Of mort
so Ssns sss5s s. ss9 se sens
for the foreign market, principle and interest pay
able in gold. This debt has been further increased
during the past year by an issue Of ~ 900, 900.
The new issue was called forto meet the pay
ment of land damages in Chsrlestown and 10 pur-
chase stock in Maine Central road and is repre-
sented in q way, though perhaps not 50 proftably
as might be desired, or - would yield good re-
turn TO the road in the present. whatever the pros
speclive value of it may be. The unfunded 'debt
incurred tor permanent investment was given at
Sl,4zo,1Al; The other debts, consisting Of cur
66; total unfunded debt in 1874, 81 658 45277 The
net income during that year was H9S8, 3l7.94 The
OF this to capital stock and debt IL
per cent The expense Of operating the road were
VI ,9Sl 63, being atthe rate Of ~ ,08944 per
mile Of road operatsd. This is not so high a rate
per mile Is that returned by the Boston 4 Maine