Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-09-29
IlaiIp sieuncbet Nouvnal
AUG u ct a.
WEDNESDAY MORNING.. Sept. 30, 1875.
THE EASTERN RAILROAD. y

THE EASTERN RAlLR0Ap.
The condition of the Eastern Railroad
Company is a topic of much discussion
and deeply interesting to The public All
known facts indicate that the company Is
in desperate strait. Like many o'hef
companies and individuals it has been try
mo 10 do too much business, has been bad
" managed, and has suffered IN cohse-
oueuce. Had the company been content
to .;let we'll enough alone and have been
less graspiug and greedy, it would have
been in sound condition to-day.
An article in the Boston Journal makes
an exhibit OF the affairs Of the road which
represents it in bad plight. The root OF
the trouble the writer says is that the road
is not now and has rot been for some
years able to pay the interest on its debt.
The annual reports have not fairly repre-
sented its condition. Its expenses nave
been more than appeared. For the last three
wears its debt and capital nave increased
one hundred per cent. while for the same
time there has been an Increase OF only
twenty -four per cent. in the annual gross
earnings. II has made large OUTLAWS and
rece;vaa no, corresponding heuoss. (.
made mistake in driving the Boston and
Maine out of the Portland and Saco lease.
and another when it laid its hand upon
the Maine Central and attempted to take
control of ii. The article in the
Boston Journal speaks OF the present con
dition of the company and its prospect as
follows:
A little over six months ago the Eastern Rail
road came into the market an open borrower by
public proposals. and now let us look at the stains
Is then gwen: The official statement, widely ad-
yertised gave the net earnings for the year ending
Sept 80, 1874, as "more than sufficient to pay all
interest," tax and rental charges BY 1896 81 .56.
which il in the surplus for the year.. The falla-
cy Of this Is shown above, but the facts were in
geniousy hidden by an array Of figures to suit the
case, and the public were unwilling to be enlight
enei. Then follows this pleasant announcement,
that after charging off certain extraordinary ex-
pensea" there remained "a balance of 1882 327 Al
earned forward to the credit ofthe surplus inc ONE
account" but omitted to state, what was probably
. :srs' that the whole Of which has bee" s'''''
We also find in this official statement that the
81 900 900 Of bonds then to be issued were for
the extingushment Of the entire floating debt"
and now i tina. was fact and Of course It was,
being "oficial," and signed Eastern Rail Com
pspy by John Woodbridge, President, how has an
other floating debt of two millions been created in
six months time This is point not made clear,
and when that Investigating Committee" shall
report, If ever, We hope to see full explanation.
he facta m rlpar thar he who
runs may read and tell Jus, too, if there was not
just . little deception pFsciccd as to the amount
Of floating debt six months ago. 1t is now stated
on the authority Of "a director that the proceeds
Of portion Of these bonds were used to purchase
stock in the Maine Central rosd in order to con-
troll the annual election. If this had been made
known ct the time the bonds we're offered, they
could not have been sold in this market for any
such purpose and the question comes up. What
right had the officers of the road to thus use the
money! It Is reported that the Eastern put
million dollars in this Maine Central stock, for
some Of which they paid as high as par, the mar
ket value Of it then being about $50 per share
(uow quoted $45 to 500. There is another mat
ter the Committee might enlighten US on, and it
is this: 'Has the Eastern invested { sunk half
. million in the stock of the European and North
American Railroadi' Possibly another slice from
the proceeds Of those bonds. We are told that
Of the director. are to %.sng q
showing the actual condition Of the property, but
that one Of them, and on the committee too, de
clsres that it shall be done, if by him alone,
1t Il reported also that the committee have found
the full extent Of the company's Indebtedness.
This is importan. if true, and probably the first
time such result has been reached. Now, the
committee are said to be searching round for a
schedule Of its assets when they are found we are
promised report. but this may prove more Sc
rious labor than they have calculated on. go that
the time Of our enlightenment is little indefinite
The following are the details of the Eastern
Railroad Company, as near as At is possible to get
At them In the absence of official information; we
assume that the whole of the Sinking Fund bonds
have actually been sold by the company, which is
denied in some quarters, but we have authority
for the statement that the floating debt is 81 200,
600, and the aggregate SI5 900 900, in round num-
bers.
4l,S5tt 40 Bonds per cent. $lll2l