The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-09-27
S9,O25,l ,l6i SO Si7,569,s O3

The above figures are very expressive, show
ing an increase Of one hundred per cent: IN the
capital and debt an the three years, aohie for
the same time there has been an increase of only
t'oenty.four per cent in the annual gross
earnings.
The S2541, ,O3S. 80 of "property" is not de-
tailed in the report of 1874, but BY reference to
the state report we find the following items:
Land in Charestown not used mainly fats. .s636178
Pullman Palace Car Stock. at par. .......... $1,000
Portsmouth, Great Falls and Conway Bonds,
Portsmouth, Great Falls and Conway Stock '''''''
woltbordy' y Branch Stock at mar SS9SOS sSSSS
s2,O5O,s7s
This leaves half million unaccounted for
which probably went into ''odds and ends."
and the reader will see that there is shrinkage
of nearly three-quarters of million between
the market value of those assets and the par
value at which they were rated These several
statements are, we believe, enough to show
clearly some, as we first stated, of the causes
of depression in the stock. 1t is in a few words,
that the value is not there.
The writer then proceeds to notice "the pres
| ent condition of the company" A little over
six months since the Eastern Railroad went
into the market a borrower by public propos
ais. setting forth that during the year 1874 over
and above all charge, it had a surplus of
$3960O0OOO. The official statement was made
at the time that S2,O 100000 of the bonds then
issued was for the extinguishment of the en-.
| tire floating debt of the company He asks
| how does it happen that another floating debt
of 81, 900 has been created in six months if
the company has surplus revenue. The
| writer hopes that the Investigating Committee
| just appointed will clear up the whole thing.
He then states that it is understood that part
of the proceeds of the bonds recently sold were
used to purchase Maine Central stock, and fur
ther that the amount so invested was 81, ,O00,-
| 900, for some of which they paid as high as
par, the market value then being about $50 but
| now plenty enough at from S45 to $50. Tho
| inquiry is made if the Eastern invested tsunk?)
half million in the stock of the European &
| North American Railway?
The writer next turns to the debt Of the
| company, which he declares amounts to S15,-
| 900, 900 in the aggregate, and that it requires
81, ,230 ops to pay its annual interest and rents
| He further states that 'the ten year coupon
| notes of the company and the sinking fund
| bonds are down to Is cents on the dollar. In
fact these, and the floating debt too, are on
| the same basis, becau:e there is now no mort
| gage on the road.'
The article concludes as follows:
i
| How can the Eastern Railroad be extricated
from its present perilous condition? 1t is very
| evident that the funding" of the floating
| debt, iu the ordinary way, is not practicable, on
| any terms which would be submitted to. And
| even if this could be accomplished in satis-
factory manner, it would not bring the reqnr-
| ed relief. The corporation has gone beyond
| that The great trouble is that too much debt
| already er,sts and that the company cannot
| earn the interest on SO large a SUN. Whether
the somewhat popular Western plan of fund
| ing coupons, for several years ahead, the seal
| ing down of bonds, or converting present bonds
| into preferred stock would accomplish the
| desired result or could be carried out success
| fully, is matter for the consideration of par
ties in interest. That something of the kind
| must be done seems to admit of little doubS.
| But it is to be presumed that the Investigating
| Committee Ia report said to be coming in
about ten days. will present some definite
"plan' as they should be thoroughly convers-
| ant with the present condition of the corpora
tion, and able to point out measures of relief.
| 1t is very evident that the article is written
| by some one who is not friendly with the pres
ent management of the Eastern though it does
| not appear to be communication.