The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1877-02-08

at the end of the year did not 90 into the com.
putation of the cost of running the road Also
no materials account was kept on the ledger,
aithough reported by the superintendent 50
materials on hand at the beginning of the bust.
ness year and only $4,000 at the eud, or uice
UerSa, no notice of the same was usually taken
in the computation of the net earnings 1t is
| true, however, that balances in the materials
account" if one had been kept, operated both
| ways, sometimes to incres Sc and sometimes to
| decrease the net lncome,-the increase Of the
actual over the ledger earnings in 1870 and 1871
| IN the table oelng accounted for In this way.
Prior to 1928 Mr.. Chase is of the opinion,
| also, that in many instances legitimate operat-
| ing expenses have been charged to constructive
| account, thereby increasing the apparent net
| earnings. lu reference TO this matter, the then
situation OF the road ought to be taken into ac-
| count; the new part beyond Saco river was IN
| the course OF construction, and the old portion
| was being rebuilt, aud it was no doubt very
difficult to separate the items which should 60
| into construction and those which should 60
into operating account 1t would be very nat
| ural for those carrying on the enterprise and
| desrous to make as good show as possible to
i put all doubtful items in the latter. At that
time too. the proper classification of railroad
expenses was not so we'll understood as now
| But making all due allowances and imputing
no wrong intent to anybody, it must be said
| that these statements of net earnings are want
| ing in the care and accuracy which should
characterize reports of this kind, on which the
| public in their dealings with the company s
securities. and in making loans to it. had a
| right to rely.
| AS to the report of last year, the Commits
/ soners are satisfied that it was intended teIbe
| correct. Materials went into the account and
all outstanding bills known at the time it was
made up were included. Since, other bills
| have come in, which with some minor correc-
| tions, make the difference between the reported
| and actual earnings.
1t will be seen by the foregoing table that the
net earnings for the last two years have greatly
fallen off, notwithstanding the connection of
| the road with the New York line. This is
mainly attributed to running fast through
trains to maintain this connection, without s1f-
hclent remunerative patronage. and also to the
general depression in BUSINESS particularly in
the lumber trade, which had previously fur
nlshed large proportion of freight for the
road. The commission are of the opinion that
the directors We're justified in making
thorough trial of running through trains and
thus carrying out the original design and pur-
pose of the construction of the road. They
would probably have been subjected to censure
it they had done otherwise. Latterly, the ex-
pertinent having proved unsuccessful, ,one fast
train has been withdrawn, making very con-
siderable reduction in operating expenses, and
an indirect saving in the wear and tear of the
rolling stock and road. The management of
the road has been very economical. The sala-
ries OF the officers could not we'll be lower, the
pIcsluOut IcCclViDS Uuly 9OUU ana Gu6 SuD6rlQ-
tendent. acting also as master mechanic, receiv-
ing only $1,000 per annum the whole annual sal
aries amounting to only $4,000. The payroll has
also been reduced to the lowest limit. The
managing directors have given much time to
the concerns of the road, and have freely lent
it the credit of their individual names without
com mission or other compensation, and they
have apparently made every possible effort and
exercised all ingenuity, to attract and create
business. The unsuccess OF the road results
from no fault of theirs.
The condition of the road-bed is generally
fair, and will compare favorably with roads Of
its class-a very marked improvement having
taken place within the last two years, both
according to the report of Col. Wildes. who
went over the entire length of the road, and
also of the railroad commissioners. Col
Wides reports in detail the reparation and re.
newals which he deems necessary the present
season, amounting to 100000, including the
special expenditures hereafter noticed, Deduct
ing these, it is hoped that the road for the next
year will get along with the usual percentage
of operating expenses allotted to maintenance
OF way. But the most important exception to
the general condition of the road is the bridge
over the Saco River at Buxton, which has be-
come defective and unsafe, and which the rail-
road commissioners have notified the directors
must be Immediately rebuilt. The estimated
cost of so doing is $1,000. 1t would be very
desirable and economical. too, in the eud, fer
the Company to leave the uncomfortable and
dilapidated building now occupied for its
station in Portland under a rental of $4,000 per
annum, and erect modest inexpensive station
on its own land at the foot of Preble street.
This could be done, it has been estimated, for
sum equal to the rent of the old station for
two years.
The foregoingis summary of the present
condition of the road, as faithful and accurate
as the commissioners are able to give it. The
upon, but it is hoped that it may be profitable
one for warning, instruction and example.
There is nothing to be done but to accept the
situation with all due equanimity, and to bear
the burden which this enterprise has cast upon
the city with all due patience. There is no
Immediate prospect that the city will realize
any ything from the revenues of the road towards
the payment of interest, at least for some years
to come. There is no hope that the city has
any security for tine last, or $450,0OO mortgage.
The first or $500 900 mortgage to the city, and
the seven per cent. $3.50 900 mortgage, if the
action OF the City Council in putting them
upon an equality was valid, exceed the value of
the mortgaged property. There are, however,
some Indications that the road has seen its
worst days and arrived at its lowest estate.
Many cherish the hope that connected as it is
at one end with the Grand Trunk, Maine Gen.
trail, and Portland & Ogdensburg roads, and at
the other, by means of the Rochester &
Nashua with the whole railroad system of the
country, and forming, as it does continuous
and direct line from Portland to New York
City, that it has yet future, and that although
ltS Tails udy never VI C0Ok6u WIFI urdIuC, IL
may yet do moderate safe business, sufficient
to pay the interest on its Indebtedness. All
our citizens would rejoice in the fulfillment of
this hope; for no railroad has been regarded
with kindlier feelings than this road, by them,
as is shown by their generosity to it.
But, as far as the city is concerned, the rec
ommendation of the commission is that, at the
proper time, whether Immediately, or at some
more favorable time hereafter, is to be consid-
cred, and at such valuation as the city govern
f,l 81; ;bnr
and fair negotiation, may fix, the city sell and
dispose of its interest in this railroad, and the
proceeds be put into the sinking fund for the
redemption of its bonds issued for its benefit,
as far as said proceeds will go. The commits
Sioners do not consider that it falls within their
province to suggest the valuation.
In the meantime, before such sale, the COM
missoners could not advise this city to take
possession of the road, and be subject to risks
and responsibilities of running it. 1t is supposed,
also that the bondholders secured by the $780,
600 mortgage, do not desire, through the trus-
tees, to incur like risks and responsibilities.
The money to build the bridge, and meet other
expenses in advance of the receipt of earnings,
must be raised in some way, or the road must
cease running, the directors very naturally de-
clining to furnish their individual credit under
the circumstances. For these reasons the COM
mssiOners have recommended that ths road be
put in the hands of Receiver, to be operated
under the direction of the court, by order of
which all necessary funds may be raised and
needed expenditures made, and at the same
time the rights of all parties fully preserved.
Mr.. Wescott, the president of the road was
agreed upon by all parties in interest for such
Receiver and accordingly has been appointed
and is now in possession of the road.
PORTLAND AND oGDENsBURG RAILROAD
We pass now to the affairs of the Portland s.
Ogdensburg Railroad Company This COM
pany was chartered February II, 1867, to open,
as indicated by its name, Ike the Portland &
Rochester load, another line of communication
from this city to the West, and also to secure
to us the trade of northern New Hampshire
and of Vermont. On the 2Sth of the same Feb.
ruary, the general act already alluded to, was
passed, authorizing cities and towns to grant
aid in the construction of railroads to the ex-
| tent of five per cent of their valuation, if ap-
proved by two thirds vote of their electors in
| their town or ward meetings, duly assembled.
Whether the charter and this act passed the
same month had any connection does not ap-
pear. The city seems to have been ready to
avail itself of the privilege thus granted of
| appropratiDg its funds, and at ward meetings
held in April, by the requisite majority, $780,
900 was voted, by acay of loan, as we have before
| seen in aid of this road, and the Portland &
| Rochester. But to accept this aid as the Port
| land & Rochester did, as a loan would make
| this city creditor OF the Company and first