The Portland daily press., 1884-12-29

Kn.,ern and Boston * Maine.

Eastern was steady at As Saturday and Bos-
ton & Maine lower at 1861. Eastern u held
| their own at 115 3-S. A recent remark that
Eastern 6s were being bought for exchange
into preferred stock when the balance above
S1OOO0OOO were converted, as heretofore and
now contemplated, created some surprise, the
| argument being that nobody would surrender
guaranteed per cent. bond (Which this
practically is, under the lease to the Boston b
| Maine) for preferred stock. Why such ex-
change should be made will appear when It is
stated that the preferred stock would bo guar
anteed the same as the bonds, and the stock
would enjoy the guarantee until 1887, whereas
| it would mature in 1906. A guaranteed per
cent. stock in a Massachusetts, corporation is
valued at 40 or better; guaranteed bond 10
OF less vaiue. And even after the expiration
| Of the Eastern lease the preferred stock would
| be lien next to the debt. Eastern railroad
people have prepared statement Of their
hopes for the near iuture under the lease, and
| il will be found interesting reading. They
| say: The last annual reports show the fol-
| lowing:
Eastern earnings ngs..................S3 s. 81. .59441
Boston Maine earnings. ............ 3oO1 ,SO3.1"
Total earnings. Dgs......................s65 57s, ,897,7
EnsfS5e MsinS es1gS:s. s1gSHss. ssS5sss 2sS5,sss
Total expenses. ............ ...... 81, ,s9s, 1886
Eastern rental tal..............-.... s2is,sSo.oo
Maine rental .-........"......... 90,l25.0o
Total. ......."........."....... $3OS, ,455.Oo
-------
Net earnings. ,94l ,0O7 90
The above would be appropriated under the
lease as follows:
Eastern fnterest .......-...-. e885 ERA OF
Maine interest. t....................... 240,OUOOO
Total interest. 100. .5549I
Surplus. ss4O, ,452 90
Maine dividends per cent........... 63O,OoO.OO
Eastern sinking fund. .......... 1O0,oO0.00
Maine per cent. extra. .........,,.. 100000
Leaving balance of.............. Of S4O,452.O9
Estimated economies Of joint man
Estimated benefit 20 earnings from
charging construction 10 improve
ment bonds, as per lesse........... 200 10000
Total balance ..................... AtO, ,452O9
=--@
OF such amount the Eastern would be en-
titled to 1886 900, making the total payment
to the Eastern under the lease 81, POI ,554.91
or enough to pay interest, sinking fund TO
quirements and 6 per cent on the common
stock. This stock could not share In the earn
ings, of course, until the bonded debt was re-
duced to $40, 900, as before mentioned. 1t
is said to be the intention OF parties in interest
to obtain legislative permission this Winter to
make such reduction of debt by the issue Of
preferred stock as above. Eastern people are
perhaps a little sanguine in this matter of
dividends, but 1t does look though that,
under wise management, there might be some
thing for the stock in the course Of few
years, always supposiDg the preferred stock
programme is carried out. General Manager
Furber is quoted as saying that II the roads
can show earnings for three years equal to
thoss Of the last three years, there will be
something to divide among the common stock
holders. 1t is faith in the prospects OF Eastern
stock which has caused the late advance.
Minor Notes.
General Manager Furber issued an order
Saturday that on and after January 1st, 1885,
no passes will be Issued to employees, who. IL
they ride on the roads, must pay half fare.