The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1891-03-28
THE WESTERN MARYLAND ROAD.
Some Interesting Statements from Pres
ident Hood about ITS Finances.

Speaking of the quotations from the circu-
lar of Hambleton 4 Co.. President Hood, Of
the Western Maryland Railroad Company,
saws at would probably cause surprise, in
view of the criticisms, to hear that it was upon
the motion of Mr.. T. Edw Hambeton, when
a director of the company and member of
its finance committee, that payments of inter-
est to the city were suspended until the float
ing debt of the company was hquidated.' =
Mr.. Hood said ''that in view of the dispar-
aging showing made for his company in that
circular" he desired to say ''that in the years
named, 1883 to 1889, the following amounts
of interest upon main and branch lines were
paid: 1888, $3.50, 1872 "a, ($7I 1924 to the
city;) 1884, $1S9, 1922, lefty 81 1929 1885,
$l95, 1893. 40, (city S7S, 113.40;) 1886, Sl97,
333 40, (city $40, 453. 400 1887, S211, G5S.90,
(city $l34, 1873. 400 1888, 1912, 3SG.40, lefty
$134, 1873 40; 1889, Sl75, 295. 80 (city $50, 49,.
SO)
Total interest payments on funded debt
during the seven years, l,371, 722.34. Paid
to city 1856, 9S5.S4, instead of S300,070, per
the Hambleton statement. This exhibit, it
is believed, cannot fail to inspire eonfiloseS;
in the future of the road.
The Hambleton statement is equally mis-
leading as to the amount of the company's
fixed charges, for with the Hillen Station
loans and all mortgages upon main and
auxiliary lines considered, the statement is
$40, 111.14 greater than the actual figures,
while, on the other hand, the Baltimore and
Harrisburg net earnings are excluded in
showing the earning capacity of the property.
Interest upon the floating debt was of
course paid in addition to the above, but this
is rapidly lessening. The company's earn
ings having materially increased during the
period in which the payments to the city
have decreased, the latter could be readily
maintained now but for the desirabilty of
discharging the floating debt. Up to this
time the company was paying interest on
everything (which it will soon resume) except
upon the third mortgage bonds, 1915, 900,
and the 81, 100000 of city stock loaned the
company, or total of $1,S75 200, which,
with the important connections now in pro-
gress, will also be taken care of in the near
future.
In this connection it should be borne in
mind that this Indebtedness now bears per
| cent interest, while at maturity it can be
| liquidated by the sale of an equal amount of
| 81 per cent. city stock, thus reducing the
interest from $112, 500 to sos, CPS and effectng
| an annual saving of $46,875.
As one of its greatest contributors of local
| business, the company has already much
more than repaid the city for all aid extended.
| The road in one year had net earnings of over
100000, or per cent. on $1,000, 900, but
as the property has been in transition state
| from Il worn out iron road to a fully equipped
steel one, with iron bridges in place of wooden
ones, and other appointments to accord, this
| entire amount was not all available for inter
| est purposes. With its new extensions and
| through connections, the net earnings must
| at least be doubled, or say per cent upon
| SIC, 1000, 900, with only 500, 900 increase in
fixed charges. 1t would, therefore, be moth
| ing short of madness to consider such
| proposition for the property as that reported
to be in preparation by the West Virginia
| Central.
''After the blast of trumpets over the pro-
posed purchase of the Western Maryland and
controlled lines by the West Virginia Cen
trial, it is humiiating to this company TO find
an expected offer of at least SIS, 100000 for
| the property dwindle to one to lease on the
basis Of per cent. on $4,000, 900. This
would require no capital on the part of the
lessee, and even on the basis of the compa-
ny's present local operations would yield a
handsome profit. If the city is willing to
entertain proposition to lease, am salts
| fed that "a party representing q most valuable
| combination of railroad interests to Balti
more can be made up to do twice or three
times as well rs the alleged offer of the West
| Virginia Central, with the advantage that
such proposition will not only be entirely
clear of the possibility or danger Of being in
| the interest of competitor, as is strongly
suspected in the West Virginia Central case,
! but will bring two new lines to Baltimore,
both powerful systems, as well as provide
accommodation for any West Virginia Cen.
trail business which could come here under the
other arrangement"
The $l,S75, 900 above referred to was re-
garded as sunk many years ago, just as were
millions of the citys contribution to the
Northern Central, Pittsburg and Connellsville
and Valley Railroads, so why be unhappy
over this case more than the others, particu-
larry when there is good chance Of recovery
here, while the others have long since been
virtually stricken from the books? 1t is the
charging up Of interest on what was once re-
garded as sunk which has given the present
proportions to Western Maryland financial
showings
Referring again to the intimation of n pos.
sible scaling TO 81, 100000 and lease at
per cent. upon this amount for the accom-
mediation of the West Virginia Central, may
ask why such scaling in favor Of the home
company has never been suggested?
1t would place it in high credit and enable
it to accomplish wonders for the city. While
we have heretofore been too modest to ask
such liberal treatment, Notwithstanding the
roads contributions to the trade of the city,
if it is to be offered prOmiscuously, We would
like to have the refusal of it before it is ten
dered to a corporation of another State, par
ticularly when the scaling applies to this
company and not the West Virginia Central.
The number of hogs packed in Cincinnati
7 al. II