Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-12-07
Mr.. LIBBY HAS HOPES.
Thinks that Watervi'le & Fairfield Railway and
Light Co. will Prosper.

Dealing with the future of the Water
vile Il Fairfield Railway and Light Co.
!. {. Libby. the president of the reorgan-
iZed company. gives out the following to
the press:
Mistakes We're made in starting this
company First, it was overloaded. there
being S1O0.000 of per cent. bonds issued,
whereas the amount should not have ex-
ceeded 100000 yet all classes of electrical
machinery We're dearer then than now.
and bonds in electric plants were more
uncertain than now. The bonds sold at
lower price. all taking their chances.
"One idea in the organization of the
company was wrong and has proved we'll
nigh fatal, and thatlis'The ENGRAVING into
the mortgage the putting up of a 10 per
cent. sinking fund. besides the $4,000 an
nuai interest on the bonded debt To
maintain this sinking fund proved an i'm
possibility. although strenuous efforts
were made to increase the earning cana
city of the road and to cut down eX-
penses.
THE company was obliged to default
the interest on the bonds. last May. since
which time the money has not been squan-
defed but every penny saved and paid
into the Nye water power, which had
been purchased for $4,000 when it was
discovered that more power was impera-
tive.
This company, after being reorganized
from horse railway company began
second year, 500. 900 the third. and Si2 900
the present year. This increase has been
brought about by increasing the number
of lights and furnishing motor power for
several industries. more of which are be-
ing moved by electricity in Waterville
today. than in any other city in Maine
THE electric current furnished by this
company Is engaged in making brick.
grinding grain, saving and splitting wood
planning boards and other lumber print
tip,o Ian, ,G,A
chine shops and many other lesser estab-
lishmentS. This department is profitable
and can be extended. The lighting SER
vice can also be increased when it is
made satisfactory at a reasonable price.
The management of tine company has
now been turned over to the bondholders
who will be responsible for the further
development of the plant by the expendi-
ture of the $4,000 raised by the reorgan-
ization: If businesslike management pre-
walls the new bonds will be made solid
and there will be a fair prospect of the
stocks becoming valuable.
Il am not ashamed of the financial
record of this plant since it has been OPP
Grated by myself. During these three
years have paid S30, 900 to the bondhold-
ers in interest; $4,000 to the stockholders in
since the interest on the bonds was de-
faulted have paid in from the earnings
OF the company 5000 on the Nye water
power, making $f',5W actually earned and
palu out IN tEree years.
Il claim that if the $4,000 obtained by
the reorganization is judiciously ex-
pended. first by an extension of the track
from the Plains up past the cemetery, up
SILVER street to Elm. then across Spring
to MAN, 1t would increase the earning
capacity of the road $5O0O
Then the lights can easily be increased
to afford revenue of $1,000 more and the
motor power can be made to earn $4,000 in
addition. Add SIS 900 to the present earn
ings, $4,000 and you have $57 600 of gross
earnings out of which the interest ac-
count must be paid of $4,000. which is no
changed from to per cent.
This showing would make the securi-
ties on this plant A No. l, but misman-
agement may change this truthful picture
to one OF clouds and storm 1t all re-
mains with the bondholders to manipu-
late