The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-07-01

Decrease, 1882 to 1898. .123.561
One result of the cheap transporta-
zion movement was report to the leg
1siature of a special commission. main
ly the work OF Mr. Crane This devel-
oped his plan of state ownership and
the gradual absorption of the capital
OF the railroads through their own
profitable operations. Bills were report
ed Tor the purchase of all our principal
railroads, some of which were to be
consolidated; the Old Colony and Prov
adence, for instance AS was to be ex-
pected, the friends of the railroads
were su1nciently strong to defeat the
eEorts OF Mr. Crane and his friends
inc Boston q Albany is the only rail-
road which has not been consolidated
or changed, so that it's condition today
resembles that of 1870, when c. ane bills
We're under consideration The bill pro-
yiding for the purchase of the Boston &
Albany authorized the governor and
council TO appoint thirty corporators.
VINO We're TO organize under the name
OF the Boston g. Albany railroad trust
me corporators were to choose a presi-
uent. TT As-surer, clerk and five directors
Tne directors to be chosen from the cor
porators, but not the president and
treasurer. Six Of the corporators were
TO be retired each year. The new trust
was to have all the powers of the old
BOSTON q Albany, except the right to
issue ponds: The capital OF the trust
was to be $40,00o000 in shares of 500
eaeh, which were entitled to dividends
OF $3.50 per share every six months
from the net earnings, until January
1891. Of this capital $4,000 shares were
10 be issued to the treasurer of the
state of Massachusetts,, in trust. as a
railroad sinking fund, the income from
Malcn was to be invested in the pur-
chase or the stock held by individuals,
provided the treasurer did not have to
pay more than S115 per share In Jan
nary, 1890, the treasurer was to take
all the outstanding stock at par, and
make up to the holders any deficiency
~ the seven per cent dividends of the
trust
The remaining 100000 shares of the
trust were to be used in purchasing the
sold Boston & Albany stock at not ex-
rceeding $123 per share for stock and mar
for its bonds. In case the trust could
not secure the stock at $123 per share,
t-or less, in exchange for the new stock.
e was to have the states power to
take the road under the ten per cent
clause of the Boston & Albany's charter
of 1867.
The property of the trust was not to
pe subject to taxation, but stockhold-
ers were to be taxed separately upon
The market value of their shares. This
was shrewd idea of Mr. Cranes to
keep the value of the stock down. so
that 1t could be purchased at a rea-
sonable valuation. Whenever the
state secured all the stock, the first
tniqg TO be done was to reduce freight
ana passenger rates to such an extent
mat they would only pay the working.
expenses of the road. Mr.. Crane claimed
that of the 100000 capital, if SIS.
100000 was issued to the state. it's divi-
dends OF seven per cent annually would
purchase the balance of 1922. 0OO. 900 at
an average of Sis per share, in IL
years and months; that is, the first
ssrn dividend would purchase
o4fS SHARES at $115, and the 25th diyi-
dend 1880 shares at the same rate. re-
curing $25. 300, 900 in all.
our cheap transportation apostle es-
minated that as the Boston and AL
Dany's traffic from 1889 to 1868 had in
creased in f1ve-year periods at an aver
age rate of 3S1s per cent. the same rate
or increase was to continue in the fu-
ture, but Mr. Crane did not take info
account the fact that cheap transpor-
ration was to come even without his
railway trust, and instead of traf-
nc for the five-year period from 1879 to
1883 inclusive of $4,000, 000 as he pre-
dicted, the Boston and Albany's traffic
Tor these years was SO per cent less
or $3S, 900. 900, and in 1898 the gross earn,
,ngs on the same road were half a mil
lion less than in 1873.
In 1873 1t cost the Boston and Albanv
725-lO00 cents to move each passen
ger or ton of freight. one mile, while
IN 1888 It's report shows that this cost
had been reduced to 727-1OOO per mile.
An illustration Of the reduction in rates
IS shown in the fact that in 1868 each
passenger upon the Boston and AL
bany paid the road 63K cents as On
average, compared with 35K cents in
1898; so of the freight traffic. The
average payment in 1868 was s2.51 per
ton compared with only "a cents in
In looking over the reports of the
Boston and Albany to arrive at some
conclusions as to what the result would