The Republican journal. [volume] (Belfast, Me.) 1829-current, 1905-10-19

IMPROVEMENT OF THE MAINE CEN
TRIAL.

What Leading Railroad journal Says of it..
The lines of the Maine Central Rail
road Company radiate from Portland
Maine, northwest through the White
Mountains to Lime Ridge in Quebec,
Canada, and northeast to Vans borough,
Calais, and PASSPORT on the New
Brunswick boundary of Maine. The
most important section of the road is
included in that portion of the State
which lies between Bangor and Port
land. For the year just closed, the fol-
lowing statement of earnings and ex-
penses shows the results of the COM
pany's operations to be highly salts
factory:
1905. 1904. Increase
Gross earnings from
OPP ration, ....s 7,251,535 s6.912,ss1 s33s554
Operating expenses
and other charges. 5226.2o2 SOL ,543 1874 $3.50
Net income ....... 2,110,066 1,s9o0iS 2l9,9SS
Out of the net income for the year of
S2,110,066, taxes, interest and rentals
required 81 ,43S, 135, leaving balance of
net income over fixed charges of S671,-
$50. Deducting S144, sos for sinking
fund payment leaves a balance avail
able for dividends of s527,2 The
stock capital of the Maine Central is
unusually small, being only S6,l2O per
mile as compared with S14. 59l of fund
ed debt. This small capitalization al
lows a dividend of seven per cent to
be paid on the stock, which requires
only S34s, 800, and leaves a surplus
Of SlISS7l to be transferred to con-
tlngent fund. The conservative pol
icy OF the Maine Central in the dis
tribution of it's income is responsible
for the remarkably low capitalization
OF this company, which we have seen
to be only S2o,71l per mile for both
stock and bonds. The practice for
many years has been to charge the cost
of most of the capital expenditures to
operating expenses. During the past
year for example, the cost of maintain
ing way and structure per mile of road
reached the high figure of s1.51 per
mile: and in addition to large expenses
for maintaining equipment, Sl91, 1913
was spent for new equipment
The conservatism of the management
of this company is also seen in the fact
that while, during period of ten years,
the operating expenses have increased
from 50, ,61e to 81, $40, POP, or 1904 per
cent, the total charges against the net
income for interest and dividend pay
ments, rental and sinking fund have in
creased within the same time only S55,
4S1. A large amount of the company's
net income has been accumulated to be
held in reserve for future contemplated
improvements of its property.
The largest items of the Maine Cen
trail company's freight are fuel, grain,
lumber, paper, wood, wood pulp and
potatoes. The tonnage increased 276,-
$40 tons over 1904 and, as with the
Boston and Maine, this increase was
well distributed. The company is main
ly dependent for its traffic upon the
wood pulp, paper and lumber industries
of Maine, although some manufacture
ing industries are located within it's
territory. The supplying of fuel
material and merchandise to this large
territory results in traffic movement
more evenly balanced than is the case
with many other railroads whose out
bound traffic consists mainly of light
manufactures, and is largely response
BILE for the high revenue per ton per mile
OF 1.O7 cents as compared with lis cents
on the Boston and Maine, which latter
has much lighter percentage of high
class freight.
The present report of the Maine Cen
trial is the forty-fourth of that COM
pany, and is made by it's President Lu-
clus futile, indicating that it is con-
trolled by the Boston and Maine, of
which Mr.. futile is also PRESIDENT
The Railway World.