The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-15
BOSTON AND MAINE
IN NEED OF MONEY
Increase Of Rates, With Certain
Restrictions, Recommended
for Road.
MANAGEMENT is CRITICIZED
Declared to Be Responsible for
Difficulty in Which Com
pany Finds Itself.
Especial to The Tlmes-pispatch. !

tSpcClai 10 Inc IlmeS- DlSpatch.
boston. Mass, December l4.---An in
crease of rates, with certain restric-
tons. is recommended for tho Boston
/ ana Maine Railroad by tho report OF
the conference OF railroad commits
sioners OF tho four Northern New
England States and Interstate Com
merce Commissioner Prouty. The re
port. which was mado public Tonight,
also criticizes the management Of the
Boston and Maine. declaring 1t to be
responsible for the difficulties in which
tho road now finds Itself
The report says In part:
''Wo are clearly of tho opinion that
there should be a substantial advance
now. provided that such additional
revenue can he obtained without i'm
posing upon tho public unjust and un-
reasonable transportation charges. and
provided. further, that some assurance
can be given that tho money will DO
prudcntly expended In the public in
tereet
Counsel for tho com pany asserted
that such increase should amount to
Ut least 100000 per year. TO this
we do not assent. II cannot DO known
until the property is once more ef-
until Its leashold lines have been
valued. how much the advance should
be-"
After reviewing tho reasons leading
10 the conference OF the COMM s sionors,
the report says:
The Boston and Maine Railroad.
upon the basis of It's present rates. is
bankrupt For tho year ending June
30. 1913. II had remaining. after the
payment OF Its fixed charges and It's
taxes. $4,000 In point OF fact, divi-
dends aSGrcgating per cent upon the
capital stock were paid during the
year, but they were not earned
I,,1,
tcmbcr of the present year with the
corresponding months FOR the year
1912. we find n decrease In net opcrat-
ing revenue OF S6s7000.
1T seems probable that Its income
from operation will fall at least ST.
100000 short of what it was In the
ycai 1918
1T now appears probable that for
the year 1914 tho road Will lack, If no
increase in rates is permitted, 81
100000 OF sufficient income 10 pay its
taxes. Its interest and its fixed charges.
without the payment OF any dividend
upon It's c. pital stock
This dcplorable showing is In part
due to the rismanagemento OF the com
rany. The Boston and Maine has out
standing s27.000,o0O of short time
paper. which II will carry 1or the cur
rent year At charge OF about IL
-. - y" "'''i =" IA per
cent for the preceding year or this
short-tine paper S20.0OO,O00 was used
10 purchase stocks which the Boston
and Main. now owns Assuming tina,
these stocks may finally be worth tho
price paid. which is doubtful, their
purchase At the time was utterly un-
necessary and ill-adviscd. and tho con-
sequences OF those transactions ought
no to Visited upon the rate-payiny
public
The attempt OF the New York. New
Haven and Hartford Railroad cam
pany 10 i.cuu,re control of the Pos
ton and Maine syo;e.n and co1nb.,a
that system In operation with lts ow,
proved ci.n;trous. and the effect IL
sun obvious In the operating cost OF
inc Boston end Maine Companv"