Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-12-15

they were not earned Comparing
July, August, and September of the
present year with the corresponding
months for the year 1912 we find de-
crease in net operating revenue Of
$6S7, 900. Its gross operating revenue
for the month of october were approx
imately $4,000 less than for the cor
responding month in the preceding
year; no statement of operating ex-
penses for that month has yet been
furnished From an analysis of it's
operating expenses for the year 1918,
as compared with other years upon the
Boston e Maine and with other rail-
roads, and as compared with the first
three months of the current year. it
seems probable that its income from
operation will fall at least 81 900, 900
short Of what it was in the year 1913.
1t also appears that certain of the
charges against this income will be
materially increased during the cur
rent year as compared with the pre-
vious like period. Owing to an ad-
vance in the rate of interest, the in
terest charges will be increased APP
proximately 100000. The actual in
terest charge will exceed that for the
previous year by a much larger sum
than this, but this is in part offset by
income from property purchased.
Owing to an increase in the per diem
charge for the use of freight cars, the
item for hire of equipment, if the same
amount of business is transacted, and
if no greater car efficiency can be Sc
cured, will be approximately 100000
larger.
While it is hoped that the result will
be more favorable than the indication,
it now appears probable that for the
year 1914 the Boston & Maine Railroad
will lack, if no increase III rates is
allowed, $2,000,000 of sufficient income
to pay its taxes, its interest, and its
fixed charges, without the payment of
DeplorabIe Mismanagement.
This deplorable showing is in part
due to the mismanagement Of the
company. The Boston & Maine has
outstanding $27 100000 of short-time
paper which it will carry for the cur
rent year at a charge of about 1-2
per cent, as compared with IA per
short-time paper $4,000, 600 was used
to purchase stocks which the Boston
& Maine now owns. Assuming that
these stocks may finally be worth the
price paid, which is doubtful. their
purchase at the time was utterly I'M
necessary and i'll advised, and the con-
sequences of those transactions ought
not to be visited upon the rate paying
public.
The attempt of the New York, New
Haven & Hartford Railroad Company
to acquire a control of the Boston &
Maine system and combine that sys-
tenn in operation with it's own proved
disastrous and the effect is still OBJ
vious in the operating cost of the Bos-
ton & Maine Company.
The contract of the American Elk
press Company has often been re-
ferred to in discussions upon this gen.
erl asubject. Under that contract the
Boston & Maine receives IS per cent.
of the gross income of the express
company. Mr.. Elliott stated that ne
gotiations were progress which he
hoped would result in increasing this
percentage to As. AS applied to the
business of the express company for
the year ending June 80, 1913, this in
crease of 10 per cent. would amount to
nearly $4,000.
Upon the other hand. many things
have contributed to necessarily in
crease the operating cost and therefore
diminish the net income of this COM
pany for the last four years. First
among these is increase in wages. The
Boston & Maine had not paid upon all
parts of its system the standard east
ern scale to its employees, but, as we
understand the matter, within the last
three or four years this has been
changed so that, today, standard
wages are paid upon all parts of the
system to engineers, firemen and train
men. Wages have been materially in
creased in the last five years upon all
railroads, but the increase upon the
Boston & Maine has been greater than
the average.
The PerpIexing Qestion.
Assuming that the rates of the Bos
ton G. Maine are to be increased, it is
very perplexing question just how
this increase shall be effected. At
least two New England states require
the sale of mileage books, good to
bearer, at cents per mile. In the
face of these statutes it is impossible
to advance materially passenger fares,
and it is doubtful if public sentiment
would consent to such an advance.
Whatever additional revenue is OBJ
tanned now from increases in rates
must therefore come in the main from
freight traffic.
The proposition of the Boston &
Maine was to establish a single uni
form mileage scale over all it's lines,
and there are many reasons why the
adoption of such a scheme would be
highly desirable. 1t would, however.
entirely ignore traffic density and other
differences in operating costs which
should be considered if possible, and
the conference with some hesitation
finally rejected it Instead, we have
divided the Boston & Maine lines into
two classes. Glass A embraces the
following: Main lines between Boston
and Portland. Maine line between Bos-
ton and Concord, N. H. Entire main
line of the Fitchburg. Cheshire branch
and Troy branch of the Fitchburry