The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1913-10-03
BOSTON & NAMES
FINANCIAL NEEDS
Basis OF Rise in Proposed
Freight Rates
HEARD By COM'N'R PROUTY
Officials Say They Must Have s3o-
100000 to Insure Safety ard
fficienty.-Passeneer
Service lnterferes.

Boston.-General Solicitor Edgar J.
Rich and General Manager Benjamin.
r. Pollock OF the Boston & Maine rail-
road uncovered the financial and oper-
ating difficulties of the road at a hear
ing given before Interstate Commerce.
Commissioner Charles A. Prouty, sit4
ting with representatives Of the public
service commissions of Massachusetts,
New Hampshire Vermont and Maine.
on the request Of the company 10 in
crease its freight rates
The operating deficit of s1,924, ,441.1S
which occurred during the year ended
June 80, 1913, was explained in de-
tail by these two men, assisted by
Vice President William j. Hobbs, the
company's financial expert. How
much money is needed to reha5ilitate
the road and put it in a position to-
insure safety and efficiency and how
to raise the necessary funds are the
two main questions which must be-
considered by the commission.
Mr.. Rich declared that there waG
during the next few years. Mr.. Pol.
lock dwelt emphatically on the need
Of expansion for freight traffic.
The money needed, Mr.. Rich claim.
ed, could not be secured through the
exercise Of economies in any direc.
ton, nor in any other way except
through increase in rates.
The Boston e. Maine has exhausted
practically all known economies" he
claimed He said that the public
must be prepared to pay $5,000,0 ,000s
which means an increase on the aver
age Of somewhat more than 10 per
cent. in passenger and freight rates.
if it desired safe and fairly efficient
railroad. The proposed increase in.
rates and the additional income that
it would yield would operate in favor
of public and stockholders together,
he said
Atty. Rich opened the hearing With
a discussion Of the roads physical
and financial condition He said in
part:
"Over s30,000,000 is imperatively
needed during the next two years for
improvements and betterments. Only
by a material increase in rates can.
the road be placed in position where,
its stock will sell at par. When earn
ing power is re-established and the,
stock reaches par or higher the finan.
cial problem is solved and the Boston
& Maine will become an efficient pub.
lie servant"
David o. Ives, of the Boston Cham
ber Of Commerce, stated that so far
as be was able to learn the shippers
in general were not opposed to the
road at this hearing. He said there
was a general feeling that the rates
needed a radical supervision. The
shippers, he said were there to help
secure an adjustment of the revenue
of the road even TO the extent Of an
advance, in order to secure needed
Improvements.
Morton c. Bradley. assistant to the
general solicitor. testified that he had
computed the total value of the road
to be $230,O00,O00 and the capitals
zation was 100000.
He stated that the passenger SER
vice Of the B. & M. was continually ins
terfering with the freight traffic.
which is not true on the New Haven
because the latter has large freight
yards which are distributed far out
on the lines. The New Haven, he
said, does not have TO cross passenger
divisions the way the B. & NJ. does
AS a remedy, Mr.. Pollock suggest.
ed enlarging the freight yards. the
present small yards making a large
amount of switching necessary. bring
ing up the cost of rehandling freight.
He also suggested four.tracking the
lines where traffic is heaviest.
Mr.. Pollock stated that he thought
the efficiency of the road fairly good
considering the facilities. In answer
to a question by Commissioner Prouty
as to how he reconciled that state
ment when the cost of operating the
B. & NJ. was 10 points higher than the
New Haven, Mr.. Pollock said the New
Haven figures were lower because OF
the better facilities at hand for handl-
ing the freight business