New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-15
Commissioners Ask AsSur-
ance Money Will Be Ju-
diciOusly Expended.
ROAD is BANKRUPT
ON PRESENT BASIS"
Dividends Unearned, Says Report
-Deplorable Condition Blamed
on Mismanagement.

Boston, Dec live are clearly OF
the opinion that there should be sub
stantial advance now. provided that
such addti lal revenue can he OBJ
tanned without imposing upon the pub
liz unjust and unreasonable transporta-
tion charges. and provided further that
some assurance can be gwen that the
money will he prudently expended in
the public interest" This is the dec
laration of the conference Of Railroad
commissioners upon the proposition OF
the Boston e. Maine Railroad TO in
crease its rates. The report of the con-
ference was made public tonight by
the Public Service Commission.
Counsel for the company" says the
-eport, claimed that such increase
should amount 20 at least S0,oo0eU a
wear To- this we do not assent. 1t
cannot be known until the property is
once more efficiently and properly op-
Grated and until ITS leasehold lines have
been valued how much the advance
should be-
The commissioners also say that past
nismanagement is responsible for
much OF the roads present difficulty.
The conferrees who signed the re-
port were Charles A. Prouty, Of the
Interstate Commerce Commisslon'
Frederick ]. Macleod, chairman, and
George w. Anderson. George w.
Risbop. Clinton White and Edward
r stone of the Massachusetts PUBIC
service Commission; Robert {. Bacon
hartman; William r. Warner ana
Park II. Pollock. Of the Vermont Pup-
lie Service Commission; Edward {.
Niles chairman. and John +. Benton
and Thomas w. D. Worthen, of the
New Hampshire Public Service Com
mission. and Elmer p. Spofford. chair
man. and Frank Keizer and John Il.
Jorcs. of the Maine Railroad Commits
sion.
No Official Standing.
The commissioners representing the
four northern New England states
through which the Boston & Maine
,rcrates conferred with Mr. Prouty'
Interstate Commerce Commissioner, ~
order that uniformity Of opinion am
action might he established between
the Federal Board and the various
state boards. The Interstate Com
mcrce Commission has no authority 10
approve in advance a schedule OF rates,
and cannot therefore permit an ad-
vance. The report Of the commission
ars has. therefore. no official standing
out reflects what is the most advisa-
ole thing for the railroad TO do.
The report SAYS, in part:
The Boston & Maine Railroad upon
the basis of its present rates is bank
rupt. For the year ended June 80, 1913
IL had remaining after the payment OF
it's fixed charges and its taxes. $4,000.
in point Of fact, dividends aggregatins
2 per cent upon the capital stock were
paid during the year, but they we're not
earned. Comparing July, August and
September of the present year with the
corresponding months for the year 1912
enue Of s6n,000
1T now sspears probable that for the
year 1911 tho road will lack. If no in
crease in rates is allowed, S2,O0O,Oo0 OF
sufficient income 70 pay its taxes. its
interest and its fixed charges. without
the payment of any dividend upon its
capital stock.
Encouragement Blamed.
This deplorable showing is in part
cue to the mismanagement of the COM
pany. The Boston g. Maine has out
standing $27,OOO,OOO Of short-tirne pa
per, which it will carry for the current
year at a charge Of about ~ per cent,
as compared with 5A per cent for the
preceding year. OF this short-time pa
Continued on second page, fifth column.