The Barre daily times. (Barre, Vt.) 1897-1959, 1913-12-15
Conference Report on New
England Conditions
Published
MISMANAGEMENT is
SOUNDLY SCORED
To 1t Is Laid Present "Crit-
ical" Condition of
the Road

the opinion that there should be a sub
stantial advance now, provided that sucl
additional revenue can be obtained with
out imposing upon the public unjust
land unreasonable transportation charges
and provided further that some assur'
ance can be given that the money viii
be prudently expended in the public in.
terest" This is the declaration of tho
conference of railroad commissioners
upon the proposition of the Boston &
Maine railroad to increase its rates. The
report of the conference was made pub
lie last night by the public service com
mission
Counsel for the company" says the
report, "claimed that such increase should
amount to at least $5,000,000 per year
To this we do not assent. 1t cannot be
known until the property is once more
efficiently and properly operated and I'M
til its lease-hold lines have been valued,
how much the advance should be-"
The commissioners also say that past
Encouragement is responsible for much
of the roads present difficulty.
The conferees who signed the report
were Charles A. Prouty of the interstate
commerce commission, Frederick J. Mac
Leod, chairman, and George w. Ander-
son, George w. Bishop, Clinton White,
and Edward +. Stone of the Massachu-
sets public service comission; Robert
c. Bacon, chairman, and William r. War
ner and Park II. Pollock Of the Yer
mont public service commission; Edward
c. Niles, chairman, and John T.. Benton,
and Thomas w. d. Worthen of the New
Hampshire public service commissioner,
and Elmer p. Spofford, chairman, and
Frank Keller, and John A. Jones OF the
Maine railroad commission.
The commissioners representing the
four northern New England states,
through which the Boston & Maine oper-
ates, conferred with Interstate Commerce
Commissioner Prouty in order that uni
formity of opinion and action might be
established between the federal board
and the various state boards. The inter
state commerce commission has no au-
thority to approve in advance SEIZED.
ule of rates and cannot, therefore, per-
NIT an advance. The railroad must first
file its schedule, which will then be ex-
amined and corrected by the commission.
The report of the commissioners has,
therefore, no official standing, but mere
" reflects what in their judgment is the
most advisable thing for the railroad to
do.
After reviewing the reasons leading TO
the conference of the commissioners, the
report says:
Bankruptcy Under Present Rates.
"The Boston & Maine railroad, upon
the basis of it's present rates, is bank
rupt. For the year ending June 80,
1913, it had remaining after the pay
ment of its fixed charges and its taxes
$4,000. In point OF fact, dividends ag-
gregating three per cent. upon the CAPT
tai stock were paid during the year, but
they were not earned. Comparing July,
August, and September of the present
year with the corresponding months for
the year 1912, we find decrease in net
operating revenue of 1857 900. From an
analysis of its operating expenses for
the year 1918. as compared with other
years upon the Boston & Maine and
with other railroads, and as compared
with the first three months of the cur
rent year, it seems probable that its in
come from operation will fall at least
81 100000 short OF what it was in the
year 1913.
1t also appears that certain of the
charges against this income will be ma
terially increased during the current
year as compared with the previous like
period. Owing to an advance in the
rate of interest, the interest charges viii
be increased approximately 100000.
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 secured, |
will be approximately 100000 larger.
It now appears probable that for the |
year 1914 the road will lack, if no in
crease in rates is allowed, 100000 of |
sufficient income to pay its taxes, its |
and its fixed charges, without |
The payment of any dividend upon its
sapital stock.
Due to Mismanagement.
"This deplorable showing is in part |
hue to the mismanagement of the COM
Dany. The Boston & Maine has out
standing S27 100000 of short-time paper
which it viii carry for the current year
It a charge of about 71s per cent, as
with 81 per cent for the pre-
,eding year. OF this short time paper
go, 100000 was used to purchase stocks
which the Boston & Maine now owns.
Assuming that these stocks may finally
,e worth the price paid, which is doubt
ul. their purchase at the time was ut
erly unnecessary and i'll advised, and /
he consequences of those transactions
'ught not to be visited upon the rate
laying public.
"The attempt of the New York, New
haven & Hartford Railroad company to
cquire control of the Boston & Maine /
ystem and combine that system in OPP
ration with its own proved disastrous
nd the effect is still obvious in the OPP
rating cost of the Boston & Maine COM
amy"
Net Income Diminished.
Operating cost has been increased and
let income diminished by number of
circumstances, chief of which were in
reased wages and per diem freight car
harges, the report says. After agree
ng that some increase in rates should
e allowed. the eonferees say that it is
perplexing question how this increase
hall be effected, but il appears thar
he additional revenue must come in the
lain from freight traffic.
The commissioners believe it inadvis- /:
III. sn,-,,ar Io,r | d,