New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-24
PAID IT'S DIVIDENDS
FROM SURPLUS FUNDS
Witness Says Boston & Maine
Railroad Did Not Earn Re-
cent Payments Made.
HIGH RENTAL FOR HAMPOEN
Operations of the Maine Central
Also Taken Up in the Hear
ing on the New Haven
System Operations.

Boston. April 23.-Afars OF the Boston
6 Maine and the Maine Central railroads.
both subsidiaries Of the New York. New
Haven & Hartford. were taken up at to-
days hearing by Charles A. Prouty, In
terstate Commerce Commissioner. on the
New Haven system. Vlce-Presldent
George 5 Hoobs OF the Maine Central
road was on the stand for short time,
but the greater part OF the day was de-
voted to the examination Of W. J. Hobbs
financial vlce-president of the Boston &
Maine. Most OF the questioning was by
Louis d. BrandeIs attorney for the Bos-
ton Fruit and Produce Exchange.
George s Hobbs said that on June 3d.
1912. the capital stock Of the Maine Cen
trai was 80 $4,000. with a funded indebted
ness OF ss33O.G1 on April !. 1913. the
capital stock amounted TO s2i.701 .io5. with
a funded Indebtedness OF s. ,s6l 500.
The witness described his roads con-
nection with the Portland Terminal Com
pany and the Kicker Hotel Company ana
real estate purchases at Bar Harbor. lie
said the 81 10000 capital stock OF the ter
Central. which purchased $4,000 at par
from the terminal company and the bal
ance from the Boston & Maine Railroad
at Sl20 a share. The terminal company
pays annual dividends OF per cent, de-
rived from rental and from the income of
its repair shops. The hotel properties
represent an investment by the road Of
about 81 4DDoI0 he said
Paid Dividends on Smaller Capital.
MI Brandeis brought out the fact
that previous 10 the New Haven : con
troll Of the Maine Central the road had
paid dividends. increased its service
provided betterments and obtained add
uonal business without any substantial
Increase Of its capital
". J. Hobbs. of the Boston & Maine
was questioned by Mr.. Prouty regarding
the fampden Railroad Corporation.
which j. constructing line from
Bonds,ille 10 Springfield, distance oil
fifteen miles. Mr Hobbs said the line
was expected to increase the business OF
the Boston a Maine road by giving IL n
direct connection between New lorh
"A
II was brought out that the net an
nual operating cost mile of the hamp-
den road will be about $1,000. whiie
for the rest of the Boston 4 Maine line
n. cost is about 81 000 mile.
MIR Hobbs said that in 1911 the bos-
ton Maine paid dividend OF per
cent. although the earnings OF the road
were only one-half OF I per cent and IN
1919 a dividend OF per cent was pald
on earnings Of 2s per cent The owl
d.nds were made up from a s2cco.op sur
plus fund.
Mr.. Hobbs presented figures TO snow III
detail the operating revenues OF the roau'
Tn. figures for the three months ended
September 20. 1912. showed net corpor-
ate income OF $4,000. against N-l'"p
Tor the same period in 1911.
on REORGANIZATION by Mr.. Brandeis
Mir Hobbs admitted that the Boston ~
Maine had contracted 10 pay an annual
rental Of about $1,000 mile FOR the
fIampden Railroad. although the rental on
other leased lines was only about S3,ooo
mile The rental OF the other lines. he
said. also covered terminals and equip
ment The Hampden Railroad had no
terminals and equipment and entered the
enriugfeld terminal station ONLY over me
tracks OF inc Boston d Albany DIVISION