Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-01-16
Maine Railways Companies.


The report Of the President which wa.
submitted to the stockholders at tht
Annual Meeting. 1914. contains a para
graph stating the inception and purpose.
Of the Maine Railways Companies ant
the relation Of the Maine Central Rail
road Company thereto. which is as fol
lows:
This Company entered into an
agreement and declaration Of trust
on April !, 1914. with Charles o. Ban
croft, Morris Mcdonald and Harry
NJ. Verrill. all OF Portland. Maine.
and their successors as trustees under
the name of Maine Railways Com
panies.
The Maine CentrafS Railroad Com
pany subscribed and paid for at par
the entire capital of the Maine Rail-
ways Companies. namely 5000 shares,
amounting to $4,000 900. The Maine
Railways Companies issued its per
cent gold notes, dated April /, 1914.
due April !, 1S9. to the amount of
1922 900 and with these notes at par
and the $500 900 derived from the
sale of its shares, purchased from .
the Boston & Maine Railroad. 1o9 SOL
shares Of the capital stock of the
Maine Central Railroad Company at
$685. per share, this stock being all
of this Companys capital stock for
merly owned by the Boston & Maine
Railroad.
The Maine Central Railroad stock
so acquired by the Maine Railways
Companies was deposited with the
Fidelity Trust Company, OF Portland,
Maine, as trustee, as security for the
81. ao2 900 S per cent gold notes Of the
Maine Railways Companies. Later
with the consent OF the owners Of all
of the notes. $4,000 par value Of
these Maine Railways Companies
notes were endorsed exchangeable for
the same par value Of Maine Central
Railroad Company capital stock
after October ], 1914. and on or be-
fore October l. 1918. but prior to any
date fixed for the redemption Of said
notes.
Any profits from the operation Of
the trust, after paying interest
charges and the necessary expenses
OF the Maine Railways Companies,
will accrue to Maine Central Railroad
Company. 1t is expected that the
trust will expire April /, 1919, or ear
lier if all the notes and liabilities Of
the Maine Railways Companies are
paid prior to that date.
BY the foregoing arrangement your
directors have secured the control of
the majority stock in this Company
to residents of the State OF Maine.
~ 80 int - h.
Maine Central Railroad Company,
and this is considered a distinct ad-
vantage to this Company at this time.
Under the operation Of the trust it
is also expected that the Maine Cen
trail Railroad Company's capital
stock which has been purchased
from the Boston & Maine Railroad
will be distributed finally among a
large number OF stockhol1ers.''
The increase in the funded debt Of tn,
Maine Central Railroad Company i,
made up in part OF indebtedness to tn,
amount Of s.. 600 900 incurred to procur,
the money used to purchase the share.
OF the Maine Railways Companies. TIL,
increase Of the capitalization to the ex
tent Of that s. 600 900 is only temporary
for when the purpose for which tn,
Maine Railways Companies was organ
lied has been accomplished. and the
Maine Central stock held by it has beer
sold to investors. enough will be realize<
to return the s., 900 to the Maine Cen
trai Railroad Company. and retire tina.
much OF its present funded debt
CThe above history OF the increases Of
capitalization Of the Maine Central Rail
road Co. has been published also IL
pamphlet and copies may be obtainet
by application to the general Offices ..
Portland, Me.)