The Barre daily times. (Barre, Vt.) 1897-1959, 1915-01-20
lis FACING
RECEIVERSHIP
The Boston & Maine Is APP
preaching It's Dis
solution
CRISIS IN 5 WEEKS
SEEMS INEVITABLE
Governor Walsh's Reorgani-
cation Plan Only
Permissive

Boston, Jan. 20.--Within five weeks
the Boston g. Maine railroad will be in
the hands of receivers, according to the
present status of it's financial condition.
On March 2 the company will be called
upon to pay short term notes TO the
amount of nearly S27,000,000 and it is
without funds to meet this obligation.
Failure to pay places the property at
the mercy of the creditors, at whose
instance receiyership proceedings may
be started. Forseeing the inevitable the
directors OF the road may take the initi-
ative for receivership.
Such is the situation that confronts
the management of the Boston s. Maine,
the stockholders, the creditors and the
general public of New England. Di-
rectors of the road, including the trus-
tees, who serve under the federal decree
for the purpose of eventually selling
the Boston & Maine stock which the
New Haven railroad owns, held long
meeting at the North station Monday,
and deliberated gravely over it. Gov
ernor Walsh is preparing special mes
sage to the legislature calculated to con
tribute toward solution Bankers have
given the subject their best thought and
have helped to tide the company over
one crisis after another until they have
almost exhausted the patience of the
finaneiers who lent money TO the road on
its ebbing credit Now, credit is gone.
The company cannot sell stock Its
bonds would not be attractive. The earn
ings are not large enough TO pay rum
ming expenses. No money is in sight
for the debts that are about to become
due.
A tremendous increase in business
might save the road, but such increase is
extremely improbable. Increased freight
rates and passenger rates would inspire
some courage, but would not show in
dollars and cents the net results that are
needed TO satisfy the creditors. Reor-
ganization on basis that would great
~ modify the obligations toward the
owners OF the leased lines i the propo-
s;tion that is to be laid before the legis-
lature, and this has important saving
qualities, but il cannot be accomplished
the consent Of the stockholders
OF the leased lines. No legislation can
compel them to give up the terms of
their contracts with the Boston Maine
Moreover, no legislation Of any kind that
can help the Boston & Maine railroad
can be secured within the remaining five
weeks before the Boston & Maine must
raise S27 100000 TO apply TO its floating
debt
There i no legislation before the Mas,
saehusetts legislature to-day favorably
affecting this situation. Nothing will be
submitted before the Boston & Maine
directors have agreed upon the terms
Of draft which shall represent their
last hope Of rehabilitating the Boston
4 Maine railroad without the process OF /
and when Chairman Ma
ms P, Knwlton Is ready TO present that |
iaft Governor Walsh viii send il to the !
legislature, accompanied by message
urging its prompt adoption. AT best /
his can be only permissiye in character. /
irving the owners OF the railroad prop !
'rty permission 10 reorganize on a basis
hat shall be attractive 10 them. Once /
iefore the legislature II must 20 TO the l
on ranroads and be assigned /
or public hearings. and Il is likely TO 1
cad 20 elaborate inquiries into the af
airs o. the road, past and present, and
ubstitute drafts and amendments 20
meet the ideas OF many minds But
hat is not all Ii the proposed law H.
= effect reorganization il must b.
dopted also BY the legislatures OF other
sew England states in which the Boz.
on & Maine operates and in Canada.
Unless the stockholders. each group
y a majority vote. decide 20 come into
be plan Of reorganization the lepisla.
ion would be Of no avail 40 that the
Ian contemplates making reorganiza.
ion - attractive 70 them that they viii
nd IL 70 be- IN their oWn interest e.
cquiesce. For instance, one Of the
ropositious favorshly considered i the
OF a central company the pre-
erred stock Of which could b. given to
be holders Of stock IN the leased lines.
folders Of such stock a. the Connect
a. River railroad. for example. mirht
3 given first preferred stock In the new
1mpany a. the Connecticut stook payv
9 per cent dividend under the terms
{ the lease, while the owners 81 the
unco0k Valley stook. which pays only
aroe pr cent. Wouid have % h. con
nted Nth = less attractive form Of ~.
lrities from the Reorganization com
snv. II win H. long process however.
] create such permissiFe legislation a.
in meet confusing fieas On Beacon
I'd. reconcile the diaereuoes tstueen the
Us 81 the FsriBus states and yef D.
Itfastite enuuah e. the Stockholders
secure their ind1rssmant fhrenrh
.ack tUtinr Unless something hap
ne bsfors than % satisfy ths intsf-