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

W. SCRIP eXchangeable for CONSOLE
dated mortgage bonds due April
!, 1912, ceased On that date to be
funded liabilities and was there
after held as matured mortgage
debt and carried to the account
OF working liabilities to the
amount of S. 1920
These four items amounting to SIS 49,
1920 represent so much OF the gross
funded debt of s24. 153. s92 % above referred
TO as had been nquidated during the year
and the difference S, 66l. 500 % was the net
funded debt at the end OF the year as
shown in the annual report as follows
June 30. 1912:
Capital Stock ............. See79. 700 90
Funded debt ................ SS6l, 500 90
Total Capitalization. ......... $751; 200 90
CAnnual Report 1912, Table 80 !, Page
49,
The total capitalization June 80, 1911,
was s25, 3s7. 90. and hence there was an
apparent decrease Of $s.74S, ss2 90 But dur
dated March Is. 1872, to the amount of
S22,co,0oo.00. While these notes were
technically carried in the accounting I'M
nudl Report of 1912, Page 49,, for the pur-
poses Of this comparison. they should be
treated as a part of its actual capitalize
ton. Upon this basis we should have the
total actual capitalization as follows:
June 80, 1872:
Capital Stock NEUTRALITY-SUSPICIOUS.. 1878. 200
Technical Funded Debt. s,661, 5000
Temporary Notes .............. Loo COCO
s30,S41, 200 %
Considered on this basis, We have an
increase in capitalization for the year Of
the difference between $25. 3S7 $500 d9lD
and s3o,64l, 5000 I912). which is s.. 253. 90.
and in which is included the s.. 7s1, SOC %
arbitrarily added TO cover the funded
debts Of the Washington County Railway
and the Somerset Railway. which had
been assumed by the Maine Central
During the following year June 30. 1912,
10 1919 there were two increases Of CAPT.
tai stock authorized, one for 100000, and
one for 100000. Almost the entire
amount Of these issues was subscribed
and paid for. The 81. oOO,0O of notes fell
due ana were paid from the proceeds of
the stock issued. The funded debt re-
, following statement OF capital
June 20. 1919:
Capital Stock ................. 81, 774.141s7
Total apltalIzaton.......... $33SS, Ak. Gal 81
annual Report, 1913, Table No l.
Page 1877
During the following year June 80,
1919. 10 1910 no new issues of capital
stock were authorized but some small
payments We're received on outstanding
subscriptions for stock which brought
the total capital stock up TO $24, so1, 4sS 81.
There fell due April l, 1914 five year cou-
pom notes 10 the amount OF 5000 coo co.
which were paid at maturity. There were
issued during this time ST, 900 coco five
Year coupon notes, the proceeds OF which
Went TO pay the above-named &. 90 900 90
in notes; TO purchase the entire capital
Of the Maine Railways Companies.
amounting 10 $4,000 and to furnish
$4,000 for necessary expenditures on
the property which could not be charged
to operating expenses, but must be
charged to capital or investment account
As a result OF these transa ctions the
capitalization at the end Of the year was
as follows.
June 60. 1914:
Capital Stock ................. S24, 9O7 466 81
DIAL capitalization. e0,, 5SS. 9S6. 81
(Annual Report. 1914, Table No !,
Page 15l.
Summarizing the foregoing information
June 50. 1911 TO June 80, 1914, was from
So, 3s7, $500 to s37.5ss 1857, being an
amount Of s12.lS1.07467
This sum of sl2.1S1o74s7 should repre-
sent increased value in the property re.
sulting from expenditures for improve
ments, additions, betterments and invest
ments which could not be made from
current revenues and charged to operat-
ing expenses. but must necessarily be
made from increased capital and charged
10 capital or investment account. That
such Is the case appears from the table
of expenditures made during the period
June 60. 1911. TO June so, 1914, which IL as
follows:
For the year ended June 30.
1912. there was expended for
additional real estate grade
reductions, additional tracks
and terminal yards, block sig
nails. extensions to shops and
new and additional equipment SAL. 3D As
For the year ended June 80,
1913. there was expended for
grade reductions and changes
OF line. additional tracks and
terminal yards, new and en-
larged station buildings and
fixtures, locomotives. passen- v
ger and freight train cars, and
partial construction OF a new
steamboat Observation-Disclosures. 1,7S.5s4os
For the year ended June 30.
1914. there was expended for
additions and betterments loss. "A
(See Note u
During the entire period
there has been purchased for
investment: (See appendix Of
similar letter for details Of
each purchase.)
(A) Stock Of the Portland
Terminal Company. $685.. 10000
(B) Stock and Bonds Sandy
River and Rangeley Lakes R
r. Observation-Disclosures. 5S2, 1000
(C) Stock Rangeley Lakes &