Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-08-24
Papers Become Matter
of Record Wednesday
Leased Line Interests
May Furnish OPPOSE
ton
Action of Petitioner Stated As
Attempt to Prevent Loss to
B0ndhOlders in Grace of Dill
gence to Secure Attachments"

Boston, Aug. 23.-The immediate
appointment Of a temporary receiver
fer the Boston & Maine Railroad, to
be followed as soon es possible by a
permanent receiver, was asked in the
bill in equity filed yesterday, it be-
came known to-day when the papers
we're made a matter Of record in the
United States district court here for
the first time. Full power and author
ity to operate all the railroads and
property owned AMI controlled by the
Boston & Maine, including its score
Of leased lines, would be vested in the
receiver, if the petition contained in
the bill is granted, with especial stip-
u:ation that creditors be restrained
from interfering with the receivers in
eny way.
Binds Leased Lines
In this connection, close followers
Of the situation pointed out that a
court decree fulfilling these two lat
ter requests would bind closely to the
Boston & Maine the control Of lines
under lease and make impossible any
independent action by their officials.
It was the objection Of certain leased
line interests which made impossible
reorganization of the road without re-
ceivership and suggestions have been
made that they would oppose the ap-
pointment Of receiver.
AS a reason for the proposed re-
ownership, the petitioner, the Inter-
continental Rubber Co. Of Jersey City,
NJ j., which holds note of the road
fer $4,000 duo Aug. 81. states that the
company's credit is so poor that it
cannot issue bonds at reasonable
Irice. and that it IS unable to raise
money on short term notes. Outstand-
ing notes Of the company to the ex-
tent Of $13,306.oS0 according to the
hIil. cannot be laid when they fall due
aug. 81. the cate on which payment
Will be demanded also on notes by the
vermont Valley Railroad Co., amount
ing to s2,300,0p0. endorsed By the Bos.
ton & Maine
The roads inability to make pay
ments on the notes and to procure ex-
tensions again will result in a multi
plicity of SUITS" the bill states. land
a race of diligence to secure attach
ments on every available bit Of proper
ty owned by the company. If this con-
dition were allowed to go on, it would
be to the great loss of the bondhold-
ers, whose notes are not due for many
years. and whose only remedy is re-
ownership"
The Boston & Maine, now enjoying
the most prosperous condition in its
history, has available for paying its
maturing obligations total quick as
sets of So, SAT. the petitioner states.
OF this amount, $s,107.717 is in cash and
$2,3s9,93o in notes, stocks and bonds.
The bill alleges that although there
was surplus OF $4,065,691 during the
last fiscal year, the road was unable to
pay its fixed charges out of earnings
and was obliged to meet these to the
extent Of $2,500,00O out Of its capital
stock
During the next five years, 1t was
stated. SIC, 000,0 900 will be necessary for
improvements and a much larger sum
could be used. In addition there are
contracual obligations amounting to
1891 900 maturing on or before Jan.
l. 1917, for improvements already made
The roads outstanding capital stock
consists Of 395,051 shares OF common
stock Of par value Of 500, and $3,149,-
800 preferred stock.
The total outstanding bonds issued
and assumed by the company amount
to $43, 1885,. 900.
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