Norwich bulletin., 1920-10-23

. Washington county railroad properties Sin be rehabilitatsd if present plans 2revail The plan involves the consoli- .1stiop Of the Sea View and Narragan- Fctt Pier roads, the electrihcation of the latter and the financing of the new com 1lany through the issuance of town Bonds The plan as outlined by Ma rh1niel T. Bacon, of Peace Dale, owner Gf the Sea View road, and president of Ina. Narrsgansett Pier railroad is as fol- 3ovs:
 . These two railroads are now being Sus- for the benefit of the communities shrough which they pass, at a serious loss 10 the owners. The owners have a Substantial offer for the rails and other snfterial and they cannot afford to con ysnue operation of them as they now ftand. IL seems wise to submit to these steuialunities a proposition for continued Spefzti6n
 . S1hs report of Ford. Bacon and Da- Sis~to the special commission for the in &estlagtion of the affairs of the Rhode asland company. shows the value as of Sof. ]. 1916, of 3410,s30 for the Narra- <ansett Pier and S63s,529 for the Sea Niew. total of S1,05e 359. On the &asis sf prices Tor material and labor in So2Q. probably these values would have feta at least 50 per cent. greater. 2 10 save this to the community. the owners now propose to organize new korporation with E500 000 of capital, half Der cent. cumulative preferred stock tnd half common. the present owners to take in payment for the physical assets fhe preferred stock and the towns along tac line to take at. par the common, to Furnish the capital necessary for cleo trifyinr tho Narragansett Pier and pro- Fiding ur-to-date rolling stock and for wnEking capital.
 q ''Ab5u; l per cent of the combined taadr lies in Warwick and per cent in East Greenwich. The remainder lies in De other three towns in about the pro- fortion of a2 per cent. in South Kings tbEn 2S per cent in Narragansett Pier and 20 per cent in North kingstown. Il therefore. proposed that these towns 4lbscibe for the common stock in the prOpors.on of ss0.Q00 for South Kings. own SIa.o00 for Narragansett Piel aua fia0 .b00 for North kinestown. pay ng for t by issues Of town bonds, the saiy kind Of security which can be mar <fted at present except at ruinous rates Such bonds bearing per cent. interest 1ave been marketed within the monti Dove par because free of income tax ehfrcas trolley railroad bonds are un saisbie at present. and well-estahlisheC - fdustriai enterprises are offering twice Sat rak
 'Tlf preferred stock to he issue, tonld represent less than one-quarter Q alc- replacement vahle Of the roads, an'
 would not bring on the market mori tan in view Of firm offers on hand. tn. 1Vners could hope to realize by sale O she assets. so that the price is a mini Mum
 The charter should contain 8 claus W which the road could not be bondet wifhout consent Of majority Of tn rrefcrred stock and that if ever the pre- Erred dividends fall into arrears to tn sEtent Of go peT share fnearly thre ttars dividendsl the company shall b found up
 "The management should be by
 soard of seven directors, three to b ssected by the preferred stock three b the common lone of whom by each 0 tkc three townsl and a seventh by t. fl thus chosen. The present owner MisA 10 avoid asking for ct- rol an they hguTe that by this grrangemen. tn onerafion can be kept out of politics
 By raising the necessary tunds 2 the lowest possible rate of interest D means of municipal bonds it will be pos sible to operate with lower charge: th9 1T the cost were higher. and this in tur wills increase patronage and make th road of more value to each ind:yidu; near the line.
 The combined valuation of the thrC
 towns is about s2e.00O,900. Tho ral,l