Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-12-03

Faed e ehRsssss taxes etc ldssssas
Surplus ................ 36,44s.s1
The disparity between the surplus as
shown above and the amount Of cash
| on hand, $9S.43S.57 as shown in the
BALANCES sheet, is due to the applica-
ton Of current earnings to capital ad-
ditions. purchase Of equipment. better
ments Of fixed property. etc. and to
accruals for depreciation. The sum Of
| S65.240 has been set up as a deprecia-
tion account. included in unadjusted
| liabilities in the balance sheet, and
| charged to operating expense. Final
adjustment of charges to depreciation
and credit for capital additions from
earnings will reconcile these two items.
| The comparatively small surplus
| shown is not fair index to the ability
| of the corporation under the business
conditions which existed during the
| period Extreme snow conditions in
February and March. 1920. cost the
| company in loss Of revenue and ex-
/ pense of snow removal conservatively
| 100000 above a normal winter be-
| sides a continuing substantial ex-
pense in the repair Of equipment.
Without this. it might now be possible
to consider the payment of an initial
! dividend on the first preferred stock.
WAGES AND RATES.
The wage contract with employees
came up for adjustment on May fst
and new agreement was entered into
based on the results Of the arbitration
| between the Portland Garments Union
and the Cumberland County Power &
Light Company, giving generally diff
ferential of two cents per hour in IA
vor CT this company. This adds ap-
proximately 100000 per annum to its
/ payroll.
Immediately following this increase
your officers applied to the Public
Utilities Commission for an increase
In fares. The commission permitted
an increase Of the base fare from
seven cents to nine cents and ordered
the sale Of six tickets for so cents.
These rates became effective August
Sth, 1920.
PROPERTY IMPROVEMENTS.
The company has proceeded with the
rehabilitation Of its properties as rap
idly as it's finances would warrant. Two
miles Of track in Bath have been re-
laid with S0-lb. tee rail. About SO, 900
new ties have been laid and a large
amount of ballast placed.
Twelve safety. or one-man. cars
have been purchased and put into oper-
alton In Lewiston and Auburn. They
have proven satisfactory and three
more have been ordered for immedi-
ate delivery and will be placed on the
Bath city lines.
Equipment has been ordered to con-
vert three cars now owned into safety
cars for use wherever required.
Ten double truck interurban cars
were ordered for September delivery.
They were not received at the date
of this report, but are to como along
within the next few weeks. They
will be used on the Lewiston Bath
and Lewiston-Augusta Waterville
lines.
Some time ago it was found neces-
sary on account Of the condition Of
the cars and the roadbed to extend
the running time between Lewiston
and Bath two hours and thirty mig
utes and to start the cars under one
hour and. quarter Roadway. Inn
provements already made in the
track and overhead equipment are
expected to make it possible to re-
sumo the two-hour running time with
one-hour Roadway when the new
cars are installed.
All Of these cars except the three
Safety cars recently ordered were
purchased on car trust notes. paying
rs per cent Of the cost in cash and
the balance in monthly installments,
extending over three years for the
Safety cars and five years for the
interurban cars.
ECONOMIES
Your officers appreciate that the
. n pcial csYcoaoo nf tho C0vnnonv 40.