Daily Kennebec journal., 1924-12-20


OF the property and what are its fu-
ture prospects" It was stated that
the trustees asked only for informa-
tion. having in mind that a consider
able amount of the roads obleations
mature In 1925 and succeeding years.
I'VE have not formulated any
policy nor assented to any policy nut
forward by anyone else" it was stat
ed.
Mr.. Loring. in his reply, emphasize
ed four definite conclusions: &.
cd Discontinue approximately L.
900 miles Of worthless track: .(2)
put the main lines in condit ON for
more economical and more efficient
operation; (3) rearrange the Doston
trminals for economy OF o~eration
and better service; (4) readjust the
finances of the road"
For years he said, branch lines
had a monopoly of the transportation
of the small communities served.
Operating costs were low and the
load on the whole system was not
serious. The last few years have
changed this situation. The automo-
bile. motor bus and motor truck have
taken a large part Of the always
meager traffic, and standardized
mously to the operating costs.
''The time has come when the ra-
pidly increasing losses from these
poor lines must be stopped. The rest
OF the system can bear the burden
no longer. freight traffic analysis
shows that of the 2.450 miles of rail-
road. 20 percent, or more than 1000
miles, handles only 8 percent of the
business. If the remaining 1,45O
miles had large earning capacity
the situation would not be so serious.
But only 500 miles of the Boston and
Maine had freight traffic density
equal to the average Of the other
railroads in the so-called eastern
rate groupt in this limited mileage
cannot sustain so large a proportion
of losingroad.
Application has been made to the
Interstate Commerce Commission for
permission to discontinue 13l miles on
which the annual losses are in excess
OF S250.000. Other applications will
follow until the system has been re.
dueed to the amount of branch mileage
which can be supported without inner
illing rates, service or credit. 1t is
believed that on the lines to be discon-
tinued the transition from railroad tc
Smotor vehicles will be accomplished
without unfavorably affecting the com.
munities and small industries served
The Boston &c Maine Transportation
co. has been organized to assist with
the motor service.
| 'When the proposed discontinuance
program is completed the Boston &
Maine Will have q system of some 1900
to 1000 miles capable of giving good
service at reasonable rates and with
low operating costs. 1t will then be
not only advisable but profitable to
spend some money on the property,
New money at reasonable rates Is not
to be had, of course, in the present
state of the roads credit. but If il can
be procured by a reorganization it can
be dnvested to great advantage"
Chairman Loring said that as it was
evident that the road must depend
for it's profit on some 600 or 500 miles
of main lines it was important that
those lines he put in first class condi-
tion. This requires more passing
tracks. some grade reductions, heav-
Ter locomotives and the resulting
charges in the bridges. possible cleo
trifcation, etc" 1t was added that
preliminary reports indicated substan-
tial savings would be available by
extending clectrifiacation begun on4the
Hoosac Tunnel in 1911. O.;
The Boston Terminals. assessed at
$33. 600. .000 on which $500. 600 taxes are
paid annually. were said to offer op-
portunities for considerable savings,
and survey is now in progress
The reorganization of 1918. which
included recekership that was ended
in November. 1919. was referred to in
connection with discussion. of the f.
nancial readjustment. With the word
that it was based on an expectation
that the company would be able to sell
bonds at reasonable prices to meet the
heavy maturities commencing next
year. With approximately $4,000. 900
years, it was estimated that an addi-
tional s20,000,000 to $30.000.000 would
be required for improvements in the
same period.
"Many believe we are entering an
era of railroad consultations. What
1t may bring to New England and the
Boston G. Maine Railroad cannot be
foretold. It is certain. however, that
the road will fare much better in any
consolidation if it is strong and suc-
cessful rather than weak and depen-
dent.
THE public attitude toward our rail-
ways has changed. Today the dispo-
sition of the authorities is tc be help
full. There is reason to believe that
the United States government will CO.
operate with the other security owners
in a constructive effort to remake a
proSppronS Rostou G. Maine road .