Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-01-02
Boston e Maine Yet
To Fix on Plan to
Strengthen Road

boston. Jan. 1.-Thc directors Of the
Boston K Maine Railroad in appointing
four members to cooperate with the
general reimbursement committee which
Is considering plans for the strength
ening of the financial and physical
structure of the road, did not commit
themselves to any plan, nor are any
Of the interests represented on the gen.
crai committee of stockholders and
bondholders committed to any plan,
1t was announced today in n state
ment authorized by the executive COM
mittee of the directors. This state
ment, issued from the Office of Presi-
dert james H. Hustis.' was made as
Il result of inquiries regarding the re-
iation OF the directors and the man.
agement OF the Boston & Maine to the
general rcadjuStmcnt committee.
The principal proposals before the
committee are those made by Chair
man Homer Loring of the executive
committee which call for the extension
of bonds of early maturity at uni
form rate of per cent. together with
the issue of $4,000 of prior preference
stock for permanent improvements,
and abandonment Of 1000 miles OF I'M
profitable trackagc. to be replaced III
part by motor service.
The statement of the executive COM
mittea says:
The directors did not vote, nor have
they committed themselves to any plan
nor, 50 far as they are informed, have
any Of the interests represented on the
REIMBURSEMENT committee voted for or
committed themselves 10 any plan.
The directors believed it their duty
to join with any group OF security
holders in the discussion of any plan
that has back of 1t sincere attempt
to benefit the railroad. and trust that
all committees and individuals interest
ed will cooperate with the general
committee and present to them their
ideas on this subject so important to
the future of the railroad property.
Ine LorinE) plan as indicated In
the correspondence with tho voting
trust is not intended in any way to
he considered final. but is an attempt
to place a picture before all interests
in the hope that out of it may come a
plan acceptable to all, and one will
result in a permanent benefit to the
railroad and the community 1t serves.
The objects of the proposed plan are
those that have been receiving the at
tention of the management since the
return OF the property from federal
control, and involve the diScontinuance
of such Improbable lines as it is pos
sihle to discontinue. the refunding Of
mortgage indebtedness on the most ia
vorab!e basis possible. and the pro-
vision of additional funds for 'perma-
nent improvements which will make
for economies OF operation. The ex-
tent to which any of these desired
ends can he obtained is, of course I'M
certain, but with the cooperation of
all interests the greatest advantages
possible should be obtained"
1T was stated that as to efficient
operation of the property and the
maintenance of its physical conditions
both at the present time are better
than for many years.
"With the expected increase In bust
ness, the increase in freight divisions
from our western connections secured
in 1924 and the improvement In oper-
ntng efficiency, It is expected that the
net results for 1926 will be more sat
isfactory than for many years." the
etatement said.
However, in spite of the present
hopeful situation, the need of funds
to meet early maturities and to pro-
vide for necessary improvements. re-
uuires that consideration be given to
n permanent and satisfactory financial
read justment.