[E.] Commonwealth of Massachusetts. RAILROAD COMMISSIONERS' OFFICE, No. 7 PEMBERTON SQUARE, Boston, September 24, 1870. To the President, Treasurer, Superintendent, and Engineer of the } GENTLEMEN :-Herewith we enclose a copy of the new form of return prepared by this board, for the year ending September 30th, 1871. We send it at this time, as required by law, in order to give you the year's notice, so that books may be kept in accordance therewith. The board desire to have the returns in such a shape that a clear and intelligible view of the railroads of Massachusetts, and their business, particularly in this state, may be presented. They will be obliged to you for any suggestions tending to improve the form of the return, either by additions or omissions, and will give such suggestions careful consideration before preparing the form for the following year. In regard to this return, it will be noticed that "the total amount of income which has been expended in construction, equipment, and purchase of property," is asked for. This will require, of course, research into the past records of the company, but the year will afford ample time to do it, and the board expect that a full return will be made under this head, which, when once done, will not again require time, but will only be added to when necessary. It is, of course, known to the community, that many roads have for years made no dividends to their stockholders, but the public probably have little idea how great an amount of income has been spent for their increased accommodation, instead of being distributed among the stockholders. When income has been appropriated to completing original construction and equipment, or paying off debts incurred for that purpose, whether floating or funded, to building branches or second track, or to purchase of property, it should be returned under this head. Amounts charged off for depreciation should not be included, nor interest paid on debts; but amounts paid to sinking funds to redeem debts are to be included. Under the head of "Cost of road, equipment, and property," a slightly different classification of some items has been made, which, in some cases, will require estimates of value to be made by the officers best acquainted therewith. Some roads have been in the habit of entirely neglecting the distribution of items of cost; but this practice must be corrected for the future, and, if the statement cannot be obtained from the books, competent persons must be employed to make the distribution. Under the head of "Description of road," the intention is to get an intelligible statement of the actual facts of how many miles of railroad there are in Massachusetts, and how many miles have been operated to furnish the income and require the expenses reported. The former returns have been anything but clear in this respect. The statements as to "Rolling Stock," "Miles run," &c., are intended to be fuller than before, and a new head is introduced, "Classification of business," which it is expected will furnish very valuable information. Perhaps you can give us valuable suggestions in regard to this subject. In regard to charging any part of the money paid out during the year to capital account, it seems to the board there may often be times when this is a proper course. It should be for such objects as are mentioned, and only for these under extraordinary circumstances. The gradual increase of business requires, of course, a gradual increase of equipment, buildings, and sidings, to correspond with it, which should be met from the annual income. Whatever is done more than this and charged to capital, the board desire a clear statement in regard to it. The classification of operating expenses has been somewhat changed from the old returns, and, it is believed, improved. Any suggestions in regard to this head will be received with pleasure. The board are perfectly aware that on a well-managed road, the items of expense are distributed much more minutely, but it is not deemed best to call for all these items in a report to the state. If you are in doubt as to the meaning of any of the queries, or how to answer them, please communicate with the board. On or before the 15th of September next, another copy of the return will be sent. FORM OF REPORT OF RAILROAD CORPORATIONS, PRESCRIBED BY THE BOARD OF RAILROAD COMMISSIONERS, UNDER THE PROVISIONS OF CHAPTER 307 OF THE ACTS OF THE YEAR 1870. To be returned to the Board on or before the first Wednesday of November, annually. Funded debt as follows: 1st mortgage bonds, due 2d mortgage bonds, due 3d mortgage bonds, due Total amount of funded debt, Unfunded debt, incurred for construction, equipment or purchase of prop erty,t Total amount of debt, Proportion of debt for Massachusetts,* Proportion of debt per mile of road,. Total amount of income which has been expended (in addition to funds de- Total means applied to construction, equipment and purchase of property, Number of stockholders, Amount of stock held in Massachusetts, Number of stockholders in Massachusetts, COST OF ROAD, EQUIPMENT AND PROPERTY. Construction of Road and Branches built by Company. Grading and Masonry, Bridging, Superstructure, including rails, Land, land damages and fences, Passenger and freight stations, wood-sheds and water stations, Engine-houses, car-sheds and turn-tables, Interest paid during construction, discount, &c., Engineering, agencies, salaries and other expenses during construction, Unless some very good reason exists to the contrary, this proportion should be for the miles of road in this State compared with the whole. If you think the proportion should be made on a different basis, please state the reasons therefor. † This item is not to include balances due other roads, unclaimed dividends, or anything connected with the ordinary operations of the road. It refers only to debts incurred for permanent investments. In some former reports, certain sums taken from income have been charged off for depreciation. These sums are not now to be reckoned and included under the head of "income expended in construction," &c. Depreciation should properly be charged to maintenance, not as an addition to the permanent investment. Total expended for construction, Average cost of construction per mile of road built by company, Same per mile of single track built by company, not including sidings, Passenger, mail and baggage-cars, Freight and other cars, . Machine-shops, machinery and tools, Total for equipment, Average cost of equipment per mile of road operated by company, Length of main line of road in Massachusetts, Length of main line of road [in other States, specifying each,]. Length of line with track laid, if road is not completed, . Length of double track on main line, [Branches owned by company. Name and description of each, single or double track,] Total length of branches owned by company, Total length of branches owned by company in Massachusetts, [in other States, specifying each] Aggregate length of sidings and other tracks not above enumerated, Same for Massachusetts, Total length of tracks belonging to this company, Same for Massachusetts, Roads belonging to other Companies, operated by this Company under Lease [Name, description and length of each,] [in other States, specifying each,] Miles run by freight trains, Rate of speed of freight trains, including stops, Miles run by other trains, and for what purposes, Total train miles run, Number of passengers carried, Total passenger mileage, or passengers carried one mile, *See note on preceding page in regard to proportion. Lengths in the statement to be given in miles and decimals. Characteristics of road will be required in a separate report, and when once made need not be repeated from year to year. Passenger mileage to and from other roads, Number of tons carried, Total freight mileage, or tons carried one mile, Average rate of fare per mile (not including season tickets) received from Average rate of fare per mile received from passengers to and from other roads,* Average rate of fare per mile from season-ticket passengers, reckoning two Average rate of freight per ton per mile on roads operated by this company, Average number of cars in freight trains, Number of persons regularly employed by company, CLASSIFICATION OF BUSINESS. Passengers coming from other States, Passengers going to other States, Passengers travelling only within this State, Passengers to Boston (season Passengers from Boston (season Season, ticket passengers to be reckoned once a day each way. EXPENDITURES CHARGED TO CAPITAL ACCOUNT DURING THE YEAR. Main line, extension or alteration of road, Branches, extension or alteration, specifying each, Double track extension, Land, Passenger and freight stations, wood-sheds and water stations, Engine-houses, car-sheds and turn-tables, New locomotives and snow-plows, New passenger, mail and baggage cars, New freight cars, Machine-shops, machinery and tools, Purchase of other roads, specifying what, Subscriptions or loans to other roads, specifying what, Any other expenditures charged to capital account, Total, * After deducting all allowances for tolls, or use of cars, &c. † Manufactured articles starting from the place of manufacture, so far as known, are to be reckoned under the first head; after they have arrived at a depot for sale, they become a part of the general merchandise of the place, and on any second transit are to be reckoned under the second head. The last two columns apply only to the roads terminating in Boston. |