STATE OF NEW HAMPSHIRE.

To His Excellency the Governor:

The Railroad Commissioners submit herewith their annual report for the year ending June 30, 1895.

It is confined to a statement of facts, required by law, comment and recommendation being reserved for a year when they can be addressed to the legislature.

H. M. PUTNEY,

J. G. BELLOWS,

E. B. S. SANBORN,

Railroad Commissioners.

REPORT.

STREET RAILWAYS.

The important events in the New Hampshire railroad history for 1895 are the passage of the general street railway law, the reconstruction and extension of the Manchester and Nashua street roads, and the lease of the entire Concord & Montreal system to the Boston & Maine for a period of 91 years from April 1, 1895.

The enactment of a general street railway law followed in 1895 the investigation and report of this Board which was ordered by the legislature of 1893. The law is mainly based upon that report, and while it is defective in some particulars it constitutes in our judgment a code better calculated to promote honest street railway enterprises, prevent stock watering, and secure to the general public the advantages to which it is entitled, than any other of which we have knowledge. It authorizes the organization of street railway corporations by simple and easy methods and the construction of roads wherever they are needed and capitalists are ready to furnish the necessary means. It provides an impartial and competent tribunal [the Supreme Court] to determine whether the public good demands the proposed road.

It confers upon town and cities through which a road runs the power to locate it, prescribe the character of its construction and, directly or through the agency of the commission, the method of its operation.

It protects grade crossings. It rigidly prohibits fictitious capitalization, the sale of securities for less than their par value, and the contraction of debts in excess of the amount of capital stock actually paid in. It does not, as we think it should,

confer upon cities and towns the right to exclude roads from the travelled highways in country districts or make any provision to enable such towns and cities to secure directly or indirectly any compensation for the immensely valuable privileges they grant street railways.

The Manchester Street Railway has been converted into an electric trolley and extended to Lake Massabesic, making 17 miles of track. The cost of its reconstruction, extension, and equipment, to date, has been about $330,000, besides what has been realized from the sale of property from the horse railroad.

The Nashua road has also been reconstructed so as to use electricity and extended through Hudson to the state line, from which it runs to Lowell. It has about 15 miles of track in New Hampshire. The work of changing it from a horse to an electric road has not been completed in some of the streets of Nashua, and the total cost can not be given.

Both these roads have been built in the most thorough manner upon the best plans, and are well supplied with first class cars and motors. We know of none in the country that will bear rigid inspection better. Their contracts for material, labor, and machinery were made in the spring when prices were lower than ever before and they are capitalized with their actual cost, which, however, includes a large debt handed down by the former owners of the Nashua horse railroad and liabilities of about $65,000 incurred by the Manchester road while it was operated by horse power. The stock of the Manchester corporation has always been $25,000 which with the debt of $65,000 represented the property upon the books of the corporation a year ago. Prior to the passage of the law of 1895 bonds were issued to the amount of $250,000, for which $245,000 was received. After paying the debts about $180,000 remained with which to rebuild and extend the road, and this with the receipts for horses and other remains of the old road was applied to that purpose, leaving a deficiency at the end of the season of about $50,000. To enable the corporation to discharge this debt, make extensions aggregating four miles next year, and provide additional cars and buildings the Board has recently authorized the issue of new stock to the amount of $190,000. When this