The Portland daily press., 1870-02-11
DAILY PRESS.
ND.
Friday Morning, Feb uary II 1870.
Arguments in Fnvor of Railroad Con-
solidatiOn.
CORTLAND

We are not among those who look with en-.
tire favor upon the scheme for railroad con
solidation as pre!ented to the Legislature
this year, but feeling that the people shou'c
have an opportunity to form an impartial
judgment by acquainting themselves with
the reasoning employed on both sides, we
su1Joln an ABSTRACT of the arguments pre-
seDted at the hearing before the committee
on railroads, ways and brieges, on Tuesday.
in behalf of the roads proposing to consoli-
date:
| The hearing was opened by Hon. A. p.
Morrlll, who said that be represented the
Maine Central Company, who felt an inter
est in the passage of the bill. What do these
companies ask? Simply permission to take a
common name. The roads are now essen
| TALLY running together in one interest. by an
agreement. The written contract is signed,
and whether the present bill is allowed or not.
the roads will run in this way. They desire
to issue bonds in the name of the new cor
poration and pay the bonds which are ma
turing against the old road. No additional
| privilege IS asked tor-no I ieht which they do
not now virtually possess. Can gentlemen
see in this monopoly that is to be dreaded ?
| The bill can not be tortured to mean mo-
nopoly. If consolidated, these roads can do
1 more tor the public than when operating as
distinct corporations. 1t has been sad that
| the fare will be raised; but the seventh sec
ton of the bill prohibits doing any such
thing. Are tire con p n!es taxing too much
now? Gentlemen VINO have considered this
| subject will say no. The Maine Central has
| been running over twenty years, doing its
business in manner equal to any other
road; it has built up large interests on It's
| line; but no stakeholder mas ever received a
| larthing tor the money he has put into it, and
the load has been managed as economically
as could well be, judlciously and carefully,
| With remarkable freedom from accidents
We look for IL large development of bust
will be improved the next year to the amount
OF S3OO,OO0. Ultimately it will result in a
uniformity OF gauge, enabling person to take
MS choice OF Augusta or Lewiston, as Meas
ure or business dictated, in going from Ban
gor to Boston. As the European road is ex-
tending, we want to make the most direct line
to Portland. There has been much embar-
| rassment on account oil the connection with
| the Grand Trunk at Portland. 1t is our pur.
pose, IL consolidation is granted, TO put in a
short piece OF road so as TO give a direct line
OF our own into Portland. lie thought the
public would be convened by having these
improvements. At the other end of the line.
the accommodations OF the Maine Central
are first class. We shall thus have WELL
regulated railroad line from Portland to Ban
gor, complete in all its departments. 1t any
amendments to the Till are necessary to pro-
tect the pubic, let the public have The benefit
OF tbem. All the companies ask is the privi-
lese Oi taking common name. BY granting
this the committee and the Legislature win
serve well the public interests, and make the
labor OF the companies more efficient.
Hon. j. II. Drummond, of Portland, vas
the next gentleman to appear before the COM
mittee. lie took il for q arted that the bill
under consideration would be reported, unless
it could be shown that the public interest
would be injured thereby. He desired to
meet some OF the objections that has been
made to the bill. There is no clashing between
the peoples interest and that of the railroad
corporation. 1t is eminently fol the interest
oil the railroad to foster and build up every
other interest ia the State. Everything ad-
dtlonal that is raised by the farmer, every ad-
dtional fabric that comes from the hand of
the manufacturer, helps the railroad. 1t is
one OF the first objects of the railroad to en-
courage these interests. What has been done
Tor the public by these railroads? After the
construction OF the Maine Central road, the
rise in real estate in a belt OF country the en-
tire length of the road for five miles on the
south side and ten mules on the north side,
would more than twice pay for building the
road, so that people who had not invested a
cent derived an immense advantage. What
have the company received in return ior this
bAHsy h5Ye g4R HE xF0aad M ths hsyfnsye d5
lar OF dividend. The road had developed bust.
| ness, while The business had not adequately
| compensated the road.
A good road, well run, is blessing, while
bad road Is a curse. He referred to the
Grand Trunk. He did not believe all that
| had been alleged against it, but the road has
| not been spoken OF in words of commenda-
too. He merely alluded to this to show
what bali starved railroad may become. The
public must suffer in all these cases. 1t is not
Tor the interest OF the public to crowd down
railroads, and put them in a place wo ere
they cannot pay iair interest on the money
i'll vested.
1t is said thas this is a great monopoly. II
SO he didn't want if. What is monopoly
When man having means, buys up a certain
commodity, and compels the public to pay
whatever price he asks, pockets the money
and then leaves, ne practices monopoly
Inc owners OF these roads are not IN con-
| diticn TO do this. The very situation of the
property itself is guaranty hey ond question
that it never can be made monopoly. The
| money is invested in property that must re-
main with the people, and cannot be sold and
carried OIL.
In certain and limited sense all railroads
| are monopolies. Every man cannot pass over
| them with his own private carriage; there
must be managing head. In the cry OF mo-
| nopoly which has been raised he thought he
saw the ghost of Shepard Cary, who formerly
| appeared here with his earnest protestations
against bank and railroad monopoly; but this
bugbear has been more damaging to the State
than anything else.
In regard to rates of fare and freight, the
managers of railroads have found out that
high rates of fair and fieight are not the most
remuneratlve; more travel and freights will
come from low rates. Until road pays six
per cent. on its cost it cannot be said that the
company is unreasonable in its charges. This
is law oil railroads that is 6xed
1t has been said that if this consolidation
| takes place competition will not exist. Com
petition has not existed for quito a number of
years. There have been the same Rates OF
fare for six years on both roads. Competition
cannot exist for any greet length of time even
on parallel roads, on account of the great cost
OF building and equipping. If one locality is
favored by competition, other localities must
suffer. He proceeded to show that the build
ing of the Androscoggin road had not lower