Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1871-02-23

road amounted to only $25, ,413. In 1860 the
income from freight amounted to $59,970.' In
1870 the income from freight amounted to
$268, 900. The increase on income from
freight from 1850 to 1860 was 236 per cent.
and from 1860 to 1870 the increase was 448
per cent!
At this same ratio of increase in freight for
the next ten years as in the last decade the
amount to be received from freight would be
the enormous sum of 81 100000! And in
1890 to $537, ,600,000
At this rate in 1880 the Stockholders could
divide on their stock for net proceeds from
freight alone 26 per cent, and in 1890, 104 per
cent or after 1890 the road would pay for itself
every year. Although we may not expect
such an increase, yet it shows most conclu-
sively that there will be abundance Of busi-
ness for two roads west from Portland. The
above does not include anything for pas
sengers. But we will take another view of
the increase of business done on the P. S. &
p. Road.
In 1850 the gross earnings from all sources
ON this road was only Sl87, 200, leaving off the
hundreds. In 1860 they were 1924 900, being
an increase during the 10 years from 1850 to
1860 of 1876 per cent In 1870 the earnings
of the road was little over $6l7 900 against
1924 900 in 1860, being an increase Of 263
per cent.
The same rate of increase for the 10 years
by this computation would give the gross
earnings in 1880, $l,623 900; and after de-
Quoting Ga per cent. for operating, which is
liberal, itwould leave about $5S5,00O as net
600, 900 capital; or in other words sufficint
sum to pay the P. S. & p and B. & M. ex-
tension 20 per cent year on their capital
stock a dividend which ought to be satis-
factory to the stockholders.
Therefore whatever view we take of the
earnings of this p. S. & p. road we arrive at
the same conclusion, namely, that there is
noW doing, and has been for years past, ample
and sufficient business to pay good dividends
on its capital stock even if it be divided with
another road.
But it is said that if there is another road
there will be competitor, great reduction OF
fares, and consequently ruin to both roads, or
finally consolidation and higher prices. As
to consolidation the other roads have offered
to consolidate with the b. & NJ but that COM
pany have refused. And as to the competi-
ton and consequent reduction in price of
fares, that may possibly take place; but if it
does | cannot see that the State of Maine will
loose anything by the operation for both the
p. S. & p. & b. & M. Companies are princi-
pally owned out of the State; and if foreign
capitalists have mind to build us railroads
and carry freights and passengers at reduced
rates, for one cannot object to giving them
the privilege of doing SO. But am very
confident that the rates ought to be greatly
reduced and that the railroads would be gain
ers by the operation. The rates for passen-
gers is now from about to cents a mile.
These rates are too high. wish to call your
attention to the result of a marked reduction
of rates in Belgium and the favorable conse-
quence to stockholders, or rather to the gov
ernme mt which operated the road.
l find by the report of the Massachusetts,
Railroad Commissioners that in Belgium, in
years between 1856 and ,'64, the charges on
goods have been lowered on an average by %
per cent The public have sent 2,706, 900 tons
more goods, while they have actually saved
more than 81 ,000,00 on cost of carriage, and
the public treasury gained an increased net
profit of $l,150,000.
A further reduction made in 1864 exceeded
these results and the tonnage rose from H.
479, 900 tons in 1868 to 6,533, 900 tons in 1864.
The government encouraged by these re-
suits turned its attention to fares, applying
the same principle before applied to freights.
A general scale was adopted in which the
charge per mile was diminished in proportion n
to the length of the journey over % miles.
For distances less than % miles the old rates
were retained, varying between l 1.5 and %
cents per mile according to class of carriage.
Above % miles rates rapidly decreased so
that fares over l55 miles were l cent mile
for first class and mills for second class.
So that for distance of 200 miles the fare
would be 81, Sl.40 and 81 according as it paid
for first, second or third class cars.
The effect of this change was singular
and striking illustration of the influence of
any reduction of travel
The traffic within % miles on which no re-
duction was made scarcely increased at all.
Between % and 46, miles onIwhch distance
the reduction was small, it increased over 90
per cent; while on distances orer 46 miles,
on which heary reduction was made, it near
ly doubled. If such has been the result of a
bold system of reduction elsewhere why would
it not operate proftably here2 If the ques-
ton were put railroad officials would answer
by referring to their returns, and kshow that
under the present tariffs even, the roads can
not earn their allotted 10 per cent. dividends,
and meet the requirements of the increasing
business. Such an answer would not be con-
sidered satisfactory. similar one was per-
sistently advanced against all reduction in
the high rates of postage. When that was re-
duced from % cents to 5 cents for any dis
tance, manyisaid of its advocates, these men
oiS wiz uiSii, anu tiidt tlS oCucule nust Ic-
suit in very great deficiency in the postal
revenue. But the result was so favorable
that it was further reduced to 3 cents. And
what has been the consequence? A large in
crease in, the postal revenue, and the general
diffusion of intelligenc among all classes of
our population.
Therefore Mr.. Speaker, if the granting of
this charter will have the effect to reduce
rates, it will he god-send to the people of the
State, as well as to the railroad companies
themselves. The railroad commissioners say
in their report of the p S. & Z. road; ''It is
at present the only outlet by rail south and
west from the State but the travel and freight
always pressing from Maine toward Boston,
and now to be augmented by the railroad ar
rangements in progress in the State, may soon
require further facilities for reaching their
destination" And we say that that time the
commissioners have alluded to when ''further
facilities" would be required, has already
come and is now demanded by the business
interests throughout our wide domain. And
It'll especially demanded by nearly forty thous-
sand people, resident in the towns through
which the road is to pass. These towns have
sent into this Legislature more than two thous-