Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-11-21
VOICES OF THE PRESS.
Our Maine Railroads.
(Maine Farmer.)

Our Maine Railroads.
maine Farmer.)
The November McClure's. in its fore
word, in speaking of r. S. Bakers
article on Governmental Regulation of
Railroad Rates." says:
"rhis is the kind of man Nc
Clures sent out a year ago to study
the railroads. In the November num-
Der Mr.. Baker tells the whole interest
ing story of the making of railway
rate. He was selected because the
| subject is one of great Importance to
| the public, and a clear understanding
of the facts is most needed"
Mr.. Bakers conclusion is:
"And the great fact arising out OF
these conditions, the overwhelming fact,
| is that these enormous powers, the con-
troll of the very instrument of business
| destiny, is in the hands of a COM
paratively few private citizens who are
| handling the tool not to build up the
| nation properly, but to fill their own
pockets in as short a time as possible.
AT the end of 1904, there were 2123i9
miles of steam railroads in the United
States. Their total earnings for 1904
were $3.50. 444,555 which yielded re-
turn of only per cent. to the invest
ing bondholders and Of only 3.31 per
cent. to the investing stockholders.
Rather a large subject to deal with
after one years study. still, Mr.. Baker
seems to have settled it, at least
sufficiently to produce a Sketchy maya
zine article. dealing with generalities.
How are the facts as we in the State
of Maine find them?
The four chief standard gauge rail-
roads in Maine are the Bangor and
Aroostook, Maine Central, Portland q
RumfOrd Falls, and Somerset, and
they represent two-thirds of the total
mileage. In the 10 years from 1895 to
1905, the gross earnings of those roads
increased by S4,193.94S, or 50 per cent,
to total of So 196,6SS; their operating
expenses increased by $2,S0l.S93, or IL
per cent, to a total of S6,705, 123; their
taxes increased by $685.. or $50 per
cent, to tota! of 1926. 191: the amount
paid by them to employees (not includ-
ing general officersl increased by
| 81, 3O1. S31. or 81 per cent, to total of
So, 42l SOS. and their dividends Increased
by $209091. or &c per cent, to Il total OF
s522,6l5. This increase in dividends is
Bangor & Arcostook paid no dividends
whatever. and the Portland & Rumford
Falls only $4,000 i'm dividends.
Here we certainly find great increase
of prosperity, but, with it, as great or
greater increase in expense. in taxes,
and in wages. In other words. of all
this increase in earnings, by far the
larger portion went to the men en-
To,
and cities.
During the first 8 years of this
decade. the figures for 1905 not yet be-
ing made, we find the assets of our
savings banks, trust companies and
loan and building associations in
creased by $3S,o07, 220 or more than So
per cent, to a total of sos, 166. S06; and
that our State valuation increased by
$3S, O13, OzO, or more than 10 per cent. to
a total of S366. OLA
1t looks as if we all prospered during
this period, as well as the railroads.
At the same time, we find that u
distinct and large decrease in both
passenger and freight rates on these
railroads was made between 1896 and
1906.
CENTS, 1905.
Decrease. Per.Ct.
Bangor & ArooStOok .24G5 .036 or IA
Maine Central ............21! .2Sl or IA
P 6, Rumford Falls ......1.S61 .42 or lS.S
Somerset .................2.6o4 lie or oil
FREIGHT RATE PER TON PER MILE
IN CENTS, 1905.
Decrease Per CT.
Bangor & Aroostook .....1.22 500 or 29.t
Maine Central dsd =; IL; 81 "a pa or ~ II
What would President Hadley of
Yale say to these figures? In COM
menting on certain increases in rates
which were made by other railroads,
he said:
at seems also clear that the in
crease in average rates is apparent
only and not real. If the price of
goods carried and wages of railroad
laborers and the cost Of materials
Of railroad construction and opera
ton have increased from 10 to 40
per cent. an increase of apparent
charge Of per cent. on the part of
the railroads is virtually tremen-
dous and gratifying decrease $"
In other words, Mr.. Hadley found
that. as whole, the increases made
in 1900 and the subsequent years.
como clearly within the statement
made in the Annual Report. for
1902. of the Interstate Commerce
Commission: when reductions in
railway rates have been made on ac-
count of commercial depression. it
is difficult to see why corresponding
advances may not properly be made
with the return of business prosper
ity."
We find then that in the past 10 years
Railroad earnings have increased,
Their expenses have increased,
Their taxes have increased.
Their wage payments have increased,
The State valuation has increased,
Our peoples savings have increased,
But both passenger and freight rates
have decreased.
This. too, in a State whose Railroad
Commission has no power to regulate
rates: whose legislatures have over
whe!mingly defeated the only three at
tennis made to regulate Messenger