Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-12-15


with the Maine Central system and
draws substantial salary from that
company for his services: The Boston
& Maine pays Mr.. Mcdonald $35, 900 a
year and the Maine Central pays him
another $4,000, making IN all $4,000.
In our opinion the salaries paid the
chief executives and frequently the
other chief officials of the principal
railroad systems of the United States,
ranging as they do from $4,000 to
$100,0 annually in case of the chief
executive, are utterly eXtravagant.
These positions are not properly pri-
Vate places, to which the corporations
may attach any compensation which
its stockholders ratify: they are quasi
public in their character, and the 1ea-
sonableness of the amount paid may
properly be inquired into, especially
where the corporation is asking to i'm
pose an additional transportation tax.
While the amounts paid the high
salarled officials of our different rail-
! road systems are almost an lnappre-
ciable part of the total expenses of
those properties, still the effect is sig
nificant Extravaganza at the top is
reflected all the way down the line.
We doubt whether the people of this
country will long feel altogether salts
fed to allow increases in rates which
are being asked for until these sal
aries have been readJusted
We thinks s35 900 is liberal compen-
sation to the president Of the Boston
e. Maine Railroad. But whatever sal
ary Mr.. Mcdonald is to receive should
hn
g. Maine alone, and that company
should have the benefit of his entire
time and energy.
1t should be added that we have
examined the list of salaries paid 9TH
er officials of this company above 5000
annually without finding anything
which calls for special comment.
What we have said as To the salary
of the president is not in criticism OF
Mr.. Mcdonald, but rather of this mod
ern custom of which he is at once the
beneficiary and the victim.
Should Be Separated.
We are also of the opinion that the
traffic departments of the Boston &
Maine and the New Haven should
finally be entirely separated. No criti-
cism is intended of the gentleman
who now acts as the chief traffic Off
Ger of both these companies. During
these conferences his fairness and his
ability have been evident, but in our
view no man should permanently hold
that position in both companies.
| In the first place the tariffs of the
Boston e. Maine, even after this be-
ginning in the way of simplifieation
has been made, are still in most
chaotic condition. 1t is imperative
I that some strong man should devote
his entire time to the revision of these
f schedules for some years to come.
In the second place, while these two
railroad companies ought to cooperate
in all proper ways, still there are i'm
portant points at which their interest
is diverse. It is earnestly insisted by
many who have given the subject
+ careful attention that today the traf-
f1c of the Boston & Maine is being di-
verified to the New Haven at the ex-
+ pense of many thousand of dollars of
revenue each year. We have not been
able to investigate this claim, but 1t
is clear that the traffic department of
the Boston & Maine should be so in
dependent of the New Haven that TINS
and all similar questions can be fair
] ly considered.
None Knows What to Do.
J The present financial condition of
] the Boston & Maine Railroad is crlu-
cal. The most embarrassing feature
is that nobody can tell exactly what
should be done to protect the just in
/ terests of all concerned. 1t may final
" turn out that these properties
should be thrown into the hands of a
/ receiver and pass through process
of reorganiza ton, but this would be a
calamity which ought to be avoided II
| possible. Nothing can be done hastl-
! w. The present condition was years
! in the forming and will require years
in the correction. For the moment
there is need of patience and coop
Grafton. If disaster is to be aVoloeu'
/ all interested parties must exercise
/ forbearance and must undergo tempo
/ rary inconvenience.
The stockholders of the Boston d
Maine can not reasonably expect TO
receive further dividends in the imme-
diate future 1t is true that they nave
actually paid into the treasury OF TINS
/ company on the average about Slzo per
share. and it is also true that up 70
the present time they have received
! dividends equivalent to about per
cent. on the money which was PAID
in. If these stockholders had de-
posited that money IN the savings
| banks of New England, or had invest
ed it in the underlying bonds of these
railroad properties, they would have
received during this time from S@ to
/ 4 per cent. They chose the high rate
| with the more uncertain form of in
| yestment, and it is not unreasonable
! that they should now assume the re-
/ sponsibility for loss due to the mis-
management and poor judgment OF
themselves or their representatives.
The fnanciers who are carrying this
short-time paper might well abate
something from their present demands.
! If these gentlemen are not willing to
renew this paper at a fair rate of in
terest it will probably be necessary to
! allow matters to take such course as
will involve not only the loss of in
/ terest but the possible loss of part
| of the principal. The public will not
nav. in the way of increased rates,
/ s,.tD Arf