Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-04-03

passenger business Their report, IL is
true, refers to the Boston and Maine
system particularly, but what is true of
that system is true to a greater extent
OF the Maine Central which operates in
more ssparseiy settled territory, where
They We're unanimous id their opinion
that the passenger fares required read
justment and stated their conclusions in
the following language:
'If mileage books were sold at 2sc in
stead of &c per mile and local fares were
adjusted upon a minimum Of 214c. and a
maximum of 23c;. the relation between
the mileage book and the local fare
would be a more inst one than at pres
ent exists Mans( of the commissioners
feel that there should be no difference
rate; that the local rate should be prop
erly adjusted and the mileage book abol-
ished. We are aH3of the opinion that
ment and that the statutes of those
states which might interfere with uni
form treatment of this subject should be
modified that, If possible, some just rule
applicable to all territory may be for
mulated.'
The Trouble Everywhere.
Practically everywhere the railroads
are confronted with the difficulty which
arises from the control exercised by the
different governments. The &c. mileage
book has seemed to be a fashion in New
the supposition that it was a reasonable
rate for the railroads with no regard ap-
parently to the difference in cost of
transportation upon the several roads
For instance, the density of traffic upon
the New Haven, Boston and Maine and
Maine Central are all very different.
The passenger revenue per mile of road
on the New Haven is s13.51. 81 per year,
the Boston and Maine is S712L61, while
the Maine Central is only S29131S. The
passengers per train mile on the New
Haven are 80. on the Boston and Maine
%, while on the Maine Central they are
but 81. Notwithstanding this great diff
erence in the density of traffic the mill
cage book has been maintained at &c. on
all OF these roads, and the public has &C
eustomed itself to this rate for transper-
tation The conference above referred
to found themselves confronted with
statutes in two of the states fixing this
rate of &c. per mile, which they conceded
was an insuperable obstacle to any fair
reimbursement of passenger rates. and
concluded that such readiustment could
not take place upon the Boston and
Maine system until these statutes were
modified
The Maine Central Railroad is con-
fronted with this situation, Two-thirds
of its revenue is derived from freight
and a very large portion of that freight
is under the control of the Interstate
Commerce Commission. Although ii may
be conceded that the railroad is entitled
TO an increase in rates. it may we'll hap
pen that upon an application for an in
crease In freight rates, the Interstate
Commerce Commission would refuse to
grant it on the ground that the freight
rates affect the industries of the State,
many sof which were competitive, with
like industries in other States and upon
other lines of road, to such an extent
that no such increase was reasonable I'M
til proper readjustment has been made
of the passenger tariffs. One reason as
signed by the conference above referred
to for the deSirabiiity of an increase in
" N rafU
rates. was the fact that such increase
would distribute itself more evenly and
be less burdensome to the public than
any other increase that could be made in
transportation rates. A substantial in
crease in the freight rates upon raw ma
terial and finished product of some manu-
featuring concerns may seriously affect
their business. but the increase of Ac.
upon the mileage rate would hardly be
felt by anyone, and Yet in the aggregate
would make a substantial increase in
revenue. But suppose the legislatures of
the states adhere to their requirements
of the &c. rate The railroads would be
between the Interstate Commerce Com
mission upon the one side refusing the
increase in freight rates until the pas
senger rates have been readjusted. and
the states upon the other side refusing
the REIMBURSEMENT of the passenger rates.
Between the two the railroads would be
left with their constantly diminishing
revenue and no practical remedy for a
condition of affairs which is admitted by
both State and national authority to be
nnjGstifa BILE. -z45..
=H The Large Excise Tax.
The public must not lose sight of the
fact that the State levies large excise
tax upon the railroad. Every square foot
of land which the road owns outside of
it's right OF way, and every building 10th
outside and inside the right of way. is
taxed locally in the town in which il is
situated as other real estate therein. In
To tka tof
else tax on the Maine Central Railroad
which amounts to over s500.0o0 annually,
and this must be paid to the State before
the stockholders receive any dividend. IL
is true that the real estate covered by
the right of way itself and the equipment
used for the transportation of property
over its right of way. is exempt from To-
cal taxation, but the real estate included
in the right of way is a public highway
just as our roads and streets are, de-
voted exclusively to the purpose of pub
lie transportation and can be used for
no other purpose whatever Now in sub
stance, the levying Of this tax is a TAX
ing by the State of what would be equiv
alent to a dividend of per cent. upon
SIC, 900, 900 of preferred stock; but the
State contributed not one dollar toward
the construction of the road. and the
revenue it demands SO far as rates of
transportation are concerned. adds just
the amount of this tax to the cost OF
transportation.
The management of the Maine Central
Railroad does not expect that every
passenger train will be run at profit.
1T recognizes fully that public conven-
fence and the best interests OF the state
demand that a reasonable and conven
lent service shall be maintained on all
parts of its system, even though some
trains have to be operated at a loss. but
IL is believed. and this belief is fully JUS
tilted, that the passenger service as a
whole. should contribute its fair proper
ton of the net revenue required for a
moderate return to the security holders.
No REIMBURSEMENT of rates could be rea-
sonably made at once, which would fully
secure the just proportion between
freight and passenger revenue. but the
management of the road do believe that
Il readjustment should be made along
the line which will tend towards this re-
suit. At the present time the passenger
service maintained without curtailment
of the train service now operated, re-
turns little or no net revenue above the
operating and maintenance charges. In
other words the interest and dividends
of the road are earned out of the freight
traffic. While this may seem to the pub
lie as a startling statement and one
which causes surprise on its part sim
Pile illustration will give good deal of
the whole situation:
Cost of Operation.
Ten years ago the average cost of
,y,a ion Of no N ha