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

be seriously affected in short time
by changed conditions. sEResSF
The management of the Road feel
it of the utmost Importance to main
tain a strong, financial condition of
the corporation, and believe that what
ever is necessary to be done for that
purpose should be seasonably done.
Prevention is usually much easier to
accomplish than cure.
The conditions with regard to cost
of operation and revenue have changed
materially since the end of the last
fiscal year, and we can see no rea-
son to treat such change as merely
temporary. Under these circumstances
we have believed, and do believe, that
it is the duty of the management of
the corpora ton to meet the situation
at once.
The thousand book which it is
proposed to withdraw from sale, and
the five hundred-mile book at 21-4c
good for interstate traffic, are both
covered by tariffs filed with the In
terstate Commerce Commission, and
with all our ticket agents on the en-
tire line in Maine thirtythree days
ago, thereby giving to the public the
notice required by law of the proposed
change and subjecting the change to
the jurisdiction of the Interstate Com
merce Commission. I think you must
have overlooked this in your statement
that we have done nothing yet to
give the public an opportunity to be
heard upon this important question,
either before State or Federal au-
thorities.'
The whole question has been open
for any person interested TO take up
before the Interstate Commerce Com
mission.
In response to your suggestion that
the public knows nothing about the
changed conditions of the road, ex-
cept my statement, | want to call your
attention to the fact that we submit
monthly statements under oath to the
Interstate Commerce Commission
which are OF file and open to inspec-
ton, and which are usually published
in the papers. These statements show
that since the end of our last fiscal
year the expense of operation, largely
due to increased wages, and the cost
of material. has increased at the rate
of fifty-five thousand dollars a month,
without sufficient increase in, revenue
to make our net results sufficient to
pay our present rate of dividends. We
believe it is essential to maintain the
strong financial position which the
road has enjoyed in order that it may
accord to the public the service and
facilities which it has done in the past.
and this can be done only by main
tanning the road upon a basis which
will yield a return to investors suffi-
cient to attract the purchase of our
securities by them. We believe that
in order to do this the dividends should
be maintained at the present rate.
/ enclose statements showing the
cost of operation and revenue since
the end OF the year ending June 30,
1913. and l should be glad to have you
or anyone you may designate call
upon us and examine any or all of our
accounts so that they can be fully in
formed as TO the details upon which
the statements are made and see for
themselves just what conditions exist
in relation to the operation of the
road and the problems which confront
US for immediate solution.
l desire that the public authorities
and the people should have the fullest
as to what the real sit
uation is.
You suggest. that an application
might be made to the Railroad Com
and in reply to that / have
to say that I should welcome full
and impartial inquiry into existing
and the reasonableness of
the increased rate, made upon an ap-
plieation such as you suggest. or in
an inquiry by the Commission ordered
by you.
1t has long been known, and the
fact has very forcibly been borne home
to us during the past year, that our
passenger train service is not self-sup-
porting on present rates, and in look
ing over the question of possible adj
justment of our passenger rates it has
seemed to the management the best
way by which to secure added revenue
is that suggested by the New England
Conference, and to adjust the mileage
rate on basis of 1-4c mile, so that
there will be less difference between
our local ticket rates and the mileage
book rate than there is at the present
time.
We have hesitated to take the re-
sponsibility to further increase the
freight rates while the passenger bust
ness was being done upon the present
basis.
Very respectfully yours,
MORRIS MCDONALD,
President.