Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-11-02

! oe pFdctlCaHy prOniDltlNe.
| The respondent Maine Central Rail-
road Company. which is principally in
terested in this proceeding. says. in
substance, that its operations for the
years ended June 80 1916 and June so,
! 1917, left less than a reasonable
amount for improvements ard extern
! sionS to property which ought to be
made from income, and that the pres
1 ent increased cost of operation. unless
met by increased revenue. will more
| than absorb this balance and necessi-
| tate the reduction of dividends on
! common stock, which now are only
six per cent. 1t says that such con-
dition would prevent the proper main
| tenance and improvement of its rail
road property. the proper service OF the
| public. and injure it's credit so that it
would be more difficult and more cost
! ly to obtain capital for Investment in
future extensions and improvements
1T says that all of this is due to
/ present abnormal cost of labor, sup
! plies and materials and that the con-
/ ditions justify and demand immediate
relief through these increases in pas
! senger rates from which it expects to
! realize 100000. and increases in
freight rates estimated to amount to
| $500 900. This is the emergency which
it says exists.
| THE Attorney General. on the other
hand. says. assuming that increa ses
| might lawfully be approved on account
| of the existence OF an emergency and
without a valuation, that no emergency
| now exists; that the increased cost of
0n1r9 ri0n will 10 sufficiently, 1.
revenues from increased traffic and the
100000 expected from increased
| freight rates"
Passing TO a consideration of the
evidence. the Commission find that the
., Railway Operating Revenues of the
Maine Central Railroad Company for
! the year ending June 80. 1917, were
S13,632.79S.25; the Operating EXPENSES.
s9.721,941.9s: the Railway Tax Accru-
ais. 1856, 407.2S; the uncollectible rev.
enues. S34S50: leaving Railway Oper-
atins Income, S3.25410049. This was
an increase in gross revenue over the
preceding year of s1.631125.e1, and in
operating expenses of S1,5o9,364.O7.
| If the 1917 volume Of business had
been done at the 1915 range of unit
prices for coal, labor and materials, the
total cost of operc ton would have been
sl.O1o.690.75 less. That sum represents
the additional cost per ton of coal. the
increases in wages effective during
some part of that year, and the in
creased cost of The Same amount of
materials over the 1916 prices.
These and further increases in cost
of coal. labor. supplies. materials ana
increased State and Federal taxes. all
now effective, will make the same VOL
ume OF business done in 1917 cost the
company sl0,7s4,4S3.79 in rating
expenses and s752, $3.50 in taxes dur
ing the year ending June 30 1918. This
IS total of SISSY ,003.29; and win
ieave Railway Operating Income IF
s-'oHa,is4 DC. which is s1,16s,3 O5.53 less
than Tor the wear ended June 20 1917
The accuracy Of these figures is pot
challenged, but the Attorney Ganera1
III very exhaustive ANALYSIS of tho
respondents reports and contentious
reaches the conclusion that the net
revenues from railway operations i,
. WY. ought to be from S3,13233376 IN
$3.50, lGO.0S, plus a sum from IN
creased freight rates estimated to ~
S'oo'ooo' and that, therefore, no emer-
gency exists"
/ The decision Summarizes fou,. oo,,,,,,
( -
tations made by the attorney general
which show, after deductino, estinotod
taxes, probable net OPERATING inronoa
according to the method snftir;,,t1,,
unset oy revenues from increased traf :
fic and the $780, expected from IN.
! creased freight rates.
/ IasS!ng to a consideration ~ tha
! evidence, the Commission find that ia
n tYNC, n
Maine central Railroad Comnanv fo,
inc year ending June 80, 1917, were SIS.
oa- ESD the Operating Expenses. 49,
1l,'4i.9s, the Railway Tax Accruals
sooo' 4o'.!s: the uncollectable revenues
s'4s'oo leaving Railway Operating In
come s',2oi, leO.49. This was an jncrea Sc
III gross revenue over the preceding
| year or 1881 1861, and in operating
! expenses Of s1.529,36
II the 1917 volume Of business had
peen done at the 1916 range of unit
prices Tor coal. labor and materials the
totai cost Of operation would have
been s1,O15,690.15 less. That sum rem
resents the additional cost Der ton of
coal the increases in wages effective
curing some part of that year and the
decreased cost Of the same amount of
materials over the 1916 prices,
These and further increases in cost
Or coal, labor, supplies, materials and
increased State and Federal taxes. ali
; row effective, will make the same vol
ume OF business done in 1917 cost the
| company $40, 794, 1879 in operating *
! penses and s752 $3.50 in taxes during
! the year ending June 80, 1918. This
is total of sl1 ,5i7 eos 20; and will leave
Railway Operating Income Of 81
te5, 1896, which is 81. 1853, S05.53 less than
for the year ending June 30 1917.
, The accuracy of these figures is
rot challenged, but the attorney gen
eral, in a very exhaustive ANALYSIS of
the respondents reports and conrea-
tions, reaches the conclusion that the
net revenues from railway opera tons.
in 1913, ought to be from IS, 49,, 333.7 10 to
4,265, 1905. plus a sum from increased
freight rates estimated to be 5000, 300.
and that, therefore, no emergency ex-
lists"
The decision summarizes four COM
putations made by the attorney gen.
eral. which show, after deducting cs-
minated taxes. probable net operating
| income according to the method adopt
ed as follows
L ....'............... .S2,57S, eli.@6