Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-05-08

sDefiCit.
From this statement il will be noted
that in the last three months OF opera
ton the company did not earn sufficient
money by nearly $4,000 to pay even its
operating expenses. In addition thereto
the company must provide for the pay
ment Of about $4,000 for accrued taxes
ana interest for that period. This leaves
a total deficit Of about s94,0G9 without
providing for dividends of any kind.
The figures for the - months re-
veal the same tendency. The costs
of operation are continuing to in
crease, the earnings of the company
are decreasing and there is a proper
demand for improved service.
We are now negotiating with our
employees about wages for the cur
rent labor year beginning May list
Should any increase of wages be
made. this will CORES pondingly in
crease the deficits shown above. Dur
ing the past five years the pay-rolls
of the company have increased Is
per cent. this increase being paid
directly to wage carners in the COM
munities served.
During the same period taxes have
increased IS per cent.
It is estimated that the prices Of
Iall materials used in operation have
also increased 100 per cent
The company is now endeavoring
to extend its funded debts maturing
during the present year. Owing to
money market conditions due to the
war. this can be done only At rates
Of interest which are increased about
20 per cent. above the present rate.
end this will mean an addition in in
terest charges Of $4,000 per wear
In addition to these unavoidable
increases of cost more money should,
in the public interest. he used at
once to improve the cars. the road
bed and tracks. poles. wires. and all
other equipment. In no other way
can safe dependable service he
assured. These measures would nc
cessitote still more men and material
lat costs higher than those Of last
year.
We had hoped that the abnormal
period Of high prices could be passed
by the strictest economy. without be
ing forced to int rease the fares as
many other companies have done
But by this economy in expense Of
up-keep the whole physical plant has
suffered undulS. To keep it fit to
provide safe and dependable serv-
ice. not only in abnormal conditions
such as those of last winter, but even
in every day conditions. requires an
immediate increase of income.
Every possible expedient has been
made use Of and make shifts have
meet the present service require
ments.
The foregoing makes clear the
danger that imports a continuation
Of the public service. If the com
pany is to survive and the service is
to continue, such relief must be af-
forded as will. We hope, be brought
about by tho increased rates of fares.
The emergency is go extreme as to
ilnpel US to seek action upon these
facts at the earliest possible moment.
1t cannot be definitely ascertained
just how much the new rates OF fare
will add to the Companys revenues,
but II the Company in its endeayors
to meet the emergency is supported
by the public. We should be able
both TO maintain and improve our
service and to preserve the credit of
the Company. No company without
good credit can obtain money from
investors for extensions. new cars,
etc. to keep up with the growth and
requirements OF The community.
AS this is an emergency applica-
ton, the suggested tariff may be con-
sidered tentative. subject to such
notifications by the Commission as
the results in actual practice may in
their judgment indicate.
Very truly yours
ALFRED SWEENEY.
4 W.