Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-12-03

ponds in a great measure upon econ
omies which. may be effected without
reducing the quality Of the service or
depriving the employees of q fair
wage. These cannot be accomplished
wholesale, but it is believed that sub
stantial progress can be realized.
The Company was very fortunate
in refunding its $S45, 1000 Of Lewis
ton, Brunswick & Bath Street Rail-
way bonds at s per cent without any
selling cost at a time when more at
tractive securities are commanding
a much higher crate. The average
rate paid on the remaining 100000 of
underlying bonds is about Ala per
cent. These were not disturbed in
the reorganization and run to 1886 and
1851.
The General Manager has made an
extended investigation into the re-
lations between the Company and the
municipalities through which its lines
run respecting the removal Of snow.
It is confidently expected that more
equitable arrangements will be made
that will be fair to the towns and
cities and result in substantial saw
ings to the Company.
Under the original orders Of the
Railroad Commissioners approving
the location Of the line the Company
was required to pay one-half Of the
cost Of maintaining gatemen at the
two Maine Central Crossings in
Brunswick. This cost the Company,
at the present rate of railroad en-
ployee's wages. about $1,000 per an
mum. This was believed to be unfair,
considering that the railroad had to
protect its crossings anyway. and the
street railroad added little to the bur-
den. The matter was taken to the
Public Utilities Commission, which
reduced the charge to $500 per year.
The Company has three sub.sta-
tons which cost $500 per year cash
in wages Of attendants. The directors
have voted to install one automotic
sub-station at a cost Of approximate
ly $1,000, which will eliminate the ne
cessity for attendants. Others will be
installed as finances permit. These
are being used very successfully in
other parts of the country and are
believed to be practical here.
PUBLIC SPIRIT
The officers take pleasure in &C.
knowledging the splendid spirit Of CO.
operation which the public has shown
toward the Company. The public has
fully appreciated the difficulties
which have confronted US and have
been very patient in giving an oppor-
tunity to work out improvements.
During the exereme difficulties due to
the severe storms Of last winter there
was an entire absence Of complaint
and the citizens in all parts Of the
territory served rendered valuable as
sistance in clearing the lines. When
an increase in fares was asked for
there was universal evidence Of will
ingness to pay whatever was neces-
sary to enable the Company to rem
der its service. Nowhere were we
met with the disagreeable situations
which have eisted elsewhere.
The attitude Of the EMPLOYEES has
been uniformly helpful. They have
been reasonable in their demands.
faithful to their duties and ANXIOUS to
assist the Company in its efforts to
serve the public.
DIVIDENDS
The officers realize that the stock
holders are entitled to a return on
their investment which now repre-
sents actual value, whatever NAV
have been the fact before the reor-
ganization took place. That reorgan-
ization eliminated all of the old stock,
both common and preferred, together
with more than a million dollars of
Indebtedness.
The directors do not, however. fee,
tnat the matter of dividends can vet
be considered. They believe that the
permanent interests of the stock
holders demand a continuance of the
immediate policy of improvements
which will afford better service and
increasing economies. a policy which
also required by the agreement
with the Lewiston, Brunswick &
Bath bondholders in the Joint plan
for reorganization.
1t Is hoped that these improvements
with the resulting economies and the
prospect that the peak in prices has
been reached will justify the favor
able consideration Of the question of
dividends within a reasonable time
Respectfully submitted,
WILLIAM B. SHELTON,