Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-03-03
GROUP NAMED
Continues from Page ons)

Continued from Page ons)
others being out OF town. cannot be
reached at the present moment A
great responsibility rests upon them"
Governor Baxter made the follow
ing statement concerning the confer
ence Of governors on Saturday. Feb.
IS, at Boston with the railroad pres
idents on this matter:
"At the invitation OF Governor Cox
of Massachusetts, q conference of the
governors OF the six New England
states and Of the chief executives of
the New England railroads was held
at the State House in Boston on Sat
urday. February 26th. The railroad
executives represented railroad prop
erty, the reproduction value of which
is in excess of one billion dollars. The
railroads doing business in Maine were
represented as follows: President
Morris Mcdonald. the Maine Central
railroad; President Percy r Todd. the
Bangor & Aroostook: and the Boston &
Maine was represented by President
Hustis. The hearing was held in the
Council Chamber. with Governor Cox
presiding. General Counsel auckland
of the New Haven road presented the
case for the railroads in a clear and
forceful. manner, and the governors
were impressed by the sincerity of his
appeal. The railroads are about to
ask for a temporary increase of Ioec
in their freight and passenger rates
to tide them over for the period of
one year. The usual procedure in such
..eyee- to
Commerce Commission az Washington,
but the New England railroads. desir-
ing to inform the New England pub
lie through the governors, did not wish
to take hasty action on such an i'm
portant matter as a railroad rate in
crease. which would affect the citizens
and the industries of the six New Eng
land states.
THE governors went to the confer
ence in. order to hear the railroads
case. and at an executive session de-
cided to present the matter to the
people of their respective states,
through a committee of five citizens
from each state who will represent the
interests Of their several states This
committee. which will meet in Boston
at an early date to go into the rail-
road question in detail. should consist
Of public spirited men of affairs, who
will go to Boston in order that they
may contribute to the solution of the
present critical railroad situation.
The railroad presidents produced
f1gures to show that the year 1921 was
likely to be a difficult one for them.
and they stated that if the industries
OF New England are to compete with
those of the states to the south and
west. adequate transportation facili-
ties must be available at all times.
After making allowances for expected
reductions in the price of coal and in
the price of constructing, materials,
and after reducing other expenses, the
railroads showed that they faced a
deficit of s27,000.00O after payment of
their fixed charges. without taking in
to consideration the payment Of any
dividends. About half of this amount
Will probably be paid to the New Eng
land roads as the result of a compro-
mise with the trunk lines on a diyis-
ion OF through rates, and the other
half must come from on increase in
freight and passenger rates. The
railroads showed that for every dol
lar OF income received they were I'M
der an expenses of Sill. They show
ed that their payroll increases were
1920 over the three-year test period
prior to federal control, and that for
the same period there was an increase
of 1642o in the cost of locomotive fuel
These railroad presidents expressed
the opinion that this 1000 increase
would take care Of their needs for the
next II months.
THE six New England eovernors
were not sitting as a court to decide
this important question, hut repre-
scented the citizens of their several
states, and from the evidence pre-
scented felt that it was proper that
the railroads be given an opportunity
to present their case to the public be-
fore fling their rates in Washington.
me governors appreciated the SINGER
lty of the railroad executives and re-
alizei that the prosperity of their sew
eral communities is to a large extent
dependent upon the railroads, which
are the arteries of commerce Unlike
certain private enterprises, the rail-
roads cannot stop or go out of busi-
ness. Regardless of conditions the
railroads must be kept running. and in
this respect they are similar to GER
tain State institutions, which not
w1thstanding expense must continue
to function.
The proposed 1919 advance in
freight and passenger rates means in
creased burdens upon the public. the
shippers, and the industries of tba
territory to be affected The attitude
OF the railroads has changed during
the past. few years. In former DAYS
some or the railroads in New ENG.
land were exploited for private gain
anu were under the domination of
groups OF inscriptions financiers who
manipulated these great properties for
their own selfish purposes. These mon
seemed to entirely overlook the fact
that the railroads were public service
corporations. If there is any method
whereby the despoilers of these rail
roads can be made to respond in DANA
ses' action should be brought against
them. This is one Of the Questions
whicn the proposed committee sbould
consider. Time should not be allowed
to heal the offcnses which were COM
mittei by these men who betrayed the
property of which they were trustees
Marked changes. however. have
taken place in the last ten years. and
the railroad arrangements of TODAY
realize their raspopsih;l;t;nr A.. a,