Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-02-10

4 80 -
consideration by the Legislature of the
present problems which confront II
and the other railroads Of the State
and immediate relief by abatement to
some substantial extent CT in any
other manner which may commend
I itself to the Legislature"
! A bill has been presented to your
committee which embodies my ideas
las to the relief which this legislature,
haying in mind the situation OF the
railroads and of the State as well,
lcould properly grant.
In considering that bill there are
four points to which it may be well
to call special attention.
First-The relief provided is tempo
Irary only. No permanent readjust-
lment Of railroad taxes should be
asked for or granted until normal
conditions return and the subject can
be treated intelligentiy and compre-
ihensively.
Second.-The period Of temporary
relief includes the years 1871. 1922 and
ividing for the revenue and expendi-
lures Of the State for the next 80
months, or until July first, 1928. and
as railroad taxes are assessed on
April first of each year 1t is necessary
to include the year 1923 in this bill.
Third.-Laws passed by this Legis-
llature are not effective until 80 days
after the adjournment Of the Legis-
llature, hence the special provisions
of the bill for the year 1921 become
necessary.
Fourth.-The request to limit the
iexcise tax for the next three years to
1.-THE amount paid by the railroads in
l1917, is based on the proposition that
the 1917 tax is the last tax actually
Ipaid by the railroad companies, the
lexcise' tax since that time having
been paid by the United States Gov
lernment, hence in going back to the
year 1917 as basis the State is simply
taking the position that it will not
increase the franchise taxes of trans
lportation companies during a period
when their condition is such that an
Increased tax is .indefensible.
How the 3. & M. Views the Act
President James H Eustis Of the
Boston & Maine railroad tol5 the COM
mittee how his road felt in the matter.
They believed that the measure should
go through; that the relief should be
granted. He called attention to the
fact that the B. & NJ. was the outlet
of Maine. It accomplished this by
means of it's three lines. out Of Port
land. the Eastern, Western and Wor-
cester divisions.
During 1920 the B. & M. brought
49, ,036. cars into Maine and took out
of it 154,749, or a total inward and
outward Maine freight traffic Of 3d.
749> cars. or an average daily move
ment into Maine of 404 cars and out
ward movement OF 423 cars.
Pres. Hustis discussed the wage and
rate problems and in closing said that
If the B. & M. had been obliged to pay
taxes in other states on the same basis
as in Maine it would have a total of
$2,7S2.921 in state taxes, which was
$1,775,7s3 more than it did pay. 1t
paid taxes in Maine at the rate of
$1209 per mile Of road. while it's rate
outside of Maine was but $3.50 per
mile of road.
FTeSfueht tooo'S views
President Percy R. Todd of the Ban
gor & Aroostook told the committee
that he believed some relief was due
the railroads, but that he thought. il
shouN be measure fixing the rate to
be collected on the basis of the bust
ness of 1920, not 1917, as proposed in
the act
He said that, contrary to general
opinion, the Interstate Commerce Com
mission did not have the authority to
grant freight and passenger rates
which would give the roads a return
Of per cent. on investment. The only
authority which the commission had
was to fix rates which would give such
an earning power to the roads as a
whole, or as group of roads, not as
individual corporations.
Under existing conditions the rail-
roads no longer had the power to fix
salaries or hours of labor This was
done by the United States Railroad
Labor Board. This together with the
Standardization Of wages whereby a
man doing work in Maine received the
same pay as one out in the Great
American desert in Arizona, regard
less Of the fact that living conditions
were much different. In discus sing
this Mr. Todd told of two men en-
ployed by his company at the DERBY
shops to operate electric pumps. I'm.
der these new conditions they were
obliged to pay three men 5000 per
month for doing what the two men
formerly did for S20G.
He then recited figures of the tax
which the B. &c A. had been paving,
, showing that it had jumped from ss5.-
: 600 in 1912 to $233,000 in 1920 and
that it was expected to reach ss7e. 00O
. this year il no relief was granted
, Wages, with practically the same mum.
, her of employees had gone from s1,22o.-
) 600 in 1916 to s3.5S5,000 in 1920. This
! tax increase came from the increa sed
gross earnings. due to increased freight
, and passenger rates, not to an increas.
ed volume of traffic.
; In expressing his views as to tn.
> basis upon which the abatement
should be made Pres. Todd said tina,
he agreed that relief must be had. but
, that he felt that under the condition
of the State at this time it was no
advisable to ask an abatement which
would reduce the amount which tn,
State had received as q maximum