Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-03-31

directly concerned in the railroad
problems of Maine, the owners of the
properties; the employees, who may
be regarded in some sense as part
nerS in the enterprise, although en-
titled to preferential consideration;
the public who use the facilities pro-
vided and the State which has given
the railroad corporations the right to
lions. From one or all of these in
terests must come the funds which
the railroads need.
The stockholders are eliminated
from consideration in the present
crisis, as they are not receiving any
dividends or other returns upon their
investment, and the rights of stock
holders should be held in allegiance
until the solvency of the railroads
is firmly established and more nor
NAL conditions return.
We believe that the national agree
ments should be revised to remove
many difficulties which were not an
ticipated when these agreements
We're made and which in many in
stances have retarded efficiency and
caused a considerable waste in OPP
Grafton. While a horizontal reduc-
ton in wages of any percentage
would not he equitable and wages in
some branches of the railroad service
are not thought to lie disproportion-
ately high under present living condi-
tons, it is believed that some volun-
tary agreement may be made for a
temporary readiustnent of the wage
schedule to meet present conditions
or a submission of a new schedule
to some local adjustment board
which might be mutually acceptable.
e =
A reduction in train service might
be made with the approval of the
Public Utilities Commission. but we
think the saving in expense might
not he commensurate with the re-
sult'ng inconvenience to the public.
The effect of taxation uron the
present railroad situation has al
ready been called to the attention of
the Legislature. -.
II a sufficient reduction in expenses
and fixed charges, including taxes,
cannot be Immediately secured to es-
ta blish the solvency and maintain the
service of the railroads, some increase
of rates is inevitable and the full ad-
vance of ten per cent. may become
necessary. The committee is reluct-
ant to endorse any substantial in
crease in service charges which
would place an additional burden up
4x.,1 nd ryrif1 "a.
terests of Maine during the difficult
and uncertain period of readjustment
to peace conditions through which we
are now passing. The high passenger
fares now prevailing are objection
able and any further increase will
cause resentment. The industries Of
Maine would be more seriously han
dicapped by an advance in freight
rates than competing industries sit
uated in closer proximity ITO the
sources of raw materials and to the
great markets. Moreover, the COM
mittee is by no means certain that
the results which the railroads eX-
pect from such an increase would be
fully realized. A point can be reach
ed where the economic law of dimin-
ishing returns will operate. A ten
Der cent. advance in rates would I'M
doubtedly restrict passenger travel
and to some extent the movement of
freight. 1t would undoubtedly cause
some further diversion of freight to
motor trucks, causing addition
damage to the highways constructed
and maintained by the State and its
several municipalities. Thus the re-
sulting loss to the railroads might
fall in large measures upon the State
ITSELF 49,, ~. ~
While it has been strongly urged
by representatives of industry and
others that wages of employees should
be reduced under pressure of public
opinion to an extent sufficient to meet
the needs OF the roads and while we
believe that some readjastment of the
wage schedule and working condi-
lions should be undertaken upon the
basis suggested above, we are not