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

solutcly through no fault of their
present officers. do not want to be
an alarmist, but. the people are deep
Iiy interested and they will be very
tm6ch worried. unless financial help is
given to the railroads.
| Give the roads the money they re-
quire, as it is vital for every person
| il Maine. We all know that railroad
Iadve. sity means business depression.
The railroads of Maine cannot increase
rates, as it would penaIize every in
dustfv in the State, and it is up to
lthc railroads to protect their indUs-
tries so that they can have the wild
lest possible range of markets We
are in Maine distant from many SUR
ces cf raw materials.
The great thing at stake is the
preservation Of our Maine railroads.
Eeseech you, Gentlemen, to all them
liz what they are asking. We repre-
sent practically the entire industry Of
Maine, and the railroads ask for few
iyears os the abatement Of their tax
les Just see what it means to our
lStatc,-great prosperity, and it shows
1.-THE entire United States we are be-
hind the Marie railroads, and we
want them to live and be prosperous.
as it means our prosperity.
Our Maine railroads are on tie
threshold of a New Efa. Will the pco-
pie and the Industries be restricted for
lack of support from the State? One
of tie causes Of the current ulsettle-
mcnt lies in transportation difficult
ties. We want the farmer AMI the
manufacturer to get his products 10
the market promptly and that is one
of the principle reasons We are organ
liZet. fer.
i l:afe advances are not welcomed.
The demand is for efficient service.
We know that the Maine Central r.
r. is not a speculative enterprise. 1t
has ceen stated by it's President that
100 per cert. of the holders of the pre-
ferred stock. apd so per cent. of the
dents in Maine. We, who are doing
business with our Maine roads, know
they are efficiently and carefully
managed, and in order to continue,
they must be kept solvent and their
credit maintained. Our railroad diff
culties have come from Washington,
and our State can now help the situa-
ton.
He referred to the fact that the
road. until last November had not
passed a dividend in 80 years. Now
hn rl<, \
turn to its stockholders from cur
rent earnings, and even fixed charges
unless relief comes will have to be
deferred.
He referred to the three years of
private control ending June 80, 1917,
prior to the taking over of the road
by the national government and
showed that during the test period
70.49 cents on the average of each
dollar received was expended for
operating expenses, whereas during
1920 for each dollar received it was
necessary to pay out in operating ex-
penses the entire dollar received plus
5.37 cents. 1t should be borne in
mind that operating expenses do not
include taxes, interest, or dividends"
10
"The condition in which the Maine
Central Railroad Company finds it
self is due to several factors largely
beyond the control of the company
They are increases in cost of ma
|terials and supplies. in wages and in
taxes"
The company expects and will
strive to accomplish economies which
have been impossible under war con-
ditions. We cannot secure coal or
other supplies at less than the mar
ket prices, and il it were desirable to
make a marked reduction in the wage
scale, it is practically beyond the
power of the company to do so. Dur
ing the period of Federal control the
Z. S. Railroad Administration fixed
the wages, and under the Esch- Cum =
mings Act this power was lodged in
the U. S. Railroad Labor Board. Thi.
fact must not be lost sight of. The
railroads do not have, and will not
again have, unless there is an
amendment of the U. S. Statute. full
jurisdiction over the rates of wages
paid their employees.
There has been an important in
crease in taxes outside of those paid
the State Of Maine. In 1917, the
company paid the municipalities, 9TH
er states and the United Sttaes $751;
347.24 and in 1920 the sum of $685.
475.71-an increase of $171,12S.47 over
which neither the company nor the
State has any control.
these outside increases cannot be
affected by any legislation at pres
ent under consideration, and are OF
importance. They represent an
amount equal to more than the entire
five per cent. dividend on the s3,-
000,00000 Of preferred stock now out
standing, and on which a dividend
was passed for the first time, last
fall.
"In considering the ability Of the
Maine Central to pay taxes, the
Legislature should not forget that
this company must pay about $780,
100000 this year in taxes entirely aside
from the Maine Excise Tax, and this
at a time when the road is not earn
) ing its fixed charges.
I. "Yet these three items. wages, coal
and taxes account for the conditions
. which now confront US.
j I'm spite of the general increase in
: freight and passenger rates. the ad
|, ditional revenue afforded will fall