Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-04-30
1870 RATE BOOST NO REMEDY
FOR A|L|NG n. T. RAILROADS
findings of Joint Com mittee Named by Gov
errors of Section - Roads Failed to Show
Advance Would Relieve Situation and Safe
guard New England Interests - Believes
Government Under Obligation to Recon-
pense Systems in Ne ed of Funds Recon-
mends Memorial to President
COMMITTEES REPORT

l. l.
Boston, April a9-The proposal of
the New England railroad heads to
increase freight and passenger rates
immediately by 10 per cent. to relieve
their financial plight was disapproved
by the joint committee appointed by
the governors of the New England
states The report to the governors,
signed by each of the 80 members of
the composite committee, was made
public today. 1t said that the rail-
road executives had failed to show
that The desired advance would rem
edy the situation or that by such an
increase New England interests would
not suffer.
The committee reported that it
found that the financial condition of
the separate roads was not the same,
although all We're suffering from q
decrease of revenue. The Boston q
Albany. leased line of the New
I
quest for advance in rates. The Rut-
land Railroad in January and Febru-
ary showed deficit of $121,091 and
the committee said it apparently could
continue to operate for the present
without serious difficulty. The Ban
gor & Aroostook asked for an in
crease of rates only on one-half of
one per cent of it's entire business.
The operating experience of the
other railroads." the commission re-
ported, lis indicated by the fact that
for the six months ending February
%. 1921, deficits after payment or
fixed charges have been as follows:
Maine Central S915.359; Central Yer
mont. $91S652: Boston & Maine. S.
o9o. SIS; New York. New Haven &
Hartford 81 ,212,022.
The accumulation of such deficit
in six months period indicates
clearly that these four railroads are
in q position which is far from sa-
,isfactory. None of these railroads is
in such condition that it can long en-
dure a period of continued deficit.
The situation is especially serious for
the Boston and Maine and the New
York. New Haven & Hartford rail-
roads. Nevertheless, we do not con-
clude that any of these four will cease
to operate under their present corpo-
rate arrangements during the period
which will elapse before they can Sc
cure assistance by the payment to
them of amounts owed by the Gov
!. n IT,
ment of wages and conditions of en-
ployment and by the determination of
-. the question of division of through
rates which is now before the Inter
state Commerce Commission. 1t APP
pears improbable that the rate OF de-
fcits which has existed for the last
six months will continue for the next
six months"
Among the considerations which
had weight with the committee were
the following:
There is grave doubt in our minds
whether the proposed increase would
produce the amount of revenue Whlch
the railroad executives estimate and
which would be really necessary for
any effective relief. There is OF
course a point where traits will not
move Whether that point will be
reached or not with any such increase
of rates. may not be exactly deter
mined, but in general those who are
familiar with railroad conditions over
the country believe that rates are at
their peak, and that instead of an in
crease in rates there should be de-
crease if there is to be a revival of
satisfactory business conditions for
both the railroads themselves and
for industry in general. We are not
satisfied. therefore, that If this ad-
vence is granted the necessary money
will be forthcoming, and are strongly
inclined TO believe that such an ad-
vance will fall far short Of the
amount necessary for temporary re-
lief
The traffic managers of the rail-
roads think that New England bus
mess can stand this temporary ad-
vance, and the shippers are quite pos
tive that New England cannot.
While We cannot finally conclude
Which may be right, we are strongly
OF the opinion that the chances of an
unfortunate result are such that we
cannot in Difference to what we be-
heve to be the general good of this
community recommend that any such
risk be taken
We are by no means clear as to
the way in which the proposed In
crease is to be worked out. AS it is
not fiat increase of ten per cent,
VIII in some instances amount to
much more, even to twenty per cent.
now these various adjustments
would satisfy the different kinds of
BUSINESS we have no means of deter
mining. The possibilities Of this sit
uatlon are such that an increase
should not be recommended unless
is known exactly how it is to be
applied
The idea of New England as
instinct district for rate making pur-
poses has been resisted heretofore by
uie New England public, will be re-
sisted hereafter, and ought, in our
0plnion, to be objected to upon every
OCCASION when it is proposed. 1t
seems to us that neither New Eng
anu railroad executives nor any
u'her persons in the New England
Immunity ought to propose or as
seht to a scheme of rate making
"hich will so surely react to the dis
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