Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-04-21
TO SOLICIT BUSINESS

In reference To tho general situR-
deficit of s2,lSl.O5e in tho railroads
operations the past year. after pay
ment Of fixed charges. This has becn
charged to profit and loss.
This unfortunate result" the COM
mittce reported. lis due primarily to-
the acute depression in business, ap-
parent in all parts OF the country.
and the consequent reductions In
gross revenue. statistics show the
number of passengers carried over
the companys lines during 1921 vas
SS5,16l less than in the preceding
year while the reduct ion In the VOL
ume Of freight traffic was npproNi-
mately 90 per cent. Il has sppa rently
been impossible 10 reduce the eN-
penses Of operation propurtionateiy
with the shnnkaee OF revenue"
The company IL seriously emhar-
rassed by an excessive burden Of AK
ed charges. the largest single item oe
which is the charge Tor state and To-
cal taxes. the committee finds. Tho
tax payments reached n total ~ tl-
263.@Sa. greatly exceeding tho interest
payments Of the funded drht
The committee suggested that ~
careful study Of the rate structure be
made by the manag, mcnt 10 soc N
adj 'stmcnts may not be- made to
stimulate commerce and industry In
this section ana secure nm increase
of revenue. II was noted that hu-i-
ness along its lines had not been sur
fciently solicited. due 10 absence Of
effective competition previously.
In view Of the Improvement of state
highways and consequent diversion ~
considerable quantity OF freight 10
motor trucks. the committee stated
that it is more important than ever
before that n dIlirent effort De made
to obtain the maximum volume Of
rafiic
BY vote Of eight - siv. Tho COM
mittce decided To Tccuum.ud that a
chairman Of the hoard 81 directors
should be chosen To act in connection
with the business affairs Of tie COM
panN and its public relations This
was done in view Of the "tmpuitHu,e
performed In the c4tulli .hnrnt az
proper relations with the general
public ana in the solution ~ the bus
mess and tnlu.iil problems with
which the company IL now confront
cd" Expressing tho hrli.f that rail-
road capital should not hc invested
in outside enterprises. tho committee
recommended that Mount klnen
House AT MooSchrad Lake, Snmosot
Hotel at RoCkland ana real estate not
used for railroad purposes At Far
llarbor and elsewhere, owned by the
company. be sold whenever advnniaE-
cous prices can be- obtained and that
this capital hc employed for raiirond
purposes. The company owns the on
tire capital stock Of the hotel com,
pany. having par value - ~ sc aon.
The book value Of the other property
is s3li GGa.
The stockholders voted that the
special committee 81 stock h0lders he
continued until the next annual meet
inT. II was also voted on rccommrn-
datiOn uf the committee that the
board OF directors b. incrca Sod from
II 10 IL and that chairman Of the
board of directors hc created 90 give
general assistance to the present Of
fiCials.
The present officials were re- elect
cd. They will select tan four nddi-
tional directors ~ an early date. The
hoard organized later rc- clecttng
President Morris Mcdonald. vice
President Dana e. Douglass and
Clark Charles II. RlatChford.
Directors were 70 elected az annual
meetings Of the subsidiary companies