Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-01-05


return to normal so that we can re-
turn to our former liberal and pros
porous line of operation.
We have q property investment Of
, over $7O,00O,000. Before the war the
Maine Central was the most pros
porous in it's history and its service
was the best ever. This $70,000,0e0
investment includes property both in
Maine and other New England states.
The United States Government
came in during the war and took
charge of our road, with others.
Everything went up by leaps and
| bounds. Employees wages jumped
from s7,OO0,O00 to over $16,000,000.
| Price of coal doubled and then again.
Taxes jumped, as you know. Mate
rails and supplies went to the sky.
The Maine Central in 1920 had an
operating deficit of s3,SeO, 600 and in
1921 of $2,100,000.
| We have asked the Interstate Com
MERGE Commission for assistance for
better division of rates on western
freight but haven't got it yet.
This 10 per cent reduction on farm
| products originated in the West and
| where long haulS make it much hard
err for all than in the East. Under the
conditions have mentioned l do not
think it would be business propo-
sition to reduce rates until we can be
shown that the change will 50 affect
| our business that we can earn the
money necessary to run the road and
pay our stockholders their dividends.
Com. Of Aeri. r. p. Washburn
| Mr. Washburn said he was much
interested, especially. as rates in 9TH
or parts of the country on farm pro-
ducts had been decreased. This puts
the Maine farmer in an unfair posi-
ton. Our hay, potatoes and apples
! are. sold in direct competition with
the'West. = This reduction in the West
will put Western products. greater
! distance to the market, cheaper than
| the Maine goods can be sent the
shorter haul.
There are still 10000 car loads of
potatoes in Maine and 40 per cent of
them will go out of New England.
That puts the farmers in bad po-
sition and they are in poor condition
to stand ii. The 1920 crop was Il
! heavy blow and they haven't recov-
cred. The Aroostool< farmers are not
now in position to more than break
even, to make up for the 1920 losses.
I ] think something must hc done, and
il something is not done TO encourage
! the farmers, it will put agriculture in
! u bad position.
! There has been Il gradual bat
/ steady loss in the past 10 years in
| hay, potatoes and apples-we can't
! stand much moie.
Much of the railroad freight comes
/ from the farms. Trucks of course
are taking much of the lighter things.
| We are just on q business turning
point and ! am optimistic enough to
| believe we are going ahead, but the
farmers must be helped, not hurt.
I'm afraid this higher New England
freight rate will keep the younger
men from the farms and discourage
the older men. That is what we've
been and are trying to do--to prevent
that and encourage agriculture.
! 1t is true the railroads have been
losing money. SO have the Maine
farmers, with an invested capital of
Ovef $150000, 900. The railroads
taxes went up-so did ours and our
business has constantly been going
backward.
Henry J. Hart, General Counsel for
Bangor & Aroostook
! Thirty years ago the Bangor and
Aroostoo!. was being built Few po-
tatoes we're raised then. In 1894 we
/ shipped 100000 bushels and in 1921
In a. n
bushels. The road struggled along
till 1917. when it planned extensions
to give better service to the people.
The war prevented it.
! Prior to 1919 our wage schedule
! was the smallest in the United States.
The Government took over the road
in 1918. The road without it's low
, wage scale, could not have survived.
| When the Government got control,
wages jumped from &c to % cents.an
hour to SIS. u and SO cents per hour.
! During the whole war the Bangor
and Aroostook did not earn it's fixed
! charges, and the only way they were
paid was because they were guaran-
teed by the United States.
! We have been required by the Gov
Z
standing accounts That shows
smaller loss-on paper.
In 1921 we failed by s12,649 to earn
l1-12ths of our fixed charges.
l regret that Commissioner Wash
burn has not analysed the Michigan
potato situation. Last year the New
ork market received 1850 cars Of po-
t1toes from Maine and % from Mich
gan.
We can't stand this 10 per cent re-
iuction. Our taxes in 1921 were 55
per cent. greater than in 1920 and in
1922 will be 70 per cent The 10 per
cent reduction will Just about equal
the tax increase and we can't make it
till something is done to give us
money to pay our interest charges
A. p. Lane, Pres. State Chamber of
Commerce and Agriculture League
Mr.. Lane said the state organiza-
lion had 80 chambers in Maine and
al felt that the farmers should have
relief. He asked permission to dis
cuss certain features later.
Speaker Chas. p. Barnes, Houlton
Mr.. Barnes understood the Public
Utilities Commission desired from
the people of Maine information on
the situation which they might for
ward to the Interstate Commerce
Commission, the Maine Commission
having no jurisdiction and acting
simply in the interests of all.
+ 1t will be q black day when the
Maine farmer decides he will go out
of business and we have to depend on