Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-02-07
We WANT THEM TO PROSPER

tlOWly uNlli rates come GOWN ana
railroad expenditures for new con-
struction and bettesuaents climb, is
the gist Of Secretary Hoovers re-
marks before the Interstate Com
merce Commission last week. He
was. moreover, afforded a chance to
make a very effective reply to the
question whether railroad users
should be compelled to pay rates
based on ION stock securities issued
as bonuses, with bonds created for
promoters profits"
I've heard that talk all my life,"
retorted Mr.. Hoover, but the Com
mission is dealing with the future not
the past. It's rates are based on its
tentative valuations of existing rail-
road property. not on the mass Of
paper in the markets which sells for
n dollar one day and hundred the
next j."
And right here it is pertinent to re-
mark that the Maine Central Rail-
roads rates are based on a valuation
OF less than scventy-two millions,
which is also less than the tentative
valuation given by the Interstate
Commerce Commission.
Yet or this valuation il 10 operat.
ing today at loss, big loss.
II didn't come within 100000 Of
earning enough TO pay operating ex-
penses and taxes in 1921, and had a
deficit OF more two millions after
paying fixed charges. Yet the CAPT.
tai invested in the Maine Central is
nearly all from the savings of Maine
people. Surely the Maine people do
not want the Maine Central railroad
run at q loss. About this season of
the year. anyway, 1t is a very great
convenience to those who wish to
travel. In the summer season those
with automobiles don't stop to think
much about 1t. This is a good season
20 do some OF that thinking, right
now. It's a safe bet that before we
are done with the thinking we'll con-
clude that we. the people of the good
old State Of Maine, are nightly in
ferested in having our railroads rea-
sonably prosperous institutions.
Think what it would mean all over
the country II the railroads were put
ting their equipment into first class
condition. One to two billion dollars
would be spent and now into the
channels OF trade We in Maine
would get our share OF it.
But to spend money railroads as
well es individuals must have it or
be able TO borrow it. Investors and
lenders OF money do not look favor
ably on anything which does not ap-
pear 10 be in profitable condition. A
railroad or an individual that can
demonstrate a good earning capacity
van bpii'W At koou duNdHldke. IL our
railroads are making money the peo-
pie come in for a share In the PROS
perity.
And so It ought to be clear to all
OF us that II Is TO our advantage to
have our railroads in a fairly pros
porous condition. And having reached
that conclusion We naturally inquire:
How may this be done?"
No one is satisfied with either the
service or the rates. No relief may
be expected in interest charges. There
Is not any scandal attaching to the
Maine Central railroad. The manage
mcnt of II has been considered con-
sentative. The only criticism we re-
call pcrtained TO its investments in
summer hotel properties, and yet the
people OF Maine felt pride in having
those properties developed and
wished that more Of the same effort
could he made.
IL Is easy to understand how in a
rapidly growing region the railroads
would be able TO take on enough new
bushes at least partially to Offset the
drain occasioned by the use of auto
mobiles. But the territory served by
the Maine Central is not rapidly de-
veiopirg.
Evidently some profound and con-
structive thinking is in order Mt this
time. Many of us can't do the deep
thinking but at least 1t is our bound
en- duty 10 do honest thinking. inso-
far as we may. 1t will help to get
oil the facts We can, look them
squarely in the face and make up our
minds to act fairly in the light of
what We md there.
We are interested in having good
railroads with good service, reason
able rates. we'll managed and earning
. fair dividend. and I'VE" means
everybody.