Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-04-21
HARDING TO MAKE
PLAIN PERMANENT
COURT OF JUSTICE
Why B. & A. Roads
Financial Showing
Was Better Than M. C..

Portland, Me-, April 20-At the an
nual meeting of the Maine Central
Railroad at Portland, April IS, Presi-
dent Mcdonald read to the stock
holders the following statement which
answered a question Of great i'm
portance and of frequent recurrence.
The facts herein set forth are of
concern to all the people Of Maine:
Mr.. John A. Woodsum of China.
Me-. inquired why the operating re-
suits of the Bangor & Aroostook
railroad for the year 1922 appeared
so much better than the operating
fresults of the Maine Central Rail-
road for the same period.
President Mcdonald stated in reply
that he was very glad to make the
explanation requested, because the
same question had arisen in the dis
cussions of the Board of Directors.
and in consequence of this he had
made some study OF the subject. and
had prepared some comparative data
for the information of the bd4rd.
THE more favorable financial
showing Of the Bangor & Aroostook
Railroad for the past year." said Mr..
Mcdonald, sis due to four principal
reasons:
"First-The Maine Central Rail-
road average rates for transportation
of freight are generally lower than
those of the Bangor & Aroostook
Railroad.
"Second-The freight traffic agree
ment now in effect between the Maine
Central Railroad and the Bangor &
ArOOStOOk Railroad. entered into in
1913 when the Maine Central Rail-
road was controlled by the New
York. New Haven & Hartford Rail-
road company interests. has the eff
feet of reducing the average rate per
ton per mile on the Maine Central
Railroad.
"Third-A large proportion Of the
freight traffic interchanged between
the Maine Central Railroad and the
| Bangor & Aroostook Railroad is
westbound. making it necessary to
move the greater part of the freight
ears for this traffic eastbound empty.
and on which per diem charges must
be paid by this company while in our
possession, in both directions.
"F'ourth-Thc Maine Central Rail-
read average rate per passenger per
mile is very near the standard for
most Glass ! railroads--three and
per passenger per mile of the Bangor
4 Aroostooll Railroad is considerably
in excess of this standard rate"
Referring to the traffic statistics of
the two roads, Mr.. Mcdonald stated
that in 1922 the Bangor & Aroostook
Railroad hauled 267,4S2,345 tons of
freight one mile for which it collect
ed a charge of 2.33Sc. per ton per
mile. while the Maine Central hauled
| S51 ,G61.34l tons one mile, for which
, il received only 1.G52c. per ton per
mile.
/ The Bangor & Aroostook carried
c0.5S0,3JJ passengers one mile at an
average charge of 4.3G1c. a mile, while
| the Maine Central carried 12S.430, 700
| passengers one mile at an average
rate Of 3.55Sc. n mile.
If the Maine Central rates had been
| in effect on the Bangor q Aroostook
! Railroad in 1922 that company would
have earned it's operating expenses
and part of its taxes. but would
have had nothing left of its income
| for payment of its fixed charges and
dividends. On the other hand. if the
PanSor & Aroostook rates had been
applied to the traffic over the Maine
| Central lines. the income of this
| company IoI lt-- NouJtl iittNS bCNIi
| approximately s6.000,000 after pay
ment of all charges and full divi-
dend on both the preferred and conn.,
mon stock. and which sum would
| have been available for additions and
| betterments to the property and for
the general Improvement of the SER
! vice.
President Mcdonald stated further
| flat thorough and commemorative
study Of the tariff schedules of the
company and its traffic arrangements
and problems had been undertaken
by the management. and was now in
| progress. to determine what changes
and adjustments might be made to
| secure the additional revenue which
is needed. without disturbance to the
business interests of the territory
| which it serves.