Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-02-08

alton offers the only permanent So
luton under the provisions of the
Transportation Act for the problems
of the Boston e. Maine railroad,
President James II. Hustis said in
an address before the Chamber of
Commerce here tonight. Sentiment
tai considerations aside. he thought
the consolidation most advisable
would be with some system outside
New England. AS yet, however, the
Boston & Maine management and
directors have had no negotiations.
and have not committed them
selves for. or against any plan of
consolidation. he said.
President Hustis added that until
a satisfactory plan was developed,
remarking parenthetically that so
far as the Boston & Maine WAS con-
cerned no consolidation should take
place in the immediate future. the
road should be given an opportunity
to demonstrate its value under the
new conditions created by the trans
pOrtation act. The management
believes" he said, that regardless
of the ultimate disposition of the
property it has latent earning pow
or much greater than has been in
Dictated under the abnormal condi-
tons of recent Years"
brawing on the experience of the
past" he said. lin taking up the
question of consolidation. I'VE must
come to the conclusion that while
the Boston 4 Maine should become
supporting under the proper
administration of the transportation
a. Wow and
enjoy certain periods of prosperity.
it is probable that its operating dis
advantages as compared to the rest
of the eastern group can never be
entirely overcome either by means
of increased divisions of rates or by
economies of operation. and that if
independent operation is to be con-
tainued, the disadvantage must he
met in part by Il higher rate scale
! want to repeat that such an expe-
dent should not he resorted to until
all other means have failed.
IF New England industry can
support a higher rate scale. then. of
course. it is beyond question that
the control of the New England
railroads should remain in New
England. but l see little hope in
that direction.
Nor am / impressed with the
suggestion of Professor Ripley. who
i'll recommending to the Interstate
commerce Commission a New Eng
land system, admitted that this did
not provide a solution of the finan-
cial difficulties and suggested q
mastering of all the financial re-
sources of the region. public as well
as private. if necessary So far as
public resources are concerned this
means state aid. and such sugges-
tons may be promptly dismissed
unless government ownership is
finally desired. for state aid would
be a long step in that direction
After reviewing the recent history
OF the roads operations, President
Ilustis said:
Now as to 1922; The indications
are that results will he much more
favorable than last year. There are
no important labor controversies
pending, and the men who replaced
the shop employees who left tho
service last July are daily becoming
more efficient. General business
conditions have been improving. and
there seem to be prospects of a good
year from the standpoint of traffic.
Tch cost of loComtive fuel should
be less than it was in 1892"
Substantially larger express reve-
nues may be reasonably expected.
he said. adding:
'On the other side, there is always
the danger that improved revenues will
be the signal for attempt to bring
about freight reductions prematurely
although opposed strongly by the rail-
roads. tie called attention to the In
terstatc Commerce Commissions recent
M to ;,,ta
mileage book at n reduction of 20 per
cent. over the standard rates. as an
instance.
Discussing the cost of conducting
transportation and the possibilities of
reducing such costs, President Hustis
said:
I'm 1922 sixty cents of each dollar
of operating expenses were absorbed
by direct labor costs. and about 10
cents by the cost of fuel. OF the re-
mainln - per cent. materials other
than coal absorbed about 90 cents, and
the balance was distributed among va
rous items.
There is still a substantial amount
of passenger train mileage which is
rot Sef-supporting and can only be
justified on the ground of public ne
ccssity.
There are many passenger stations
on the line at which the business does
not seem to warrant. maintaining
agents and helpers under the present
scale of wages. Some stations have
been closed. and it is doubtful whether
any further large economies may be
expected in this direction, as these
matters are all under the control of
the various state regulating bodies,
and there is always a strong local OPP
position, not only to the closing Of the
station. but also to restricting the
hours during which the stations are
Continued on Page 3, Col. 5.)