Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-07

reviewed by the witness, who declared
that in 1911 there was an increase in
local rates affecting pulpwood of 10
per cent. over 1908. On April 10. 1918,
occurred Is per cent advance
throughout the country and pulpwood
rates took that jump. On June 25, 1913,
there was a 25 per cent. advance under
the United States Railroad Admins
tration in the country. On August 16.
1920, there was the so-called 10 per
cent. advance limited to Official CLASH
fication territory. A 10 per cent. reduc-
ton on all rates occurred in July, 1922.
The scale then remained unchanged I'M
til February 5, 1924, when the last in
crease became effective.
Witness asserted that the increases
previous to the one effective February
S, 1924, were from 81 to 123 per cent.
advance over what was paid in 1908,
and the advanced rate of which COM
plant is now made is an increase of
from 81 to 205 per cent. over the rate
paid in 1908.
AS an example of the increase, Mr..
Whittemore said that the rate on pulp
wood by rail from Portland to. Rum
ford, where the Oxford Paper Mill is
located, was s1.10 per cord in 1913 and
today it is s2.60 per cord.
"For 16 years the Maine Central
Railroad has made only two changes
in it's rates of its own volition, in 1911
and 1924; is that not true?" asked
Attorney Blatchford of the witness
on cross examination.
THAT is true; / don't see why you
should make any more than that" re-
piled Mr. Whittemore.
THAT is what we are here to find
out" added Chairman Quincy of the
Utilities Commission.
OverruIes Motion for Dismissal
Announcement was made by Chair
Quincy at the opening of the after
noon session that after considering
the proposition the Commission felt
unanimously that Attorney Batch
ford's motion for dismissal of the
case should be overruled. but that the
railroad company's rights would be
preserved by exceptions.
A. II. Campbell, traffic manager for
the International Paped Company. To-
Gated in New York State, New Eng
land and Canada, testified that that
concern has an investment Of over
s5,O0O,000 on mill property on the
Maine Central Railroad and that the
lIlCESdSSu 1cltCo WYNN OpPAS NV
cent. to those mills.
f. Z. Norris, president of the Lew
iston Handle Company. declared that
the greater part of their timber was
received on the Maine Central Rail-
road from about 100 towns in the
State. He said that the increased
rates would fall on the shoulders OF
his company. s.
Ned G.. Begle, president of the
Berst- Forster-DiXfield Co M p a n
spoke of the effect of the increased
| rates on his company which manu-
| facturers clothespins, toothpicks and
wooden novelties, and has plants al
Oakland and Dixfield.
n. S. Stowell of the n. S. Stowell
Co. Inc, said that that concern Is
not paying much of the advance IN
rates, preferring to haul their wood
by truck.
George W. Collier. traffic manager
! for the United States Bobbin q
Shuttle Co. of Auburn, testified In
/ behalf of that concern.
Maine Central Case Opened
! In opening the case for the Maine
| Central to show the need of adj
vancing rates and increasing rev.
enue, Attorney Blatchford presented
four witnesses to be sworn in, and
| called to the stand Walter p
! Reeves of Portland assistant comp
| troller for the Maine Central Rail
road Company and the Portland
| Terminal Company.
Presenting table showing the fin
ancial results of operating the rail-
road in 1921, 1922 and 1923, Mr.
Reeves called attention that in 1927
| there was 4 deficit Of over $2O0O,OOO
| in 1922, q balance of 1852 900: and
| in 1923. Il balance of Approximately
100000. this being applicable tc
dividends.
Witness showed that from 1884 tc
| 1920 the Maine Central Railroad
| Company had paid dividends varying
from 8 to s per cent, continuously
on the common stock, and had paiC
| five per cent dividends on the pre-
ferred stock from the time it was IS
sued in 1915 to 1920. since which
time the unpaid dividends on pre-
| ferred stock amounts to 500, 900.
Referring to the increase in ton
mage for the ten year period from
1913 to 1923. Mr.. Reeves declared
that the table showed an increase ir
operating expenses entirely out o.
proportion TO the increase in rev
enue.
Taxes were then taken up by the
witness, who declared that the Maine
! State excise tax on the railroad had
increased from $442,S66 in 1915 t.
$92S,036 in 1923.
, Speaking of the increase in wage:
on the railroad. he said that since
! Sept. l. 1922, to the present date
that increase amounts to S450O0t
per annum. that being supplement
tary to the general wage increase b!
order of the Labor Board in 1921 ant
1922.
The remainder of the session wa:
passed in q detailed cross eXamina
ton of the witness by attorneys rep
resenting the several complaining
| nd no MOI. nn,nn m Z, :nc r'hI