Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-29

ana net operating income. Every
railroad would pay At least Sss Of its
gross receipts and rs much more. up
TO the present extreme limit OF $3.50.
as its net earnings would justify.
This would give 10 the State a reason
able and dependable income from rail-
way taxation, and the tax itself would
be based upon sound economic princi-
pies and scientifically and eouitably
apportioned among the different rail-
roads Of the State. The proposed plan
is so eminently Just that all fair
minded citizens may reasonably be ex-
pected to give II their endorsement
and support.
Railroad Consolidation
desire to touch upon the subject
which has TO do with the disposition
Of our New England railroads under
plans for consolidation.
Aside from being a subject OF ma
tional interest, II Is one of vital i'm
portance 10 New England and espe-
cially 10 this state, the people and its
industries. Judging from the activi-
ties pursued during the discussions OF
various consolidation plans at the
hearings before the Interstate Com
merce Commission a year or more
ago, l believe that this is fully real
lied not only here In Maine but in al
New England. Probably in no section
Of the country has this subject beer
studied and discussed TO greater de-
gree by the public than within the
borders of New England, 1t Is still "a
live issue and will actively confront
us in the near future. | mention II al
this time merely to remind you thS'
in your activities as Chambers oi
Commerce II should have a prominent
PLACE and receive careful study, that
Maine and all Of its interests may ht
protected and adequately served With
Transportation. 1t Is unnecessary FOL
me to review the plans that have beer
advocated They are familiar TO all
II Is sufficient to say that those re-
sponsible in the management OF tbs
Maine Central Railroad have. IN tt
this time, seen nothing to warrant
change in the Views as already eN'
pressed, or in the plan which our Com
panS presented TO the Interstate Com
mcrcc Commission.
Service-Rate Strueture-Co-operat
The railroads product is service
Service Is the only thing II manutac'
lures and, therefore, the only thing u
offers for salee to tho public.
We are fully alive To the character
OF service that our public demands ant
must have. believe that the railroad
I represent has met Its obligations II
this respect and there Is no reason Il
believe that il will not continue to u'
SO, ut any rate that will he Its on
deavor ] cannot, however, refrain
from reminding you that good service
cannot be given at bargaln-counte'
prices. IT costs money to produce. ant
il IL is of a hlgh-Class order 1t should
command price that not only pay
the cost of its manufacture but leaves
a fair margin Of profit.
Keeping company with everything
else. including wages, material an'
taxes, railroad rates are, we must nd
nit. on very much higher level thar
ever before. However unfortunate
this may be for passenger and shipper
IL must he realized that our rates a.
today reflect conditions for which th'
management of railroads Is In no wa!
responsible. 1t is clearly evident tina
our New England railroads, notwith
standing the severe increases III thei
rates. have failed to benefit by nnS
substantial increase in net. but on th'
contrary may be said to he far from
prosperous. The Maine Central Rail
road is no exception. 1t has lad The
benefit of all the increases authorize,
by the regulating bodies during thu
past ten years AMI yet. after initial
ing drastic economics. Is barely paying
it's fixed charges. 1t Is quite appnr
ent TO me that the advent Of norma
conditions and price levels lies quite
some time In the future and until W.
can operate our railroads with n large
volume of traffic and at much less
cost, no encouragement can be offered
In the matter of q general leVelint
down of our rate structure. True, W.
make changes In our rates from day
20 day to meet conditions, arectini
specitic lines of traffic. with which W.
are constantly confronted, but these arr
entirely apart from the question OF
general reduction in rates as applied
To all traffic. Some OF these changes
are by no means reductions, but on tn
contrary are increases which We be
lieve are justified on the ground or IN
sufficient. revenue to compensate fol
service performed and to bring about ;
more equitable distribution of tn
transportation burden. our ditfcul
ties in this respect seem to lie in con
vincing our regulating bodies thai
such changes are justified, even In thu
face of the financial showing which
TO say the least. is disappointing"