Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-11
STATE HOUSE
meeting Council 10 A. NJ, Thursday April II

the maximum volume Of traffic at the
highest rates ever known, 70 Class
One railroads failed to earn the ex-
penses Of maintenance and opera
ton by deficit approximating
100000 or $10.000.000.
The constant repetition of the de.
mand for lower freight rates has not
come from those who realize the in
creased burden OF existing condi-
TONS" said Mr.. Quincy. wages
cannot and perhaps ought not to be
reduced while price levels remain at
their present point, but relaxing of
the rigid rules Of labor classification
and the acceptance of notifications
Of wages after judicial hearing be-
fore the Labor Board, and con-
versely, the acceptance by the rail-
roads cordially Of increases in wages
resulting from a fair and impartial
hearing. may provide some ameliora-
ton of conditions; until such change
Ia at hand the public must be pre-
pared to rally again to the need of
our transportation companies in New
England, for the foundation OF gov
ernmental regulation and control Is
not alone assurance against excessive
charges, s,but assuming prudent in
vestment and competent manage
ment carries with 1t pledge OF a
reasonable retdrn for the owners of
the railroad and maintenance OF
roads and equipment upon a level
that insures safety to the travelling
public.
RAILROAD arrangements must be
alert to the needs of the time, and
must obtain maximum FOR each
dollar spent II they are to deserve
the public's willingness to sacrifice a
portion of its tax revenues. Eco
nomic conditions have changed, and
we have already entered the portals
of new area, fulfilling the law OF
progress, bringing its difficulties, Its
rewards, it's opportunities; 1t chal-
lenges our intelligence, our faith, our
knowledge, but the star Of our des-
tiny points the way to progress and
achievement by a quick appreciation
of the situation that confronts us.
1.-THE stream of public revenue once
scarcely perceptible, struggling al
of popular opposition, now gathers
accretions from all the dwelling
places Of industry and commerce and
threatens to overflow the banks o.
our national and State prosperity az
il rushes onward to the ever swell
ing ocean of public expenditure"
Mr.. Quincy has made deep study
Of the subject, Railroad Taxation
! and he gave to the Boston Univer-
sity students Of economics in his
mastery address clear perception
| Of the topic. After a discussion Of
the principles underlying taxation
lie spoke Of the method employed by
| the United States government II
collecting income taxes from rail
| roads and the methods Of taxine
railroads in the New England states
1.-The United States government
| collects an income tax from railroad:
which is 1914 per cent. of the ne
income arrived at agreeably to the
provisions set forth in the income
| tax law, but too extensive to be dis
| cussed in a paper of this kind" Sale
| Mr.. Quincy. IN addition to thi:
the railroads are obliged to pay {
| capital stock excise tax for the pur
pose of carrying on or doing busi'
( ness in O. corporate capacity. TIT
required amount is 81 for each full
one thousand of the average amour
Of capital employed in the transac
ton of business in the United States