Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-02
Total deductions.

Estimated surplus under pro-
posed rate .............$ 1S,Ill.S4
The estimated net income after
taxes, $25s,4s0.3i, shown above is
equivalent to 5.74eo on the capitaliza-
tion of the company and 4.S4eo on its
total investment.
Flat Ten Cent Fare Proposed
do l understand that your pro-
posal Is 10-cent fare with no re-
duction when tickets are bought?"
asked Chairman Charles E. Quincy
of the Utilities Commission.
I'VE propose a fiat l0-cent fare"
replied Col. Shelton.
Continuing Col. SHELTON said
that the earnings Of the road fell off
! from 1926. 027.40 in 1922 to $1.l65.-
1917 in 1928. q decrease Of approxi-
mately $1,000 in gross revenue.
During this period the operating eX-
penses increased due chiefly to an in
crease In wages which Col. SHELTON
said seemed to be necessary and he
! did not think unreasonable. He
stated that no dividends were paid in
1919 or 1920. q dividend of six per
cent on one half of the capital stock
was paid In 1921. six per cent on one
half of the capital stock and two and
enc half per cent on the remainder
Of the capital stock was Eoid in
1922 and FIVE and one half per cent
| was paid in 1922. Fo~ the first year
and three months after the re- or
ganization of the road no dividends
We're paid.
Manager Sweeney Testifies
| Alfred Sweeney of Lewiston, gen.
eral manager of the road testified at
! length.
| Referring to the item of s56.790
the estimated decrease of five per
cent. due to further decrease In vol
| ume of traffic, Manager Sweeney OF
the railroad declared that that was
said that the falling off of earnings
in the year 1928 was 5.4 per cent
while in 1922 1t was 80 per cent.
! "Why do you assume that the de-
crease for 1924 will follow the 1872;
trend rather than the 1922" asked
Chairman Quincy OF the Commits
sion.
1.-The decrease is growing rather
than falling off," reclied Manager
Sweeney. He said that the earnings
of last Saturday compared will
those of one year ago from that date
showed n loss of $79S.
In reply to the question of Chair
man Quincy whether there were no
other days showing balance thu
other way, Mr.. Sweeney said tina
the balance is not showing that way
just now, and that the daily earn
ings are now dropping off every da!
as compared with one year ago.
'"Of course your board has consid
cred the fact that the earnings ma!
show a decrease due TO the fact tina
many people will not pay the extr;
cent?" queried Mr.. Quincy.
II think the travel is now reduced
to those who have no other means o
! travel" repliel Mr.. Sweeney.
Mr.. Sweeney then explained :h'
Various items ei,owed for derrecia
tinn of the conr any's buildings an,
equipment.
Judge Manser Questions
Judge Harry Manscr OF auburn
representing the Mechanic Falls pa
irons of the railroad, then cross
examined Manager Sweeney.
Concerning the gain In revenue II
1921 over 1920. Mr.. Sweeney sal,
that the winter of 1920 was very Sc
we're and for several weeks some o
the lines were shut down. Anothe
reason for the gain in 1921 was tn,
fact that the fare was raised from
seven to nine cents on August
1920.
Isn't it a fact that the weathe
conditions were unfavorable the ear
ly part of last Year," asked Mr.
Manser.
Yes" Mr.. Sweeney replied.
And the industrial conditions ih'
latter part of last year were NOR
unfavorable than in 1922"
! YES"
Your directors do not anticipat,
that the present industrial condition
are permanent" asked Judge Man
SER
1--WE hope for q restoration" re
piled Mr.. Sweeney. e.
Questioned as to whether the yea
, 1923 alone should be taken into &C
count for estimating the business o
1924 and future years, Manage
Sweeney replied that it is the pres
ent tendency Of the earnings. Re
garding the slack Industrial condi
tons of 1923. he said they did no
obtain early in the year-not un
til summer.
1T is true that an increase II
rates results in marked recession
in the number of passengers car
ried?"
ut is hard to tell. When the rat,
was raised from five to seven cent
at first there was a marked recess
sion. but 1t did not obtain long
When the rate was raised from sew
en- to nine cents. 1t was In the fal