Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-04-03

- Stt HNS AolI, MT, Martin,
Mr. MARTIN Of Augusta; NOV,
.ar. speaker that the matter he
gwen US tnird reading at this tirno
Mr.; CUMMINGS Of Portland: Nv
SPEAKER. L move the indefinite post.
ponement of the bill poS'-
The SPEAKER: The eo,.,o.
motion has precedence. '''''"
Mr.. CUMMINGS: Mr. s,..,.
ana members Of the House, This IL
matter of a good deal NJ - 10
portance to the people Of tbo en- m
of Maine. l do not want N 500 @t y
put through here without caros,, y
consideration. A resolve was intro
duced here to appoint comnit,o-.
of Il commission to examine into zee .'g
affairs of the railroad in an cn G
deavor to ascertain whether or ~.
there was good and sufficient reason
for reducing their taxes. The CON,
mlttee reported that that ought no,
TO Idss. | do not understand WIN.
the railroads are afraid to bo ia
Vestigated. | think there is proa,
need of it. l should fail mos
shamefully to perform what no
Heve to be my duty as a represents.
tive in this body if l did not tell Won
what | believe 10 be the reason NJ
the condition Of the Maine t'entrsi
Railroad, and that it is not due ro
excessive taxation.
When this matter of placing Mo
tax upon the gross receipts of tbe,
railroads was instituted, it was done
at their request. 1t was done Ia
avoid a proposition to tax the same
as property owners have to nav
Now they want to change the meth
DDS and be relieved still further Of
taxation. 1t is an old and respected
lule that when a party comes into
court. he must come with clean
hands. 1t is up to the railroads
which are taxed in this State to FIRST
show that they have done so and
have had honest and economic man.
agement. If they have not had that
then there is no justification for
their coming before this body to be
still further relieved from taxation.
This question, members Of the
House, reaches back a long way;
some of it is ancient and some is re-,
cent. Let us for a few moments'
consider some of the things that
have brought the Maine Central
Railroad into its present condition.
Go back to the year 1880, when they
leased the Hereford branch, fifty odd
miles. running up toward Quebec.
that branch being controlled by Mr.
Van Dyke and Frank Jones OF
Portsmouth. they also controlling the
Boston and Maine road. 1t was
wished on to the Maine Central
Railroad because the parties wha
controlled both roads. wanted it to be
wished upon the Maine Central
Railroad, and it has been a mill
stone around the neck of that road
ever since. They have been paying
$4,000 year in rental; they have
been losing money in operation.
Their rentals alone for that period
would amount to more than two mil
lion dollars. 1t was not business.
and since we have been In session
here in this House. the Maine
Central Railroad by its attorneys,
have been in Washington before the
Interstate Commerce Commission
asking that they might purchase the
remaining 100000 of stock outstand-
ing Of that railroad so they might.
junk the whole thing and throw 1t
away; and | understand that permits
sion will be granted them to do it.
but for Heavens sake what is the
stock of that road worth? | under
stand they will pay about 100000.
for it.
Then let US come to some of the
legal proceedings. Why did they
lease the Sandy River road? Was it
because that was a business PROPOSE
ton. or were the conditions merely
that it was a road that any business
man could see was getting to the
end of its usefulness, being largely
a lumber railroad, a road that would
not pay after the timber in that Sec
ton was exhausted? They acquired
that and that las been another mill
stone about their necis, and you
know that not very long ago it went
into the hands of receiver
Then take the little branch called
the Sebasticook and Moosehead
road, fifteen miles and fractionI
long, road that cost $4,000 TO
build it new. 1t has been in the
hands of a receiver-this was along
somewhere about 1911 or 1912 if Il
remember correctly-it has been in
the hands of a receiver, was in al
dilapidated condition, and was ac-
quired by the Maine Central Rail-
road by paying seventy-tive dollars
share for three thousand shares
of its stock at total cost of SEQ
600. Was that Il business PROPOSE.
ton, or did somebody get rake-oa
Was that done for the benefit of thei
Maine Central Railroad? IS that,
honest and economical management! 4
Again, at about that same timed
they bought the Kicker Hotel prop-,
erty. Well. now, in Gods namel
what did the Maine Central Railroad
want of the Kicker Hotel property !
If the Rickers could not make thai
pay a profit, could the Maine Central
railroad do it? And what is the re-'
suit of their acquisition of THAI
property? During the twelve years.
following this they have made nett
operating profit of less than $i2,0J0j
The interest on the investment. an in-l
yestment that will average a littlel
more than a million dollars, would pei
somewhere between seven and eight
hundred thousand dollars during the'
same time, showing practically that
loss to the road, Is that good ana
economic management? Why was
this thing done?
Take the Portland Terminal Com
pany, organized for the benefit OF the
Maine Central Railroad, financed Tor
the benefit of the Maine Central
Railroad. You viii find upon in
vestigation that it has been Il burden
on the Maine Central Railroad ana
that profit has constantly accrued TO-
the Boston and Maine by reason OIL
this.
Again, when following the genera
wrecking in New England or ran
roads here, when the Maine Contra!
was in the hands of the Boston ana
Maine and when the two roads had
the sanc president, an "Sreehei',
was made hetW cen the Boston uh'
Maine and the Maine Central in re-
gard to the joint rates and th'
division of those rates. a division
that was unfair to the Maine Contra
and a division that they dare no
make public. a division that still
exists and has two years more L
run, expiring | believe in 1874
The present president Of the Malh'