In the Hall of Flags in the Maine State House, the center of the floor is occupied by a bust of Gov. Percival Baxter, who served 100 years ago.
This honor reflects Maine’s gratitude for his great gift, Baxter State Park. When the Legislature failed to purchase the land, he acquired it and assembled the magnificent park that is home to Katahdin, the state’s highest mountain.
A Republican, Baxter was called a “socialist” by at least one of his critics. He stood up for average Maine people and for the welfare of the state as opposed to the private interests that dominated much of its economic and political life.
Though he is remembered for his gifts of the park and the state school for the deaf, one other contribution that receives less attention is worthy of special note.
In the 1920s, Central Maine Power was probably the single greatest political force in Maine. The Legislature would readily fall in line with its demands. It agreed with the utility’s demand to lease state land for a new storage dam that would control the flow at generating stations further down the Kennebec River. The problem was that the Long Falls Dam would create a large new lake, flooding out three small towns. Flagstaff Lake would be the storage reservoir for the Kennebec, enhancing the value of the CMP’s hydro facilities.
The Legislature agreed to the lease without the state being paid anything for it. The towns would have to be evacuated. Surprising, to the governor at least, was that the legislative action had been obtained without CMP ever having talked with him. Even worse, the bill had passed by a veto-proof majority, composed almost entirely of members of his own party.
Baxter was furious, but it looked like he had been left without a choice. His only recourse was to solicit signatures for a popular veto of the bill, and he set out to obtain them. Such a move was unusual for a sitting governor. In a matter of days, it began to look like he would succeed.
That brought the president of CMP to his office, ready to make a deal. Baxter demanded $1 million dollars, paid over 40 years. Eventually, the annual $25,000 payment would be extended another 10 years and would begin in 1940. After 50 years, the lease would continue, but the annual payment would have to be renegotiated.
The annual payment had not been adjusted for inflation over the years, while the power output from downstream dams steadily increased in value. As 1990 approached, CMP said it should stop paying for the lease.
The state government disagreed and asked me to establish the value produced by the dam at downstream generators. Over CMP’s opposition, the Maine Supreme Judicial Court accepted my calculation and imposed on the utility a starting fee that was almost 24 times the original lease fee, to be increased each year by inflation. It was later sold by CMP.
Baxter’s relatively unknown legacy to the state had been preserved. The people were relieved of some of their tax burden thanks to the foresight of a governor who not only opposed a land grab but put the people ahead of private interests.
As we mark a century since Percy Baxter held office, we should appreciate a political leader who served the public with courage and commitment.
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