The Republican journal. [volume] (Belfast, Me.) 1829-current, 1870-01-20
CONSOLIDATION OF RAILROADS.

The bin introduced into the State Senate is
rather general i'll its nature, providing that
any railroad in this State, or connected with
the lines of this State in any degree may
consolidate into one corporation 1t gives
the board of directors of such corporations
authority to enter into an agreement under
| their respective corporation seals, prescrb-
| ing the terms and conditions thereof This
agreement is not to bind the corporations
until it is sanctioned by a majority vote of
| the stockholders. The new corporation is
| to have all the powers, privileges and inn
munities OF each of the corporations of which
| is composed, with the right to lease other
railroads, and be subject to all the legal OBJ
legations resting upon either of them, Such
| corporations consolidating are not dissolved
but merged into the new corporation. The
rights OF creditors OF any corporation are not
| to be impaired by consolidation, and all con-
tracts, rights and remedies existing at the
date OF consolidation may be enforced. Any
railroad corporation Of this State whose road
| is connected with one OF more railroads
wholly without the State may consolidate
Herewith, providing any railroad corpora
ton organized under the provisions of this
act shall have its principal place of business
| IN Maine, and majority of its directors
fshall ut all times be citizens of this State :;
and provided also, that nothing herein shall
be so construed as to prevent the Legislature
| from passing such general laws in relation to
railroads AS may be necessary to prevent
abuses, and as the public safety may require.
Nor shall any corporation organized under
| the provisions hereof be authorized to in
crease the general aggregate of its rates for
| freight or fare above the general rates of the
| Maine Central and Portland and Kennebec
railroads as existing Jan. /, 1870, without
consent OF the Legislature. ANY corpora
ton formed under this act is to have the
| right to mortgage its railroad, franchise
and property to secure payment of any bonds
or other obligations created or amassed by it.
There will be no doubt hard struggle up
on this question, but the general opinion
| seems to be that the measure of which this is
| an outline, or something very similar will be
adopted.
In specializing upon this subject the Angus
ia correspondence of the Portland Advertiser
says:
"The representatives of the companies claim
that they already have complete authority
under the laws, to unite for all ordinary pul-
poses by lease, and that they can agree at
any time and in fact have agreed upon sat-
isfactory tariff and timetable. GOV. Cham
berlain expresses some doubt whether their
authority in these particulars is 50 absolute
as they regard it, but practically, no doubt
it is complete. That is to say their interest
is so far coincdent with the interests of the
general public, that their rates and arrange
mcnts will sufficiently. suit the public conven-
fence to prevent any direct interference of the
Legislature if such interference We're possible
But though greater economy in management
and convenience in the arrangement of train:
and shipment of goods might thus be accom-
lplished, the companies would nevertheless be
bidding against each other in the money
market and neither could offer the same Sc
curity as both combined
cit is on this ground that an act to PERM
their consolidation into one strong compan,
will be asked of the Legislature Such law
will of course permit consolidation of al
the lines from Portland to St. John and Hal
flax, and there is talk here of such consol
dation and of change of gauge on the Main,
Central and the European & North American
lines. This however is, hitherto at least
mere speculation, though of course genera
law would leave the door open for such /;
consolidation, and the Legislature is bound te
take that possibility into consideration.
Bangor Wing.