Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1871-02-27
Remarks OF Mr.. Cleaves Of Portland,

IN HOUSE OF REPRESENTATIVES, upon the
Boston Maine charter.
The bill under consideration simply gives
the Boston & Maine Railroad Company au-
thority to extend their railroad from its pres
ent terminus at South Berwick in this State,
through the shore towns to the city of Port
land.
The corporation asking this grant propose
to build at once, and thus put into the State
over two millions of capital, giving to the
business and travel of Maine a competing line
from Portland to Boston.
1he gentleman from Gorham moves the
reference of this important bill to the next
legislature, because he says that the parties
interested, did not have the notice required
by law, of this proposed legislation. My an
swer to this is, that the parties interested
have appeared before the railroad committee,
had a full and fair hearing, without objection
to the form of notice, and that committee, of
which the gentleman is a member, have re-
ported this bill to the Legislature, so that
this OBJECTION after a bill is reported, is of no
more effect than the objection of party to
the serrice of writ after the verdict of a
jury has been rendered. The parties interested
have raised all objections upon this point.
The gentleman from Portland says, that we
are not prepared to act upon this matter I'M
partially because an immense ''lobby" has
crowded our hotels and the State House, and
every man is labeled yes or mo-.
For my part, l am not troubled by any
"lobbies" in my official action, and am not in
communication with any, and if we are all
labeled it makes but little difference in princi-
pie whether it isswith the word yes or mo-.
The facts in the case, if understand them,
are these, Up to the goth of January last, the
corporation asking this charter held Jointly
with the Eastern r. r. the Portland, Saco, &
Portsmouth r. r. under lease Its terms
were such that the two leasing roads were
obliged to pay, and did pay to the stock
holders of the 2. S. & p. road, six per cent.
interest upon its stock in gold, making the
investment in the latter road safe and desira-
Bile.
The P. S. & p. r. r. finding the business
between Maine and Massachusetts so largely
increased as to promise three times as large a
dividend upon its stock, terminated the loan
by the payment of $780, dollars.
The b. & M. railroad, thinking larger in
terest was the motive which led to the termi-
nation of this loan, at once entered into ne
gotiations for new joint lease at a much
larger rate of interest. This proposal was
met with prompt and decided refusal by the
Eastern railroad to enter into any Joint lease
of the P. S. & p X. r.
This action of the Eastern r. r. led the b.
& M. railroad to seek to effect separate ar
rangement with the p. S. & p. r. X. but the
latter road, acknowledging that the PROPOSE
ton was fair, declined any separate arrange
ment.
The Eastern railroad declined to make a
JOINT arrangement and the p. S. & 2. largely
under the influence of the Eastern, refused to
ota a.. u o
M. X. r. so that no other alternative was left
for the B. & M. but to seek to extend its
charter to Portland.
They are met here by opposition, and par
ties seek with all their power, to defeat the
possibility of this competing line, and to de-
prive Maine of more than one outlet from
Portland to Boston.
What are the arguments used by gentlemen
to defeat this enterprise. 1t is said that this
will be parallel line, and it is unjust and
dangerous to grant such charters.
Now granting tor the moment the sound
dess of this principle, it can not be involved
in this case with any degree of justice. Why
the very corporation urging that argument,
by its own action, united and rendered neces-
sary the very step the B. & NJ. r. r. Com
pany have taken for their own preservation.
The T. S. & p. had right to terminate their
lease, but if it was so fearful of parallel
road why surrender the lease to the Eastern
B. & M. r. r. without any effort at all to
secure under 1t larger share of its earnings,
and greater rate of interest which those two
roads could have better afforded to pay, than
have the whole matter thrown open to entire
ly new arrangements.
l believe that the Eastern r. R., with the
p. S. & P, which it largely owns and con-
trolls, desired to have the lease terminated, so
as TO drive the B. & NJ. road to such an ar
rangement as should in the end result in the
consolidation of the three roads, which ar
rangement the Boston & Maine r. X. Com
pany declined to make, preferring to control
their own road, and give Maine the benefit Of
two through lines to Boston.
There is certainly no objection to parallel
roads, and they are desirable if there is bust
ness enough for both. There is the Boston &
Maine, & Eastern roads within ten miles of
each other, both well equipped and prosper
Gus, and no one can estimate the benefits to
life and property, and business and travel,
which has resulted from the very fact that they
were parallel and competing railways-and /
desire that our State should have the benefit
of fair and healthy competition.
But would not ask for this, did not be-
lieve that there was business enough at fair
rates, for the two roads. If the p. S. & Ports
mouth r. r. was a poor road, struggling for
existence, would be the first man to defend
it against any competition from any source
know it is said in argument that the grant
ing of this charter will be blow at the life of
this corporation, but facts and figures do not
sustain this theory.
The r. r. Commissioners say in their re-
port: '1t was built upon stock subscription,
and for cash, and has always paid dividends
upon its cost, and has never had IA bonded
debt. 1t is at present the only outlet by rail
south and west from the State; but the travel
and freight always pressing from Maine to
ward Boston, and now. to be augmented by
the railroad arrangements in progress in the
State, may soon require further facilities for
reaching their destnation."
Itappears from the last report of the Port
land, Saco, & p. r. X. that one fifth of its
last years earnings would pay more than six
per cent. interest upon its stock.
Its business from 1850 to 1860, increased
20 per cent. and from 1860 to 1870, 26O per
cent.
heard Mr.. Brown, one of the directors of