Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1872-01-19
From the Portland Advertiser.

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Two years ago the directors of two i'm
portant lines of railways in this State went
before the Maine legislature, stating that they
had become convinced by experiment that
their business could be more efficiently, econ
omically, and satisfactorily conducted by one
board than by two, and respectfully asking
permission to unite in single corporation.
The petitioners said in the outset that they
had come to this conclusion deliberately; that
the proper management of the great interests
committed to them, in their judgment required
| such consolidation; and furthermore that
they had already, as they believed, authority
of law to form such union, but preferred to
act under the direct warrant of special act
OF the legislature, which would be OF service
to them in many ways, but especially in the
negotiation of new bonds which must before
long be issued to provide for their Joint debt.
Neither of these corporations was rich one
road had passed into the hands of mortgages,
through failure to meet its liabilities, and the
| other had never earned a dividend, though it
had reported from time to time surplus earn
ings which had been applied to the payment
of the floating debt. Though earning nothing
for their stockholders, these two lines had
been of great service to the States they had
become indispensable to the transaction of
business. 1t certainly seemed reasonable and
proper that their managers should be allowed
to decide in what way the business, conducted
on such hard conditions, should be managed
But the legislature thought otherwise. and
the petition was rejected ostensibly on the
ground that consolidation would create a mo-
nopoly--as if there could be any real compe-
titon between two lines whose managers
chose to agree.
The two companies thereupon proceeded,
as they had before announced, to form such a
union as in their opinion the laws permitted.
The Maine Central had name which fitted
the new corporation and SO the Maine Central
railroad company leased the Portland & Ken
nebec railroad for nine hundred and ninety
nine years, on terms and conditions agreed TO
by the stockholders of both companies at
meetings duly called and fully attended. The
opposition, what there was, was led by Mr..
John A. Poor, man who had rendered great
service to the community as a protector of
railway enterprises, but without practical ex-
perience in railroad management. He had
dreamed twenty years before of broad gauge
line from Montreal to Halifax, and the main
motive of his opposition appeared to be a VIC.
lent objection to the proposed change between
Bangor and Danville Junction to the Ameri-
can guage. On the other hand, the directors
of the Maine Central were ready to say and
did say that after working for twenty years
alongside OF narrow gauge road, they were
prepared to give it the preference. large
majority of the stock vote was with them and
the lease was consummated, precisely AS the
Somerset and Kennebec road had previously
been leased to the kennebec and Portland,
and Penobscot and kennebec merged in the
Maine Central.
So tor nearly two years the two lines have
been practically consolidated. The result has
been en- the whole favorable to the public.
More frequent trains and better cars have
been pat upon the road. The freight tariff,
notwths tanding the rumors of discrimination
against sometimes one place and sometimes
another, has not been changed for ten years.
The organization of the service is increasing.
And now the company come once more before
the legislature, having IN the Interim built
new line from Danville Junction to Portland,
having purchased new depot grounds in Port
land and Lewiston, having erected costly
bridge at Augusta and added largely to their
equipment all along the line and On its
branches, and ask for permission to pledge all
the property in their hands as security for the
bonds which must be issued to meet these ex-
penses and their other liabilities.
Why should not this permission be grant
ed? What interest can the people of Maine
have in hampering and distressing a corpora
ton which Is doing so much for them, and is
capable of doing so much more? Suppose
the permission is refused and the bonds are
deprecated in consequence-who pays the
difference? The people who use the road.
Suppose the negotiation of the bonds is de-
feated, and the cooperation is forced into
bankruptcy-how will that result benefit the
business of Maine? And yet the request is
merely for permission to avail themselves of
the kcapital already in their hands-of their
own resources. 1t is proper to scrutinize
even jealousy any petition for special legis-
lation; but to reject such a request without
examination, as seems to be the disposition
of some crazy people, is an offence against