Morning journal and courier., 1889-02-21
wHAr srAnRUCK WANTS.

Legislative Business.
 HARTFORD, Feb. 20. Special Correspondence of the JOURNAL AND
 CoURIER.l
 The railroad battle was resumed before | he committee again to day.
 The charge was sounded half an hour earlier than heretofore in order to give the eombatants time to engage in action in good form The interest is still unabated and the crowd at the hearings does not fall of. Colonel Stevenson at the outset desired to correct his previous testimony in minor de- tails. He stated that Jabez Bostwick owned 3,535 shares out of total of 31 ,55O. Pro- lessor Baldwin read an extract from the di- rectors records, which contains the report Of the committee which revalued the property as it was returned in Vice President Steven sons report to the railroad commissioners. The revaluing committees report was sworn to by John O'Brien of Clark & O'Brien, New York, and Messrs. Coleman and Fowler of Bridgeport. It raises the real estate from $61, ,000 to $373, ,s09 9S and the construction, account to s, ,993, ,736 92, an increase of S2, 15O, ,368. 50. Professor Baldwin's exhibit was to the effect that the revaluation report was accepted by the directors. He explain ed to the committee that one of the peculiar discrepancies in this figuring by which this
 revaluation was made large enough to com
 ply with the law regarding the amount of
 bonds the directors had previously issued
 was due to @ mistake of the auditor for
 many years back, by which several hundred
 thousand dollars had been charged to operat-
 ing expenses, which should have been charR-
 ed to the construction and equipment &C., counts. Professor Baldwin then read the
 act of 1870 by which the Housatonic direc-
 tors claim to have derived power for the re- cent bond issue. He then continued the direct examination of Colonel Stevenson, who said that the letter from Attorney Mor- ris Seymour. who has been counsel of the Housatonic, advising that the bond issue was illegal, was after the directors had voted to issue these bonds. Mir. Seymour had sent long opinion that was not asked for The witness had, however, got opinions on this matter from Sullivan 6 Cromwell, of New York, and Simeon E.. Baldwin. The opin- ion from Sullivan 6 Cromwell was intro duced as an exhibit, which was read. The substance of the document was that the bonds and mortgage were prepared by them and were perfectly legal. The lawyers who wrote the opinion did not attempt to give any exhaustive argument, but began with the somewhat interesting statement that as the opinion was just what the directors I wanted them to give, nothing more than some general reasoning was necessary. They thought that the company was a special \ favorite of the legislature, and therefore in- ferred that the legislative law must be oon- strued nberally in favor of the Housatonic as against the general law of 1878, which \ initiates against the validity of the bond is sue.
 Prof. Baldwin next read the opinion ot Hyde, Gross & Hyde, of Hartford, to the controller on the matter. This law firm were first of the opinion that the Housatonic had no authority to issue these bonds, but state \ that after consultation with the attorneys fol | the Housatonic they have changed theil | opinion and become of the opinion that the | issue would be legal.
 Colonel Stevenson produced map of ths | proposed parallel route, that of the New York and Connecticut Air Line, and said \ that it did not cross @ single highway al grade.
 Judge Harrison gave MT. Stevenson anoth CT session of cross-examiuation and asked him if he knew of any other opinion furnished by Sullivan and Cromwell. The witness had not seen any other himself, bus thought Pres ident Starbuck had one from Sidney Bartlett of Boston.
 In relation to the Housatonio's contract with the New England road for @ twenty-five years pooling of freights, Mir. Harrison asked if the witness would produce this con tract.
 MT. Baldwin objected to this on the ground that it was immaterial to this hearing. MT. Harrison addressed the committee and called their attention to the fact that MT Stevenson had said that they wanted to par allel SO that they could take care of the extra business obtained by long contracts with the New England. 'tThese gentlemen" said DO wer of building parallel between New York and New Haven, a power always re- fused heretofore. They are set of men who control the New England and the Derby ' and the Housatonic, and they are constantly dicksring among themselves. Now, should we not be allowed to know what these trades ' are before legislative sanction is given them. they not be willing to tell the facts about \ the matter.n
 Prof. Baldwin said that he would be will \ ing to let the committee see this contract provided that the committee would not lei Judge Harrison look at it. The committee postponed their decision on this ruling until tomorrow to save time.
 Prof. Baldwin then produced the bill ir form, which he desired the committee tc recommend for passage by the legislature. The first important clause of the bill asked | for amends the charter of the Hous atomic
 road by striking out the phrase ''ten mile \ branches" and giving them power to build | thirty mile branches.
 ! The next section provides that the road may construct such branches by issuance o
 bonds secured by mortgages on the branches \ so constructed.
 | The third section gives the Housatoni, power 10 purchase connecting railroads.
 The fourth section gives the company power to increase it's stock to the amount o ] $9, ,o00, 900, an increase of $5,545, 900 ove the present amount, by @ vote of three fourths of all the stockholders.
 The fifth section gives the petitioner power to consolidate it's stock with tn, II .l oG ,-f.{ holds under lease, or with any other roaC \ whose line Is not distant more than thirty miles from the main line of the Housatonic
 Prof. Baldwin then presented 8 second bil | in form which he wanted the committee tt
 recommend if they did not accept the first
 This bill is thoroughly impregnatsd with tn. parallel scheme.
 It asks for power to purchase the charte
 of the New York and Connecticut Air Lin' and an extension of time for building @ roai | on this route and under this charter unti | 1893.
 When Prof. Baldwin had finished reading | the parallel road bill Judge Harrison asked ! could properly come before the committee ol | the Housatonic's petition to build branches | simply.
 Prof. Baldwin claimed it could. Judge Harrison said that this second bil | was an original resolution which could only | come 10 the comm1ttee. py rererenc6 rom tht ' legislature. Perhaps the committee had au | thority to recommend the second bill as { substitute resolution. He had no objection to the committee considering the matter ir | this light. Decision was reserved on thii point.
 Prof. Baldwin read from ancient railreaG literature. Judge Harrison suggested that
 the attorney confne his arguments to tht proper time and not about matters which oc cured five years before the Consolidated was built.
 ''Thas's just the point," replied MT. Bald | win, 'before this very New York road which stands in our path was built, the Housatonic road proclaimed it's intention of building 6 branch from New York to Bridgeport. And in the face of this proclamation they built their road"
 "Yes," said Judge Harrison, ssafter you gave up the road to New York because you did not have sand to built i. we went there and because we have improved the territory and made it profitable now you want to steal 1t from us."
 Prof. Baldwin laid in as an exhibit state ment of the outstanding Housatonic bonds Feb. 16, 1889, as follows: 5 per cent. due 1887, &, ,263, ,000 6 per cent. due 1889, $291, ; 900; 5 per cent due 1910, $276, GOO; per