The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1891-03-10
THE BOSTON & MAINE STOCK BILL.
Mr.. Payson Tells the House Where
He Is On IL.
Portland ciergymen Protest Against
the Reform School. Bill.
The Australian Ballot Petition from
Freeport Makes a Row.
Especial to the Press


AUGUSTA, March 9.-When the hin an.
tnorizing the Boston & Maine Railroad Com.
pany to issue $4,000. 900 of stock came up un.
der assignment in the House this afternoon,
Mr.. Payson of Portland made few re-
marks In explanation Of his position In the
matter. When the bill was introduced at
the first of the session, the statement accom-
panying 1t showed that the road needed for
purposes specified in the statement over
$9,0O0,000, and as stated by Mr.. Putnam
before the judiciary committee, fair infer
ence from the language used was that all
the proceeds of the stock, sold at market
rates, was wanted for the purpose of re-
moving Indebtedness and making improve
ments. Mr.. Payson, at that time. proposed
to present an amendment to the bill requir-
ing the stock to be sold for what 1t was
worth In the market, but 1t was represented
that this course would single out the Boston
& Maine Railroad Company for legislation
which was not applied to other corporations.
so, In place Of the amendment, MIR. Payson
presented the order directing the Judiciary
committee to examine into the matter of the
expediency OF general law respecting the
sale OF stock Of certain quasi-publlc corpora
tions. This order was the Que on which a
hearing was given some time ago, as then
reported. The judiciary committee, after
this hearing, decided that general law
might do injustice In some cases, and ac-
cordingly reported that legislation on the or
der was inexpedient. Mr.. Payson concur
red in this decision. and the report of the
committee was unanimous.
This left the matter where it was at the
outset, the Boston & Maine bill having been
held on the Senate table during the investi-
CATION Of the order before the judiciary
nQmmiftQn w
table in the Senate, and sent to the House,
where it was assigned for today. In the
meantime, Mr.. Pays0n had further investi-
gated the matter. He found that theoreti-
cally the sale OF the new stock at market
rates would result in advantage to the pub
lie, by turning into the treasury of the road
nearly $10.000,000, instead of the $4,000, 600
which would be paid in il the stock was is
sued at par to the present stockholders.
Practically. however, the case was found to
ton & Maine railroad from the State of
Maine was granted in 1889. In 1881 the legis-
lature had passed a law that all charters
granted by it should be subject to amend
ment unless it was otherwise stipu-
lated in any such charter. There is in
charter of the Boston and Maine road such
stipulation excepting it from the operation of
the laws of 1881. By another provision. OF
this charter, the state agrees not to Interfere
with the business of the Boston and Maine
dend for II consecutive years of Al per cent.
on the cost of the road. The usual provision
of such a charter would be that no such regu-
lation of the affairs of the corporation should
be made until certain dividend had been
paid on the capital stock, but in the case of
the Boston and Maine the provision was
found to be as above stated. Now the in
debtedness which the road seeks to remove
was caused by improvements and it is de-
signed by the management to make further
improvements with portion of the results
of this new issue of stock. If then the road
was required to sell the stock at market rates
and the whole of the money went into i'm
proyements already made or to be made. It
could all be charged to the cost of the road
and on it dividend of IL per cent might be
paid. In view OF these facts, Mr.. Payson
found that while theoretically it would seem
to be proper thing to require the stock to
be sold for what 1t would bring in open mar
ket, such sale would not be likely to reduce
the cost of transportation of passengers or
freight. and the public would in no way be
benefited practically. The investigation of
the matter, however, may result in great care
in the granting of charters in the future.
The Boston 81 Maine bill was then passed
to be enacted.