The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-01-20

In the connection of another railroad
pursuant to law, Or of building depots,
or OF making permanent improvements,
or OF paying its floating debt, or of pay :
Ing 1ts funded debt, or for the payment
OF money borrowed for any lawful pur-.
p0se, Or FOR the purchase of shares OF
the capital stock of any railroad corpora
tion whose railroad is leased to or opelat-
ed by it or for the purchase Of shares OF
the capital stock of any railroad corpo-
ration OF which capital stock it owns
majority, or for improving the align
ment of Its road, or for acquiring land
ana for laying new tracks, or for other
necessary and lawful purposes, from
time to time, with the approval of the
railroad com missioners, may increase
iGs capital stock beyond the amount now
liked by law, provided such increase
shall first be authorized by vote of a ma
Jurity OF stock present or represented
at legal meeting of the corporation
duly called for that purpose
The bill provides further that such
stock shall be sold at public auction in
the city of Boston or elsewhere as the
railroad commissioners may direct and
that due notice shall be given of such
newspapers. Then the measure FIXES a
penalty for the application of the pro-
ceeds of such stock issues for purposes
other than those specified. This offence
on the part of any director, treasurer or
other officer who participates in it is
made punishable by fine not exceeding
$1,000, or by imprisonment not exceeding
one year, or by both.
This explanation Is made Of the meas
ure, which is in the interest of the Bos-
ton and Maine railroad and its owner
ship of the Maine Central railroad.
The Maine Central now has the
right to issue Five = millions in
stock, hut in the words Of q leading rail-
road man 1t is heavily bonded and is top
heavy when its issue of stock is consid
cred. Now for the various purposes 1t 10
or may be desirable to issue more stock,
a stock issue being preferable to bond
issue as dividends on stock may be
passed, but not on bonds. The Boston
and Maine owns 81 per cent Of the Maine
Central stock and wolld like to in
crease it's holdings. Should more stock
be issued the ownership of the Boston
and Maine In the Maine Central would
be endangered, as under the existing
law it cannot issue and sell more OF it's
own stock to acquire stock of the Maine
Central.
Under this condition of affairs the Bos-
ton and Maine ownership say no more
stock of the Maine Central shall be is
sued. The Engel bill will give the Bos-
ton and Maine the right to sell its own
stock to obtain money and purchase
that of the Maine Central. The bill is
in accordance with President Tuttle's
ideas, who believe that 1t Is preferable
to obtain the legislation asked through
a general law rather than by special
acts.
These are the purposes of the bill as
outlined today; whether its provisions
are desirable additions to the existing
law, is for the legislature to determine.
The bill come as a surprise to most If
not all the members and few are q po-
sition to discuss it. But it has already
been aptly named. 1t is described as a
broad gauge bill. One arguments used
against it ia tnis: lake q leased road
corporation can acquire controlling in
terest of the stock of the lesser and then
when the lease expires make suoh terms
as it sees fit. There Is alyo likely to be
opposition in some quarters to the pro-
..sion for taking land although that
simply adds to t4e purposes for which
land may Iow bs taken. Perhaps the po
sition of many of the members in regard
to the bill is described by the remark
of a representative who said: &C. I am
against it until somebody explains to
me just what it will do and why it
should pass"
When the resolve for an appropriation
for the completion of the oormitory Of
the Gorham normal school comes in, 1t
will call for S83, GOO, sum sufficient to
completely finish the building.
There is good deal of speculation
among the mem bers as to the probabili
ty of changes in the Australian ballot
law. Ex-senator Bradbury's envelope
ballot bill has been shifted by the ju-
dietary committee on TO the shoulders
of the gentlemen who settle great ques.
tiona in the legal affairs committee room.