Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-08-07
TO BE ABSORBED.
Senator Chandler on Future
of the Boston & Maine.
Canadian Pacific Needs 1t More Than
the VanderbiIts.
The New Hampshire Senator Says the Con.
solicitation Will Help New England.


Chandler, having his attention called
to the rise in Boston & Maine Railroad
stock. and the rumors about the alb
sorption of the Boston & Maine Rail
road by some other system, was asked
what he thought as to the probable
tiles of such absorption.
He replied: The rise in Boston &
Maine Railroad stock is not remark
able The lines of that company are
exceedingly valuable. Their business
is great and lucrative. 1t will be re-
membcrcd that when that company
was authorized by the New Hampshire
Legislature to issue 100000 of stock
mt par to its stockholders. l denounced
the permission on the ground that it
was a watering Of stock to the extent
of nearly one-half of five millions.
Less than three millions of stock jul
diciously sold would have brought in
To the treasury of the company the
five millions of dollars which it re-
ceived, and possibly two millions and Il
half of stock would have produced the
five million dollars. Instead of re-
quiring the new stock to be sold at
the market rate. the Legislature I'M
wisely authorized its sale TO the stock
holders at par. and it is now worth
5000, the annual increase Of its profit
able business with revived good times
having brought the stock up to 5000
Now as to the absorption of the
Boston & Maine lines by some new
system, there is no reasonable doubt
that such absorption will take place
within "A short time The New York
Central Railroad. having made up its
mind to take possession of the Boston
& Albany will not fail to look upon
the b. & NJ. as desirable for seizure.
1t is characteristic Of the railroad con-
solidations now taking place that no
small line has any power of resistance
against a large system whose owners
make up their mind to grasp the
small line. They are absolutely help
less in the presence of the huge capital
and powerful lines of the great COM
pany As the Concord Railroad with
its so 600, 900 capital, had no power Of
resistance against the Boston x Maine
Railroad with its $50 900 GOO capital 50
the Boston & Maine with its 800. 600 0eo
has no chance against the New York
Central with its $500, 600, 600. tn"
greater globe of water will absorb the
smaller globe Of water as soon as their
circumference come in contact. 1t is
only a question whether the New York
Central will desire the Boston q
Maine after it has obtained the Boston
K Albany. If So. the Boston & Maine
will be swallowed UP by the great New
York combination.
1T is more probable, however, that
the Canadian Pacific will seize the
Boston < Maine lines. The Canadian
Pacific has greater need of those lines
than the New York Central will have,
after it obtains access to Boston.
through Albany. The Canadian Pa
cifc must have access to most import
ant seaports than those of the Domin-
ion Of Canada. 1t must have access
to the ocean. through New England,
and il not only needs that access at
Portland, but also at Boston. The
Canadian Pacific managers have Of
late largely dominated the Boston &
Maine. and doubtless will soon make
move toward the possession of the lat
ter'S lines. The Canadian Pacific WIFI
not indeed. dare much longer here
after. run the risk Of seeing the Bos
ton e. Maine go into. the hands of the
New York Central. We may therefore
expect to see for little While lively
competition between the Canadian Pa
cific and the New. York Central for the
acquisition of the. Boston & Maine
Railroad, and shortly the surrender Of
the latter to the ownership and con
troll of one.of the great combinations.
1t is impossible now to tell exactly
which. but the Canadian Pacific has
The most at stake, and will make the
highest bid. therefore quite likely will
be the winner.
The effect Of these consultations
will not. in my judgment. be for the
benefit of the people. for reasons APP
plicahle to- al the huge trusts that are
now in, formation in this country. Up
to a certain point, consolidation, con-
trOlled by honest men. may be made
to result in economical management,
and prices to the public may therefore
be kept low or reduced. but there IS a
wise limit to all growth. When the
combinations become so big. embrac-
ing vast capital. many interests. and
innumerable employees. their power,
politically and otherwise. becomes so
great that the managers become wilful
and headStrOng. They also demand
big salaries for themselves and great
profits for their friends. and find it
so much easier to secure inOrdinate
profits by oVertaying the public than
to enforce economies. and reduce their
taxation Of the public. that they in
eVltably adopt the former plan. Prices
so up. This is the process that is now
going on in connection with every
trust from that in baking powder to
that in iron aqueduct pipes. So it will
be with the larger consultations when
they get firmly fixed in power Fares
and freights have undoubtedly been
very low during late years. otherwise
the railroad consultations which have
already taken place would not have
been tolerated: but hereafter. as the
consolidation becomes firmer and
stronger. fares and freights are sure
to be raised.
THE true interests of the public.
therefore, require that consolidation.
beyond a certain point. should be re-
sisted, both by the state and national
Legislatures. This it is easy to do. If
these huge aggregationS of capital can
be prevented from capturing. by cor
ruption or other means, the state and
national Legislatures. Mr.. Hanna