The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-08-15
.OLNEY ANSWERED.
CONTINUED from page ~

lessor Is the line between Boston and
the Hudson River; that the lessons
leased lines may be sub-let at any time
at the lessee's pleasure, and that when
the leases of such lines expire, they are
to be renewed. only, as he again re-
quest \
To this it may be replied;
l. what the lessee is bound to return
Is the demised road and property
which is fully described in article first
OF the lease, and includes all which the
lessee gets, and in terms includes the
leased roads, Of which there are three:
" .Pittsheld and North Adams, lease
expires IN 1915; (2) Ware River, lease
expires in 1878; % North Brookfield,
about four miles long, lease expires in
1886 1t is therefore strangely inaccu-
rate to say that all that the lessee is
pound to return is the main line. Fur
thermore, the phrase criticised is not
novel, 1t is in substance contained in
the lease of the Boston and Providence
Railroad to the Old Colony, which has
never been criticised on this account, TO
my my knowledge. Furthermore, is Mr..
Olney sure that lease line may not
be a branch"
2 IT Mr.. Olney should be EMPLOYED
by dissenting stockholders of the New
ofK central he could easily point out
according TO the method he has en-
pioyed IN his letter, that there is no pro
VISION IN the lease to prevent the Bos-
ton o. Albany from renewing leases as
when they expire without the con-
sent or the lessee, and there is a pro-
vision subJecting the lessee to all leases
mat from time to time may be made,
W9ich ne might add is manifestly one
slued ana against the lessee's interest.
fhnR0fArn +,,s4 49, e
TO assert that leases are to be renewed
only when requested by the lessee?
s. one Of our leases is of a road only
TOUR miles long and is of very slight i'm
portance. The Ware River lease is an
proxlmately as long as the one in cues
tion; SO that the whole bugbear is about
the PittSf1eld & North Adams lease
which expires in 1875, and which is now
and probably will continue to be a val
liable property and desirable to any
manager of the system. The risk of the
announcement of the lessons system
does not seem to be a. real peril.
Il is pleasant to turn from these fea-
lures of Mr.. Olney's letter to those in
which he speaks with more judicial
fairness and which really constitute the
eifective portion of his criticism. OF
these. /: He criticises the provision
which permits the lessee to determine
what are improvements to be capital
lied as between lessor and lessee. He
practically comedies that this would he
unimportant if the lease were sure to
endure for thousand years, but fears
It's lloeraity to the lessee If it should
ussernine Tor any cause in ten, fifteen
or twenty-five years.
In the lease of the Boston & Lowell TO
the Boston & Maine, the lessee is given
power to make permanent improve
ments without restriction, and whether
the lessor should issue its own bonds to
pay for them is to be determined, if the
lessor does not consent, by the RAILROAD
commissioners. In the lease of the Old
Colony to the New York and New
Haven, the clause on this subject is that
tor the purpose of making permanent
improvements upon the property de-
missed, the lessor will at the request of
the lessee make lawful issue of bond ,,r
STOCK or or both, as shall from time to
tlme be necessary and proper to be is
sued.
In the lease of the Boston, Concor9
4 Montreal to the Boston & Maine.
which Mr.. Olney quotes from on an
other subject with approval, the lessee
is given the power to make permanent
additions and Improvements which shall
be paid for by the lessor if it assents,
or'if the railroad commissioners of New
Hampshire decide them to be necessary
or proper, by the issue of bonds or stock
OF the lessor so far as it has or can
procure the power to issue such bonds
or stock.
In our case, the responsibility of per-
forming the great public service of the
whole system is placed on the lessee
and to 1t should properly be given the
determination of how that system
should be managed and built up and i'm
proved from time to time. 1t should not
be needlessly hampered in the exer-
else of this great function. Our great
protection and security is this that
under the laws Of Massachusetts, at
present, no bonds of the Boston & AL
bany can be issued Unless the railroad
commissioners first determine, after
public hearing, that it is necessary and
proper that they should be issued
II is hardly conceivable that the state
OF Massachusetts will ever make sucn
issue more free than it is now. Mr.. OIL
ney suggests that the railroad commits
sioners may not last as a board indefi-
nitely. That would be a good criticism
of the Boston & Lowell and of the Bos-
ton, Concord & Montreal leases, above
cited, but it will hardly hold water here,
where the only right of the Boston &
lawfully may" and our legislature man
ages that lawfulness through such tri-
bunals as from time to time it may see
fit to appoint.
I cannot consent to the proposition of
Mr.. Olney that under this lease all i'm
provements are to be made with the
Boston & Albany bonds to be given to
the lessee upon its request" unless there
be added to it the governing fact, that
only such bonds as the commonwealth
through its constituted authorities
specially authorizes can be issued at all
by the Boston & Albany
g. 1 am inclined to approve Of his
suggestion that provision might we'll be
made to make sure, in the case Where
the commonwealth may compel perma-
nent improvements or additions, that
the lessee should assume the interest on
any bonds Of the lessor issued there
for.
g. OF course the expense of the prep
aration and issue of refunding or i'm
provement bonds is to be borne by the
lessee; they are to be issued at the les
sees request; the phrase by which this
is provided for is substantially similar
to that of several recent leases-it
might be made more explicit if it were
thought worth while.
a. for one am opposed to the in
sertion in this lease of clause permit
ting the lessor at the request Of the
lessee or otherwise to increase the cap
ital stock. If the lessor is to pay for
betterments which it is to own at the
end of the lease that should be done
because it can be more cheaply and
economically done by bonds rather
than by stock.
8. The obligation to keep the property
In good order and condition and to re-
turn 1t In good condition at the end of
the lease is criticised, and a form es-
sentially taken from ordinary real es-
tate leases for short terms is recon-
mended, viz: that the good order"