Spirit of the age. [volume] (Woodstock, Vt.) 1845-1913, 1900-01-27

Boston, Jan. 25.-As a result Of con.
ferences held between President Tuttle
OF the Boston and Maine railroad, Mr..
Ledyard, representing the American
Express companys holdings of stock
on its directorate, and Governor Crane.
formal offer was made by the Maine
interests for the shares of Fitchburg
railroad common stock owned by the
state. The governor and council. after
a long meeting, voted to recommend to
the Legislature that this offer be ac-
cepted.
The action of the governor and his
council was somewhat unexpected,
view of their refusal only a week agt
to express any view whatever OH q
proposed lease between the two great
properties, and of the action of tn
state directors against such lease. =
substantial offer was made yesterday,
however, to the governor for the So
COO shares of the common stock Of the
road, which the state has held as Sc
curity for the cash advanced in the build
ing of the familiar Hoosac tunnel, and
after consulting and obtaining the ap-
proval Of the council the governor con-
sented to sell the stock and take in pay
ment $5,00O,O00 in percent 50-year gold
bonds of the Boston and Maine railroad
AS a proviso however, the governor
stipulated that the legislature must ap-
prove Of this sale, and the subsequent
lease.
In view Of the proposed lease of the
Boston and Albany to the New York
Central, which Is also before the legis-
lature for approval, the action of the
governor and his council is generally
regarded as shrewd business move.
In brief, the state trustees backed
by the governor and council, have sue
ceeded in obtaining par for stock. which,
only week ago, was quoted at 80, and
have substituted for a non-dividend
paying security bonds paying yearly
interest of 3 percent. Whether the gov
ernor and council had the right to make
such transaction, in view of an act
of 1898, intended to prevent such dis
position of the securities as the gov
ernor sanctioned yesterday, remains for
the Legislature to say and it is generally
conceded that the move was good one
and that the action will be ratified by
the general court.
A gentleman very close to the governor
said after the meeting that the gov
ernor does not believe that the state
should be in the railroad business. That
it Is no part OF its functions to own or
deal in their securities, but that, hav-
ing them, good offer ought not to be
refused. In the present instance no
better one could be expected, and no one
would have dared predict a week ago
that the holdings of the state could be
sold at par, or anywhere near it,
That it has come to pass Is due to the
conviction that the Albany lease would
be antagonized by the Legislature un-
less an agreement was entered into safe
guarding its interests, and it was feared
that the demands would be of such a
nature as to detract materially from the
desirability OF the proposed consolida-
tion.
The state, he said. will make good
thing out of the transaction, as it gets
$1,000, 900 for lot of property which has
rot been considered as of sufficient value
to be cited as an asset of the common
wealth.
Asked as to the moral aspect of the
thing, and the claims that have been
made that the states interests lie in
keeping the Fitchburg road independent,
he said that it was not likely that the
state would be any worse off by reason
of the deal. Massachusetts Is fortunate
in the possession of railroad commis-
sion that Is above reproach, and has
shown excellent judgment, and it is
reasonable to suppose that the interests
of the state and those of Boston will be
looked after by them as carefully as they
have been in the past. The governor,
as business man, has viewed this ques-
tion from Il business standpoint, and his
conclusion may be accepted as the re-
suit of a consideration of the question at
every point.
Comment AZ the state house, after the
governors action was known, indicated
that the ratification of the sale and
the lease would not be made without op-
position. 1t is known that the New
York Central, not a long time ago, at
tempted to obtain control of the Fitch
burg road, and it was intimated that the
Boston and Albany interests might op-
pose the Fitchburg- Boston and Maine
lease.
President Tuttle of the Boston and
Maine issued a statement last night, giv-
ing a history Of the origin and result
of the offer to the state. The feature
of this statement is the Boston and
Maine's offer of the same terms to the
minority holders of the common stock
of the Eitchburg, and the belief that the
proposed lease will enable the Fitchburg
to pay percent dividends on the pre-
ferred stock.