Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-05-19
UNITING LOCAL LINES
Report on the Railway Consolidation
Bill.
NO new PRIVILEGES ARE GRANTED
Interests of the Public and the
Stockholders Guarded.
NO OBLIGATION TAKEN AWAY

nit the union of certain street railway
corporations, specified in the first section
| under one mana cement and control 1t Is
not the purpose to affect directly the rela-
tons of these companies to the public or
to their creditors. No new privilege or
franchise in respect to the use of public
streets is granted. The companies are per-
mtted merely so to adjust their internal or
ganiZation that it will be practically pos
sib,e for them to make the fullest and most
advantageous use of the power which Con-
gress has already granted for the public
benefit without the dminution of any obli-
cation resting upon them
The companies are not relieved of any
existing obligation to the public. the bill
expressly preserving all such obligations in
full force and effect. The enlarged corpora
ton will have greater ability to perform
the public duties which devolve upon 1t.
and, should have greater incentive to
their full and satisfactory performance than
would be the case with several small corpo-
rations enjoying varying degrees of credit
and with a separate responsibility for any
unsatisfactory public service.
Indirect Effect of the Bill.
1.-THE indirect effect of the bill should be
conducive to the public interest in several
different ways.
Where the control of a common author
ity over all parts of street railway sys-
TEN is direct and complete there is no way
of evading responsibility. When the render
ing of satisfactory public service is de-
pendent on the agreement of several dis
tinct corporations they cannot be compelled
to agree without distating to them all the
terms of the contract, and this no external
authority is competent to do. When only
one corporation is to be reckoned with. If
satisfactory service is not forthcoming, the
blame can he fixed and the remedy applied
without difficulty or delay.
-hnr1 i,,rf Sinpara-
ly endeavor to cooperate with each other
their directors are frequently embarrassed.
and sometimes prevented from entering into
arrangements that would be for the public
benefit, by the fear that they may be i'm
posing dsproportionatc burden upon one
set of stockholders or comforting a dispro-
rOrtiOnate benefit upon another set. lden' l.
t. of interest in all parts of a railway sys-
TEN means liberty to the directors to shape
their policy for the benefit of the whole
body of stockholders. Such a policy ordi-
r.arily involves a prompt and effectual re-
Spouse to all reasonable requirements or
suggestions which are In the interest of the
general public.
mo corporation has power to unite with
another without express legislative author
ity. In early days. when companies desired
to consolidate they were obliged to obtain
a special act of the legisla ture permitting
it Such permissioEs were freely granted,
and are still freely granted. in states where
the subject is not provided for and governed
ny StItId III -hdSStiCIiuStttS. NILS
sIssippi. Rhode Island. Texas, Vermont, Vir-
ginia and the District of Columbia, no gen
eral law permitting the consolidation of
street railway companies appears to exist.
III nearly all the other states of the Union
such consultations are permitted by gen
eral laws.
These companies ask the permission of
Congress only to do what is permitted by
the general corporation laws of thirty-seyen
states
THE only point which needs to be guard
ed in such statutes is to protect the rights
of non-assessing stockholders though in the
statutes of twenty-five of the states no
special provision is made for such stock
holders
p.o..,., S.oo,.o,.
S'ocA hoi1s'
The methods IN general use for protect
ing the interests of non-assenting stock
holders are two. In twentv-three states the
corsa,. of q. 1.roo ,,ronort,o,, ~ s.ooLh,a
" - - ~ - 80. ~ a. " ,.,inta ~
,,ro.,,,ort;a 20. - o,,o.d &c g. 80,
solda1inn which 10 nc annrovaG bv VI tbrea-
sotiutt IL MiiCn OPP ,i 49, ~ IN
80 .iI9 VI III ~, VI .lic "oe "oaS ~
WI, tot .,,e VI a.,
- ~ I'm 80 -. sIo a. MN seAi'i,ie
atochii1ii.is n.y. ttduiteu 70 go INTO tie
ntit my may, II the! prefer
ne pau .iIe value vi tiieir shares III cdSh'
according 70 certain Standards OF valuation
WHICH vary IN tne ollerent states.
ms plii ADOPTS poth inethods Tor pro
.eceilis .iie interest VI lhe noh-assentlhe
Stockhoiders' ana, SO Tar as the committee
ia" petii doie ~ ascei ,aiil. contains 10 .hal
than are to be found in the statute book of
any state.
MS Din requires that. before Its provi-
aii'ii an ms OF me
percentage reouired nv the Laws ~ any.
state-whose franchises and property are
to be acquired. shall not merely give their
consent. but shall exchange their stock for
stock of the acquiring corporation in order
to carry out the proposed consolidation.
This is as far it would be practicable or
safe to go in the direction of restraining
the making of unfair and imprudent con-
tracts by requiring the consent of a large
proportion of the stockholders whose inter
ests are to he affected thereby
Section 500 Of the Revised Statutes. an
plicable to the District of Columbia, which
relates TO the making of certain radical