The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-03-17
BOSTON And ALBANY LEASE.
Questions of Massachusetts House An
swercd by the Attorney General.

1
swered by the Attorney General.
Boston, March 16.-Attorney General
KnoWlton submitted to the house of
representatives to-day his answers to
questions asked him relative to the
lease of the Boston and Albany to the
New York Central and Hudson River
railroad contained in orders adopted
in the house February 13 and a. The
document in it's entirety, is probably
10000 words and it goes into the early
history of the railroads which now
make up the Boston and Albany in
Massachusetts and state legislation in
railroads. The questions and sub
stance of the answers are as follows:
docs the commonwealth, under ex-
listing laws and charters, have a right
to reduce rates on the Boston and AL
bany railroad if thereby dividends are
reduced below the per cent per an
mum.
The attorney general .says: "In my
opinion, provisions limiting the author
ity of the legislature to regulate rates
of traffic on the Boston and Albany re-
manned in force and binding upon the
commonwealth under the statute of
1870, The acceptace of the statute by
the company, gave the commonwealth
the power to regulate rates and fares.
/ am of the opinion, therefore, that the
commonwealth has a right to reduce
the rates on the Boston and Albany if
thereby dividends are reduced below
per cent. per annum. "
2-If so, would such right be in any
way impaired by the commemorative
gratifying the proposed lease of the
Boston and Albany road to the New
York Central company, and If So, in
what manner and to what extent?
The attorney general says: II am of
the opinion that having authorized the
imposition of the burden of rental
equivalent to an per cent dividend,
subsequent legislation as would make
it impossible for the lessee to earn the
amount so fixed, would be violation
of that clause of the 18th amendment,
which forbids state to deprive a per-
son or corporation of property without
due process of law / am of the opin-
ion, therefore, that the right of the
commonwealth would be impaired"
By what method or methods and
what probable price under existing
laws and charters, could the Boston and
Albany road be bought by the common
wealth on March 1?
The attorney general says: The
commonwealth has the undoubted right
to take the property of any individual
or corporation, including railroad cor
poration, for public usage-paying
therefore a reasonable compensation.
This compensation is the fair net cash
value OF the property taken, not includ-
ing cash assets. on<tne otfier mana, II
would not impose upon the common
wealth any obligation to assume or pay
the Indebtedness or the corporation
Another method is by purchase, uhoer
the authority of the special stature
and the price to be paid IS hxed by
statute
Question asks II the commohWeaith,
after the ratification of the proposed
lease, could puy the. Boston anu al
bany road for as much less thah pelore
SAID ratfeation as is the amount ,So'-
100000 in bonds) to be PAID by the New
YORK Centrai ana Hudsoh river ran
road, for the property excepted from
the lease. The attorney general says
that in his opinion the value OF the
property so sold should be deducted
from the damages in the case OF TAX
ing, and from the price to be PAID IN
the case of purchase.
Question asks If the sale of the
railroad to the New York Central is IN
accord with public policy as declared |
in this legislature. The attorney gem