The Portland daily press., 1901-02-14

In the case OF the 6tuNor anu AfooHtoOk
Albert Burlsish ana Edwin q. BurlsiKh
took such chances snd :: the road had not
succeeded they would have been ruined.
Mr.. Heath continued at some length In
his argument that men who took these
chances were entitled IL they built them
up to the benefits OF the stock they re-
ceived. The case Of Massachusetts, Is
different from Maine. Massachusetts, is
a lender and Maine Is borrower. The
result OF this bill will be to prevent the
building OF new roada The Boston and
Maine backed such q law In New Hamp-
shire to prevent the building OF electric
roads and they have not been built IN
consequence. In Massachusetts, under
similar law, to show that the stock has
been paid in, the money is borrowed
from the banks ana allowed Co remain In
the treasury Of a corporation just long
enough to secure the state certificate.
Then the money Is paid back. Yet Maine
banks invest In the securities of these
companies on the strength OF their certifi-
Gates.
Hugh Chaplin, Esq speaking for the
Bangor and Aroostook. told OF the great
sacrifices made by the men who started
the enterprise ana argued that they
were entitled to the benefits which
might come TO them In the future. He
regarded the bill as a blow to the devel.
opment of Northern Maine.
Hon. Charles Il. Libby next addressed
the committee. He said that he had not
had experience with watered stock and
did not know that he was interested in
any company that would be affected by
the bill, but he was impressed py the
gravity OF the issue presented here, 1t
was y serious departure II the state was
to adopt the swn1dling clothes policy
In the management OF corporations.
Massachusetts had adopted that policy,
but how far she had been successful
therein, Mr.. Libby could not say. This
bill il an entire change In the policy OF
the state and before It was adopted It
should be very carefully examined. He
though the proposition that no stock
should be issuea until paid up and ap-
proved BY o commission, was not one
that would commend itself to the bnsi-
ness men In this legislature. ofcourse,
there had been bad investments by the
banks that was a matter OF individual
Judgment and this bill would not remedy
10. People knew about the issue OF stock
called watered when they made their In
vestmsnts. So rar as the investor was
concerned, mir. Libby did not believe
that the bill would give the desired re-
suit. II you consider the circumstances
under which the electric roads were In.
stitutsd and the benefits brought to the
people, 1 don't believe that you will
deny that the men who risked their
money in these speculative enterprises
should be denied the benefit they may
receive from this stock.
When It comes to matter which
may retard the development OF this
state we should proceed very slowly. 1t
is to my mind stsp backward. Now
what does the bill dor 1t provides a
penalty OF fine or Imprisonment In the
case of any officer Of q corporation who
Is party to transaotions which are not
legal under the act. The legislation Is
highly penal in character and is 80
drawn that the law may be violated
without intent inasmueh as what are to
be legitimate transactions are to be de- |
termined by the railroad commissioners. |
Now / may be alone In this. but OBJ |
isot to any increase in the powers of the |
railroad COMM missloners In this state. l
think you have already given the rail-
road commissioners quite enough to do
to occupy their time and attention.
object not only to the principle OF this |
bill, but to Its details think the pres |
ent liability OF stock holders is surfic- |
lent protection without this act Of guar
dianship.
MIR. Heath added few words to what |
he had previously said that It would
not now be possitls' to run the roads for
less than a five-cent fare. Mir. Heath |
then suggested substitute for the pend
ing bill q bill providing for public return |
of all stock issues showing the am cunts
paid therefor, whether in money or other
wise and making 1t an offence on the
part Of an interested party to promise
any dividend returns not earned by |
the roads MIR. Heath thought this
would amply safeguard the investor.
PoRTLAND'S CITY COUNCIL.
There was another hearing on |
the bill to provide that the city coun- |
oil OF Portland shall have the right now |
held by the municipal officers, alone In |
reference to the granting OF rights In the
streets. Mr. Woodsids presented a letter |
from Major Sidney w. Thaxter. and Hon. |
James p baxter. urging the passage OF |
the bill. MIR. Woodside quoted Col. +. |
n. Dow as in favor OF the measure. He
said the bill was endorsed BY the coun-
Gil, but had not been submitted to ths
aldermen. Mr. Woodside submitted a
new draft OF the bill making 1t apply |
to the renewal of existing franchises
when they expire and providing that
franchises shall be granted by the boards
in Joint convention instead OF by the
two boards taking separate concurrent
action.
Mr.. Woodside was asked to cite a case