The Portland daily press., 1901-02-14
Bank Examiner Timber
lake Endorses 1t.
Measure Opposed by Street
Railway and Other Interests.
ESPECIAL TO THE rH.ss.I


State House, Augusta, February 10 -
The hearing before the judiciary oom-
mittes this afternoonson Senator Mobiles
bill in relation to the STOCK of quasi pub
lie CORPORATIONS was long and animated,
1he bill Is in line with the recommends
tions of Bank Examiner TimberIake and
is farreaohing in Its effect 1t provides
that the stock OF the companies shah not
be issued except upon a certificate issued
by the board OF railroad commissioners
fixing the amount OF such issue.
Senator Noble was the hrst speaker In
behalf OF the bill.
All with whom he had talked agreed
with him that the bill was just and that
sooner or later such regulating statute
must bs placed on the books
Men who were themselves or whose
clients were Interested In watsred stocks.
claimed to be greatly interested In the
welfare OF tha state. Some decades ago,
he said, there might have been q time
when thess corporations nesded such
watering to ASSIST them. But today they
are self supporting. They are earning
dividends and that, too. in many cases
on greatly inflated stock.
lie said that these corporations were
public service corporations. granted their
rights by the state. They were servants
of tbs people OF the state The state could
not afford to do what some of these cor
porations did. Suppose the state should
build an electric railroad, rs It had a
right to do, and that road should cost
$40, 900 or $4,000 psr mile. which was
about what 1t would cost, and suppose
the state issued stock and bonds to the
amount OF $40, 90 and $50. 900 per mile,
as was dons by such corporations. would
the people of the state think that right
and justf
In reply to a question. he said that the
bill was not retroactive In Its provisions.
II 1t were, he fearsd there would be a
panic in Maine or It might be q deIuge If
all the water ran out.
He felt that the people of the state had
the right to know what these corporations
were doing and how their money was In
vested. The great political parties de-
olared against trusts, and to his mind the
greatest evil incident to trusts and
monopolies was the watering of stock.
The question was before this legislature
and now would that body take the bull
by the horns and seek to regulate this
evil.
VIII the legislature declare to the State
of Maine that these promises to the peo-
pie were bnt myths-onIy symbols Of
fiagrant hypocrisy He hoped that the
committee would make favorable re.
port.
In the course Of his remarks he wa
questioned by Hon. II. Nj. Heath. MIR.
Noble made the statement that Massachu-
setts had a statute similar to the proposed
measure, and that as n result many COR
porations were organized under the
law simply to secnrD the
standing which such a law gave them
They were sought by investors. Mr..
Heath asked him II he was familiar with
the way In which the Massachusetts law
was eyadsd. MIR. Noble said that he did
not know as he was fully oognizsnt of
the matter 10 which Mr.. Heath as ked
him IL he did not know that business
men considered that organization under
the Massachusetts, law Was direct fraud
The Senator from Franklin said that he
would not admit that
Mr.. Noble was followed by Hon. Il. e
in whose last annual report
as state bank examiner the need of such
Legislation was first suggeste1. MIR.
said In part:
"My attention was called to this mat
ter in the line OF official work in connec-
tion with Investments as made by banks
and private individuals. The average
Investor has bat little knowledge of the
laws governing the issuance OF capital
stock by corporations. II is a common