The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1901-04-06
RAILROAD TRUST.
Senate Bill No. 2l7 Said to
Have Been Passed For
That Purpose.
PRESENTED BY THE GOVERNOR
McCarter introduced 1t and
VOORHEES, Says It Came
From "An Attor-
ney."
PRESENTED BY THE GOVERNOR

Much probability is given to the state
ment published yesterday that there
would be a combine of all the big rail-
roads in the country by a story concern
ing a bill which passed the last Legisla-
ture. The Newark News" sent a man to
New York to interview fnanciers and
Others regarding the scheme.
There was, of course. no tangible evil
denee found of the existence of a COM
pany or the formation of one, but those
not prejudiced admitted that there was
every probability that there was truth in
the story.
One of the financiers approached re-
minded the reporter of the passage of
Senate bill 217 by the last Legislature.
This bill created a great howl. Sena-
tor McCarter said it was introduced by
request of Governor Y oorhees, and the
latter said it had been given to him by
an attorney whose name was not fur
nished.
The measure, as originally drawn. al
lowed corporations to act in any matter
with the consent of two-thirds of the
stock represented at meeting, in per-
son or by proxy. That was one fea-
ture, and, indeed, the chief one, to which
OoJCCtAUa UdS 1addc. ~s1Ls VuOSekA lSA az
cordingly had the bill amended SO as to
provide that a majority in interest of
the stockholders shall constitute a quor-
um at any meeting, and the consent OF
two-thiras of this majority, or thirty-four
per cent. of all the stock, shall be re-
quired to change the name of the cor
poration. increase its capital adopt
merger or take any other action that
previously required the consent of sixty
six and two-thirds per cent. of all the
stock
1t was in this shape that the bill went
through, and it soon lost it's identity in
the output of the legislative mill. 1t still
might be forgotten if it were not for "the
Leak somewhere in connection with the
rurnors of the great railroad deal. Those
who looked for corroboration of these
reports yesterday turned their attention
sooner or later to this particular act of
the New Jersey Legislature. Apparent
ly it made no difference from what point
they started in their Investigations or in
Guires. In the end they got to Senate
2ls,' and upon it they based their belief
in the rumored combine. And they did
more
Some of them limited and others boldly
declared that the measure was designed
fer the benefit of just such corporation
as is now talked of. One of them,
when questioned closely by a reporter,
asked if the newspaper men had "ever
heard of General William ]. Sewell.
United States Senator from New Jer-
sey." The reporter answered in the af-
firmative.
We'll" said the financier. 'T think if
the truth were known that you would
find that this famous bill was inspired by
Senator Sewell. As you probably know,
he is closely identified with the Pennsyl-
vania Railroad Company, and SO is natur-
ally interested to no small degree in rail-
road matters. He is supposed to be on
good terms with Governor Voorhees, and
assume that he is. Now, the Governor
sent that bill TO one of the State Senators
-McCarter, wasn't it?-and the measure
was put through. Where did Voorhees,
get the bill? Don't know, Ell? No, 1
guess yeu DON'T and neither does any
other outsider. Did it ever occur to you
that it might have come from Senator
Sewell through an attorney? Just con-
siderl that suggestion Seems possible,
don't it? And doesn't it also seem rea-
sonable and indeed probabie?''
others had no hesitation in declaring
that Sewell was behind the bill, and one
said he had good authority for the state
ment.
The strength of the stock market re-
Gently is quoted as corroboratiye that
something is up
The scheme is outlined by those who
know like this
The company will be organized under
the laws of New Jersey with a keen eye
on the beauties of Senate 217. Its object
will be set forth briefly, and in effect will
be the conducting of a freight and pas
senger traffic business in this State and
elsewhere comprehensive word, sus-
ceptible of very liberal construction.
This company will hold a controlling in
terest in all the great railway systems of
the United States, and the management
of the roads will be vested in the con-
trolling company. Each road will pre-
serve its Identity and corporate exist
ence. but the new company will control
the affairs of all. The chief purpose OF
the proposed company will be to prevent
rate cutting. Besides this large amount
will be saved by cutting down the ex-
penses Of management.