The Providence news. (Providence [R.I.]) 1891-1906, 1902-03-18
HEARING
ON MERGER
MEASURE,
Arguments Before Committee
on Proposed CharisTing Of
Rhode Island Company.

There were three public hearings at the
State House by as many committees, this
afternoon, the first being that by the COM
mitee on fisheries on the proposed act
regulating the taking of fish in the north
ern waters of Narragansett bay. Little
interest was shown but more at the hear
Ing on the bill before the committee on
judiciary relative to evidence in damage
suits. Representatives Higgins and Cor
coran and Hon. Charles Il. German fa-
vored the bill, while Hon. Rathbone Gard
ner. Colonel Van Slyck and Hon. Walter
Ii. Vincent appeared I'm opposition.
The third and most important hearing
was given by the house committee on cor
porations and the capacity of their room
203, was fairly tested Among the more
prominent citizens present were Mayor
Granger ex-Mayor Baker, City Solicitor
Colwell, Assistant City Solicitor Baker.
Hon. Charles f. German, Hon. Rathbone
Gardner Alderman stephen A. Cooke,
Senator Horton of Cranston and others.
The hearing was on the act 10 incorpor-
ate the Rhode Island company--more
commonly known as the merger
measure" with prospective purpose OF
consolidating the Union Railroad COM
pany, Providence Gas company and Mar
ragansett Electric Lighting company
The incorporators are ii. Martin Brown.
j. Edward Studley and Stephen o. Ed
wards and the capital stock fixed at s., COO
O0O The bill I'm detail was given I'm the
| columns OF The News "A week ago.
All the members OF the committee were
| present and Representative Curtis. as
chairman, presided.
After the reading of the bill by the CON-
mittee clerk, Judge Southwick, those In
| favor OF the measure were invited TO be
heard
The first speaker was Alderman Stephen
A. Cook who stated that he appeared pro-
fessionally for the advocates OF the act
which was simply a permissive character
bassd on the mutual concessions or the
various companies--on terms satisfactory
TO all stockholders acting on the role or
seller and purchaser
The act simply empowers the proposed
company to meet its obligations either In
cash or Its own securities. IL was not a
novel measure for other corporations had
been accorded similar rights and
privileges and the new company simply
asked the legislature for like power.
The interests OF the stockholders would
be protected by n majority vote as re-
quired and the interests OF the city OF
| Providence could be protected by the
city council. In fact the legislation asked
for was simply TO transfer the rights and
franchises OF certain corporations that
at present subsist and exist. The ulti-
mate purpose OF the act was to prevent
friction between the various companies
interested to secure more economical
management and oenefit the public by re-
hardship possible 10 be imposed on any
body by the passage OF the bill.
Ex-Mayor Baker said he appeared In
more than one capacity, viz: A citizen
OF Providence; a stockholder In one OF
the companies and also as representa-
tive OF other stockholders The bill. he
declare was a dangerous one. On its face
| Il appears all right but not so for a ma
jority OF the stockholders In any one OF
these companies can transfer the entire
property to the new company as against
| the will OF the minority
Pass this BILL let the majority have con-
troll and the rights OF the minority would
be wiped out. There would be no night
mare as TO dividends, but rather as to
| principal.
stockholders could appeal 10 the courts,
bat Il ~ well known that minority stock
holders do not desire TO do 50 for they
arc apt to lose more than they gain.
There IL To day an agreement that after
declaring an annual dividend OF eight per
cent and laying aside ten per cent surplus,
with both the gas and electric hghting
companies the city of Providence should
benefit by cheapened production,
Under the new arranRement the stock
holders of these companies could say we
are getting only per cent and tho con-
tract with tho city OF Providence would
he obiterntod The bill was Ubiquitous
and IL 10 must pass then section should
be amended comforting as large powers
not simply on "this corporation" but also
on this or any other corporation"
Hon Rathbone Gardner also appeared
I'm opposition to the bill. az did Mayor
Granger aud CITY Solicitor Colwell and
at $3.50 O'Clock the hearing was still In
progress.