The Lamar register., 1905-03-29
Railway Merger Bill.

radO q SOutneTu measure, WAS us
cussed at a public meeting in the Sen
ate chamber March 21st-
Appearing for the Colorado G South
ern, Tyson S. Dimes read a statement
in which the attitude of the company
was set forth. E. Z. Whitted ex-
planned the bill, section by section,
and answered the objections raised by
Senator Booths minority report.
Representative Thomas sounded the
first note of opposition, claiming the
honor of being the only member of the
House to vote against the bill. He was
answered by Mr. Dimes.
C. w. Waterman OF Wolcott, Vaile
C Waterman, and attorney for the Den
yer & Rio Grande, spoke in favor of
the bill, and said that If it passed his
road would be able to acquire lines in
Utah which would enable 1t to compete
with the Hartman lines in shipping
fruit from California.
Tne principal speech against the
uill was made by Frank C. Goudy.
Il do not ucstion the good faith
of the gentlemen behind this bill"
he said. but l do question the good
faith of the gentlemen behind them
wLa have headquarters In New York
city. This bill appears to me to be a
plan to make trusts easy, to make 1t
easy to combine and consolidate.
"One of the dangers of this bill Is
that 1t is part of a general scheme to
so arrange Colorado laws that foreign
corporations may buy up all the rail-
roads in Colorado ami obliterate them
as state roads. 1t goes even further
than any similar statutes l have ex-
amined, in that 1t gives to such foreign
corporations as purchase Colorado
roads the right OF eminent domain. 1t
would take out of the state courts the
right to control the roaus by making
them interstate roads.
"There are already sufficient facil-
tiles for making combinations easy.
and ! am opposed to any legislation
that will make 1t any easier to COM
bine.
In my Judgment this bill is special
legislation, pure and simple. 1t en-
bodies provisions of the New Jersey
laws, under which trusts were created,
and under which they flourish SO
abundantly. Current history demon
trusts could not have been created
without Just such legislation as Is
asked for in this bill. II 1t is passed
it will be the greatest step the Colo
RADIO Legislature has ever taken to en-
courage trusts"
A sample of the questions asked are
the following. propounded by Senator
Sapp, to all of which either Mr.. Whit
ted or Mr.. Trumbull answered, no:
"Is it the intention of the Colorado
& Southern to use this bill to enable
1t to sell out to foreign company"
rs 1t the intention of the Colorado
& Southern to use this bill so as to
lease, purchase from, or consolidate
\. - III t.,sw
lines?"
"Is it the purpose of this bill to en-
able railway corporations to sell out.
lease, or consolidate upon a vote of
less than two-thirds of the entire capi-
tai stock of the selling or leasing COM
pany voting in favor of the PROPOSE
tion?"
Following are extracts from the
statement Of President Trumbull of
the Colorado & Southern, as read by
Mr.. Dimes:
There is absolutely nothing mys-
terious or sinister about the bill; 1t
was drawn by counsel for our company
for the purpose of enabling the Colo
RADIO & Southern to engage in ex-
pansions for which there is not suf
ficient power under the existing laws
of the state.
easily obtain under the laws of other
states, much greater powers than those
for which we are now asking. but hav-
ing cast our lot with the people of
Colorado, and having selected a name
which forever identifies us with that
state, we simply ask that we may be
treated as well as we would fare else
where.
"A great many false assumptions
have been circulated and published,
which perhaps / need not answer in
detail. but l can say emphatically that
the desire of the present owners of
the Colorado & Southern is to build 1t
up into larger and more important
system, and that absolutely no nego-
tiations are under consideration look
ing toward sale or dismemberment
of the Colorado & Southern system.
IT, the bill before you is passed, it
will, when our financial arrangements
are matured, enable us to acquire dis
connected pieces of road, the right
to do which under the existing laws
of this state has been questioned. Our
expectation is to connect these lines
by additional construction but, in the
meantime, we seek a way to finance
the acquisition of existing lines. and
this naturally requires indisputable
titles.
I'VE ask for power to acquire not
only other railroads, Dut other trans
portation lines, because, for example.
it is quite possible in years to come
that we may want to contol, or at
least to acquire interests in, steam
ship lines as well as rail lines. Our
first hope is to carry out the original
designs of Governor John Evans and
Gen. G. NJ. Dodge. namely: To con-
meet Denver directly with the Gulf OF
Mexico, and further a ;quisitions viii
doubtless logically follow. but hardly in
behalf of a Colorado enterprise, unless
the Colorado laws permit.
II am not overstating the case in
saying that permission from the state
of Colorado for the Colorado & South
ern and other roads to become par
ents of additional enterprises. is of as
much value, If not more. to the people
of Colorado, than to the individuals
who are interested in the railroad
properties which happen to be organ
lied under the laws of this state.
1.-THE Colorado & Southern disburses,
in expenses ana taxes. nearly eighty
per cent. of its total receipts, and the
bulk of this eighty per cent. is dis
tributed in the state of Colorado, for
/ II bas alwayS beep oiir nrefaropt;al