The Providence news. (Providence [R.I.]) 1891-1906, 1905-01-31
SENATOR ST|NESS' TART
ANSWER TO REV. MR. LA|D[AN

Nlr. Marion or East HlONldence IOT tIlc
committee o. militia reported back the
resolution II. reduced by Mr.. Bliss appro-
priating 5000 for rife practice for 1895,
and II was referred 10 the committee on
finance.
Mr. Palmer OF Cranston introduced
bill for an act In relation 10 the assessing
and collecting poll taxes in @ town OF
Cranston. II was read ana referred 10
the committee on judiciary
The measure provides that the assessors
may levy the tax directly upon the citi-
zens through the tax collector without re-
ferring the matter directly To the town
treasurer as is the custom now.
MIR. Burlingame OF Newport presented
the annual report OF the record commits
sioner, which was ordered communicated
TO the committee on judiciary.
TO LABEL CoNVICT-MADEG GOODS
Mr. Gaddes OF Pa, lcket introduced
bill for an act providing ior the labelling
OF all goods OF convic make manufac-
tured in the state. II was referred TO
the committee on judiciary.
Mr.. Veitch OF Lincoln presented the re-
port Of the license commissioners OF Lin
coin. II was referred TO the committee
on public institutions.
Mr. Easterbrooks introduced a resolu-
tion appropriating sll0O for clerk hire and
other expenses OF the Joint select com
nittee 70 revise the election laws. IL
was passed.
From the calendar was taken a bill for
an act in amendment OF an act passed at
the January session. A. d. 1899, entitled
an act in amendment OF an act passed a
the January session. A. D., 1891. entitled
"An act in amendment OF an act 10 incor-
porate the Hope Webbing company"
passed at the May session, a D., 1888 OF
which the committee on corporations re-
commended passage. II was passed.
INCREASE OF CAPITALIZATION
The bill for an act In amendment of an
act, entitled AN act to incorporate the
Narragansett Electric Lighting COM
pany." and the several acts in amend
ment thereof and relating thereto. OF
which the committee on corporations re-
commended passage. Mr.. Fitzgerald asked
what the nature OF the increase was and
what was the intention under the increas-
ed capitalization. Mr. Rathburn OF West
Greenwich explained that at present the
capital was 100000, but as the corpo-
ration had been increasing its plant and
branching out along modern lines the in.
crease OF 100000 was to enable II. to
grow ia the future.
Mr.. Fitzgerald proposed an amendment
20 the bill after line four The bill fol-
lows;
THE NaIragansett Electric Lighting
company is hereby authorized TO increase
its capital stock TO a sum not exceeding
even million 97.OoO Ooo) dollars. as the cor
poration may, from time 10 time, by vote
determine.
The amendment provides as follows:
(Add after line 4, section D-"Provided
that no portion OF said increase shall be
issued as stock dividend among the stock
holders nor shall II or any portion OF
said stock be issued except on payment
into the treasury by the purchaser thereof
into the treasury Of said corporation OF
an amount equal to the market value OF
said stock. and provided further that no
portion Of said stock shall be issued ex-
cept for the acquiring property actually
necessary to the business OF said cor
porations, and provided further that no
portion OF said stock or the proceeds
thereof shall be used for the purchase of
any other corporation dealing in public
utilities or the franchises thereof"
Mr., Fitzgerald explained the need OF
preventing stock watering and said that
there was in this state n growing sentl-
ment TO have public ownership OF these
great semipubllc utilities.
Because Of this sentiment the big cor
porations have OF late developed the
scheme OF increasing their capital stock
all along the line, so that when the mu-
nicipal corporations are ready 10 take over
the semi-public corporations there value
is so inflated IL Will be like robhing the
people % the public money
There IS a possibility Of this increase
being issued TO the stockholders as stock.
dividend pro rata. but II this amendment
Is passed there will be no possibility OF
course ike tLis
UNDER STATE GUARDIA NsHIP.
This corporation is in n sense under
the guardianship of the state and any
act that comes in here dealing with such
big corporations should have the careful
consideration Of the general assembly
because II not properly conducted there
Is nothing that could do moro 20 the
public.
Mr.. Fitzgerald referred 10 the ap-
7roaching expiration Of the contract for
lighting with the city OF Providence
49, Mr.. Rathbun snid ~ all the amendments
"Lgegsted by the member from Pawtucket
were tackled on the one amending the
charter ~ would be safe 10 say there
would be no dividends paid on stock as
there would be no one foolish enough 20
buy the shares
The judge said he thought that corpor-
ations ought 10 be allowed 10 carry on
their business In their own way and rath-
or condoned stock watering saying that
{ Gid something have q somewhat evil
effect He quoted certain Judge IN re-
gaiu 10 interference with corporation
management 20 show that u was not wise
20 interfere with the way business is be-
INK carried on the only question being
whether the men are acting honestly ac-
urding 20 their light or right.
Nj. Murphy OF Central Falls supported
Mr. Fitzgcrald's amendment
Mr. EDDY OF Providence asked the chair
nan OF the corpora lions committee to
tate the reasons which the Electric
fignt company advanced when asking for
he increase
Ir Rathbun repeated his former ex-
nianation.
Nj Burchard OF Little Compton in
Juired Just what the floating debt
amounted 10 and also just what the sur
Gus was Thase facts must have been at