The Republican journal., 1905-03-02
THE STATE MUST KEEP ITS PLEDGES


! authorize the construction of a railroad in
Bangor and north, northeast and northwest
of here, in fact, one can scarcely tell where
from the description of route or routes
desired. No one, 50 far as we are aware
treats the matter seriously or as being
seriously intended, but there are phases OF
the matter which are serious enough, and
which should be explained to persons out
side the State who have invested or NAV be
considering investment in Maine bonds II
is to these we invite attention.
Maine railroad securities had in general,
prior to the 90's, fallen into diSfavor through
the experiences with practically every rail-
road constructed in the State No com.
pany was held on to by the ncorporators
we believe. All efforts to open northern
Maine by direct line in the State had failed
1t is admitted that in 1891 such line was
vital necessity and yet it appeared to be
| next to impossible that it could be built
AroOstook county and others interested
accorded aid by agreeing to, as they later
did, purchase preferred stock. The State
aided more by passing the acts of 1891 and
1893, both of which really provided that the
State would not allow competing road to
be built into the territory for term of
years.
Railroads in Maine had not succeeded,
largely because built to divert traffic from
other transportation routes; the European
& North American is perhaps the best ex.
ample. The Bangor & Aroostook, if it
could be built, was to develop new bust
avoiding. all trespass upon the territory of
other Maine railroads as it has done
throughout and is doing still. Capital
demanded assurance from the State that
the previous errors should not be invoked
against the Bangor & Aroostook. Without
acts Of the legislature referred to the need
ed funds could not have been secured. We
are in position to affirm this positively.
The fact that the Bangor & Aroosto0k
securities were marketed is the best proof
that purchasers relied upon the promises of
the State. The promises of the State were
so intimately connected with the sale of the
bonds as to make the promises almost a
part of the bonds. Because of the promises
the bonds were purchased; because the
bonds were purchased money was obtained,
and because money was obtained the road
was built and the State obtained what it
desired to obtain for its promises; namely,
the Bangor Il ArOoStook railroad
All admit that the Bangor & Aroostook
road has done for the State all it was ex-
pected to do and all it promised; indeed it
has done much more The company has
not done anything it ought not to have
done; 1t has omitted the doing of nothing
which it ought to have done.
The bill before the present legislature is
really proposal to the State for it to break
the promises which it made to the Bangor
u Aroostook railroad company and to the
purchasers of bonds To pass the bill the
State would surely break the promises. By
passing the bill the State would practically
say to the world the Bangor & Arocstook
has been unfaithfu, a thing which all know
is not true. For the legislature to pass the
Dill would be to serve notice not to rely upon
promises of the State. Its reputation as a
State which believes in uprightness and fair
dealing would be Sullied.
With this mucb III il ho 6o1 hot
there is no necessity and no demand from
the people, for the passage of the Heath
bill.
1t is plain to be seen that in the charter
asked Tor by Mr.. Maxfield and his associates
they are up against two constitutional propo-
sltions. First: They should have petition
ed the railroad commissioners for their
charter under the general law, the same as
the Bangor & AroOstOok company did in
asking for the charter for their main line
and for the Seaport branch. Secondly: At
ter the Bangor 4. Aroostook company had
obtained their charter from the railroad
commissioners the legislature passed an
enabling act giving to that company for 80
years practically the exclusive right to the
territory they now occupy, not allowing
any other company to come within Is miles
of their road on either side, excepting for
purposes Of approaching or crossing. If
this new charter is granted that previous
act must be repealed
These provisions were in the original
enabling acts passed by the legislature for
the Bangor & ArOostook company and have
become vital contract, for upon this capi-
talists relied that no other road could be
built into the territory paralleling on either
side that of the Bangor & Aroost0ok. If
this were to be done it would ON the one
side go into the provinces and on the other
would meet the Ashland branch road.
Mr.. Brown of the firm of Brown Brothers,
the great bankers, said to one of the men,
bers of the finance committee of the Bangor
& AroOst0Ok company, that on this contract
they placed their faith in the securities of
B. q A. company, as it was this Is mile
limit on which no company should build a
parallel road which gave the bonds value.
If this was changed by any future legisla-
ture such act would not be sustained by the
cOurts.-BangOr Commercial.