The Colorado statesman., 1905-03-25
Railway Merger Bill.


ate chamber March 21st.
Appearing for the Colorado & South
ern Tyson S. Dimes read a statement
in which the attitude of the company
was set forth. E E. Whitted eX-
planned the bill, section by section,
and answered the objNtions 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
& 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 it to compete
with the Hartman lines in shipping
fruit from California.
the principal speech against the
ulll was made by Frank c. Goudy.
Il do not question the good faith
of the gentlemen behind this BILL"
he said, but do question the good
faith of the gentlemen behind them
who 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.
OnG Ol lHe VI ILLS Dill 10
that it is part of a general scheme to
so arrange Colorado laws that foreign
corporations may buy up all the rail-
roads in Colorado and obliterate them
as state roads. 1t goes even further
than any similar statutes l have eX-
amined, in that it 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 1 am opposed to any legislation
that will make it 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
strates that the majority of railroad
trusts could not have been created
without just such legislation as is
asked for in this bill. If it 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, mo:
"Is it the intention of the Colorado
& Southern to use this bill to enable
it to sell out to a foreign company"
rs it the intention of the Colorado
e Southern to use this bill so as to
lease, purchase from, or consolidate
with, or sell to parallel or competing
lines?"
rs 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 entifSrcapi-
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; it
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.
1--WE could, as others have done,
easily obtain under the laws of other
states, much greater powers than those
for which we are now asking, but bay
ing cast our lot with the people Of
Colorado, and having selected a name
which forever identifies us with that
state, we simply ash that we may be
treated as well as wo 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 e Southern is to build it
up into a 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.
If 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.
we ask Tor power 10 acquire not
only other railroads, out 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 disectly with the Gulf of
Mexico, and further acquisitions will
doubtless logically follow, but hardly in
behalf of a Colorado enterprise, unless
the Colorado laws permit
81 am not overstating the case in
saving that permission from the state