New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-17
RAILROAD BILL PASSED.
Ertends Existence Of Corporations
IN Debt-CalLed Vicious.
rBy Telegraph 20 The Tribune, J


denounced it as absolutely indefensible and Vi
cious in every particular. the Wemple bill, ex-
tending the corporate existence of all railroads
having outstanding Indebtedness was passed by
the Senate to-day by a vote of 29 TO -. Many
Senators declined to vote. and the votes which
actually passed the bill were obtained only on a
call for absentees. Travis H Whitney, OF the
Citizens Union. has called this bill one OF the
worst grabs on record.
Senator Fuller precipitated of the bitterest
fights of the year when he presented petitions
from the Town Board Of Rhinebenk, the Board
Of Trade of Rhnebeck and other organizations
there protesting against the passage of the DILL
on the ground that it would extend the life Of
the Rhinebeck & Rhnecliff Railroad Company.
This concern. which Senator Smith, who sprang
to its defence. openly admitted existed on paper
in an effort to market a railroad proposition
some two miles long" is an old friend of the
legislators Many politicians, notably Bob
Hunter of Duchess County. whom Governor
Hughes forced out of the Insurance Department
are understood to be interested in the company.
Senator Smith had passed last year a bill eX-
tending its existence for one year IN the teeth
of bitter opposition from civic organizations and
residents OF both towns and the surrounding
country
The text of this bill is short and seemingly
unmistakable in its meaning. 1t reads:
The corporate existence of any railroad or
railway company of this state. heretofore legally
incorporated under the laws Of the Stane of New
York and having a mortgage upon its property
or other Indebtedness incurred by vote of the
stockholders prior 10 the year 1906, Is hereby
extended with full corporate powers until July
l. 1920. but nothing in this act shall apply to
any railroad corporation in cities Of gthe first
class.
Such railroads or railways are hereby author
ized AM n motive power or
otherwise electricity as we'll as steam
Senator wemple declared that his bilIsapplied
so far as he knew. to only one railroad-the
New York and Pacifc-which had outstanding
bonded debt of about $4,000. 600 He said that
bonds of this concern were held by constitu-
ents Of his, and that he introduced the dill by
request. Senator Human interrupted with
declaration that nothing in the language tOf the
bill limited its application. and Senator 'Fuller
Immediately took up the story.
1T has been brought to my attention." he
said that this bill will affect at least one other
railroad-the Rhinebeck &c RhinecHf Railroad.
Assemblyman Northrup has just handed to me
petitions from the Board of Trade Of Rhine
beck. the Town Board and others. protesting
against any bill which will extend the franchise
Of that line beyond 1907 Mr.. Northrup de-
clared that this bill would affect shat line, d.
rectly But aside from that this is a very bad
species of bill. 1t might vitalize any lame and
decrepit corporation Why not extend their ex-
istences to July /, 1920? No matter what illegal
acts any corporation may have committed, all
are wiped out and the existence Of the corpora
ton extended for fourteen years.
To this indictment Senator Smith answered
that he believed the bill made general TO
answer the objections of the Governor to special
legislation.
is in 10 affect the Rhine
heck &, Rhinecliff Railroad" said he, but If
there were it would not ALLEVIATE my support of
this bill The Rhinebeck & Rhinecin has for
several years tried to market railroad propo-
sition some two miles long
isn't it a fact that that railroad is in debit"
asked Senator Fuller.
Not according to my information" said SEN
ator Smith; neither bonded debt or any other
yet these petitions relate 10 this specific
BILL" said Senator Fuller.
ooh well, if this bill is so vicious sneered
Mr. Smith, I'VE may well leave it TO the Ex-
ecutive whose sentiments on such legislation
are we'll known.
Senator Hooker who. as chairman OF the AS
sembly Railroads Committee last year was
overridden in his efforts TO defeat the Rhine
beck & Rhinecf bill, declared that this Wemple
bill was so vicious that il unspeakable. He
II
trolley roads which never had spent cent for
building lines. but thus under court decisions
would hold the consent of property owners for
rights of way in perpetuity. Just then Senator
Fuller declared, to Smiths manifest discomfort,
that Assembyman Northrup had told him the
Rbinebeck & Rhinecliff road did have outstand-
ing debts
can the Senator whose bill this is deny that
it would extend to 1920 the corporate existence
of any road having even five cents indebted
ness no matter how invalid its charter" he
asked pointedly.
That's not my understanding" said Wemple.
But it is so written in the bill" interposed
Senator Armstrong why would it not have
that effect"
Under repeated questions Of this sort from
Senator's Armstrong and Fuller, Senator Wemple
weakened somewhat answering finally that he
believed the courts would not construe the
bill
And again Senator smith came to the defence
of the Rhinebeck & Rhineclif by declaring that
his friends the owners Of that road had not
mentioned it TO him since he had the franchise
extended last year: so, of course, this bin could
not affect that concern.
Then the defeat of this bill would not worry
you any?" asked Senator Fuller.
NO: lam for the bill because I am a member
Of the committee which reported It, and believe
It is a good BILL" answered Smith
On the rollcall more than half the Senators
did not vote. The fnal rollcau stood:
Ayes-Ackroyd. Agnew. Aids, Boyce, Carpenter
Cobb. Cohalan. Cordts Cullen. Emerson. Fancher
Foelker. Franchot. Frawley, Grattan. Harte
Hasenfug, Heacock. Knapp. Mccall McCarren
O'Neil. Owens. Raines. Smith. Thompson, Travis
Wenlple and Wilcox-29-
Noes, armstrong; Cassidy. Fuller. Gates, Gil
christ. Human Hooker, Page. Transporter, Soh-
rer, Taylor. Tully and white-l8
Senator SAKE. who did not vote. declared that