The daily morning journal and courier., 1907-05-28
IC0V. WOODRUFF SENDS
 | IN TWO MORE VETOES
An Air of Dismay in Trolley Circles at the
 Capitol.
CHARTERS HARD HIT
Proposed Waterbury-Mill- dale and Bridgeport
 Danbury Lines.

Hartford, May 27.-There was an air of dsmay in trolley circles at the capitol this morning when the goyer- nor's vetoes were received in both houses. These vetoes were on the in corporation of the Waterbury and Mill dale Railway company and the Bridge port and Danbury Electric Railway company and were as follows:
 To the Honorable General Assembly:
 l herewith return, without my ap proval, to the house in which 1t origi- mated, QHouse Joint Resolution, No. 137, incorporating the Waterbury and Mill dale Tramway companyD Senate Joint Resolution, No. 24l, incorporating the Bridgeport and Danbury Electric Rail- way company and as reasons for with holding my approval would say;
 In the formation of public service corporations, and especially in the charters of street railway companies, the tendency has been to over capital ization. These railways have been largely, and in many instances it is be- lieyed entirely, constructed and equip ped with money realized from bonds authorized by the charters and sold to the investing public, and in such cases little if anything has been paid by the subscribers for the capital stock which has been perquisite for the promoters of the road. This Watered" stock forms the basis upon which the dividends are to be paid for which the public is expected to supply the funds, It is proper that public service cor porations which are chartered to serve the public be permitted to charge the public for the service rendered such an amount as will pay legitimate divi- dends on the actual capital invested, but it is self-eyident that it is grossly unfair that large capitalization should be permitted for which no cash or dends on which the public is expected to furnish the money. In my opinion | the capital stock of such corporations should represent so much cash or prop 1 erty which has been or is to be re- l ceived by the corporation. I further believe that. in the event of the in- l crease in the capital stock of such cor porations, such increased capital stock l should be issued at its market value, | If this course be adopted the subscrib- I CTS to the capital stock will get value | received and the public who patronize ! the roads will only be required to pay ! an amount sufficient to insure fair l return on the actual cost of construct ing, equipping, maintaining and operat- | ing the road
 am of opinion that sections and 4
 H. J. R., 137; section ', s. J. R., 241 l of this charter should be amended tc
 make definite provision in conformity with the suggestion outlined above, and that at no time should the capitaliza,
 tion exceed the legitimate require. ments, The right of eminent domain is grant l ed in sections eight and nine, sections three and four of this charter I think l 1t is questionable whether this right l should be given to street railway cor. l porations, though 1t seems to have beer
 generally given in such charters grant, ed for some years past. If this policy is to be continued, l submit that i
 would be better to pass a general ac
 granting the privilege to all such cor.
 porations alike, and which will provide
 that the necessity for the exercise O the right of eminent domain shall b.
 determined by some court or commits
 sion, and the right of the landowner b
 thus in some measure protected.
 I am, for the previously cited req
 sons, of opinion that this bill ought no
 to pass in it's present form.
 I therefore return it to you withou
 my approval, and ask that you furthe
 consider it''
 Ex-Goyernor Henry Roberts of Hart
 ford. was in the senate for the frs
 time time this morning since the open
 ing of the session in January. and hat a nlnaSant visit