The daily morning journal and courier., 1907-02-21
RAILROAD MATTER UP.
AMENDMENT TO CHARTER RUNS AGAINST
 STRONG OPPOSITION.

Mir. Gum Wants More Information--
 Mir. Banks Supports Him and Has the
 Bill Tabled So All Can Study It.
 House Decides to Hold Four Sessions
 Week-Many Matters Before the Senate.
 Hartford, Feb. 20.-The bill to amend the charter of the New York, New Haven 6 Hartford Railroad com pany, so that debenture holders shall have equal rights with stockholders in securing new issues of stocks ran against strong opposition in the house to-day after it was taken from the foot of the calendar. There was long de- bate and a lively attack made upon the measure
 The debate was opened by Represen- tative Roberts of Naugatuck, who had the matter called from the table, He moved for an amendment, so that 8 three-fourths vote of the stockholders would be necessary to bring about a consolidation or merger of the subsidi- ary roads. This is the second section of the bill. He said that the statutes provide for three-fourths ratio He said that he offered the amendment in good faith, as he believed that the leg
 islature should protect the weak and not the strong.
 House Chairman Burns, of the com mittee on railroads, objected to the amendment, and said that he had a great of curiosity to hear why the New Haven road had been selected as the corporation against which objection was to be made. He said that the law of 1903 specified that two thirds was necessary in the case of merger. The ! amendment to the charter wanted by the railroad was along this line. He l thought that the courts in equity would protect the stockholders rights, and that railroad would have no standing in court of equity, unless authoriz- cd by vote of S4 per cent. of the capital stock
 Mr. Roberts amendment was lost on party vote. The democrats all vot- ed for it. When the question on the original resolution came, Representa- tive Gum asked MT. Burns some point ed questions, and said the resolution | ought not to pass. The process of is- suing stock of corporations to stock holders has gone far enough in this state and country, and 1t was time to stop. It has resulted In watering stock. The more we water stock, the more we add to the cost of every user of railroads" Mir. Gum then told of the ramshacke cars that used to be run, and the charters granted. He told of merger after merger, and said: "The time has come for you to say l If there is any benefit to come to citi- zens of this state. would like to know when the time is coming when the man who goes to work early in the morning and comes home late at night will get two fares for five cents? The effect of this proposition is that if there are $30,0O0O0O in debentures and | the ratio is one to five at par 1t would mean. an issue of s6,0O0,OOO while at market price 1t would be nearer $10,- | 000000, and that means injecting so 1 much water into the capital stock of that corporation, and there is enough in 1t now We want to say to the rail- road put your stuff in, and don't make us pay dividends on watered stock" Representative Banks said he con- cured in everything Mir Gum had said but he would ask to table, so that | everybody could study the matter out thoroughly.
 | The resolution was tabled
 The house had a big attendance. Quite a batch of minor matters came up
 Among the business received was the following appointments. Richard H. | Tyner, associate judge at New Haven; A. McC. Mathewson, judge at New Ha- ven; J. A. Shea, deputy judge at Will limantic; F. s. Fay, judge, and Willis l. Tenn, deputy judge at Meriden; W.T. liam B. Colt, judge at New London; Jabez P. Davis, judge at Enfield.
 Joint resolutions reimbursing Ste phen Boucher, J. w. Hale and Thomas M. Boudren for expenses in contesting election were withdrawn and a house resolution to the same effect was pre- sented and referred to committee on contested elections.
 The following bills and resolutions
 were rejected: Concerning minority representation in town offices; concern ing jurisdiction in foreclosure suits; concerning appointment of probation
 officers; amending section 864, concern ing married women acting in fiduciary
 capacity, and concerning returns to be
 made by executors and administrators.
 After voting to hold four day sessions