The daily morning journal and courier., 1907-06-21
BILL TO CHECK PROPOSED MERGER Legislature of Massachu- setts Will Consider I'm portant Restrictive
 Act To-day. MEASURE IS
 COMPOSITE ONE. Specific Authority by Stat ute Required for Pur-
 chase of Boston
 & Maine.

| Boston, June 20.-The Massachusetts | legislature will consider tomorrow Ian act to restrain the consolidation of rail- road corporations" Such bill was reported to the house late to-day by the joint committee on railroads, and Is intended to check the proposed mer- ger of the Boston and Maine and the New York, New Haven and Hartford railroad until it can be brought under legislative control.
 This decision of the committee was arrived at after two weeks delibera- ton, during which parties favoring and opposing the merger were heard, in- cluding the presidents of the two rail- roads concerned, and no less than ten bills were presented for consideration.
 The bill is composite one prepared | by a subcommittee of the railroad committee and embodying points sug- gested by the several other measures, especially those submitted by Speaker John N. Cole, of the house of repre- sentatives, and Louis D. Brandeis, a Boston lawyer. The opposition to the merger, when informed of the bill de- cided upon, said they regarded it as a great victory for their sentiments.
 The opening sentence of the meas ure, which is a very long one of ten sections, declares that no corporation owning, leasing or operating railroad in this commonwealth, nor any person or corporation acting in it's interest, shall, after the passage of this act, &C., quire, or attempt to acquire, by pur- chase, exchange of shares, or in any other way, the capital stock of any do- mestic railroad company, except under specific authority provided by statute. :"
 No such corporation as described, the bill provides, shall vote any such stock which 1t now holds or may acquire in its own name or in that of any other person at any meeting of the stock holders of such domestic railroad com pany. Nor shall 1t exercise any con trol, direction, supervision or influence whatsoever over the acts or doings of such domestic railroad company by virtue of such holdings of stock therein.
 Another provision is that no domestic railroad company, prior to July 1, 1908, shall permit any shares of it's capital stock to be voted on in behalf of said corporation by its officers at any cor porate election of directors of officers of such domestic company
 The third section provides that the presidents or a majority of the board of directors or the holders of not less than npa-third iv intarae+ of tba oa,,i tai stock for two or more railroad cor porations may apply to the railroad commission for it's determination as to whether the consolidation of the rail- roads of such corporations is consistent with the public interest. It also pro- vides that before a consolidation can be brought about 1t must be ratified by not less than two-thlrds of the stock holders.
 The fourth section safeguards, &C., cording to the suggestions of Cover nor Guild, against any change or rate, fare or charge for transportation or an increase in the aggregate outstanding capital stock through consolidation.
 Section five permits any shipper ten dering traffic for transportation to make application to the railroad com- mission for switching connection. The commissioners are given authority to order the installation of switching connection or side track where it is reasonably practicable.
 The three following sections relate to the anti-stock watering laws, which are strengthened as suggested by the governor, The ninth section provides a penalty for a corporation violating any provisions, with fine of $10000 for each offense, and for any officer or agent a penalty or fine of $1, 900 or in- prisonment for one year. The tenth and last section gives the supreme ju- dicial court Jurisdiction in equity. on petition of the attorney general or of any stockholdsr in domestic railroad company to compel the observance or restrain any violation of the provisions.