The news-democrat. (Providence, R.I.) 1906-1909, 1907-06-11

Ufs
crowded into tire committee room at the
railroad merger hearing today were dis
atpointed in not seeing either President
Mollen OF the New York. New Haven and
Hartford road or President Tuttle or the
Boston and Maine road. and the hearing
began without either OF these officials
present.
The proceedings We're opened today by
former State Senator r. b. Calender Of
Dorchester. who expressed his views as a
private citizen.
Mr. Callender's remarks were OF an his
torical nature. dealing for the greater
part with recital OF the various conSoll-
cations OF railway and steamship inter
ests that have already affected the state
His suggestion TO the committee was 10
guard the financial interests OF the COM
rnonwealth. although he had no objection
- a physical merger OF the two railway
properties.
He thought, however that mergers gem
orally have tendency 10 government
ownership.
In closing he urged tn committee TO
examine carefully the charter OF the New
York. New Haven and Hartford Railroad
company.
Mr. Calender also called attention 10
merging OF the Hartford and New Haven
with the New York and New Haven road
under the Massachusetts act of 1872 which
provided that that portion OF the road
in the state shall be held under It's laws
RATES INCREASED.
The Massachusetts Real Estate associa-
tion was then heard from through its
representative. A. B. H. Bell OF Boston.
Mr.. Bell discussed particularly the re-
cent mergers Of the steamship lines along
the New England coast and claimed that
through these mergers freight rates had
been increased nearly % per cent. He be-
Iieved that the business men OF Boston
were opposed 10 the merger.
Mr.. Bell was followed by William H.
Lawrence OF Medford. the agent of the
Lawrence estate, the largest holder OF
Boston and Maine stock, and clerk OF tbs
Boston and Maine corporation.
VEHEMENT SPEECH.
Mr.. Lawrence, who is one of the most
vigorous opponents OF the proposed mer-
ger launched into vehement address
At the outset he declared that the mer-
ger had already become a political issue
in the Democratic party. He argued that
such an important question should be
above party strife and he read extracts
from the messages and speeches OF Gov.
Guild. declaring that every effort should
be made to guard the transportation In
terests of Massachusetts,.
Mr. Lawrence then took up the so-called
anti-stock watering act passed by the
Massachusetts legislature In 1898 ana
claimed that the stockholders OF the BUs-
ton and Maine had been compelled TO pay
into the treasury $3.50 n share for equip
ment The capital stock OF the company
no wrepresents s420Oo,ooo in cash paid In,
he said.
Becoming more emphatic and In his
voice and gesture displaying considerable
emotion, Mr.. Lawrence declared: NOW
the plan OF the merger Is this:
THE New Haven road holds in its |
treasury $26,00O,0 900 OF stock OF the Con-
solidated company. The Massachusetts, |
authorities have tried I'm vain To obtain |
some Information regarding these other
companies, but Mr. Mellen has refused
TO give any light"
MELLEN APPEARS.
As Mr. Lawrence was rSaking this at
tack upon Mr.. Mellen that gentleman sud
denly entered the room, accompanied by |
President Tuttle OF the Boston and Maine |
and Vice President Byrnes of the New
York. New Haven and Hartford.
The three officials took seats close
together.
Mr. Lawrence did not hesitate. how
ever, but continued his attack upon the
New York, New Haven and Hartford
and the subsidiary companies of that
system, claiming that the stock OF
all OF them was watered bountifully.
Mr.. Mellen told the railroad COM
missioners, said Mr.. Lawrence, 'tnat
the stock OF these companies was in
creased in the hope that they would
develop through the acquisition OF
connecting links and smaller com
panies which would make the invest
ment an attractive one"
Mr. Lawrence then took up certain
sections of the Massachusetts laws
which required the approval OF the
railroad commissioners to the CON
solidation of roads that cross each
other. and claimed that these provi-
sions had been evaded. He said that
consolidation might tend TO divert
traffic from certain sections OF one
of the roads acquired so that II would
not pay expenses.
WHERE LAW FAILS.
Referring to the codifcation of the
railroad laws three years ago. Mr.. Law
renee claimed that II was defective.
In that II failed TO prevent these mer-
gers. II also failed. ne said, TO pre-
vent changes In the directorate OF
railroad company.
The policy OF Massachusetts, he de-
clared had been altered The laws appar-
emily did not prevent the New Haven
road from making contract with the
Boston and Albany road TO operate part