Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-26

and the obligation to pay the parents
of this boy that they killed is one of
them
Now some of the people that came
to this Legislature to ratify this re-
organization. after its ratification To
help them get out from under their
debts, have come here and ask for
special privileges 1t may be an I'm
usual thing. but | submit to the sem
ators that ii is proper thing. 10 say
that before The Legislature of Maine
grants them these additional rights.
they shall put the condition upon it
that they shall meet their honest OBJ
legations
Mr.. STEARNS: Mr.. President l
am not in a position of sufficient IN
| formation To answer the senator from
Kennebee at length, but l submit t.
the Senate that the suggestion with
which he closed his very eloquent re
marks ought to be sufficient to salts
fy the Legislature and this Senate,
that this is not an attempt to make
this corporation pay its honest debts.
1t is a simple proposition to force this
corporation To pay one single small
debt to one single individual.
1t is not upon broad basis. He
has placed this one proposition To pay
one Dorr the sum of $500.
Now as | understand il, proceed
ings were begun in 1910 in the United
States Circuit Court for the foreclos-
ure of the mortgage which the sem
ator has referred to, a mortgage of
some two million and a half of dol
lars: that under that foreclosure the
property was ordered by the court 10
be sold and that it was sold. 1t was
sold under the authority of the court.
and. as he has suggested, there were
bills, some suits pending against this
corporation. They were not able 10
pay their interest charges. They Went
into the hands of a receiver went into
the hands of the courts, master
was appointed and this property was
sold It absolutely changed hands.
Are you going to say that under a
reorganization. after a new concern.
new parties come in and take posses
sion and purchase this property, that
they. after coming to the Legislature
and having their acts confirmed bv
the Legislature, that they shall then
be charged with the payment of bill
which existed back of the reorganiza-
ton?
Why. | am surprised that the SEN
ator from Kennebec, with his expe-
rience upon these matters, stands here
and urges that proposition for M
ment.
OF course there have been losses.
The bondholders lost; when they re-
organized, as l understand it, a COM
mittee of the bondholders bought IN
this property, and all who desired
came in, and some stayed out.
Those that stayed out only got a
matter of ten per cent. as | remem-
Der it-as | have been told, | know
nothing about it-only matter OF ten
per cent These bondholders lost
largely upon this proposition. And
vet the senator says that this person
who brought suit back of the reor-
eaniZation should be reimbursed,
should be paid-this bill should b.
paid and that these bondholders who
lost heavily, that they should go with
out their money. Why not pay them
all? If they had the money they
would be glad to do it. Under the re-
DrRaHlZallbH
money to do it. They did this under
the authority of court. Everything
that they did was done regularly. as
it must have been done in order to
receive the sanction of the court
Now they come 20 this Legislature
and ask to increase their capital
stock. For what purpose? Under the
reorganization there were certain in
come bonds issued, and they are not
now-while they are doing better bus
mess and increasing and improving
the affairs of that railroad company,
they are not now, as | understand IT,
able to pay a proper return or TO meet
their interest charges as they should,
and they have asked for an increase
of capital stock in order that they may
issua Dreferred stock to make up
nart of these income bonds and in or
der ia make further improvements
Now if these improvements and eN-
tensions are made they will have to
lac made under the direction of the
Public Utilities Commission ana thefe
is M reason why they should not be
allowed to go ahead ana 90 TINS aho
not be encountered by TINS bill OF Sboo
which is the outcome ol d suit "iilSh
was brought over the line in New
Hampshire.
The fact is this suit that was pend
ing was not brought here in the State
of Maine but was brought over in New
Hampshire, and if. as the senator has
suggested. it is to recover for the death
of a child, it would seem to indicate at
least that the courts of New Hampshire
had some question about the facts IN
volved and the conditions or the 1uds-
ment would have been for more than
the sum of $500. 1t is not possible That
there may have been some trading and
some diekering in order to get into the
courts of New Hampshire? Why didn't
they bring their suit in the courts of
Maine.
Now I have no doubt there are other
facts in connection with this case which
might properly be explained. If ! We're
in possession of them ! would be glad
10 give them TO the Senate. But It seems
10 me there has been enough already
said to indicate what the purpose of
this bill is. what the purpose OF TINS
ic