Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-06-02
Gov. WalshAdvOcates
Submission tOPeOple
OF the State Matter
OF Separation
Makes Recommendation to the
Legislature in Message

Boston, June IA recommendation
that the voters decided whether the
state should purchase the stock of
the Boston & Maine Railroad, now
held by the Boston Holding Co. for
the New York, New Haven & Hart
ford Railroad Co was made by Gov
ernor Walsh in a message to the Leg
islature today.
In the message the governor refer
red to two recommendations in his
inaugural address, that tie Boston &
Maine be divorced from New Haven
control and that the financial struc-
ture of the Boston & Maine be re-
organized by the consolidation of its
subsidiary lines.
The governor submitted to the Leg
islatures an agreement between the
federal authorities and the New York,
New Haven & Hartford Railroad, pro-
viding for the separation of the Bos-
ton & Maine and the New Haven sys-
tens.
THE agreement" the message says,
provides for the appointment of five
representative men called liquidators
to whom shall be transferred the stock
| in the Boston Railroad Co. now held
by the New Haven and whose duty
it shall be to liquidate or sell the stock
of the Boston & Maine Railroad held
by the Boston Railroad Holding Co.
Those liquidators are obliged under
this agreement within two and one
half years to sell the stock of the Bos-
ton & Maine now owned by the Bos-
persons as they deem proper, provided
| that such shares shall not be offered
to the stockholders Of the New Haven
Co. as a class, nor be s3ld to the New
Haven Co. either directly or indirect
| ly to be held in its interest or so as
| to re-establish in any manner the
combination and contro' which 1t is
the purpose of this agra sment to term
| mate"
The Governor called the attention
| of the Legislature to the fact that un-
| der the agreement the liquidators
| might sell or give an option on the
! stock to any persons subject to the
| limitation as to their connection with
the New Haven Co, and said that the
| giving of such option might at any
time prevent the commonwealth from
acquiring the STOCK.
| Il recommended, therefore, the
| message continued, "as further safe
| guard to the rights of the common
wealth that no option be given or sale
be had on this stock until the people
| of the commonwealth have a reason
/ able opportunity to decide whether the
| commonwealth ought to purchase the
stock Of an interstate road with all
| the right and responsibilities which
would accrue and be assumed by such
| purchase.
Therefore, I recommend that pro-
vision be made in the enabling legis-
1 lation or by separate act for the sub
| mission to the qualified voters at the
| next state election upon a petition
therefor signed by not less than $4,000
| qualified voters on or before Sept. Is
| next of the question whether or not
the commonwealth shall acquire the
stock OF the Boston & Maine now held
| by the Holding Co. / put the number
at $4,000 because that is the number
agreed upon after careful study by
| all parties interested in the consti-
| tutional amendment for the initiative
and referendum now pending in the
| Legislature.
| mo more unfortunate legislation has
| been enacted in recent years in this
| commonwealth than the law establish
ing the Boston Railroad Holding Co.
| The arrangement under which the
union of those two roads was ac-
complished by the Holding Co. act had
| none of the virtues of consolidation
| and had all the evils of monopoly. 1t
is doubtful whether or not the OBJ
ject of the railroad Holding Co. act
was not a violation of the federal
antitrust law whose provisions the
| laws of Massachusetts could neither
| suspend nor nullify, and if so it could
not withstand the assault of the fed
! eral government, under the antitrust
| law upon the union which it attempts
| to maintain.
| by the agreement between the ma
tional government and the New Ha-
ven Railroad, which l recommend that
we now make effective by the neces-
sary legislation, we set the Boston &
Maine free
The message declared that a radical
and immediate reorganization of the
whole Boston & Maine financial sys-
tenn was absolutely essential. for, if
through receivership proceedings the
system should be disintegrated, the
owners of the stock of the leased lines
would almost inevitably suffer serious
losses.
'If we are not to have great
financial catastrophe in our New Eng
land railroads, we must now-imme-
diately-avert the danger by d reor-
ganization which will re-esta plish the
credit of the corporation, slough off
the parasitic contracts which have
been sapping the Likelihood of the sys-
tenn and provide hereafter for a man.
agement both faithful and competent,
the governor concluded.
| Auto Accident at Crooked River