Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-07-22

transportation in New England be re-es-
tablished-all with the smallest possible
immediate damage to the industrial and
financial system.
THE plan finally evolved was accepted
with practical unanimity both by the
directors and stockholders of your road.
The disposition by the New Haven road
of its interest in the stock of the Bos-
| ton q Maine was an essential. In the
year 1909 in order to enable the New Ha-
ven Railroad to control the Boston &
Maine, the Massachusetts Legislature
created the Boston Railroad Holding Co.,
giving it authority to hold stock in the
latter and at the same time authorized
the former road to own the stock of the
hoidlng company. The act also expressly
provided that the holding company
should not sell its Boston & Maine stohk
nor should the New Haven road sell the
stock of the holding company without
the consent of the Legislature and fur
ther. that the state should have the right
to purchase the stock of the holding
| company at a price to be fixed in a pre-,
scrbed way.
The agreement which your company
has with me provides that 1t will ask the
governor of Massachusetts, to propose to
the Legislature to amend the charter of
the Boston Holding Co., removing the
prohibition against the sale of the Bos-
ton & Maine stock now owned by the
holding company
In due time the governor did make
this request and, responding thereto. the
Legislature passed an act removing the
prohibition and authorizing the disposi
ton of the stock
"A further provision declares this stock
may at any time be taken or purchased
by the Commonwealth of Massachusetts
at fair value, in accordance with the
law.
The state requires this to be stamp
ed upon the certificates themselves
Obviously, it is now within the
power of the New Haven Railroad to
carry out the agreement and under
standing which its representatives
made with me and thereby remove all
questions of good faith and prevented
all of the calamitous results to the
public interest which they so earnest
ly represented would follow the insti-
tuition of a suit by the government
Your counsel, referring to the Bos-
ed by the New Haven, says that the
recent enactments retain the control
! by Massachusetts over the stock to
such an extent as to make it unmark-
etable and upon this ground it is
! sought to justify the action which
your directors proposed to take.
Manifestly the only possible delete
rfous effect of the control retained by
the commonwealth over the Boston &
Maine stock would be upon its selling
price. The New Haven in effect now
| owns s22, 100000 of this stock, worth
in the market about 35 cents on the
! dollar, total value of less than IS, 000,-
| 090
How seriously the retained control
would affect the fair value can only be
| a matter of speculation--it certainly
would not destroy it, if indeed the re-
t suit would be deleterious at ALL All
| the real property, for example within
the state of Massachusetts is subject
/ &c be taken by the commonwealth and
yet its value is not impaired.
IF your directors adhere to the po-
sition which they have taken, the plain
result. will be that because they think
| it may be impossible to procure for
| the So, 900, 900 of Boston a. Maine stock
| as much as might be obtained under
! different circumstances they are will
| ing to throw aside the agreement SOL
! EMMY made with me, and to subject
the whole of New England to conse-
auences Of the litigation which must
necessarily follow. If they bring this
result about, then the public must
| know where the responsibility lies and
draw it's own conclusions concerning
the motives which have impelled.
| The President desires me to say
to say that he is not yet ready to be-
| heve that those in control of the New
Haven Railroad, in order to secure
| some possible increase in the selling
| price of s22000,000 of stock, now offer
! ed at about one-third of it's face value
| are willing TO turn away from SOL
! emn agreement with the government,
made after long and careful consider
| alton and thereby subject the interests
| of both New England and the nation
| at large to the consequences of pro-
| Ionged and unnecessary litigation. And
he thinks, accordingly that your board
| of directors should give this matter Sc
| rious reconsideration.
Faithfully yours,
(Signed) u c. McREYNOLDS.
Attorney General"