Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-02-11
Senate Listens to Appeal of Rail-
roads Legal Representatives
and Decides to Take Time for
Study.
WILL READ OTHER MEASURES
Members Want to See Proposals
Now Before New England
Legislatures-Are TO Safe
guard Interests of StOckhOld-
ers in Vermont Subsidiaries.

Montpeher Fet 9.--The critical
condition Of tho Boston & Maine rail-
road and the alleged need of re-or-
raniz.nlg the p. & NJ. system were
presented to tho Senate this morning
b. ax-Cnisf Justice NJ. y. knowlton of
Massuchusetts anc ". l.. &. Stickncy
OF Rutland. attorney for the Boston &
Maine. President lfust.s of the Bos-
ION & Maine was also present at the
hearing. BUT cid not speak The Sen
ate went into committee of the whole
Tor the purpose OF hearing an explain
alton of the Boston & Maine authori-
ties In regard to senate bill 46.
The bill would allow the Boston &
Maine to settle upon new terms with
the stockholders and directors of the
leased lines without waiting for a re-
ownership. The need of such action
was argued, hut the details of the ar
engagements which could be perfected
in this manner were not explained.
The Il. & NJ. system, it was brought out
in the hearing, is composed of p different
railroad corporations. In times OF pros
pertty the Boston & Maine made long
term leases of many of these lines. ana
paid a rental that was not too high for
times Of railroad prosperity. But now III
times of adversely the comparatively
small Boston e Maine railroad Is suffer
ing all the losses, is still paying this rem
tai which in some cases amounts to SIN
per cent. on the stock of the leased lines.
and will have to continue to pay it for
50 to 30 years more or until the road goes
into bankruptcy. Under a receivership
the operating agreements could he can
celled and new agreements more favor
" 49, I,or.n, O. NJ.inn H,rl1 ip
made. This law and others pending in
Massachusetts, New Hampshire ana
Maine Legislatures will allow the Boston
d Maine to make similar agreements
without going into bankruptcy.
Bill. IS FOR r. & NJ. STOCKHOLD-
FRS.
IF this bill passes, can tho road re-
organize and keep out of the hands Of a
receiyer?' asked Senator Noonan.
"SANGTINE New Enclanders think
so" replied Mr.. StickneY: "SANGCfE-
AIRY New Englanders don't think So
In summarizing the situation MIR.
Stickney said that the bill was an effort
to save what can be saved to the Boston
& Maine stockholders.
Justice Knowlton, In summing up, said
that the system faced either disintegra-
ton. which would be a calamity" or
a change Of organization. 1.-THE ideal
method of organization" he said, would
be to share equitably SO that all will
share the profits in prosperity and all
will share the diminutton of earnings
IN adversely. At present one road with
comparatively small capital bears all the
burden of the decreased earnings
The Vermont railroads involved in the
IT, Gov
%necticut g. ~Passumpsic, the Vermont
Valley, and the St. Johnsbury d Lake
Champlain. Several of the leases run 20
wears and all Of them We're made since
1890. Many Of these were made with the
boston d Lu'voil ,"ad, which is some
What 'ol.. $50. u" it, present aH'
,'rrGy+
PAID TNNNH:;iI ufNIDTNH,
Tt,o bin was envorel Hy Justice Knowl-
TON, who wac placed al the suggc@tion
OF tho United States attorner-I+I l"r|I ID
the head o: a board OF trus' '-
vestigate the railroad situatiu"
view To separate the p. G. VI
Haven roads,
President Hustle. 10 said. had tho con-
Gdence CT all and was practicing rigid
economy The boston & Name found It
self in a critical position, heoauae for a
Few wears il had paiH an unearned
dividend.
Even under economy the road was
two million dollars short at the end
OF six months, failing by that much
20 meet It's fixed charges. 1t can not
60 on long IN this way and meet Its
obligations and keep up the service
which New England requires.
Tho proposed act would be an on
eoling act. The interests OF the state
are carefully guarded because moth
ing can be done without the approva
Of the public service commission. tn
interests OF the stockholders are care
fully protected because no agreements
can be entered into without the con
sent OF a majority OF the directors
and of the stockholders. The minor
ity stockholders arc s~afeSuarded II
event of disagreement by a provision
in the bill which make It obligator!
upon the railroad to take over thei
holdings at valuation which the cour
will fix.
BILL ORDERED TO LIE,
In the questions and answers whicI
followed Mr.. Stickney's presentation /
was brought out that the bill Is a gen
WA az ~ 49,
the constitutional provision which pro
hibts special acts. and that 1t Is prac
tically identical with bills in tire
other legislatures. Senator Simond
thought that as a general act some O
its terms might be made more inclu
sive. Senator Cady would fix a rea
yonable time limit for the operation q
The bill.
When senate bill 46 came up in tn
afternoon 1t was ordered to lie, sine
Senator Simonds and Others wishe
moro information on the subject an
wished to sec copies of tho bills be
fore the other Legislatures
The House put in two uneventft
sessions except for a discussion in tn
afternoon on the bill regulating lobby
ing This was ordered to lie las
week, but was called up and seamed I