Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-01-27
stockholders of the various companies.
Other Provisions

SkuCT ItSsiSsS'S
Other provisions of the v..l are:
The issuance of new preferred stock
of the Boston & Maine, to be exchanged
for the stock of the leased lines.
The legalizing of the new securities 50
that they will become savings bank in
vestments.
The inclusion of the Hampden railroad
as part of the system to be reorganized.
Up to the present the Hampden railroad,
although intended to be leased by the
Boston & Maine, has not been brought
under the control of the larger corpora
ton.
Divorce From New Haven
The cutting of the string by which the
New York. New Haven & Hartford Rail-
road Co has been a factor in Boston &
Maine affairs
Calling the reorganized corporation the
Boston & Maine Railroad Company. At
present its corporate title is the Boston
& Maine Railroad.
Provision is made for a possible re-
Ownership. but it is understood that the
trustees hope that this can be avoided
On this point the bill reads:
IF in the opinion of the directors, on
account of financial embarrassment, it
is impracticable for the Boston & Maine
to consummate reorganization within
a reasonable time. or il the corporation
goes into the hands of receiver, new
corporation may be organized to take
over the Boston & Maine either before or
after a sale under order of the court
and to obtain the properties and fran
chises of any or all of the corporations
herein referred to-
Judge knowIton
Judge Marcus P. knowlton. chair
man Of the trustees, spoke In behalf
Of the board, all Of whom met in the
| directors room at the North Station.
He explained the financial plight of
the company, dealt briefly with the
causes leading up to the emharrass-
ment, and discussed the remedy
! which the trustees believe is embodied
! in the hill.
The causes of the present situation.
F., he said. We're the increased cost of la
! Dor, car rentals. governmental re-
| QuirementS in the matter of operation,
, the extension of the trolley systems
! along the line of the road and auto
mobiles.
| The trustees believe that it will be
| impossible for the company to contin-
ue without reorganization as the re-
| duction Of leased line rentals is i'm
perative.
Unless reorganization Is effected
| the trustees say. the road will dis
| integrate, a condition. which. it is be-
| lieved. will be harmful to the public
in northern New England as we'll as
| to the stockholders
To Maine Legislature
| The bill will be offered to the Leg
islatures of Maine, New Hampshire
| and Massachusetts and some Of its
provisions will be submitted to the
| Vermont Legislature. 1t is believed
that no legislation will be necessary in
| New York.
| The bill, Judge knowlton said, pro-
| vides for reorganization, first
through modification of the con-
| tracts with the leased lines with the
approval of the directors and stock
| holders: second, by the creation of
| new corporation in which the leased
lines will participate voluntarily: and
third. in case the company goes into
the hands of a receiver, by the Gre
alton of a nev corporation which
shall include all the leased lines.
Admit Possible Recsivership
Judge Knowlton admitted thta some
Of the creditors might take matters
into tehir own hands and ask for
receivership. There are outstanding
s23, coo notes due March 2. holders
H. oh he
said.
The bill, he explained, was the ne
cessary machinery which the trus-
tees believe. can be adapted to any
emergency and willbenefit the stock
holders, the financiars and the pub
lie.
In response to questions. Judge
Knowltot said that no effort had
been made to ascertain the feelings
Of the stockholders Of the leased lines