The Barre daily times. (Barre, Vt.) 1897-1959, 1915-03-30
b. & MS PLEA FOR
REORGANIZATION
Arguments for Measure Before Vermont
Legislature Were Presented
Last Evening.

The Boston &Maine railroad problem
as related TO the measure now before
the Vermont legislature to permit Of
consolidation of lines was debated at
some length before the House sitting as
4 committee OF the whole last evening
and at the close the bill was made
special order for this afternoon at $3.50
in the House. Senator Simonds of Cal
edonia county, who has been prominent
in opposing the measures Robert G. Ba.
con, chairman of the Vermont public
service commission; President Hustis OF
the Boston s. Maine, Marcus p Knowlton,
oy-supreme court justice Of Massach~-
setts, and w. B. c. Stickney took part
in the discussion.
Stating that the proposition had met
with disfayor in three other legislatures,
Senator Simonds asserted that it was
not acceptable or safe in its present
form. 1t would be preferable, he said.
to call a special session of the lcgisla'
ture later when the action Of the other
legislatures had been taken rather than
for Vermont TO make the sacrifice OF
her interests which the bill calls for.
President Hustis, a railroad man OF
80 years experience, said that the Boston
& Maine was practically bankrupt;
that the units of revenue, the passenger. !.
mile and the ton.mile had remained
stationary for IA years; that the reve-
nue. had increased SO per cent. while the
operating cost had increased s3 per cent !;
that the increase OF operating expenses
is common TO all eastern roads; that
even with increased rates, the railroad
cannot meet its fixed charges and be
satisfactory public carrier, since the
road failed in It's last fiscal year TO meet
it's fixed charges By over two millions;
that reorganization is the only feasible
the property and all New England busi-
ness and finance; that If reeeivership
il avoided we may look forward with
confidence to its future. He deplored
the effect of receiyership which was
entered without a plan for getting out.
IL would have its effect on the morale
of the road. "The New Haven accidents
are directly traceable TO a demoralized
!
force" he said.
Judge Knowlton said that it was an
absolute fact that the New Haven and
the Boston & Maine are completely di-
yorced. The r. & NJ. cannot perform
its contracts, he said. The floating in
dcbtedness amounts to s90000,000 plus
rentals. and money will be needed for
new equipment. Unless relief comes,
receivership is sure. He characterized
s 40 as simply legislative permission,
an enabling act II did not impair the
right OF contract il contains no prohibi-
tive phrases. but it simply allows nego-
tiation under the control OF the public
service commission. "The public inter
est demands the continuation Of this
system said Judge Knowltou. @as well
as the peeuniary interest OF every sub
sidiary line.
Inquiries developed the fact that the
Il. & NJ. owns shares in Vermont lines
except one and four-tenths per cent Of
the ST. ,Iohnsburv and Lake Champlain.
He believed that the u. a VI. had no
strings on any Of the directors in other
Vermont railroads that are now leased.
Mr.. Bacon neither advocated nor OPP
posed the bill. He said that il left the
subsidiary corporations free to act and
that the commission had satisfied them
selves that there was nothing in the bill
contrary 10 public interest.
Senator Simonds raised the point that
there is now se3.000.000 indebtedness
between the stockholders and the rail-
roads. that about S3o.000.OO0 must soon
be- raised for extension and equipment.
that the y. & VI. BY taking over the
Vermont lines could create a mortgage
on the entire railroad, including Yer
mont property. thus strengthening the
railroads credit az Nermont's expense.
he was disturbed about Vermont turn
ing over 20 an insolvent corporation
many Of IT, roads Vermont could not
be very important u the y. a NJ. since
Il furnished but Eve per cent Of the
freight business. This was shown TO b.
an understatement by Mr. Stickney.
Three other states have refused % pass
this legislation. dElarcd Senator Si-
monds. but Judge Knowlton said that
NO such action has been taken. that they
had simply held extended hearings. SEN
ator ~imonds also objected o. the gen
aral term. of the bin which enabled the
New York Central and other neighboring
railroads % take advantage Of Yer
mont