Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-03-20
B. & M. RE.ORGANIZED
(continued From Page One)

the stock Of the new corporation an
amount which will probably be less.
but In any event cannot exceed the
amount Of their former rentals.
Section one authorizes the present
company to buy the property and
franchises or the whole or any part of
the capital stock of the subsidiary
companies, but provides that no such
purchase or sale shall be valid until
its terms have been agreed to by a
majority of the directors and been ap-
proved by a vote of two-thirds in in
terest of the stockholders of both the
Boston & Maine and each of the sub
s!diary companies. In case the Boston
& Maine desires to issue additional
stock or bonds to provide means for
paying for permanent additions TO or
improvements of the property of such
subsidiary companies made before
such purchase and sale, the approval
of the public utilities commission must
be obtained therefor.
Section provides that the present
company by a vote of tWO-thirdS in
interest Of its stockholders and for
the purpose of making the purchases
mentioned in Section ], may issue new
preferred stock or common stock, but
that such issue shall not be made I'M
stil the approval of the utilities COM
mission has been obtained, after no.
tice and public hearing and a finding
that such issue will not exceed the
limits Of capitalization authorized in
the next section. 1t is further pro-
vided that subject to the same ap-
prevail and limitations bonds may be
issued and that any application for
the approval of the issue Of either
stocks or bonds shall specifically state
the purpose of such issue, and the Or
der of the utilities commission shall
state the purpose for which the same
may be used.
Section 8 provides that the aggre-
gate par value of stocks and bonds
used or contracted to be uSed in max
ing any purchases. exchanges or con-
solicitations from or with subsidiary
companies shall not exceed the aggre-
gate par value OF any stocks of sub
<sidiary companies directly purchased
plus the aggregate par value of the
stocks other than those directly pur-
chased of all the subsidiary companies
whose franchises and properties are
purchased by or which are consolidat-
ed with the Boston & Maine. and eX-
Guiding from such aggregate any
stocks which are owned or held
by any subsidiary company or the
Boston & Maine. for which either
have issued stocks or bonds or in
CURED debt. 1t is further provided
that the aggregate return to subsid-
larry lire stockholders shall in no event
be greater than that received during
the year ending June 80. 1914.
Section provides the authority for
the Boston & Maine to modify or re-
new any existing lease or operating
contract of subsidiary line provided
that such new contract or lease shall
have been agreed to by majority of
the directors and have been approved
by a vote Of o-thirGs IN interest of
the stockholders of the Boston &,
Maine and each subsidiary line, and
also approved. after notice and public
hearing, by the utilities commission.
Section provides that the Boston
& Maine may make similar agree
sidiary lines in Vermont, New York
or Canada. providing that such agree
ments and trades are approved by the
utilities commission.
Section is perhaps the most import
ant In the bill. and Is one which will re-
ceive perhaps the most criticism from
the Federal trustees and large financial
interests who may be called upon to do
the financing for the Boston & Maine.
With a floating debt Of Approximately
se3, 600 600. of which s1S.0o0,0 600 comes due
in September, 1915. no reorganization
cauld possibly be affected which did not
provide for the funding of this debt
This section provides that with the ap-
prevail Of the utilities commission, but
not otherwise, stocks and bonds may be
issued for the purpose of paying or
funding any floating debt existing at the
time when this act takes effect, or which
the Boston & Maine may assume under
the provisions Of this act in connection
with the purchase Of the property and
franchises of or consolidation with any
subsidiary company. which said debt
shall be deemed properly capitalizabN;
but the utilities commission shall, in
any order approving any issue of stocks
or bonds for such purpose. provide for
the gradual amortization of the deficit
of the Boston & Maine as the same
shall be on June 80. 1915. out Of income
in preference to dividends upon common
stock and in such annual payments be-
ginning at such date as the commission
may order. and said annual payments
may be made cumulative.
Section provides that the foregoing
sections shall not be operative after one
year unless the utilities commission ex-
tends such period not exceeding one
additional year, and then only upon .
finding by the commission that it
is probable that within such extended
time reorganization will be perfected.
The foregoing seven sections provide
for reorganization by the present COM
many. The remaining sections Of the bin
makes possible a reorganization under
some new corporation. 1t is felt by
some that the remaining sections may
not be needed. but in view Of the fear
that a petition for receiver might be
filed and a receivership result, and in