The Barre daily times. (Barre, Vt.) 1897-1959, 1915-01-27
Boston & Maine Is to Intro
duce Bill in Massachu-
sets Legislature
WOULD LEGALIZE
NEW SECURITIES
So as to Make Them Savings
Bank Invest
mentS

H.. ha
Boston & Maine railroad met YESTERDAY
to give final consideration to bill
which it was expected would be nitro
duced in the legislature before after
noon adjournment, and which was in
tended to bring about reorganization
OF the railroad company without re-
course to a receiyershlp.
The proposed legislation aims at a
merger of the SO leased lines OF the com
pany on a standing equal with that OF
the Boston Maine through an ex-
change of stock. The legislation, which
win be asked in all states in which the
road operates, Massachusetts,. New YER
mont, Hampshire and Maine, is permits
siye in character and empowers the trus-
tees of the railroad to treat with the
stockholders of the various leased lines.
Provision is made for possible re-
ownership but it is understood that the
trustees hope that this can be avoided
On this point the bill reads:
III in the opinion of the directors on
account of financial embarrassment, it is
impracticable for the Boston & Maine
to consuInmate a reorganization within
IA reasonable time, or if the corporation
goes into the hands of receiver, a new
corporation may be organized to take
over the Boston & Maine either before
or after sale under order of the court
and to obtain the properties and fran.
chises of any or all of the corporations
herein referred to-"
The bill contains about 500 words
and is divided into ten sections. The
feature is section eight, which stipulates
that all existing contracts or purchases
specially provided by the act, except the
purchase of capital stock OF stockhold-
ers shall not be valid except as they are
made by order of the courts or author
ICED by majority of the directors and
stockholders of each of the corporations
involved.
In other words, the existing leases can
not be abrogated without court order |
or without consent of the stockholders |
Of tn corporations involved.
other Provisions.
Other provisions of the bill 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
% that they viii become savings invest
nents.
The inclusion of the Hampden railroad
Is part of the system to be reorganized.
.'p to the present the Hampden rail
Dad. although intended TO be leased by
he Boston & Maine, has been brought
lnder the control of the larger corpora
ion.
The cutting of the string by which
he New York, New Haven & Hartford
railroad company. has been factor in
Boston & Maine affairs.
Calling the reorganized company the
BOSTON & Maine Railroad company. AZ
resent its corporation title is the Bos-
on & Maine railroad.
Judge Marcus +. knowlton, chairman
4 the trustees spoke in behalf OF the
,oard, all OF whom met in the directors
ooms at the North station. He explain
j the financial plight of the company,
ealt briefly with the causes leading up
0 its embarrassment, and discussed the
medy which the trustees believe is EN- I,
odied m the Dill. q.
The causes Of the present situation. he
aid, were the increased cost OF .abor, ,
ar rentals government requirements in i
he matter Of operation, the extension !
( the trolley systems along the line OF 4
be- road and automobiles. 10
The trustees believed that Il will be q
apostolic for the company TO continue y
leased line rentals is imperative. q
Unless reorganization il effected the p
ustees saw the road will distegrate. n
condition which, il il believed. viii b. 6
lrmful to the public in northern New ?
hgland az well a. to the stOckhold. =
The bin will h. offered 10 the legis-
lures Of Maine. New Hampshire and z
and some Of it. proei J
ans win be submitted 10 the Vermont /
eislature. u il believed that no legis-
ton win be necessary IN New York.
Provisions Of Bill -
The bin. Jnd9e Knoulton said. pre-. =
aes for q Reorganization first through 4
modification Of tire contracts WITH Tho p
seed Zines. with the approval 81 THE
feetors aud stot kiioldeF ssoond. b. faie =
Hatiau 81 n uew corporation in uhieh
e leased lines will participate volun- 50,
rlvs and third in case the cumuanv i
.es into the hands Of a reeeiter - ).
p operations of . nfwss1rF,orut.on Whah
81 fnCiude al the ieaaed lines
JUDGE Know iton admitted tilat some
thf creditors nirtt tnka maftrfs into
eir euu hands and AL f8r reefirssr-
in Nlrerr are outstanding sz1 fsf0 Wn
g. luf Nanh 2 h1idsra 90 ut5eh
rit trke snrt aetipn. - saiI #
Ghe hH De- etriainfd sac fhe ureas i
n ma iuerF e1nh ths Trustees :.