Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-04-01
BOSTON & MAINE
BILL ATTACKED
AND DEFENDED

Montpelier March 29--Thc House com
mittee Of the whole heard an explanation
Of the Boston & Maine bill, s &C. at an
evening session. President ]. II. Hustis
Of the Boston &, Maine, former Chief
Justice Marcus p Knowton Of the board
Of trustees appointed by the federal court
TO look after the interest Of the stock
holders, and Robert G. Bacon. chairman
of the Vermont public service commits
sion, appeared before the House. The
bill had passed the Senate and had come
to the House without a committee rec.
ommendation.
The main interest of the evening arose
from the opposition to the bill from
Senator simonds and the questioning Of
the senator by W. B. C. Stickney, at
torncy for the railroad Senator Simonds
believed that the legislation was for the
interests of the Boston g. Maine, but
not for the interests of the State of
Vermont or Of the minority Stockholders
of the railroads involved. He predicted
serious results II the law were put in
operation. In answer to Mr.. Stickney' S
question, he stated that he did not doubt
the truth Of the statement of conditions
made by President Hustis and judge
knowton but he did fear for the re-
suits. and believed that they were mis-
taken in their prediction as to results.
He wished to protect the interests of
'the little fellow in the public" he
said. The bill was made special order
for tomorrow afternoon at 2:3o.
Stating that the proposition had met
with dsfavor in three other Legisla :
lures, Senator Simonds asserted that II
was not acceptable or safe In its present
form. 1t would be preferable. he said,
to call a special session OF the T.egisla
ture later when the action of Other
LEGISLATURES had been taken. rather than
for Vermont to make the sacrifice o.
her interests which the bill calls for.
President Flustis, railroad man of PC
years experience. said that the Boston
81 Maine was practically bankrup.. that
the units of revenue the passenger mile
and the ton mile had remained station
AIRY for "a Years; that the revenue had in
creased 90 per cent while the operat-
ing cost had increased 81 per cent: that
the increase of operating expenses is com
mon to all eastern roads. that even with
increased rates, the railroad can not meet
its fixed charges and be "A satisfactory
public carrier. since the road failed in
its last fiscal year to meet its fixed
charges by over two millions: that reor-
SANITATION is the only feasihl. plan; that
a recevership would niurc the property
and all New England business and
finance; that il rcceiversh.p is avoided the
public may look forward with confidence
to its future. He deplorod tho effect OF
receivership entered into without a
r,1a 1, tee
effect on the morale Of the road THE
New Haven accidents are directly trace
able to demoralsed force" he said.
Judge Knowlton said that it was an alb
solute fact that the New Haven and the
Boston N Maine are completely divorced
The +. & NJ. can not perform It's con-
tracts h" said The floating Indebtedness
amounts to s9o,G00,ooo plus rentals, and
money will be needed for new equipment
Unless relief comes, he said. receiver
ship is sure. He characterized s. i6 as
simple legislative commission. an email
ling act. 1t did not impair the right 81
contract. it contains no nrohibitvc
phrases, but it simply allows negotiation
under the control OF he public scrvic =
commission, he declared. The public in
lterest demands the continuation of this
system" said Judge I<nowlton. AS wei,
as the pecuniary interests Of every SUI.
sidnary line Inquiry developed the fact
that the Il. Il NJ. owns no shares in Yer
mont lines except one and four-teDths per
cent. OF the St. Johnsbury & axe Cham
plain. lie believed that the r e. NJ. had
no strings on any Of the directors IN
other Vermont railroads that are now
lea sed
Mr. I}acon neither advocated nor .,
posed the bill. He said that it left the
subsidiary corporations free to act, and
that tho commission had satisfied them
selves that there was nothing in the hin
contrary to public interest.
Senator Simonds raised tho point
that there was now $4,000 600 of in
dcbtedness between the stockholders
and the railroad. that about $4,000,
900 must soon he raised for extension
and equipment. that the b. e NJ. b.
taking over the Vermont lines could
create a mortgage on the entire rail
road including Vermont property. thus
strengthening tho railroads credit al
Ncrmont's expense, He was disturbed
about Vermont turning over to an in
solvent corporation many Of It's roads
NttiloHt ttulu Ibt ne very important
10 the Il. Il NJ. since 1t furnished but
FIVE per cent. of the fire. light business
This WAS declared by MI. Stickncy ia
be an understatement Three other
states have refused to pass this legis
lation, declared Senator S!monds. but
Judge Knowlton said that no such &C
tion had been taken, that they had
simply held extended hearings Sena-
tor Simonds also objected to the gen.
eral terms of tne bill which enabled
the New York Central and other neigh
boring railroads 20 take advantage OF
Vermont
i}randeis and Anderson and other I'M
partial Boston attorneys favored the
proposed legislation, said Judge Knowl-
ton, as well az the officers OF the chief
subsidiary roads, He answered several
questions rs to how the road was going
to b" able to pay off its .ndebt edne IS
under the reorganization plan.
Several bills wore introduced at the
evening ession. one ways and means
committee bill provides in blank for a
direct state tax. The amount will prob
IN. .aytc