Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-03-05

Ing IAdLCldI COuullIOu Ol TIC 0OSlOA
& Maine and its relationship to the
New York, New Haven & Hartford
were thoroughly aired before the COM
mittee on railroads and expresses
Thursday afternoon and evening at
the hearing on the act to authorize the
reorganization or consolidation Of the
railroad companies that constitute the
Boston & Maine railroad spstem. This
is the same bill that has been pre-
sented in the Legislatures Of Massa-
chusetts and New Hampshire by the
Federal trustees who hold in trust
the New Ravens controlling interest
Of the stock Of the Boston & Maine.
Charles Sumner Cook Of Portland, a
director of the Boston G. Maine repre-
senting the second largest block of pri-
vately owned stock in the road, opened
the case for the proponents, and he
was followed by Jas. L. Doherty of
Springfield, one Of the trustees.
George L. Mayberry Of Boston, coun-
sci for the trustees, present ed the
closing argument for the bill, in re-
buttAl
The bill was bitterly opposed by c.
w. Croker of Boston, counsel for
William B. Lawrence Of Medford. the
largest individual stockholder Of B. K
M stock. Hon. J. Clark Scates Of
Westbrook, member Of the executive
council. also opposed the bill
Case Of Proponents
Mr.. Cook explained that the pro-
posed legislation is merely an enabling
act, giving the trustees permission in
cboI n
The opponents claim that legislation
is not necessary, and if so the passage
Of the act can do no harm, but if the
proponents are right unless the bill is
passed the road stands il imminent
danger Of receivership, which he
thought would mean disorganization
of the system and ruin. The poor
management of the past was not a
question now he said, but aside from
poor management there were contri-
buting factors that helped put the Bos
ton & Maine in serious financial
condition, including an increase Of
$5,O0O,000 year in the cost Of labor
and the expenditure of $1,000 900 to
eliminate grade crossings, put in block
signals and other measures enforced
by law. The rental of leased lines
constitutes fixed charge Of about
s5,0o0000 annually. and what is sought
is an opportunity to put the road on
better working financial basis and re-
duce these fixed charges by incorpor-
ating the leased lines with the parent
company as one concern.
The bill was drawn to meet two
possible situations, first -organiza-
ton by the existing company, and
second the organization of a new COM
pany to include the old and the leased
lines, for the Boston & Maine was in
danger of receivership whenever any
of the $2O,000,000 floating indebtedness
came due and it was unable to meet
its obligations, and after going into
"a receivership the old company could
not effect the reorga nization. In 1914
the road had a deficiency Of s.. 00O, 000
but the condition was being improved,
owing to decreases in the cost of
operation, and the object was to de-
crease the fixed charged by substi-
tuting dividends on stock for fixed
rentals. He explained the organiza-
ton of the Federal trusteeship through
the dissolution of the New Haven
control of the Boston & Maine, the
five trustees appointed by the Federal
Court holding the stock owned By
the New Haven. He told of the high
character and standing of each of tho
Federal trustees, who are former Chief
Justice Marcus P. Knowlton of Spring
field, Mass, Henry L. Day and Chas
B. Hall of Newton, Mass, Jas. L.
Doherty Of Springfield, and Frank p.