Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-03-05
SEEK ACT TO AUTHORIZE
REORGANIZATION OF B. &m.
?. RAILROAD AND AUx|LIARIES

Carpenter of Manchester, N. H The
limitation of capitalization Of the new
corporation is the total Of capitalize
ton, and debts of the present COM
pany and leased lines, plus the leased
lines received for their property in
excess of par. and it is to be sub
ject to the public utilities commits
sion Of Maine and the public SER
vice commissions Of Massachusetts, and
New Hampshire. He said some ac
ton must be taken to prevent the
roads going into the hands Of a re-
ceiver. We don't want to cure the
disease by killing the patient If we
can help it," he said.
Federal Trustee, Jas. i. Doherty ex-
planned that the trustees now hold
controlling interest in the Boston &
Maine, but were not responsible nor
in sympathy with the former mis-
management Of the road. and the New
Haven is in no way connected with the
present management He characterized
charges to this effect made by the
opposition as yelled, unmanly and
mean" He went into the details Of
the conditions explained by Mr.. Cook,
that the leased lines were getting 4
dividend of over 100000 annually
while the parent road faced a def
cheney, and to meet this condition the
trustees had formulated a plan to re-
duce these fixed charges by persuad-
ing these roads to come in as a part
of the parent road, for the sake OF
keeping the system together. Some
body must reorganize the system, he
said, it will not reorganize itself, and
the Federal trustees are in the best
position to do it. Every means should
| be adopted to avoid a receivership,
| which would seriously impair the in
terests of New England.
The Opposition
II opposition Mr.. Croker reviewed
the history of the Boston & Maine. tell
ing now the New Haven had retained
control from 1907 to the present time"
While he did not impugn the character
declared that they were most Carefully
selected and no one accepted who was
not fully acceptable to the New Haven,
and honesty Of the Federal trustees, he
and he objected to the conditions sur
| rounding their selection. The real party
behind the bill is the New Haven Rail-
road he declared. Under the terms of
the decree their first duty is to the
owner of the stock held by them. These
gentlemen represent the same control
OF the Boston & Maine by the New
Haven that has gone on for years." ne
asserted. He denied that there was any
thing in the court decree giving the
trustees powr to undertake reorganiza-
ton.
He objected to the passage Of the bill
as repeating much OF the regulatory
legislation, enabling the New Haven to
freeze out the minority stockholders, and
validating the fraudulent tIampden con-
| tract. The so-called control Of capital
iZation by the public service commission
was valusless by the terms of the act
and objected to the granting Of such
great and unprecedented powers to any
man or men. Before giving tae trustees
such extraordinary powers the commit
tee should assure itself of the paramount
necessity. The basis of the proposition
is permission to trade stock, he declared
which is what has been the trouble with
the B. & NJ in the past. The trustees
could impose assessments which would
freeze out the small stockholders He
reviewed the history o. the Eampden
road, and AFFECTED to legalizing a fraud
ulent arrangement.
Councillor Scates proposed series of
questions to be asked the Public Utili-
ties commission, relating TO their opin-
on about the proposed legislation, what
its effect would be on Maine stockholders
and banks, how much power it would
lake away from the commission, and
other questions