New Britain herald., 1923-07-02
CONSOLIDATION AS
 ULTIMATE ENDEAVOR
First B. & M. and N, H. Should Be Rehabilitated, Report Says


 mobilization of the Boston and Maine and New York, New Haven and Hart ford railroads possibly as a prelim- mary step to consolidation of New England systems was recommended
 by the joint New England railroad committee headed by James J. Stor- TOW of Boston to the governors of New England states assembled here.
 Consolidation with outside trunk lines was not favored, New England would like to wear it's own brooches" said the report. We submit that 1t should be allowed to do so unless a clear case can be made out why one leg should be handed over to the Pennsylvania railroad or to the Balti- more and Ohio or to the New York Central"
 .If financial considerations permit, the welfare of New England can be better served by the consolidation of the New England systems, leaving out the Boston and Albany, Central Yer mont. and the Grand Trunk line to Portland and the Canadian Pacific mileage in Maine and northern Yer mont"
 Rehabilitation First
 The committee added that such consolidation Is neither advisable nor equitably possible until each of the. Boston and Maine, and New Haven shall have first been rehabilitated and shall have shown the financial and operating results 1t is capable of pro- ducing under normal conditions and with restored credit. For the two roads the committee therefor rec commended voluntary and compre- hensive financial readjustment of CO., operation to which bond and stock holders would contributes; state aid by remission of taxes to make up de- ficits; control by state appointment trustees for period of ten years and guaranty by the states of the new bonds for Improvements.
 The Maine and New Hampshire committees signed the report with as to the consolidation part of the program. The New Hampshire committee did not believe there should be any consolidation of New England railroads at the present time. The Maine committee believed the interests of that state would be adversely affected by the adoption of any form Of consolidation considered by the committee.
 The joint committee, comprising 30 men appointed by the several gover- tnn their 1 work of surveying the New England roads from all angles in relation to the section of the transportation act of 1920 directing the interstate com merce commission to prepare and | plan for consolidation of the rail- roads of the United States into limited number of systems.
 Suggests Joint Committee
 As concluding finding, the con- mittee's report suggests that commit tees be appointed by the several states 10 act jointly in formulating detailed | program and if such joint commit ,ee receives from the stockholders md bondholders Of the New Haven Ind the Boston and Maine reasonable Insurance of cooperation a special j3ssion of each of the legislatures of he six New England states should he .alled to meet in October for the pyr- ,ose of dealing with the rehabilita- ion of these two railroad systems.
 For the New Haven the commit co recommended a voluntary re- without recourse to re- ,eivership. It is proposed that New Haven bondholders submit to a seal ng down of their bonds by s76. 6.o00.- 100 taking in return new five per ent preferred stock cumulative from 'anuary I. 1927. The present stock loiders are asked to undertake to aise $15.000,000 in cash by buying or rranging for the purchase by others, rom the company enough common tock to bring in that amount. It is that the old par value | $100 be abolished, permitting new tock to be sold for its market value.
 State Cooperation. The committee is of the opinion bat state cooperation should be ex- ended by the states of Connecticut, Ihode Island and Massachusetts, each to return to the road uch portion of the taxes paid by the lew Haven to the states. cities and nUpS Irit hin fba st late p,ay he