Syn-'- -
The Commoner
AUGUST 1914
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about the first of September last," there wai a
change la the management of your road. Shortly
thereafter its accredited representatives came
here, sought an interview with me, expressed
a sincere desire to comply with the law, and
pointed out the evil consequences which they
thought would fall upon all New England if
suit were instituted.
EXPRESSED GOOD FAITH
They were especially anxious to obtain time,
and led me to believe that they were acting in
the utmost good faith. I withheld the suit, and
much time and labor were expended in negotiat
ing the details of an adjustment.
In working these out information and sug
gestions were received from many sources, and
the utmost liberality was exercised in a sincere
effort' to solve the great problem, so that the
law might be fairly complied with and substan
tial competition in transportation in New Eng
land be re-established all with the smallest
possible immediate damage to the industrial and
financial situation.
The plan finally evolved was acceptod with
practical unanimity both by the directors and
stockholders of your road. The disposition by
the New Haven road of its interest in the stock
of the Boston and Maine was an essential.
In the year 1909, in order to enable the New
Haven railroad to control the Boston and Maine,
the Massachusetts legislature created the Boston
Railroad Holding Company, giving it authority
to hold stock in the latter road, and at the same
time authorized the former road to own the
stock of the holding company.
The act also expressly provided that the hold
ing company should not ell its Boston and
Maine stock, nor should the New Haven road
sell the stock of the holding company without
the consent of the legislature; and, further, that
the state should have the right to purchase the
Stock pf the holding company at a price to be
fixed in a- prescribed way.
ACTION BY LEGISLATURE
The agreement which your company has with
me provides that it will ask the governor. of
Massachusetts to propose to the legislature "to
amend the charter of the BoBton Railroad Hold
ing Company, removing the prohibition against
the sale of the Boston and Maine stock now
owned by the holding company.
In due time the governor did make this re
quest, and, responding thereto, tho legislature
passed anact removing the prohibition and au
thorizing tho dispostion of tho stock.
A further provision declares "this stock may
at any time be taken or purchased by tho com
monwealth of Massachusetts at the fair value
thereof in accordance with low," and requires
this to be stamped upon the certificates them
selves. It must bo remembered that, eVer 'since 1909,
the commonwealth has had the 'right to purchase
the New Haven Holding Company stodk at a
valuation to be determined In substantially the
same way as is now provided In respect of tho
Boston and Maine stock; and therefore the New
Haven's interest in the Boston and Maine rail
road is not subjected by the recent statute to
any restrictions more burdensome "than thoso
imposed upon it when the New Haven 'was au
thorized to acquire it.
SAYS ROAD'HAS POWER
Obviously it is now within the power of the
New Haven railroad to carry out the agreement
and understanding which its representatives
made with me, and thereby to remove all ques
tion of good faith and prevent all of the calam
itous results to the public interest which they
so earnestly represented would follow the in
stitution of a suit by the government.
Your counsel, referring to the B. & M. stock,
now fn effect owned by the New Havon, says
that tho recent enactment "retains the control
by. Massachusetts over the stock to such an ex
tent as to make it unmarketable," and upon tills
ground it Is sought to justify the action which
your directors proposed to take.
Manifestly, the only possible deleterious effect
of the control retained by the commonwealth
over tho B..& M. stock would bo upon its selling
price. The New Haven, in effect1 no wowns $2&,w
000,000 of thltf-stook, worth In thetaarkot about
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thirty-five cents on the dollar, a total value of
less than eight millions.
How seriously the retained control would
affect tho fair value can only bo a matter of
speculation it certainly would not destroy It,
if Indeed the roRUlt would be doloterlous at all.
All tho roal proporty, for oxamplo, within the
state of Massachusetts, Is subject to bo taken
by tho commonwealth, and yet Its value is not
impaired.
If your directors adhoro to tho position which
they havo taken, the plain result will bo that,
because they think it may bo impossible to pro
cure for tho $122,000,000 of Boston and Maine
stock as much as might bo obtained under differ
ent circumstances, they are willing to throw
aside the agreement solemly made with me and,
to subject tho whole of Now England to tho 'con
sequences of tho litigation which must neces
sarily follow.
If they bring this result about, t'hon tho public
must know whore the responsibility lies and
draw its own conclusions concornlng tho mo
tives which havo impelled.
The president directs mo to say that ho is not
yet ready to believe that thoso who control' the
New Haven railroad, in order to secure some
possible incrense in the selling price of $22,
000,000 of stock, now offered at about one-third
of Its face value, are willing to turn away from
a solemn agrcoment with tho government, made
after long and careful consideration, and thereby
subject tho Interests of both Nov England and
tho nation at large to the .consequences of pro
longed and unnecessary litigation.
And ho thinks, accordingly, that your board
of directors should give this matter serious, re
consideration. Faithfully yours, J. C. McREYNOLDS,
Attorney-General
Washing press dispatches of July 11th state
that tho New Haven road had agreed to the dis
solution terms of Attorney-General McRoynold
to avoid a civil suit. The news' report stated
that tho action of tho road will not effect crim
inal prosecution of thfcr road's directors. A
grand jury In New York probably will take up
tho cases early In September.
it, ';
ft" ' I I J ' )''! ! i .J.I i '.
' t 1
A Genuine Rupture Cure Sent On Trial
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OTHERS FAILED BUT THE APPLIANCE CURED
Mr. C. E. Brooks, Marshall, Michigan.
Dear Sir: Tour Appliance did all you claim for
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No. 717 S. Main St, Akron, O. VM. PATTERSON.
BAB CASK AT THE AGE OP 7
Mr. C. E. Brooks, Marshall, Michigan.
Dear Sir: I began using your Applianco for the
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Very sincerely yours.
High Point, N. C. SAM HOOVER.
msssmmmyi v
CHILD CURED IN FOUR MONTHS
21 Janscn St., Dubuque, Iowa.
Mr. C. B. Brooks, Marshall, Mich.
Dear Sir: The baby's rupture is altogether
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ANDREW EGGENBERGER.
C. E. Brooks, Inventor ol the Appliance, who care4
himself sad ha been caring other for ever 99
year. If ruptured, write him today.
PENNSYLVANIA MAN THANKFUL
Mr. C. E. Brooks, Marshall, Mich.
Dear Sir: Perhaps it will interest you to know
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It would bo a veritable God-send to tho unfor
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My rupturo is now all healed u and nothing
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80 Spring St., Bethlehem, Pa. JAMES A. BUITTON.
TEN REASONS WHY
You nlioulil xct JlrookM Rupture AppIlHace.
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C. Tho soft, Pllablo bands holding tho Appliance
do not glvo ono tho unpleasant sensation of wear
ing a harness. ' -
7. There Is nothing about it to get foul, and
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8. There are no metal springs In tho Appliance
to torture ono by cutting and bruising thp flesh.
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RE3IEBIBER
I send my Appliance on trial to provo what X
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FREE Information Coupon
C. E. BROOKS, 1736 A , Stato St, Marshall, Mich.
Please send me by mail, in plan wrapper, your
Illustrated book and full information about your
Appliance for the cure of rupture.
Name.
City.
R.P.D. State.
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