The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1866-09-12
The A. 81 st. l.. Railroad Company's
ur Ha R0nds. isl=i.-

| to that of Digger Indian of the present day.
The A. g. st. L. Railroad Company's
| Ronds. e
| The annual report of the directors to the
stockholders of the Atlantic and ST. Lawrence
Railroad Company, derives an unusual inter-
| est this year from the position of the overdue
bonds, which the Grand Trunk Railway Com
pany the lessees of the road, last April refused
to pay, alleging inability through failure to re-
alize funds as expected on account of the fnan-
cial disturbances in London. We give below
the position of the report relating to this mat
ter: 4 lllts.r t4,t. ~ E I'd
The balance of the Company's Mortgage
Bonds, which matured on the first of April
last, were not paid, although the coupons for
interest," due on that day, were promptly met,
of this default, but they see no reason to doubt
that the Lessees fully intend to perform their
obligation of paying the principal of these
Bonds as soon as practicable.
1t is probably true, in this case, as in many
instances of the funded debts of Railroads,
that the time of credit was made too short
and that the maturity of this debt, when Gre
ated by our predecessors, was set at time,
when 1t was, in fact, not reasonable to have an
ticipated that the business of the country on
be sufficiently developed to permit the paying
OF such debt out of surplus income. Expert
ence has shown, that in all cases, except on a
very few leading routes of great travel and bus
loans for the discharge of the short funded
debts first created. Established credit rather
than realized income, has been the necessary
means resorted to in almost every case
The Stockholders are aware, that in pursu-
ance of an agreement made in 1855, between
this C0mnanu and the TogSaos IN OFT
piled to us in 1864 for an issue of new bonds to
take the place of those maturing in 1866, and
at the Stockholders meeting two years ago,
the requisite authority was given to make such
new security. The new bonds were made in
sterling and payable in England, SO as to ac-
complish the very desirable object, then ap-
pearing to be quite practicable, of negotiating
them abroad, thereby bringing so much capt.
tai to this country. But in the fall Of 1864,
when the new bonds were ready, the price of
money in the English market was greatly en-
HANGED, and the unusually high rate of inter
est which has prevailed there ever since, trus-
trated the negotiations, by, which it was ex-
pected to raise the necessary funds before the
first of April last. Efforts were continued in
that direction, to the latest moment but in
February last, the Lessees applied to us for ar
rangements, by which temporary extension
Of the old bonds could be obtained. idnn
The Stockholders meeting held in March,
authorized the Directors to adopt the method
OF issuing new coupons for a limited period.
and this arrangement has been accepted BY a
large number of the Bondholders. Further
details under this head are stated in the Treas
urer's Report. We have received explicit of
ticial assurance from the Lessees of their deter
mination to provide for the Bonds, in any
event, and of their confident expectation that
they will be able, by negotiating the new Loan,
to take them up before the expiration of the
five years limited, paying the interest mean
while promptly.
Under these circumstances, and considering
| that the working and condition of the road was
in other respects satisfactory, and that the in
terest payments upon this and the other fund
ed debt OF the Company were faithfully met by
the Lessees. the Directors have not thought Il
| their duty, to adopt coercive measures on ac-
| count of this default.
| The Trustees under the mortgage, by which
| these Bonds are secured, taking such view Of
this default, as appeared to them to be proper
| applied to the Supreme Court in June last. fo,
process, alleged to be in the nature of an iniunc
ton, the effect of which would be, to give then
possession of the line. A hearing was had or
this application on the Both Of July last, whe1
the interests OF this Company were represent
ed by eminent counsel, in addition to the coun
sci of the Lessees. No decision has vet beer
given.
While it is desirable, Of course, and lust. that
these bonds should be paid, the Bondholder
have cause of satisfaction, that the property
is in good condition, and that their security ha,
been steadily growing better and better. to the
present time. So early as 1864, the Lessee:
took up and discharged in full, half million
of these same bonds, which had been lodged
with the City Of Portland as collateral for it,
last loan IN AID OF the road, relieving the city
and the Company from that amount Of debt al
stated in the last Annual Report. Thus one
| third part of these mortgage bonds. which were
originally 81 100000, were cancelled a wear and
a. half before maturity, and it is an earnest q
the good faith of the Lessees, that no arrears
of iv1fa c,y@9ro
late upon any part of this debt or upon the
City debt secured by prior mortgages.
| Ihe City debt prior to the mortgage debt
was 81 100000. The Sinking Funds, establish.
60 py law, for the redemption of the City debt
ana TO which the Lessees have contribnted
$2OS,75O in annual quotas of cash. are now nm.
WARDS OF So4oOoO, effecting, to that extent. the
removal OF prior eneumbrance So that there
is now less than one million of dollars CHARGED
upon tne % sS property, before the Company
Within the period, since the date .. AZ,
Lease, in 1853, the Lessees in possesso h sne
made very large improvements of fixed cbar.
acter on the property, besides very extensive
additions to the rolling stock. They have re-.
built every bridge on the line-three of them
stone, seventeen of iron, and all the others O
the best pattern and material of wood struct
pIes. Most of the bridge abutments and pier
navs also beenrebuilt of cut stone, instead o
rubble masonry first adopted. The improve
ments of fixed character since 1879 within
tne Guy OF Portland alone, have been very near
ly million of dollars in amount -
IS Of tHe GO therefore S that
curfty for the balance Of the bonds mus az 90
DUE has been so largely and permanent, v' ~,
creased in value since the bonds were issnsa IN =;
1851. The guaranty of actual and early nav =,
ment appears to be entirely reliable r"'
Further statements respecting some of these
matters appear in the Annual Reports Of The
Treasurer and of the commissioners of the