The Portland daily press., 1867-04-26
DAILY PRESS.
Friday Morning, April 20, 1867,
The Proposed Loans A New Cam.
rr E promise.
PORTLAND.

The Proposed Loans New Gam.
To the Editor Of the Press; 4G-L s...
The Directors of the P. & r. Railroad Co
wanted large loan from our city. Certain
speculative gentlemen also wanted large loan
from our city for the Portland & Ogdensburg
Railroad. These wants seemed to be antago-
nistic. BothOf these roads pass through or near
the county Of York to the great West So
there was danger that their wants might not be
satisfied. When jesus was to be erueifed Pi-
late and Herod were made friends. SO the
gentlemen who wanted these large loans man
aged to compromise the matter, in such way,
that only small part of the bonds shall be
called for this year; and to put both projects
into article, and by log rolling, they hoped to
get vote in favor of both loans Shall we vote
to grant these loans?
For my part, fellow citizens, hate all log
rolling and am opposed to all such compromis-
es. How stands the matter, as to the credit Of
the city? Our loan to the A. & st. l.. r. r.
Co., was S1,5O000O. The sinking fund amounts
to 100000, leaving balance of 100000, for
''-~~N W sAS SsAAA AAouAS, ioonAuS W tuc
means of the A. & St. L. R. R. Co. to pay. Our
other debt notincluding charity funds, amounts
to II, ,3O36OO, to meet which we have a sinking
fund OF Sl4g7s2, leaving a balance of S1,l53,-
S18, to be paid by taxation. We have voted to
loan 100000, for thepurpose of rebuilding the
city. do not question the wisdom of that
loan. The money will be wanted and taken-
When taken the liabilities resting on our city
over and above the sinking funds will be S4,-
053,818 To this a considerable sum must be
added to put our streets in order
Last year our valuation in round numbers
was $29000,O00. 1t is admitted on all hands,
that this valuation, was much higher than that
OF any Of the country towns. The Legislature
abated from our valuation $4,OOO,OOO This was
none too much. Our valuation this year will
not exceed $25,O0O,OO0. Our assessors cannot af-
ford to put 1t higher. If so, all we can loan TO
railroad companies, under the law will be ST.
25O000. These two companies propose to take
it all at one slice and more too. Nothing will
be left for any other company
How do our city bonds stand, and what will
be the effect on them? The price offered ac-
cording to the latest quotation was only &c in
currency. The latest quotation for gold was
81 ,3S 1-S. That brings the value of our bonds
IA gold at SO 5-10. Most likely a very large
part of our bonds are owned by widows and
orphans. 1t would be cruel to do any thing to
reduce them in value. If we add So 4OO, 900, or
even $3,125OOO to our liabilities, who can doubt
that our bonds will be greatly depressed in the
market? So much for the general aspect of the
question. NJ a..t 4. -. --... .tf re
Now let us look at matters relating to
the corporations. Certainly the Portland
and Rochester makes the best show
1t has eighteen miles already constructed,
and some work has been done beyond. These
Directors, it is said, promise if they get the
loan, TO build this railroad through to Roches-
ter, and that 1t shall then be connected with
another railroad. This Portland G. Rochester
r. R. Co. is the legitimate successor of the old
York & Cumberland r.. r. Co. Several OF
their Directors are the same men who were
Directors of the York & Cumberland Railroad
Co. during its early struggles. They are good
at promising.-On the 9th of February, 1851,
that old company, under their direction, made
mortgage to j. G. Myers and issued bonds.
On the first day of November, 1851, under their
direction, said company made another mort
gage to trustees, and issued second series OF
bonds. This mortgage was made for the ex-
press purpose OF paying tho floating debt and
building the road through to Great Falls to
connect with the Boston & Maine Railrosd-
The Directors repudiated $4,000 of the bonds
under the first mortgage as illegally issued.
Holders of the other first mortgage bonds,
were urged to commute them for bonds of the
second mortgage. 10 induce the holders to
make this communication, some of these Directors
promised, that II holders acoutd make the er-
change, the road should be completed through to
Great Falls. Urged and induced by such prom
ises, bondholders made the Communication as re-
quested All the first bonds except the S2O,-
900 repudiated, and S13,5 were committed tor
second mortgage bonds. Many of the second
mortgage bonds were sold for cash But the
road was not built. The Directors had legal
duel with f. o. j. Smith and John 9. Myers.
The money was gone.
On the first day Of January, 1857, the COM
pany made third mortgage, to pay off the
second mortgage and the floating debt at 80 per
cent, and to build the road through. No,o the
road soas certainly to be 6uin through. Gentle
men soho had Surrendered first mortgage bonds
and taken second at par acre noao coerced to
take third mortgage bonds giving up 70 per cent
On the first day of July, 1857, the company
fsiled to pay part Of the coupons on those
bonds, as had been foreseen by some who had
been driven into it. The road was not built.
Tho trustees Of the third mortgage became
the purchasers Of the first mortgage, and so
these bondholders obtained precedence over
| fha v,fSvar MI
land & Rochester Railroad Co. was organized
on q foreclosure Of the first mortgage, upon the
third mortgage bonds. The $40 600 of first
mortgage bonds, repudiated, and the other
S13, 800 which were not committed, for second
bonds, were paid in full, principal and interest.
Those who did commute at the request of the
Directors, as already stated, were forced to
commute for third bonds, getting only 80 per
cent. Having held their third bonds until
1885, when the Portland & Rochester was Or
ganized, and not having confidence in the Di.
rection they then parted with their bonds, in
some instances, at 18 per cent IF the principal
without interest. That was about IL Is Der
cent of their third mortgage bonds, and about
4-10 per cent. of their original bonds, while
the bonds repudiated by the Directors were
paid In full with INTEREST,"
The first paragraph in the call has this pro-
viso; FL @1
Provided that bonds shall not be issued to
an amount exceeding two hundred and fifty
thousand dollars, until satisfactory evidence
shall be produced to the said Board [of Mayor
and AldermenJ that O connection with some
railroad or railroads in the State of New
Hamp. hire leading to the West will be made.
This proviso is not satisfactory to me. While
the law gives us the power to vote the money;
1t does not authorize US to delegate the power
to the Mayor and Aldermen. If we vote in
the affirmative on this question, no one can say
we have voted to raise more than S25O,OOO The
question whether there is to be any further
loan depends on the Mayor and Aldermen.
What we vote we must vote as city. The
law wisely prevents us from deleeating this
power. The Mayor and Aldermen viii be only
eight. Four makes a majority of the Alder.
men, We do not know who they will be, But
will not trust them. A few years ago the
majority of the Wisconsin Legislature was
bought up, by distributing railroad bonds
among them. A majority of Congress was
bought up with bonds to issue national bonds
to the amount of ten millions of dollars to
pay the debt Of Texas, contrary to the original
bargain. 1t is notorious that the Legislature
at -