The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1867-04-30

city is asked to loan, but its credit. The mort
gage, or the property mortgaged, of itself
won't pay the bonds or coupons to be issued
and protect the city's credit. The party max
ing the mortgage must be relied ON to do this.
Thus does the charscter and reputation of the
party or corporation in whose interest city
bonds are to be issued, become an important
element of the security. The Portland &
Rochester r. r. Co., then, or its Directors in
their official character (nOt their mortgage, nor
the men as individually, are to furnish the
money to protect and pay the city bonds and
coupons as they fall due.
1t is then both legitimate and proper, nay
our bounden duty, to inquire as to the reputa-
ton and standing of this company-of this
road 1t has been in existence as the p. g. r.,
and the York and Cumberland sonlo twenty
years, (more or less), and has always had las it
now has) for Directors some of the shrewdest
and most successful business men of Cumber-
iand county, and yet think it may be safely
SAID that OF all the bonds they ever issued land
they have been legions) not one was ever paid
at maturity and not a coupon was ever paid
out of the actual earnings of the road. What
reason then, Judging from the past, has the
city to expect that its bonds and coupons If
issued to this company would be protected?-
True we are told that the road has passed into
new hands under another name, and has now
no bonded debt-very well but the road is the
sarne-the principal stockholders are the same
the Directors are the same or from the same
class of shrewd men; (entirely responsible as
individually, the same ruling spirit, the same
fnnfrnlling nxvar ia fhara. oh id .S
the stock being now concentrated in one fam
lily, one man makes, or has the power to make,
at his pleasure the entire Board of Directors
1t has been wellisaid by j. c. w. in the Press,
that it would be dangerous to put the condi-
tiOns of opening this large amount of Bonds
at the discretion of majority of the Board of
Mayor and Aldermen--four men; how inf
nitely more unwise and hazardous would it be
to put the city credit to the amount Of seven
hundred thousand dollars at the mercy of ono
man! Now when the proposed mortgage is
put upon this roard in what Except the name)
williit differ from the old York and Cumber-
land? 1t win indeed have heightened its
chords but win it have strengthened its
stakes? 10
The Directors do not Of course propose to
protect the city as private individuals, but only
as they can get the money out of the road
What have they got out of 1t the past year I'M
der the new name? If anything, the stock
holders would be pleased TO hear from it. If
the present Directors smarter than all
their predecessors let them prove it first to the
suffering stockholders In the shape OF divi-
dend, and thus establish a reputation for the
road and the new company which may hereaf-
ter become an element OF security, on which
with the mortgage) the city may safely loan
its credit. | u.5r s,., n 57,
My room is about full and 1 can only glance
at one other element OF security, viz. the busi-
ness prospects of the road should it be extend
ed to Alfred or Rochester; which I have al
ready, under the first head, shown to be very
poor. AS a competing road, with the Boston
8, Maine running along side of it at an aver
age distance OF scarcely eight miles, and en-
trely losing itself in that road at Rochester it
could never hope to pay a tithe of the interest
on its debt, managed as separate and dis
tinct road. The only chance Of protection for
the city would be in lease of the road either to
the Boston & Maine or to the roads east of US.
But If we thus Strengthened our security, we
shouiu ioSc our ro1u, taS IortiAnu intereStD
together with all the promised blessings it
should return into our lap; and in this view Of
the question it comes to this. Shall Portland
furnish seven hundred thousand dollars to build
another road to Boston for the use and benefit
of the Boston & Maine r. r. Co.,-or yet for
the use of eastern railroads to enable them to
carry their passengers by us back of the city,
switching off in Westbrook;! and thus perhaps
saving these roads the premium heretofore
paid by them to their passengers for not stop
ping in POrtland?l Is such the use to which
the creditbf the city should be put? The secu-I
rity might thus be improved, but the loan, in
stead of being blessing would become curse
to the city. When Portland credit is invoked
to build or help build a western railroad it
should be emphatically PORTLAND ROAD.
.af attH st9l ia CohAKRclAL STREET