Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1871-06-19
Mistellaneous.
REPORT OF THE COMMITTEE ON THE
KNOX G LINCOLN RAILROAD. 5As

three chosen to examine the affairs of the
company and recommend course of action,
Is Oh much interest to the stockholders of the
Knox and Lincoln railroad AS far as they
have been able to examine they find no ap-
pearance of fraud or corruption. The new
Engineer pronounces the road generally well
built They recommend that printed exhib-
1t OF the expenditures on the road be cireula-
ted among the people interested in it. The
grand mistake they say was in misconceiving
at the start the natural obstacles to be over
come in building the road, and the expense
necessary. Another mistake was in the call
OF the Directors last September for money to
complete the road. The sum named was en-
tirely inadequate. The Committee say: s
We find upon examination the following
results, which we think are correct:
Cp to May 18th, 1871, the whole amount of
Stock paid in was S}6i. .Og7 50
Whole amount of Bonds issued l,7f5, ,OOO.OO
| Whole amount of Bonds sold, 1,5Q2, 10000
Amount realized from Bonds sold, / 335, 1893 90
Amount Bonds pledged as collateral, Si27, 400,
less difference between same valued at 90
percent, and amount for which pledged, 7,eA.5o
Actual 1ai amount expended on road to this
udte, less discount on Bonds and
interest paid, 1895 o61 90
Cash on hand, 3l,529I5
1t appears, then, that on May 25th ult. the
available resources of the company, after
payment of debt, exclusive of land damages,
were about thirty thousand dollars.
Its road is unfinished. Its cars only run
between Bath and Wiscasset. Every body is de-
sirous that it should be completed and equip
ped through to tide waters in the city of Rock
land at the earliest practicable period. The
inquiry at once arises, how and when can that
be accomplished ? More money is necessary.
How can it be obtained ? We are brought to
the consideration of the cause, out of which
grew the mixed meeting of the 21st ult,
composed of stockholders and citizens, and
the real practical question, submitted to us,
is, that of recommending the most feasible
plan of providing the fund for the compile
ton and equipment of the road, on such
terms as shall secure the lenders and protect
the public from usurous rates of interest and
discount. Various modes for obtaining them
have been suggested. lst. That of an issne
| OF the bonds of the Company itself, secured
by mortgage of its property, subject to the
two mortgages already existing in favor of
the cities and towns. 1t is plain to be seen
that such bonds would not find purchasers if
at all, except at ruinous rates after great de-
lay. 2nd. 1t is said that the cities and towns
can sell by assignment their rights under two
mortgages, which they now hold. 1t is Just
as plain that under existing facts such pro-
position would create bitter differences of
opinion and heated discussion, and that those
rights could only be sold at a great sacrifice.
Sd. There is no prospect whatever of max
ing an arrangement with any other railroad
company, by lease, or otherwise, which would
secure the completion of this. The best offer
which the Maine Central will make, is, that if
this company will complete its road, the Cen
| trail will furnish such additional rolling stock
| as may be required for its efficient operation,
and will operate it for a term of from one to
five years, at the cost of operating and main
tanning the same. 4th. 1t is said that under
the special act of the Legislature of March
2lst, 1864, by authority of which the cities
and towns were authorized to loan their cred
it's that they may take possession of this road,
on the failure of the company to pay the in
terest on the bonds. Your committee think
it would be calamity to the cities and towns
should such an exigency occur, prior, at least,
to the completion of the road, because, in
their opinion, a railroad can be constructed
and managed more judiciously by board of
Directors, than by municipal authorities.
Should it happen that the cities and towns
were compelled to take possession before the
completion of the road, they would find it
necessary to ask the Legislature for authority
to raise the means for its completion, or sell
their mortgage interest for what they would
| bring and abandon the road. 9TH. There
| stSuIS NhSIeIOTS, 10 De Dul one Oliler resource
| for obtaining the funds for the completion of
| the road, to which we now invite attention,
and recommend for the approval of the COM
| pany. 1t is this that the company ask the
! cities and towns interested in the road, 10
| furnish further loan of their credit payable
| in thirty years from this date amounting in
| the aggregate to the sum of six hundred and
| fifty thousand dollars, in the proportion of the
| former loans severally made by them, the
hN tb, ri of
| said road. Such loan as this will be similar
| in its features to the former loans and it is
expected that it will secure the completion
and equipment of the road, and as conse-
quence, enable it to do business, it may be
expected that the bonds issued under the loan
now recommended, will be taken quite as read
| lily as those under the other loans. But such
| a loan, if furnished, cannot be made availa-
BILE, until the votes of the cities and town
furnishing the same, have been legalized by
the Legislature, which will not meet until
next January. This delay would necessarily
postpone the prosecution of work upon the
road until another season, because the COM
pany will be without funds.
To prevent such disaster, and in order
that immediate funds may be obtained, to
forward the completion of the work, we also
recommend, that the company ask of the
same cities and towns, that they loan their
credit under the per cent act. SO called, of
Feb. 2Sth, 1867, to the amount of from two
hundred and fifty, to three hundred thousand
dollars, and in the same proportion as is
recommended for the bonds which are to run
| thirty years by the issue of bonds to that
amount payable in one year from their date,
bearing interest at the rate of six per cent.
| per annum, payable semi-annually and that
| said one year bonds be redeemed by the COM
pany, with a sufficient amouat of the pro-
ceeds of the thirty year bonds. Each NUM-
cipality which votes its proportion of the one
year loan aforesaid is advised to withhold
the issuing of such an amount of its thirty
wear bonds as will insure the redemption of
its one year bonds and protect it from loss.
1t will be perceived, that this one year or
temporary loan, under the per cent. act is
not for an amount in addition to the six hun
dred and fifty thousand dollars, but in fact
mart of the same. Its operation will be this
n: g. r.ra..artiar Of the