The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1872-02-14
BY TELEGRAPH.
..... AUGUSTA.
THE RAILROAD WAR.
Hearing of the Portland Loan Bill
The Committee allow the Petitioners to
Bring in Bill.


AUGUSTA, Feb. 13.-The hearing to-day, tc
the spectator who had no interest in the con-
test was one of the most interesting, for it is
not often that two such men as Gen. S. j. An
derson and Attorney General Reed appear be.
fore Committee; and when they do and there
is earnestness about the matter, the spectacle
assumes the character of a combat between
skilled gladiators in forensic sense To-day
it was thrust and parry.
The hearing on the Portland & Ogdensburg
loan bill commenced at the proposed hour
Gen. Anderson, President of the P. & o. r. R.
Co. first spoke in support of the bill He spoke
OF the origin of the road and its Importance
not only to Portland but the State at large. The
city OF Portland was already large stockhold-
er and its interest were identical with that of
the CITY, There are now so many bonds of
various kinds in the market, that those of this
Company cannot be sold without great sacrifice
and the city owning seven-tenths of the road
would be correspondingly large loser unless it
endorses and thus makes them negotiable with
out sacrifice He claimed it would be perfectly
safe to allow the city to vote on this question as
ample opportunity would be given for every in
telligent man to be posted on this matter
MIR. Reed said he represented number of
gentlemen interested in this matter in question.
1t was a matter of great Importance to the citi-
zens of Portland He characterized the Og-
densburg road as entirely of the character of a
specu alton and by no means a necessity. He
urged that proposition for two-thirds of the
citizens to vote on the property of the whole
should be only done ON the occasion of an over
towering necessity. Already had the city in
vested the sum allowed by law in railroad loans;
and before another demand is made the Com
pany should demonstrate beyond the shadow of
a doubt that the security they offer is entirely
safe. The Company had not done this; he be-
heved they could not Mr.. Reed declared that
the City Council had in the most pointed man
ner declined to countenapce the project. In
deed, then is not request from one citizen of
Portland outside of the corporation. Mr.. Reed
then proceeded to examine the prospects of the
road. He said that great portion of the sum-
mer travel had been swept away by the extern
sion of the Eastern Railroad from Great Falls,
n. H. to Conway. At its termination to reach
the West-the great desideratum, the Company
must run over road leased to the Vermont
Central Already the city of Portland has
$500, 200 of stock in this speculation and now it
is called on to endorse the bonds for $2 500, 900
to save that sum. He did not believe the CITY
ought to invest in the P. s. o. r. R. or the P.
& P. R.
Mr.. Reed cited the experience in the Atlantic
and ST. Lawrence railroad. The Grand
Trunk he claimed was God-send to Portland
but this should not be cited in favor of the case.
Again every dollar asked for was to be invested
outside of Maine in New Hampshire. He call
ed attention to the fact that although the city
own seven-tenths of the road, the Mayor was
not allowed stock vote unless five directors
united in asking for such VOTE He next no.
ticed the provision for sinking fund and de-
clared it would not accomplish what the bill
aimed it should.
The next point noticed was the financial con-
dition of the city at present and what it would
be when these new loans were granted. The
city is already paying 2 IL per cent. on full
valuation. The city was already suffering from
shrinkage in property and losses in returns
for rents. He enlarged upon the features of
the bill. Among other points he urged that it
would be impossible for the company to pay in
to the sinking fund during the construction of
the road-that the interest of sthe bonds would
have to be met by taxation upon property that
is already overtaxed. Who supposes we can
stand the pressure? The power asked for was
most extraordinary; and the Legislature should
carefully consider before putting the people to
the trouble and expense of defeating the meas
ure. Even if there were the most conclusive
assurances that the road would be success
such policy would be unwise; what then must
it be when it is very doubtful if the road will
ever be able to pay its running expenses, there
being $500, 900 mortgages already on it?
Gen. Anderson replied He inferred from
the remarks of Mr. Reed that the city govern
ment is opposed to the loan. This bill had been
explained before the city government and it
was informed that the company proposed to
ask for this loan that the council might take
action. The city government thought it was
not proper for them to forestall the action of
the Legislature. 1t was foreign to their pur-
pose to interfere and foreclose action on the part
of the people. He did not want to have con-
troversy with the press. He did not dare to
fight newspaper. 1t was like having law
suit with the Devil and holding court in hell.
Gen. Anderson proceeded at length to notice
Mr.. Reeds remarks, particularly in reference to
the bylaws of the corporation and other mat
tiers pertaining to the charter. He said that
Mayor Kingsbury never called for stock vote
SO of course it could not have been refused.
He noticed the city debt. He did not propose
to go into the figures; but the Mayor had de-
clared that it amounted to 81, SAC, 900, and that
this was amply secured. At this point there
was sharp controversy about the amount of the
debt, each quoting the Mayor in support of his
position. General Anderson continued his re-
marks, stating that the road proposed to pay all
of the interest of the city bonds and the fact
of their ability to do so was easily demonstrate
ed from the present unparalleled success of the
road when only doing a very small part of the
business it was certain to secure when complet-
ed. .
Gen. Anderson said that the Grand Trunk
had virtually made Boston the terminus of its
line instead of Portlond The policy of the G.
T. R. R. had been adverse to the building up of
Portland, and consequently it was disaster
rather than Godsend. The Portland & Og-
densburrg proposes to be independent through
line to the West, and of immense importance
to the city-more SO than any or all the roads
yet built. AS to its paying, he said it was sure
to pay. The Grand Trunk had paid-a circuit
GUS line; the Maine Central had paid; the Port
land & Kennebec, with its end at Skowhegan
unconnected with any other line, had paid.
Here was trunk line piercing the great West
the nearest route to an open harbor-could it
be possible that rational man would declare
to that Committee in view of the many facts of
railroad history, that this line would not pay?
On the AZ miles now built, the net earnings
were $4,000 since the opening. When the 10
miles are completed and the line thus opened
through, the passengers would be trebled and
the freight quadrupled
He secuted the idea that it was not a Maine
road because it extended through New Hamp-
shire. 1t was chartered by Maine; the stock
holders all lived in Maine. Gen. Anderson
thought that the voters of Portland did not re-
quire guardianship and were entirely competent
to decide upon question of so vital Importance
to their interests. The General continued at
length in an eloquent and forcible plea for the
bill On both sides it was the ablest and may
add, most brilliant contests before the Commit
tee.
At the conclusion, the Railroad Committee
voted to to report the bill.
The hearing on the Portland and Rochester
loan was much shorter, Messrs. Deane and
Bradbury of Portland appeared for the Com
pany, and Mr.. Reed opposed. The hearing was
rather in the form of a dialogue. The Com