The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1872-01-31
How the Kennebec & Portland Railroad
became the Portland 4 Kennebec Rail-
road and Finally the Maine Central.
'ANINTEREsTING SCRAP OF HISTORY.

10 the Editor Of the Press: "a
What is now known as the Portland & Ken
nebec railroad was first Incorporated by the
name of Kennebec s. Portland railroad. Ihea I
railroad being under membranes OF more
han 81 ,0OO, 600, on Oct. is, 1852, the old COM
pany executed a second mortgage to secure a. I
new issue of bonds to the amount $500 to
John Patten, M. s. Hagar and JOS, Mckeen,
trustees for the holders of these bonds of the
second issue. AT the date of this second mort
gage, none of the ordinary processes of fore
closure were applicable to railroads. The con-
pons fthe second mortgage being unpaid at
maturity the trustees took possession of the
road, Sept. LIST 1851, not however for the purpose
of foreclosure ;and none was even attempted at
that time In 1857, five years after the date of
the mortgage, new statute was passed author
izing foreclosure, by advertising in news
paper. In May 1859, the trustees commenced
to foreclose the second mortgage by this pro-
cess The three years expired, and it is by vir-
tue of this foreclosure that those gentlemen
known as the ten" under a new organization
called the Portland s., Kennebec Company,
have claimed and exercised ownership of the
road ever since. t,r-. 2Ii'!' 81 q, --''
In 1861, long before the expiration Of the
three years, the control of this second mortgage
passed into the hands of the '.ten," and the old
company complain that there was unfaithful-
ness on the part of the trustees and illegal COM
bination between them and the "ten,' or some
of them, to suffer the foreclosure to become. alb
solute, when in fact if they had conducted with
honesty; the foreclosure or the pretended fore
closure would never have taken place, but the
second mortgage would have been satisfied.
(. The old company resist the title of the new
company on two grounds: First, on account of
the alleged unfaithfulness and illegal combna-
ton. Second, because they say that at the
| time of the execution of the mortgage, Oct
10th, 1852, there being no such process of fore
closure applicable to railroads known to the
law, they made their contract in the mortgage
with reference to the law as it then stood; that
the law was part of the contract, and .conse-
quently the law of 1857 would have no applica-
ton to that mortgage; that such an application
would contravene that provision in the consti-
tuition of the United States, which forbids any
I State to make any law impairing the obligation
| of contracts; thatconsequently the foreclosure
is nullity and that they still have right of re-
! demption. n .s ,,.st...-,f
In order to decide these questions the old
Kennebec s. POULAND, Company filed a bill in
| equity against the new Portland s. Kennebec
! Company in the Supreme Court of Maine,
! which has been decided by divided court in
favor of the lattercompany. In the published
opinion it is stated that Justices Barrows and
\ Tapley do not concur, and Judge Dickerson's
| name does not appear either on the majority or
minority side. The case has been carried to
the Supreme Court Of, the United States upon
the constitutional question, and now awaits its
4 termination there When we consider that the
Supreme Court has already reversed one unani-
NOUS decision of the Supreme Court of Maine,
-Hathorn Us. Calef 50 Maine Reports, page
All; same case, End, Val Reports page 10,-it
would certainly surprise no one if they should
in this case reverse the decision of q divided
court ....,.,.. -,., ,,.....t.,,s -,,.,s. tt,T-,
! A. In the winter of 1870 the Portland & Kenne
bee and Maine Central companies, after fierce
and protracted contest in the Legislature, were
refused the right to consolidate Notwithstand-
ing this emphatic refusal, these two companies
have consolidated as they claim by virtue of
statute. of 1856, which statute it is commended
by the Attorney General was repealed in 1857.
In this process of consolidation one of the ar
ticles of agreements, that the material papers
should be deposited in the hands of Hon. j.
Williams, with provision that the CONSOLE
dation shall be void, and the papers delivered
back if the suit of the old Kennebec & Port
land company shall be decided against the new
Portland & Kennebec company H.d;!a .-Aaa z
1t is to test the validity of this consolidation
that the Attorney General is now pursuing his
process of quo Udrranto against the Maine
Central
4 TO those who wish to escape the enormous
evils of consolidation of competing ines,a of
MONOPOLY, and the accumulation of dangerous
power il. a few hands, there are two avenues
. to avoid the effects of the conptnatien of the
8 Maine Central and Portland SKennebec roads.
I 1st. If the CONSTITUTIONAL question before re-
ferred to shall be settled in favor of the old
company, then the old company will resume
i their rights and will take possession of the
road under the name of the Kennebec & Port
land Railroad. t- -. f.s. .-...5..,ss55 f
!; End. If the acknowledgements process of
quo arorrdfato is sustained then consolidation is
at an end in any event, whether the old or the
new company have a right to the road. If the
Dill no wranding in the Legislature San act to
authorize the MaIno Central Railroad to make
loan passes, inasmuch as it implicitly rati-
fes consolidation, then, the remedy of the At
4 torney-General falls to the ground But no
legislation of the State can permanently affect
+ the first remedy or override the constitution of
I the United States, asssnaD = izssssJ.s c. ia