The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1872-02-05
Aid TO the Portland and Ogdensburg Rail
rOad.
HEARING BEFORE JOINT CONVENTION OF THE
CITY COUNCIL.

Both branches of the City Council held join
convention on Saturday evening" for the pun
pose of giving hearing to the Directors of tn
Portland and Ogdensburg railroad in relation
o the provisions and intent of an said bilP
now before the legislature Mayor Kingsbur.
presided and, after stating the object of tn
meeting, introduced as the first speaker Gen
Anderson President of the Portland and Og
densburg road.
Gen. Anderson said that this meeting wa.
not suggested by the Directors of the road; bu
learning that some surprise was expressed thai
a bill granting to the city of Portland authority
to loan its credit to a considerable amount te
the road had been put before the Legislature
without previous consultation with the citizens
they (the Directors) desired to explain their ac.
ton At the late meeting of the stockholders
of the road, the question of continuing work
was discussed, and the statement was made
that 1t was impossible to complete the road with
the companys bond sexcept at largely increased
cost on account of the low price offered them in
the market, and on the motion of the represen-
tatiye OF the city's stock, it was voted to apply
to the legislature for an ''enabling act" and
this meeting had been called to explain to the
members of the Board the action of the Direc-
tors; and proposed hearing at Augusta had
been postponed until next Wednesday on this
| account. General Anderson then produced a
pamphlet prepared by Walter Wells, giving a
description, with full statistics, of the country
through which the road will pass, its produc-
lions, business, &c, and said he should base
portion of his remarks upon its statements In
regard to the city bonds which it is proposed the
| city shall issue, they are of the same nature as
those by which aid was given to the Atlantic &
st. Lawrence railroad. The bill gives to the
city the first mortgage of the whole property
| Mo ITO ho,,I f,,,t louc Al
unissued stock of the company. The city now
owns seven-tenths of the present road and con-
trolls its operation. There might be danger of
the unissued stock, when offered, falling into
the hands of unfriendly parties, and they, COM
| bining with the owners of the three-tenths,
| could divert the road from the interests of the
city; and it was suggested that further
curity to the city, one share should be placed in
Its hands as collateral for every city bond grant
ed. A sinking fund had also been provided for,
payments from which should begin in five years
| from the time the exchange of city and road
| bonds are completed; period when the Direc-
tors firmly believe the road shall have earned
enough to pay the interest on It's bonds, its ex-
| penses and have something over. The loan of
| the city's credit asked for is to the amount of
Y, 800 600; and the way it is to be applied, by
the bill is, the company is to receive $4,000
| city bonds in exchange for railroad bonds, and
| when $4,000 worth of work has been done to
the satisfaction of the Mayor and Aldermen
another $4,000 is to be exchanged and so OH as
the work shall progress. No large amount of
funds are at any time to be placed in the hands
of the direction, but only enough to keep the
work alive and going on. The directors have
no object in advocating this measure except
hdellty to their duties as trustees They have
no interests above other citizens, except the
stock which they own as other citizens do The
reason for asking this aid is that the present
bonds cannot be sold except at great sacrifice.
With the endorsement of the city they can be
sold at par or whereabouts; the road can be built
of for piatod
the company's bonds are forced on the market
at their present value the cost of the road will
be greatly enhanced and the burden of interest
greatly increased. When the road is completed
1t can take care of itself; and in support of this
proposition Gen. Anderson presented the official
statement of the business of the road during
the past year; being an average of forty
seven miles of operated road. The earnings
had been about $4,000, and he had no doubt
that by the time the road reaches the Connecti-
cutriver its net receipts would be 800 900 year.
The next fifty miles of the road beyond North
Conway goes through the best timber land of
New England; and il has never been touched.
l refer you for these facts he said to Mr.. Wells
pamphlet. In the opinion of gentlemen inside
and outside of the board the next twelve miles
OF road above North Conway will furnish as
much freight as the sixty miles from North
Conway to Portland The towns in New Hamp-
shire and Vermont, along the line of the road
now have 122, 900 tons of freight passing to and
from them annually-the products of their
SedDOar0
These towns find Portland the nearest outlet on
the sea. These freights can be carried to and
from Boston via Portland cheaper by this than
any other existing route, owing to our water
communications with that city. The speaker
here introduced map of the road and explain
ed the locations referred to in his remarks and
the progress of construction; and proceeding
with his subject said at least one-half the freight
alluded to would certainly come over the Port
land and Ogdensburg road. This will give an
income of $26S, 400; and the business will flow
to us the moment the road is completed. The
passenger travel could safely be estimated at
double that of the present road or $50, 900; the
whole summer mountain travel above North
Conway must come to it; for there is and can
be no other road. Add to the above figures the
passenger receipts from the connecting roads
west as much more, and the gross amount of
business to be reaped from the extension is
$685., 400. Deduct go per cent for running ex-
penses and keeping the road in repair-which
he claimed to be very liberal allowance, owing
to the nature of the country and the cheapness
remainder Is $751; $50 for earnings The inter
est on the bonded debt would be $198, 600; which
deducted, will leave 1888, $50 for funding, &c
To support his estimates by facts the speaker
reproduced the statement of earnings of the old
Kennebec and Portland and Somerset and Ken
nebec railroads from Portland to Skowhegan,
in their early history. They had grown largely
every year; and their promises at the beginning
were $500, 900 less than those of the z. Il o.,
and the latter line was a little the longest. The
growth of business on the Androscoggin railroad
was also quoted. 20
For the next twelve miles above North Con-
way the estimate is $4,000 per mile, and plenty
of contractors are ready to build it at these fig
ures. The twelve and half miles next east of
the Connecticut river can be built at the same
price. The intervening twenty-five miles will
cost $685. 900 per mile. These estimates bring
the cost of construction within 100000 and
leave margin of $500, 900 for equipment and to
put the road in operation. In reply to ques-
ton Gen. Anderson said that the opening of
the road twelve miles further, would command
the mountain travel
Gen. Anderson then called on Mr.. Clark H.
Barker, -four and grain merchant of this city,
who in reply to questions respecting the neces-
sty of increased railroad conveniences said
another line to the west would be advantageous.
Our means of communication with the West in
winter are inadequate. 1t requires from 80 to
go days to get grain from Chicago. Liverpool
can get freight from Chicago sooner than Port
land. Our market has frequently been bare OF
grain on account of the Determinations of the
Grand Trunk against Portland. We can buy
grain better in Boston than in any other mar
ket on account of the excellent communica-
lions with the West. Unless we have other
communications with the West than now, the
grain trade of Eastern Maine will inevitably go
to Boston. A Portland and Ogdensburg con-
nection is necessary to prevent this 1t is OBJ
viously for the advantage of the Grand Trunk
to take Liverpool freights, for they pay more in
backs. -..-
w. S. Dana said: the Red Blue and White
lines from Boston agree to take freights through
in seven days at II cents; by the Grand Trunk
twelve days is the average and the price is 25
cents Unless we have better communications
business in Portland is very discouraging. From
my experience honestly believe that if the
| Portland and Ogdensburg road is completed we
| can recover the New Hampshire and Vermont
business and compete with Boston. Our Wes-
| tern customers complain that it requires too
| long time to get freight from Portland.
Collector Washburn spoke of the proposed
| canal to connect the waters of the st. Lawrence
| and Lake Champlain as an assured enter
| prise. If the Improvements in the st. Law
renee and the Welland Canal, for which the
Dominion Parliament has made appropriations
1 are accomplished, way for propellers of large
! tonnage will be opened from the Ontario ports
and Portland will have a rail and water route to
| the West in the summer and by the South
| Shore railroad line from OgdensbuIg in the
winter. Mr.lWashburn then proceeded to point
out and explain some of the gigantic rail-
| road enterprises of Canada and the northwest,
| the objective eastern point would be Montreal,
| with which city Portland would divide the prU-
ceeds of an immense trade, being seaport and
at the end of the shortest possible line of commn-
| nication between st. Paul and the ocean. Com
ing back to the question of the financial ability OF
| Portland to grant the aid asked the speaker re-
| ferred to the wealth and population of the city
| when its credit was loaned to the Atlantic &
ST. Lawrence railroad compared with her pres
| ent condition, and read the statements of the
PRESS article of Saturday concerning Portland s
liability on account of railroads, and denied the