The Portland daily press., 1874-09-08

S14l,O42 9s
Balance of liabilities June 80 ..... $3S 1882 90
Interest due July LIST on city bonds passed
by company, paid by city. ......"..... 1874 800 90
Total floating debt July 1st.. .......S734s2 90
which added to the funded debt makes a total
OF one million five hundred and seventy three
thousand four hundred and eighty-two dollars
and ninety nine cents.
There is required for use of the road, in Or
der to avail itself of the contract entered into
with the Nashua & Rochester Railroad, an in
creased amount of rolling stock, which it is
estimated by the directors will cost seventy
five thousand dollars. With this expenditure
for rolling stock the road would be equipped in
first class manuer-except for terminal facili-
ties in Portland, neither the ground nor build
ings occupied for station purposes are owned
by the railroad company-hence an additional
sum will probably be required for purchase of
terminal facilities, which, however, may be
obviated for the present by using the depots of
other railroads or individuals
CONTRACTS.
Your committee find that contract has been
entered into between this road and the Worces-
ter & Nashua and Nashua & Rochester Rail-
roads for term of twenty years unless ter
minated sooner by mutual agreement" which
is for business passing over the lines Of each,
virtually making road from Portland, Me-, to
Worcester Mass, one line, three roads, Port
land & Rochester, Nashua & Rochester, and
Worcester u Nashua railroads. pro rating all
freight and passengers. This contract was
submitted to the city council of Portland on
the 31st day of July 1872, and ratified by it,
the following endorsement being made thereon
''City of Portland, August LIST A. ID. 1872.
The within contract is approved, ratified, and
made binding by the city of Portland, whether
in possession as mortgages of said Portland &
Rochester railroad, or otherwise by virtue of a
vote of the city council of Portland passed Ju-
ly 3lst A. u. 1872. in witness whereof, the city
of Portland by its Mayor and city clerk duly
authorized by vote of said council, have signed
the same and affixed the seal of said city on
this first day of August A. ID. 1872 "
We are informed by the President of the
Nashua q Rochester railroad that that road
will be completed and opened for through bust
ness during the fall months.
The company Gas will be seen by the report
of the superintendent is operating under lease
one locomotive, Worcester" and thirty plat
form cars. The terms of lease are u per cent.
per annum on the original COST and a monthly
payment as depreciation or sinking fund,
which is deducted from cost at close OF each
year, and the II per cent again calculated on
the remainder, being SO graduated that the cars
etc will be paid for and become the property of
the company in about five years.
The amount paid by the railroad company to
June Both into the sinking fond for purchase of
the cars has been 81 10000 The locomotive be-
ing quite new, but one payment has been made,
amounting to one hundred and fifty -four dol
lars ($1540O).
The foregoing statement was prepared AID
your committee would have reported to the
City Council at its last regular meeting had it
not been for a telegram received August LIST
from President Lynch asking for hearing be-
fore the committee, stating that he had a prop
oStlOn to submit.
The committee met on the 18th of August to
receive whatever proposition the directors
might have to make to the city. At this meet
ing the following vote was presented as being,
in the judgment of the directors, the best offel
they could make-viz:
PORTLAND 81 ROCHESTER, RAILROAD Co.,
Portland, Me-. August II, 1874. !
at special meeting of the Directors held this day
it was voted: "That the following proposition be
made to the Committee of tile City Government al
the meeting to be held at o'clock P. M to-day al
the Office of the Mayor, viz That the Company will
provide Equipment for the road required by the con-
tract with the N. q r. R. r, and will pay the inter
est the $350O00 loan, and the interest all bonds
issued by the City to meet the interest the loan
the road the City to issue its bonds six years
pay interest on its loan to this Company as it falls
due during the next three years. The bonds thus
issued to be paid by the Company when due.'v'
Attest, VIM H. CoNANT, Clerk
On the 9th day of August we met to consd
er this proposition, and after long discussion
of all matters relating to the road and it's man
agement, the chairman was instructed to COM
| municate to the board of directors certain ques
| tons bearing upon the matter under considers
| ton, aud on the 3rd day of September the com
mittee met to hear the reply of the directors
AT this meeting the following communication
was presented by President Lynch:
PORTLAND q ROCHESTER RAILROAD Co.,
PORTLAND, August 90, 1874 !
| Hon. George p. Wescott. Chairman Committee O.
City Council on Portland Dc Rochester r. a.
SIR: The directors of this company have the hon
or to acknowledge receipt of your communication
9th inst propoundng the following questions, viz.
First-On what terms and conditions do the di
rectors propose to furnish the rolling stock to TIM
| road?
Second-Will the directors put the city in posses
sion of the stock held collateral, that the.
| may vote on it at the meetings of the company?
Third-How do you propose to guarantee the pay
ment of the interest the $350,O00 bonds, and thu
interest on the bonds issued for the payment of in
| terest?
Fourth-In case the City Council accept your prop
osition, what guarantee do you expect to give thu
city that the company will perform its part Of thu
contract?
1 am instructed by the directors to reply as fol
| lows, VIZ:
First-The directors propose, at first to lease thu
rolling stock required, the most favorable terms
for the road obtainable.
control of the directors. 1t is in the hands of thu
city, subject to its disposal in accordance with tn,
| contract with this company. The proposition which
| has been submitted to your committee by the di
rectors, contemplates the full payment of the cit.
loan and INTEREST," the city extending the time of pay
ment, and holding, heretofore, all its security, in
Guiding the Stock collateral; leaving the road il
the hands Of the stockholders SO long the compa
| ny meets its payments, in n, accordance with tht
terms of the proposition The object sought by tn,
| directors in asking extension of time upon thu
| terms submitted to your committee, is to save th'
city loss, and make tie stock of the road pros
pectively valuable to the stockholders.
| If the city become owner Of the stock, the roa(
would virtually be in its possession; the director
would thereby be deprived of the means for carry
| inc ont the terms OF the prOpOsitlOn which the
have submitted for your acceptance, and the presen
stockholders practically Invested Of all interest
| Thrd-We propose to pay the interest as it be
comes due, relying upon the receipts OF the road II
| repay us.
| Fonrth-We propose to leave all the security row
held by the city where it is and appreciate its VALUE
| by such management as business men usually appl,
to property in which they have pecuniary interest
| AS a condition precedent to any returns from III
property, expenditures must to certain extent D.
| made in anticipation of receipts-as seed must b.
| sown to obtain harvest-These expenditures we ex
pect to make. The proposition which we have sub
mitted for your consideration is the result OF careful
| estimates based upon the present and pro pectlv
business of the road. 1t is what in our judgment tn
earnings Of the road, judciously managed will JUS
tty and what, with the receipts OF the road we ar
| willing on behalf of the Company to undertake II
carry out.
| A failure on our part to comply with the terms o
the proposition if accepted, would deprive the com
pany of all the advantages of the extension of tint
granted by the city; while by such failure the cit
would lose no security now held, and no rights unde
its mortgage. The Directors will. if you desire 1t
| be pleased to meet your Committee at such time a
| you may indicate, for the purpose of considering
more fully the points referred to in your communica
| ton.
| Very Respectfully,
| JOHN LYNCH President
Portland q Rochester Railroad Co.
Your Committee have considered the feast
| bility of placing the road in the hands OF the
trustees under its mortgage but after careful
examination of the subject we are unable L
find that the security of the city would b.
strengthened in the least. In fact such pro
ceediDgs at this time would undoubtedly de
preciate the value of its security. The roa
| now REQUIRES immediate and substantial aid TO
the payment of interest due October LIST on it
seven per cent. bonds, and for purchase or leas
of rolling stock the required funds must be sup
piled by stockholders, as it could not be don
bv trustees without assuming personal liability
They could not pay off the floating debt Of tn
COMPANY, neither would this change reduce TIN