The Portland daily press., 1875-03-11
From the Portland Advertiser Of March 1O.]
A Chanter of Railroad History.

FROM Tue HOrClduu AuVerUlscI VI luhiSh Ao'J
A Chapter of Railroad History.
The recent exposure of the singular transact
tions of the directors of the Chicago, Burling-
ton and Quincy railroad and the consequent
overturn in tho management of that road, Will
doubtless cause the following statement OF
facts, derived from entirely trustworthy
source, to be read with interest by the stock
holders of the Eastern railroad.
1t is well known that the arrangements for
the Joint occupancy of the Portland, SAco and
Portsmouth railroad by the Eastern and Boston
and Maine companies, was broken by the inHu-
ence of the Eastern railroad, in order to secure
for that corporation the undivided traffic OF the
Maine Central road and its connecting lines.
Other results, however, followed that singular
ly unwise proceeding-the most important be-
ing the building of the Boston and Maine ex-
tension to Portland, at cost of more than four
millions of dollars. 1t was also discovered
that the public sentiment of Maine was oppos-
ed to the exclusion of the Boston and Maine
railroad from equal facilities, and that the
Legislature would probably pass such enact
ments as would restore it to the privileges it
had previously held.
Thereupon It occurred to some fnancier with
a genius for combinations, and pupil perhaps
in the school of Jay Gould, that if the Maine
Central were captured in the interest of the
Eastern road and then consolidated" with it,
into one corporation its affairs could be man
aged altogether in the interest of the Eastern
without fear of interference from courts or leg
islatures.
This scheme was brilliant one, and the on
ly obstacle to its complete success was the pos
sble difficulty in procuring sufficient amount
of cash to consummate SO large transaction
But money was somehow found lit is now re-
ported that it came out Of the treasury of the
Eastern railroad and is or has beea represen<pd
in the accounts of that company, as part OF
certain unexplained extraordinary expenses),
and seven thousand or more shares of Maine
Central stock were purchased, giving the East
ern company, with amounts already held by its
friends and allies, majority of the Maine
Central shares.
1t would be extremely interesting to know
all the steps of this important negotiation, but
unfortunately both buyers and sellers of the
stock are sngularly unwilling to say much
about their TRANSACTIONS. 1t is said, but we
cannot ,vouch for the absolute truth of the
story, that the scheme came very near falling
through, at one time, on account of the deter
mined opposition of certain large stockholders
in the Maine Central Company, whose silence
had to be secured by the purchase of their
stock at par, the market price being then in
the neighborhood of 60; but these are matters
which can only be known by very careful ex
Of Il
Having then the control of a majoriay of the
capital stock of the road to be captured" the
rest of the programme was comparatively easy.
The first step was to reorganze the Maine
Central direction by placing upon it majority
of men known to be in favor of ''consolida-
tion," and the second to molify the feelings of
the Maine stockholders, By placing their stock
in the consolidated companies upon a basis of
80 for Maine Central stock, to 100 for Eastern
stock, the market price of the'latter being then
above par and a dividend having recently been
declared, while the market value of the former
was about 60 go before the recent purchases
and no dividend upon it had been earned.
Fortified, then, by the supposed possession
of controlling interest in the stock, and Sc
cure, as was supposed, of the satisfaction of
all the stockholders the arrangement was
closed by the votes of the Maine Central COM
pany at their annual meeting in February,
1874.
The public is not aware of the causes which
have led the directors of the Maine Central
company to the extraordinary step of abrogat-
ing contract ratified SO recently by the almost
unanimous votes of their own stockholders ex-
cept SO far as they are apparent in the changed
condition of the Eastern railroad. So far as
the public is concerned, however, there can
hardly lie two opinions upon the wisdom of the
Maine Central board. BY their action in this
instance, and in their subsequent joint con-
tracts with both the Eastern and the Boston
and Maine companies, they appear to have not
only removed themselves from an Improbable
and causeess quarrel, but to have taken the
first steps towards an arrangement which will
lead to harmony and alliance between the
two great rival roads from Boston to Portland.
Such, briefly, has been the course of affairs
up to the present time. 1t is now, however,
whispered about that the Eastern railroad or
those persons connected or allied with it, who
were the authors of the scheme whose rise and
fall we have just chronicled, are quite unrecon
cled to the defeat of their plans, and are deter
mined to overthrow the existing arrangement,
and TO return to their original scheme. If they
ever held an absolute majority of the Maine
Central stock, fully represented, they subse-
quently los. it,-such is the mutability of ,hu-
man affairs; and it is reported that new combi-
nations are now making for the purpose of re-
gaining their supremacy.
To say nothing about the interest which
Maize should feel in an arrangement which de-
livers its most important line of railway to the
absolute control of foreign corporation, it
seems to us that the stockholders of the East
ern railroad should also be glad to know what
is now going on. If they are satisfied with the
present financial condition of their own COM
pany, as compared with what it was before it
commenced the policy of warfare: if they are
DESTROYS to see that policy renewed upon a
larger scale and with rivaries stronger and
more deeply embittered; if they think that in
| such case success is possible with the entire
sentiment of Maine opposed to them. they will l
doubtless ''hold up the hands, of the managers
of this programme" and cheerfully allow
them to carry it ont They cannot now say
that they have not been warned
SIR MARMADUKE-The statement in yes