The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-12-20
Eastern Railroad.
Meeting of Bondhoiders.

A large meeting of the bondholders and cred
itors of the Eastern railroad was held Saturday
in Boston, to take into consideration tie pres
ent condition of the road, and to see what
would be best for all concerned. The president
and most of the directors were in attendance,
and the interests of the bondholders were fully
represented.
Mr.. Ward, representing Barring Brothers,
said plan for reorganization of the road had
been drawn up, which would, mo doubt, if
adopted, be concurred in by the Barings and
their clients.
Mr.. Morrison read the plan, which in brief,
provides for mortgaging of the road for S14,-
OOOOOO and the issuing of bonds to that
amount, 65 per cent. of which will be guaran-
teed, or in the shape of a preferred stock and
80 per cent. of which will come in as secondary
stock, and which may never possibly be paid.
The plan also provides for the appointment OF
trustees to manage the road, and giving credi-
tors a vote in their election for every 500 of
their Indebtedness.
In case the trust is not managed in the way
indicated, the mortgage has right to fore
close. la view of the time which must elapse
to obtain the necessary legislative sanction TO
to the scheme, the advisabilty OF appointing
lCCOiNCf, 81 DIS W pIcNcub any dbtaOuuiChto 10
ing put upon the road was suggested in the
plan of reorganization as one worthy of consid-
Grafton
Mr.. Welsh. of Sober & Welsh, explained
tha main features of the plan, and urged its
adoption.
Hon. Charles Levi Woodbury. objected to it
because all classes of liabilities were not repre-
sented. For instance, the Portsmouth, Saco &
Portland would be left out in the cold and their
liabilities, which were contingent on the sums
1t,at tha,, hxyfl fla hn dad
for.
Hon. William G. Russell representing the
road argued that the Legislature would not
sanction such proposal, because whenever
legislation was obtained, it must in view of all
preceding legislation in this state, necessarily
include all the liabilities Of the corporation.
He said the plan proposed would strangle the
Eastern Railroad IN eighteen months.
He suggested that committee OF conference
be appointed by the bondholdres to meet the
directors and stockholders and see what could
be done. The question of attachments had
been considered, and he was not prepared to
say how long the road would be free from such
annoyances.
Hon. Charles Levi Woodbury. spoke against
the road going into bankruptcy, and said all
should be in favor of making the best they
could of the matter and assist in doing what
was the best for all concerned. He said that
while the road was laying groaning and sweat
ing in the Bankruptcy Court, each creditor try
Ing 10 scale down the others claim and get the
| most for himself, the connections of the road
would be lost and the stock of the competing
roads would be at a higher premium.
After further remarks from Messrs. Welsh
| and Russell, Hon. Dwight Foster, who repre-
| sented some of the bondholders, moved that it
| was the sense of the meeting that the directors
of the road take steps forthwith for the APP
pointment Of Receiver.
This was deprecated by Mr.. Russell and Mr..
Lawrence, the President of the road, said a
| large part of the creditors of the road had
agreed not to trouble the corporation.
The meeting were Of the opinion that a re-
| ceivership meant bankruptcy and voted down
| the resolution, and a committee of three on the
| part of the bondholders was subsequently ap-
| pointed to meet and confer with the directors
in reference to the plan submitted and any
to report at an adjourned meeting. The com
mittee consists of Lemue Shaw, Charles j.
| Morrill, and Dwight Foster.