Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-10-16

many from small beginnings through many embar-
easements and troubles almost to complete success
and who would not ''sell ont at any Price. l her
cooperstion in the scheme was secured by the in
genuv sttractiyeness and apparent fairness of IT.
| The market value of the Eastern stock at that
time was above par, while that OF the Maine Gen.
! ,ral was much lower, and the programme OF con-
solidation was this The two railroads were to
be merged together upon basis Of eighty dollars
per share for Maine Central stock and one hum
Cred dollars per share fer Eastern stock; that Is
to say, that if dividend was earned by the con-
solidaed roads. it should be paid to their stock
holders in that proportion. The Eastern stoch PC
ing then dividend paying. OF reported TO be sueh'
and having recognized market value, ara a coz
slant market, this arrangement seemed lAla anu
favorable to the Maine Genital Directors lhese
gentlemen however, icing men of business a
well as railway directors, and accustomed 10 IN
ves,igate before deciding, demanded as cohoi
ton precedent to their consent TO consolidation Il
statement of the exact financial condition OF the
Eastern Comiauy Such a statement was given
them II was believed, was considered sat!sfacto-
~ ard thercupon and shortly after the contract OF
| consolidation was finally ratified. 1t Is unneces
saw to desci he that particular statement now,
| hut il NAV safely be said that it differs widely
frcm that other "statement' of the Investigating
Committee, which has recently been partially
given to the public by the Eastern Directors.
This statement, II Is believed IS sun IN existence,
aud NAV some day see the light
And now things went on swiinningly for a while
and everybody WAS satisfied. But cloud soon
came over the horizon. The Maine Central D-
rectors were, as has been said men Of business,
and accustomed to look after their own affairs.
Their holdings Of stock in their own cJmpany were
large, and when after time, the old quaricl be-
tween the Eastern and Boston and Maine Com
panics was renewed tas ought to have been eX-
peced) in more violent and bitter way, they be-
gan to surnise that they had been too hasly, if
they had not been deceived. Their first step was
to quietly examine the financial condition Of the
Eastern, being led to some doubts concerning IT
by gradual but sure decline in the market pr.ce
OF the stock. The information was haid 10 get.
for the policy OF corcealment was vigorousy adj
hcred to-but they finally did discover that the
Statement that had been furnished them was
not absolutely accurate that there was error in Ii,
if not something worse; that, in short, it varied
go much from actual fact as to fully justify them
in breaking the Contract of consolidation, II 1t
was possible TO do so. The anticipation of being
involved in the disasters of the Eastern seems to
have sharpencd their wIts-~oetore slightly duled
by hopes of great profts-and then conduct there
fore evnced great good sense ana sound Judg-
ment.
A paper vas prepared and offered to the large
stockholders OF the company not connected with
the Eastern, binding them TO hold their stock tor
certain time, and TO vote alike until certain re
suits were reached. 1t not diff cult to secure
for this document signatures covering majority
of the stock, and fortified by it to force the Dl
yectors Of the Eastern to consent TO friendly alb
rogati IN of the contract Of constellation, and
TO the framing Of new and equal contracts between
the Maine Central and the Eastern and Boston and
Maine respectively. The pill was swallowed, but
it bitter one, and the taste OF 1t doubtless
still fingers in certain mouths.
Now then, the position or the Maine entlal
was what it should be, what it was once ami what
it should always have remained. 1t occupied
perfectly neutral and independent position; II
granted equal facilities to the two rival roads TO
Boston, and lis Directors were justified in COZ
graduating themselves that they at lat were hap
PLY and permanently out of the quarrel. 20
things went unit, shortly before the time of the
annual meeting Of the Maine Central stockholders,
when it became whispered about that the mana
gers of the Eastern were about to attempt to r.
gain ossession Of the Maine Central. The lie
port was at first dsbclieyed, for the gentlemen
who were parties to the agreement to hold ma
jority of the stock in one block thought that they
could trust all their associates.
In this however, they found themselves mis-
taken, ard they soon learned that upon one pre-
text OF another so much of the stock they had
counted sacredly pledged to them as was nee
essarv to carry out the scheme OF the Eastern had
fallen into the hands or under the control of that
company What consideration was paid 10 SC
cure this result is Lot known outside Of the par
ties din ectly concerned though possibly the books
OF the Eastern Railroad will throw some light up
on the transaction. About this time the Eastern
negotiated loan Of Two million dollar. ITO fund
its entire floating debt.
The Maine people, as soon as they became
aware of the desertion of some OF their trusted as
before the fight. they were not the sort OF men,
however, TO succumb quietly, and they ventilated
the facts of the case in the newspapers OF the State
and Of Boston. They prepared list OF Directors
made up of the cod board; with one representa-
tive of the Eastern and one OF the Boston and
Maine and they went to the annual me cling of
the company in the hope that they might elicit
some information iu relation to the programme
of the Eastern. In this, however, they were dis
arpointed, for, although proper questions were
- in DpIf
Eastern Directors were present with an army OF
lawyers at their back-no word Of explanation or
reply could be extorted, and even their lawyers
were silent. But the Eastern ticket was elected
BY vote of 80 900 shares against 5000, 1t being
then and there publicly stated by parties in po-
sition to know, that the Eastern Railroad Com
pauy was then the actual owner of 1900 shares
Maine Central stock.
The control thus acquired is still retained, but it
is only fair to say that thus far it has not had quite
the injurious effect thatw at first feared. Per
haps 1t Is because the Directors of the Eastern
have had their time fully occul led in keepng their
own company from shipwieck. perhaps bee Iu.c
the Maine Central Board which they elected has
not proved quite so sub eryient ana Ilab!c aa II
was expected to be. Bat whether in furious to the
Name Central or not, the operation has certainly
fastened the fall OF The Eastern.
The creditors of the Eastern Rail Dad Conn aay
would, no doubt, be glad to know what is the val
of Maine Central stock, as an asset 1t is hard TO
say what it is. 1t is worth quite as much as 1t was
before the ingenious manipulations OF the able
agents who 50 Successfully negotiated the pur-
chase and the control Of it; it is worth as much
as it ever was, perlaps half what it cost the East
ern Railroad. Il " Ill be worth great deal more
when that cooperation is forced to relax is glip
upon 1t.
Such is the ory Of the Maine Central "cap-
ture." II is hardly necessary TO poiut the moral
to it, it is too plainly obvious The stochho der,
of the Eastern Railroad have scores Of excellent
reasons for keeping it fresh and permanent in their
memories-K. II. ia Boston Journal of Cct 10.
Portland, Dc. llth, 1870
THE .NEU'AEK ELECTION
The rnn,hlic1n yrcorc in Newark in many 49,.