The Portland daily press., 1875-03-11
PORTLAND AND MONTREAL.
A Conference of the Portland 81 Ogdens
barg Stockholders with the Beard of
Hearing. @

| montpelier ana SG. JOnnSDufy halIfodu CuH-
| pauy the Lamolle Valley Railroad Company
| and the Lamoille Valley junction Railroad
| Company, or any of them. in the execution and
| issue of JOINT mortgage for the purpose OF Sc
| curing the bonds aforesaid subject TO such de-
| tails as the Stockholders may fix to determine
| whether this company will authorize its Presi-
| dent to sign and execute in its behalf the said
| Joint bonds and mortgage.
| Also to determine whether this company will
| auth rize its Board OF Directors to consolidate
| the management of this corporation with the
| aforesaid corporations or any OF them, ana Will
| authorize its Board of Directors to perform all
| acts and things necessary for properly carrying
| out the aforesaid provisions.
Mayor Richardson and several of the Alder
men, CITY Solicitor Reed and ex-GOv. Hendee
| of the Vermont Division of the road were pres
ent. The meeting was called to order by the
| President, Gen. Anderson, who stated the OBJ
iect of the meeting and read the call published
above After making statement as to the
| financial condition of the road, President An
derson proceeded to state the reason why the
| consolidation was asked for. He said that for
some time past the agent of the road in Lon
don, Mr. Swan, has been endeavoring to dis
pose of the bonds of the road, but found it
| difficult work for the reason that the road was
| not under one management. If the holders of
| the bonds were obliged to foreclose they would
only hold part of the road, whereas if the
road was under one management these bonds
would be more fully secured. Mr.. Swan met
| the directors of the road in Boston last Septem-
! Der and expressed the opinion that if the road
could be consolidated the bonds could be dis
posed of at once. The directors in Vermont at
once accepted the proposition. We at this erd
had to wait for the act of the Legislature, and,
therefore, this was the first day we could act
here. This joint mortgage bond will simply
have the effect to make stronger the bonds al
ready in existence by furnishing the fuhds to
finish and equip the road. Each end of the
road will be responsible for the joint bond, the
difference to single corporations being that they
, pay interest coupons of the entire read instead
of single link. The advantage to stockhold-
ers will be the whole road finished to Montreal
and Swanton, through business, and addition
al receipts to take care of addional RESPONSE
| bilities This joint mortgage will raise $S,O00,-
d, 600, of which S. 600 will be reserved in the
trustees hands to take care of the entire in
debtedness. The balance of this sum will be
used in completing the road through to Mon
treal and equiping it. The Montreal and Cham
bly, railroad coming across the river R'chilieu
| at Chambly, is built and running. Then, COM
! ing this way, the work is done to the Vermont
line, SO miles. That road is leased conditional
| ly to the Vermont division of our line. If this
Joint bond is obtained the road to Montreal will
| be built under Maine and Vermont manage
| ment. The proposition is to see if the stock
holders will authorize this corporation to make
a contract for consolidation management be-
- Hap ;ra
| taking the Canada part of the through line by
| lease. The following are the resolutions SUBJ
| mitted:
| Resolued, That the Directors of the Portland
| & OgdenSburg Railroad Company are thereby
| authorized ON behalf of said company to join
| with the Essex County Railroad Company, the
| Lamoille Valley Junction Railroad Company,
| the Lamoille Valley Railroad Company, the
Montpelier and st. JOhnsbury Railroad Com
| pany Of Vermont, and the Montreal, Chambly
| and Sorel Railway Company of Canada, or
| with either or any of said companies in the
| issue of joint bonds of said companies joining
| as aforesaid, secured by joint mortgage OF the
| franchise, roads and property of said companies
| joining in such mortgage, and also to agree
upon the terms and amount of such bonds and
mortgage so as to be issued and executed not
exceeding $40, 900 to each mile of road covered
| thereby, and said Directors are hereby further
authorized on behalf OF said company to agree
upon and execute contract or contracts for
the consolidation of the management and Ope-
| ration of aay or all of the roads of the compa-
MES aforesaid
Resolyed, That Samuel j. Anderson Presi-
| dent of the Portland and OgdensbUrg Railroad
Company, is hereby authorized to sign said
| bonds and mortgage, and said contract or con-
| tracts for tie consolidation of the management
and operation of the roads of said company,
| and to do and perform any other act or ac;s
necessary to give full effect and force to said
bonds, mortgage, and contract or contracts.
Resolued, That the Directors of the Portland
and Osdensburg Railroad Company are hereby
authorized aud empowered on the part of said
company, to take up, purchase and cancel the
mortgage bonds heretofore authorized and
issued by said Portland and Ogdensburg Rail
road Company dated respectively November
LIST, 1870, and November 1st 1871, or any part
| thereof, on such terms as said company and
| the parties holding the same may agree upon,
or said Directors may, on the part of said Port
! land and Dgdensbnrg Railroad Company, ex-
| change for said mortgage bonds of dates OF
| November 1st 1870, and November 1st 1871, or
| any part Thereof, the new joint bonds, this day
| authorized to be issued, on such terms as may
| be mutually agreed upon by the parties issuing
| said new bonds and the holders of said mort
| gage bonds of November LIST, 1870 AID 1871,
| and when said bonds are all taken up. pur-
| chased or exchanged as aforesaid, said Direct
| ors shall, on the part of this company, call
| upon the Trustees to discharge and cancel said
mortgages of November LIST, 1870 and 1871, in
| full
| Provided that no such contract shall be
made by the Directors, except upon the con-
| dition that 1T shall be expressly agreed therein
| that the majority of the managers of any such
| consolidated line shall be chosen by the
| Directors from the Board of Directors of this
| corporation.
| Provided, also, that it shall be agreed upon
| that the city of Portland shall not be called
| upon for the balance of the bonds voted by the
voters of said city, beyond the 81 $50 900 issued
| and to be issued. in accordance with the agree
| ment of the Directors.
1t was explained that four of the different
| links spoken. of in the call comprised the Yer
mont division of the road, and that con solidat-
| ed management is simply management for the
| transaction of business, and paying debts, and
the returning of the surplus profits to the
several roads, as stockholders, pro rata.
| At the close of Gen. Anderson's remarks he
| called upon Ex-Governor Hendee of Vermont
| to explain the matter as it is understood in
| Vermont. He first showed the different links
| of the road, and the parts which were COM
pleted on large map. He explained the need
of consolidation in substantially the same
| terms as used by Gen. Anderson. He ex-
planned the line from Portland to Montreal,
| and showed that the important link of the
Montreal and Chambly would be endangered if
| this joint mortgage was not executed The
| mortgage bonds in existence on that road will
be turned over to the Vermont division and
placed as collateral in the hands of the Euro
| pean bankers taking the joint mortgage of the
| whole line. The lease of the Montreal and
Chambly will run for 500 years. Thus con-
solidated line will be secured to Montreal from
Portland, % miles less in length than the
| Grand Trunk, with an expense. one-fourth less
under joint management than if four separate
| boards of management must be paid. e
Portland will have the entire control of the
whole line, and if there are mine directors,
| Portland will have five of them. If the road
is important to Portland as far as the Connect
cut river, it il doubly so to have the road
built through to Montreal. The buiding of the
Vermont road was stopped by the panic, but
in Maine the city is behind the road, and they
| are enabled to go on
Portland will gain two advantages by this
mortgage, viz: entire control of the line, and
certainty os another Montreal connection, both
of the greatest Importance to the city. Also
| 1offar tba iron forr rho ad On