The Portland daily press., 1876-02-08
EASTERN RAILROAD.
Annual Meeting Of the Stock
holders.
appointment of an Investigating
Committee.

stOcKnolder5 OF the Eastern Railroad was held
this forenoon at the Meonaon. The attend
ance was very large, the Meionian Hall being
filled to its utmost capacity. Quite number
OF ladies were in attendance, and the gallery
was filled with spectators. Before the meeting
was called to order, copies OF the forty-hrst an
nual report of the corporation were distributed,
and also the following ticket: For Directors
Samuel G. Lawrence, Frank Jones, j. S. Lud-
lam, 6. s. Morrison, Onslow Stearns, James
w. johnson, Benjamin E. Bates, John Cum
mings, George w. Gill.
The meeting was called to order by President
Lawrence at five minutes past eleven, and he
read the several provisions embodied in the
call.
After the records of the last annual meeting
had been read, the chair announced that the
next business was the election of Directors,
when Mr.. Edward Crane offered two votes, ,one
providing the reference Of the annual report to
a committee of five, who shall also be empow-
cred to receive and act upon the report of the
committee appointed at the last meeting to re-
wise the bylaws; to consider and act upon the
plan for extending and securing the debts and
liabilities OF the corporation at reduced rates of
interest land providing for the management of
its affairs adopted at a meeting of the creditors
held at Boston Jan. 10Th; to see if the stock
holders will authorize the directors to issue
bonds and execute a mortgage or conveyance
of its property and franchise in trust, in order
to secure its debts and liabilities; and to apply
for such legislation as may be needful and
proper to give validity to the same; to take
such action as may be required in regard to any,
legislation pending, or enacted, at the present
session of the Legislature of Massachusetts.
The second vote provided that when the meet
ing adjourn it be to the second Wednesday of
March.
Mr. Crane supporting his resolution, said the
report of the Directors was one of the most
extraordinary ever presented in this country.
The Board elected last year ought to have been
guarantee that the affairs of the road would
be administered with integrity and fairness.
1t appeared that they had been disappointed
But the real point now is what was left and
what the corporation had to contend with. He
then referred to the property held and leased
by the corporation, aud its debt of fifteen mill
lions, and urged that if the creditors were wise
they would nurse the broken limb and let the
affairs of the road proceed without forcing it
into bankruptcy, as in that case it could not
pay twenty-five cents on the dollar. The great
bulk and mass of the bondholders were alike
innocent parties with the stockholders.
Hon. Charles Levi Woodbury. moved to
amend the vote by striking out all after the
word U0ted and inserting the following: "That
the plan for extending and securing the debts
and liabilities of the corporation at reduced
rates of interest. and providing for the manage
ment of its affairs, adopted at meeting of its
creditors held at Boston on the 18th of Janua-
ry, 1876, and now submitted to the stockhold-
pany, be referred to the directors with instruc-
tions to join in presenting it to the Legislature
for its action.
Mr.. Woodbury. said he thought the stock
holders had already made up their minds what
to do and he thought they proposed to take
some definite steps Immediately to protect
their property.
Mr.. e. James inquired where the personal
property of the Conway bonds, Eastern rail-
road shares and Maine Central stock were in
the balance sheet.
The President stated that they were pledged
as collateral, with the exception of dozen
shares of the Maine Central railroad.
Mr.. James then proceeded to say that he was
born in New Hampshire, where he was not
brought up to steal.
Mr.. James then referred to the acts of the
late President, Mr.. Woodbridge, and Mr.. Sam
uel Hooper, and severely criticised them, af-
fording much amusement to the good natured
stockholders. He argued that there was no
mortgage on the Eastern railroad, which con-
sisted of Al miles to Salisbury, and referred to
Mr.. Woodbury. as the paid counsel of the East
ern railroad of New Hampshire
Mr.. Woodbury. denied the allegation, and as
serted that he was only the counsel of the East
ern railroad.
Mr.. James then spoke of pooling Maine Cen
trail stock, and urged the stockholders to ap-
resolution, and the Supreme Court would give
them some Of their money back. The acts of
some of the ex-oficials Mr.. James branded as
worse than ever Winslow or Boss Tweed COM
mitted.
Mr.. E. P. Robinson opposed Mr. Cranes
vote and supported Mr.. Woodbury's amend
ment.
Mr.. Stillman B. Allen of Boston said they
came there to do business, and the matter was
as well understood by the stockholders as we'll
as by any committee that could be appointed.
They owed fifteen millions Of debt created by
l.oI.N e
honest men, who had nothing to do with Great
ing the debt. The creditors with one or two
exceptions, had made proposition for long
loan, the details of which he stated, and he
urged that it should be accepted. The credi-
tors represent three times the interest of the
clned the road would be put into bankruptcy
and the stock wiped out. He opposed the ap.
pointment of committee of investigation.
Mr.. Seth j. Thomas wanted to know where
the money had gone. He wanted to know if
the gentleman who managed the road had
acted iD good faith; if so, and they had made
bad investments, there is the end of it. But he
wanted to know if the gentlemen who bought
certain property for the road was interested on
both sides?
Mr.. Woodbury's amendment was put and
lost. He doubted the vote, and obtaining per-
mission to speak he referred to the plan which
had been ratified by the creditors to save the
road from founderlng and preserve the honor
of the eorporators, and advised its endorsement
by the stockh olders. The legislature was in
session, the plan had been printed, and it was
the only plan for hope and salvation that had
plan, but it was only the payment of an honest
debt. The bondholders had accepted 81 and a
per cent, instead of per cent. to which they
were entitled. Delays were hazardous, and be
urged that this plan should be accepted and
pushed.
Mr.. Woodbury. said he owned fifty shares of
the stock. If this meeting shilly -shallied, he
should go home, put cents on its eyes and bury
it; if the meeting Endorsed this plan, he should
put it in his strong box, with the belief that in
due time it would have value.
Gen. Butler speaking of the plan adopted al
the meeting of Jan. Is, said that when the
debt of the road was reduced to ten millions,
he thought the stock would have dividend
paying value of % cents on the dollar or a
prospective value of double that amount He
indorsed the present management, and said nc
investigation would touch them. In the future
an investigation could be had to see what
property should be sold, what roads were built
for what purpose, who they carried, and who
carried them. Bankruptcy was a rich field for
counsel to work in, and the General frankly
admitted there was more money in that drec-
ton for him than any other in connection with
this road. The Eastern Railroad bonds were
worth 80 cents on the dollar to day; the Bos-
ton, Hartford & Erie bonds were worth 495
cents when that corporation went into bank
ruptcy, and where was it at the present time ?
Such fate was in store for the the Eastern
road if the stockholders rejected the best and
only practicable scheme which both the counsel
and railroad experts could desire. Speaking OF
the ticket the directors presented, he said il
was not the result of log-rolling, but of desire
to protect the property of all the parties to an
equal degree. He was glad to see New
Hampshire man on the ticket, and would liked
to have seen one from Maine, for, with all res.
pect to his friends in that state, there was
where great deal of their money had gone to
He hoped the ruinous competition between
competing roads would soon be discontinued,
and in conclusion urged the stockholders to &C.
cept the only practical solution that could be
presented of the difficulties.
Mr.. e. w. James referred to the law relative
to the issue of stock and denounced the action
of Mr.. Woodbridge in such terms that he was
loudly hissed. He inquired where Mr.. Hatch
and Mr.. Lothrop had gone. He wanted the
money that had been squandered brought back
if they had to go to Rotterdam after it.
Mr.. Seth j. Thomas offered the following
amendment:
Resolved, That--be committee to in
vestgate the affairs of the Eastern Railroad
Company for the last six years past generally
to inquire in respect to all contracts and pur-
chases made by the Company, and whether
any director had any interest adverse to the
Company at the time of said purchase or be-
fore: and into the value of all lands and prop
erty of said Company, with authority to send
for persons and papers, and make report to
this corporation as soon as possible.
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