The Portland daily press., 1877-08-25
Portland Il Ogdensburs Railroad.

$4,000 on the 100000 first mortgage, asking
that three receivers be appointed to take charge
and control of said road, and that the earnings
of that portion of the road covered by theiI
mortgage be applied to repairs necessary on the
road and interest on their bonds, in fact to cut
the road in two, making two roads of the same
and thus doubling the present cost of manage
ment as result, leaves to the municipal au-
thorities the three following methods of
protecting the cty's interest, one of which
they must accept:
The first method which claims our attention
is to abandon the road to its fate, and let the
capitalists gobble up this valuable property,
built from the hard earnings of the people of
Portland, who believed in the utility of the
road, had faith in the investments, and the
most unlimited confidence in the management,
as will be seen by their stock subscriptions,
purchase of second mortgage bonds, and their
giving unbounded credit to the road for sup
plies and materials and more than all this. in
their voting to grant city aid in the issue of
bonds, resulting in greatly increased taxation.
The act of abandonment would be the result of
the conclusion, after mature consideration and
reflection, that the city's interest would not be
promoted by any further aid to the road, that
So 100000, was conceived in folly, and was
disgrace to the financial ability of the best
merchants and capitalists of Portland.
The second method which presents itself for
our consideration, and the action of the city
government in protecting the city's in terest. is
to offer at public or private sale the interest
held by the city. But is this feasible? think
not, as the stock even of railroads earning and
paying dividends cannot with the prejudice
against this class of securities. be sold for much
more than half their intrinsic value. What
then would the Portland & Ogdensburg Rail-
road sell for, when it is not completed and the
enterprise is not fully developed, and its pro-
fessed friends are pressing it into bankruptcy?
1t must be evident to all interested that nothing
could be realized from an effort to sell now.
The third method or course open to the city
government to pursue, in protecting the city s
interest in the road. We will now notice, and
that is to afford the road material and substan-
tal aid, by paying the defaulted interest due on
the first mortgage bonds. But the objection
will be made that the city debt cannot be IN
creased, that the limit of five per cent. on city
valuation has been passed. WHAT, not increase
the city debt to protect city property? Sup
pose the Almshouse or City Hall should burn
up, would any object to an increase of the city
debt in repairing these buildings? Certainly
not. The objection would then be made that
the Portland & Ogdensbu-g Railroad is not
city property. 1t is as much city property as
anything Portland owns. Not one spade of
earth could ever have been moved, or one rod
built without city aid. But the most impor-
tant and all absorbing question for the nun ici-
pal authorities to consider is whether the in
terest of Portland would be promoted in grant
ing the road further aid. Undoubtedly this
question con be demonstrated in the affirmative
to the judgment of every reasonable man.
First, then, by affording immediate aid the
road would not pass into the hands of the re-
ceivers and an unnecessary expense OF some
$4,000 mar ypOrld hn Uad hr NOT fob
the road out Of the control of the present man
agement, which could be applied to pay the in
terest on the bonds.
Second, it would forever save to the city of
Portland the control of the road, a great enter
prise, which the energy and financial ability of
Portland has pushed forward to consumma-
ton, and which promises unmeasured benefit to
the commerce and trade of the city, and sho uld
not 60 into the hands of strangers.
Third, it will be asked, what reasons and ar
interest of Portland would be promoted by ex-
Treating the road from its embarrassments?
To this question we will now reply:
First the road cost to the Bartlett line 1874. 600
mile for sixty-two miles, total of about
So, 100, 900; certainly not high cost consider
ordinary times an Investment which would be
considered good with the prospective business
of the road, which promises far better than any
road ever built in this State, or even in New
England, when first opened. But we will re-
duce the present value of the road to S25, 600
per mile, a total of $1,550,OOO, leaving $75O,OOO
above the first mortgage bonds. Who will say
that it is not for POrtlands interest to rescue the
road, thereby saving $750,000. or that it is not
prospectively worth more than ST. 800, 900. Un-
doubtedly it will pay on that valuation its run.
ming expenses and six per cent. But we will
reduce the present valuation to that made by
the ''First Mortgage Bondholdel'' in his letter
of May 22d, VIZ, shat the sxty-two miles
from Portland to Bartlett line is worth 500, 900
per mile, aggregating $1,240,OOO, and that
when connections are made it will pay interest
on the bonds" Accepting this proposition as
correct, does it not surely indicate that Port
lands interest lies in promptly relieving the
road, thereby saving the city $40, 900. But let
us reduce the present value Of the road to
Bartlett line to $S00,0O0 the amount of the
f flrst mortgage, soont $4,000 per mile, and
then it would be for the interest of Portland to
pay the interest on and fiually redeem the
bonds, and for the following reasons:
The first one for our consideration is the fact
that when the road is completely opened for
business it will undoubtedly earn sufficient to
mortgage bonds, and leave a large surplus to
create sinking fund for the extinction of this
railroad debt
Second. the rate of interest in this country
must decline to four or five per cent as wealth
and capital increase. All this railroad debt
oooAu Uo iuuucu tuudy dL lUur 10 i've and malt
per cent on fifty years with the present credit
OF the city, provided the present issue of bonds
in aid of the road could be exchanged.
The third and most important reason why
Portland should rescue the road is to control it
for P0rtland's benefit.
The road by going out of Portland ownership
must inevitably fall into the hands of Boston
capitalists, who are too shrewd not to see the
great advantages of the road through the Notch
The entire road for Portlapd's benefit should
be under one management, the controlling voice
in which should be in the interest of Portland
Otherwise, the road passing out of Portland
control, rates of freight will always be discrim-
mated in favor of Boston and against Portland
Are the people of Por tland aware that thew
hold, opened by their enterprise through the
Notch, the gateway to the Western inter-
nal commerce of the country? Whoever
holds that point can dictate their own terms
for business over the road. The Hoosac tunnel
cost Massachusetts, $14. 100000. Would that
state let the control of the tunnel 90 for twice
that sum? think not. Is not the road through
the Notch OF far more value to Portland and
Maine? When the Caughnawaga canal has
been built, which is sure to be done, then the
entire West will be in close connection with
Portland. Millions of NIL les of the territory of
our great country will then find an outlet for
their productions over the Portland & Ogdens-
burg, the shortest road from the great lakes to
the ocean. For all time no competing road can
be built to run against the Portland & Oedens-
burg Twenty-Five years hence this will be one
of the great roads of the county, connecting
the West with the East, and Portland. with its
unrivalled harhor, will be the entrepot for ex-
ports and imports that will astonish the most
sanguiue friends, and the commerce of the CITY
will extend to every sea, and the white sails Of
her merchantmen be fl led by every breeze.
And yet today, there are men in this city who
would let this grand enterprise slip into other
hands to save paying the interest on the first
mortgage bonds which the road now earns, and
the payment of which would only be Temporal
ry and would soon be returned to the city treas
ury.
Let the people be called together to vote on
this question of being taxed to pay the interest
on the first mortgage bonds if it cannot be 9TH
erwise done. The vote would be nearly unani-
nous. The opposition would be from two parties
of small influence; first, the croaker, who was
never known to lift his finger to advance any
public enterprise whatever and who, since his
first progentors, in the days Of Noah, when he
was building the ark, have Cooked on and
Knocked"
lAl would not confound this class of men with
the cautious, prudent, careful, conservative
man, VINO when any measure, public or private
Is presented before him for his consideration
examines 1t thoroughly, and either accepts OF
| rejects it, according to his best Judgment. II
1t be matter of private interest. he looks care
fully to see ii it is honorable, feasible. can be
carried forward to a successful Issue. and want,
to be assured that 1t will give him fair retnrr
| ON the iDVastmaDt IF the nropoe;t;o- r