The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1877-08-24
PORTLAND & oeDENsBURG.
Hearing for the Appointment of Receivers

The trustees of the first mortgage bond hold
ers of the Portland & Csdensburg railroad,
having brought bill in equity for the fore
closure OF their mortgage, asked at their pre-
hmlnary meeting yesterday morning that re-
celVers be appointed pendente lite. The hearing
was had before Judge Libbey Of Augusta, in
the Supreme Court room at 10 a. m. Hon.
Nathan Webb appeared for the trustees; Hon.
Henry B. Cleaves, city solicitor, interviewed in
behalf of the city of Portland, and Hon. W,
W. Thomas, Jr., appeared as counsel for the
Portland & Ogdensburg Railroad Company.
Geo. e. B. jackson, Esq. appeared in behalf
OF the Portland Rolling Mills, and Samuel
Rolfe, Esq. in behalf of the Maine Savings
Bank, a holder of these bonds
The case was opened by Hon. Nathan Webb.
Plaintiffs alleged that the road was insolvent,
and out of repair, and that large expenditures
were Immediately required to put it in safe ard
proper condition, which the railroad company
are unable to make The counsel for complain
ants introduced his evidence bearing upon the
material allegations of the bill, both orally and
By affidavit. The counsel proved the failures
of the road to pay its first mortgage coupons,
calling as witnesses the President of the road,
Hon. S. j. Anderson; the treasurer, Mr.. j. W.
Dana, and the general passenger agent, Mr.. C.
W. Foye.
He also contendsd that while there was 10
Encouragement of the affairs of the road,
there had not been strict application of it's
funds. That the earnings of the road covered
by the first mortgage bonds were not applied
to the payment of interest on the bonds. That
the company was without credit and could not
conduct its business with advantage to itself or
to the first mortgage bondholders. That the
bondholders had 10 remedy except through
court of equity, as part of the line of the
road was in New Hampshire and was not sub
ject to the laws of Maine. This being the
case the trustees could not proceed in such a
manner as to protect the rights of the first
mortgage bondholders.
Judge Lbbey asked Mr.. Webb if the bill set
forth any mismanagemept on the part of the
officers of the road.
Mr.. Webb said no.
Judge Libbey said the matter appeared TO be
a ques ton of legal right between the parties,
and if there was no charge against those in
present possession of the road, one member of
the court would hardly be disposed, in the ex-
ercise of discretionary power, to GUST the
corporation from the management Of its own
road.
Mr.. Webb stated that there were other allie
cations in the BILL which should have as great
a weight with the judge as charge of mis-
management, and the hearing went on.
NJ for tI,a olo;,
ed that the bill could not be maintained as the
petitioners had full remedy at law. While
admitting the default of the railroad to meet
its first mortgage coupons, he yet claimed that
the road is being safely, economically and judi
ciously managed; that it has been placed in
good state of repair; that no accident to life,
limb or property has occurred on the road; that
trains are run regularly ard at cool rate of
speed; that there is constant increase in tie
earnings of the road. that the road is now able
to pay its current expenses, repairs and the in
terest on its first mortgage bonds; and that the
interest of all concerned will be best subserved
by denying the prayer for receivers and con-
tinuing the road under its present MANAGE
ment, which is controlled by the city of Port
land.
City Solicitor Fl. B. Cleaves. ESQ., commended
that in no case Of mortgage could receiver
be appointed if it is shown that the proceeds of
the mortgaged property will bring enough
money to pay the debt, interest and costs, and
authorities were cited to support the statement
He also claimed that the appointment of re-
ceiyer was always severe remedy, dspriving
the defendant of the possession of his proper
ty, and should never be adopted unless plaintiff
would otherwise be in danger of suffering ire
parable loss Authorities were also cited in
support of this statement
Mr.. Rolfe, President of the Maine Savings
Bank, was called by the defense, and testified
that the bank held $685. 900 worth of the bonds
and was opposed to the appointment of re-
ceiver.
Mr.. John E. Donnell testified that he had
$1,000 worth, and was also opposed.
The records of the city council were read, OPP
posing the appointment of receivers.
This closed the arguments and testimony on
both sides, and Judge Libbey withheld his de-
cisop.