The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1878-12-31
PORTLAND 4 oGDENsB URIC.
mont Divisions Petition for Authority
to Raise S50e,O0O.

In yesterdays edition we published brief
telegram in reference to the hearing at st.
Johnsbury, VT, Friday, in the suit of Luke P.
Poland, trustee, ETC., vs.. Lamoile Valley,
Montpelier and st. Johnsbury and Essex Coun-
ty railroads, otherwise known as q whole as the
Vermont division of the Portland & Ogdens-
burg railroad.
The hearing is on the petition of the recev-
ers of the road, A. B. Jewett aed Albert Hast
ings, which sets forth in substance as follows:
Receivers were appointed October IS, 1877
Net income OF the road since then till Novem-
Der 1, 1878, has been about $4,000. When
they took it, much of the road was in very i'm
perfect shape. The road owned no station
houses between johnson and Swanton That
the road from Hyde Park to West Concord, a
distance of fifty-nine miles, had been built and
operated from five to seven years, and the ties
are in such condition of decay that the eco
nomical management of the road and the in
terest of the public require that they should be
replaced with new ties. That there are about 80
structures of pile and trestle work, erected in
the construction of the road some six or eight
years ago, for the temporary purpose of avoid
ing the expense OF culverts and heavy fills,
and it costs much to keep them in repair in or
der to reader them comparatively safe, and the
economical management of the road and q
just and wise regard to public interest require
that permanent culverts and embankments
should be Immediately constructed. That
That there needs to be an increase
of sidings at Maquam Bay in Swanton.
That at st. Johnsbury there is no station or
lands on which to erect one, and they are COM
PEELED to pay the Passumpsic Railroad exorb:-
tant rents for very inadequate facilities. At
the time the road was put into their hands there
were but locomotives, passenger cars and Sc
freight cars. The engines were old and worn,
and have required considerable expenditure to
keep them in repair. They have been compell-
ed to purchase two locomotives and two passen-
ger cars, and there is nesded more locomo-
addition. The road requires additional ballast
ing. There is imperative need of five miles of
new iron, and the re-rollin9 OF ten miles of the
iron now in use. In making the purchase of
the engines and cars, and repairing and ina.
proving the road, the receivers have expended
all said earnings, and in addition have incurred
a debt of about $4,000. The following is an
estimate of the needed improvements: Mason
~ and earthwork to supply trestle work, $685.
re-roliing iron. $4,000; fencing $4,000; ties
$4,000; 100 box cars, $1,000; so flat cars, $780,
900; 8 passenger cars, $150,000; 3 locomotives,
$4,000; increased wharfage, station houses, en-
CINE houses, car houses, workshops and land on
which to build them, S47, 900.
They further set forth that the railroad is in
debted to various persons for services rendered
bankruptcies furnished before the road came
into the hands of the receivers, and that they
have an equitable lien on the road and it's per-
sonal property. The receivers pray the court
to order and direct that 100000 may be raised
and obtained by them in such manner, for such
time and rate of interest, and under such pro-
visions as to the securing and paying the same
as shall to the Court seem meet. The oppon-
ents to the granting of the petition are the
bondholders of the road, who object to raising
any more money on the credit of the road and
lessening their security. The bondholders are
of three different classes. First, the holders of
bonds to the amount of about 81, 100000, who
afterward agreed that what was called the
preference bonds" might take the preference
of theirs to the amount of 100000. Second,
the holders Of these preference bonds, and
third, the holders of about 900 of the first
mortgaged bonds, who refused to give place to
the preference bonds" So that the bonded
lated interests. From the statement in the pc
tition it would appear that not only is the road
not paying any interest on these bonds, but il
is becoming NOR. indebted.
Saturday, negotiations heretofore referred to
of all the bondholders had so far progressed
that they appeared in court by their solicitors,
the Hon. e. J. Phelps of Burlington, Guy @.
Boston, and applied for continuance Of fur
ther hearing till the details of the plan which
Is under consideration be completed. The sp-
plicati0n for continuance was opposed by the
attorneys of the receivers. The court said he
would not put nything ia the way Of an ami
cable arrangement, and t there was this pros
pect of a settlement, taking into account the
grant the continuance He said he should
continue the hearing until January 30. when he
hoped that he could obtain one other of the
bench to sit with him.