The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1879-07-08

shall be done with the understanding that the
purchaser shall acknowledge the rights of the
seven per cent bondholderS and pay to them an
amount equal to the percentage the city receives
for its loan of seven hundred thousand dollars
to said company, provided said bondholders
demand said percentage within four months
from the date of said sale by the city, of said
purchaser
L. ID. NJ. Sweat, Thos. O. Gould
r. o. Conant Chas ,Jordan
IL. M. Payson, Francis X. Swan,
Chas M. Gore VIM. r. Wood
Mt Vernon r. A. Chapter, JOS Walker
j. w. Waterhouse James Bailey,
Geo. L. Hiuchings John P Perley
S. j. Newhall f.. c, Soule
Mr.. Fox said he had been asked to speak a
word in behalf of the per cent. bondholders.
The facts as set forth in the petition, they be-
heve to be true. 1t was represented by Messrs.
Payson and Swan, the purchasers, that these
bonds were put into the market on the good
faith of the city. The purchasers understood
they bought, standing on the same footing in
regard to these bonds, as the city Their
money was used in the construction Of the
road. We claim that when you sell the city's
interest in the road tomorrow you iniure the
claims of the per cent bondholders, unless
the sale is made subject to their rights If
the sale is made subject to their claims then if
there is litigation then these bondholders can
say that the city at the time Of the sale recog-
nized their rights and the purchase must be
subject to those rights. If it isn't legal
right, it is a moral right we ask for and it was
on the understanding that the per cent. bond
holders were to be co-equal and concurrent
with the city's first mortgage that they bought
these bonds. We have rights, we believe, that
were intended to be protected by the CITY, Mr.
Fox then quoted from the laws of Maine, 1871,
chapter 569, and 1872, chapter $50, section 16,
to show what action had been taken in the
legislature in their favor l believe, he said,
if you insert the clause L ask for the city will
be fully protected and cannot suffer loss. 1
believe this clause will not affect the sale of
the road land am prepared to start the auction
with bid of $20S,000. would vote for the
passage of the order if L was member of the
City Council. He then read the following
order:
CRY OF PORTLAND,
In Board of Mayor and Aldermen,
Portland, July7, 1879.
Whereas the city has directed sale of all
its interest in the Portland & Rochester Rail-
road, on the eighth day of July, A. D., 1879,
to the highest bidder, it is
Ordered, That such sale transfer and assign
ment to be subject to the contract and agree
ment OF the city made and executed on the
twelfth day OF October, A. d.. 1870, in pur-
suance of the vote and order approved ON the
~.
contract sis recorded in the Cumberland
Registry OF Deeds, book 3S1, page 347 whereby
the said city contracted and agreed to admit to
equal security with the city, bonds to the
amount OF $3.50, 900 to be negotiated for a loan
to be expended in completing said railroad,
and upon the faith of which contract the
bonds known as seven per cent bonds to said
amount were negotiated and are outstanding
The said purchaser by accepting such sale,
assignment and transfer covenanting well and
truly to carry out and perform the said con-
tract and agreement of the city according to
its true interest and spirit, and to ratify and
cenilrm the same as fully and completely as If
full legislative authority to make and enter
into the same contract had been gIanted said
City Council, and that at the public sale these
requirements be fully and explicitly stated
before any bids are received and that they be
embodied in any transfer or conveyances of the
clty's interest; provided an offer is made by
Frederick Fox of two hundred and eight
thousand dollars for the interests of said CITY,
Mr.. Putnam said an offer was presented a
the last meeting of $201 600 for the road. This
offer is in accordance with the terms of the
order passed at that meeting. If the sale of
the road is not made in accordance with the
terms of that order the party making the offer
will not consider himself bound to abide by it,
Mr.. Fox says the last law-that of 1S72-rati-
ties the action of the former City Council.
Then there is no necessity of interfering with
the law already passed. If the bondholders
have no legal rights and only come here on
claim of equity, honor, and charity, then the
matter does not stop with the Portland &
Rochester railroad. When I was made di-
rector of the Ogdensburg road 1 put in my
time and money at the request of the city to
finish the road and my fellow directors did the
same. They are owed today $240,0OO, all of
which they carry today for the good of the city
and in the spirit of enterprise. Now if there
is any thing in equity and honor that requires
the city to go beyond its legal obligations then
let the directors of this road come in and get
their share of the money that is to be paid 1
wish to say here the paper passed at the last
meeting did not reflect on the Receiver of the
Portland & Rochester road and was not in
tended to reflect on him in any way.
Mr.. Chaplin asked if tbs was parallel case.
If the city had ever passed like vote to that
voted in regard to these bondholders
Mr.. Putnam said he did not call it a parallel
case, the Ogdensburg is a stronger case, but
when you talk about honor, and equity, and
theories let all share alike. Whoever buys this
road must do justice,I think, to all bondholders.
-'Ai' l. Va oeeAN eiiO POOpiO hO ICplCoOuOOd
didn't come there begging for their money
back. Their money had been put into the
road
Mr.. Taylor asked if any of the money had
been spent in buying votes.
Mr.. Wescott said the condition Mr.. Fox off
cred was identical with the one which was the
tail to the original order. If passed it will
place the bondholders who hold one-third in
terest in better position if they were COM
PEELED to litigate. The City Council is bound
in honor to protect all, and to get as much as
possible out of the road.
Mr.. Putnam said that if the amendment of
Mr.. Fox was passed one bidder was out of the
contest for the road, and therefore if there was
any value in competitive bidding the city
would lose. If twas not passed then, if Mr..
Fox was the successful bidder, he could tack
on any amendments he liked to the sale which
should bind him, or those he represented, as
closely as he liked.
Mr.. Fox said he could not speak for all the
seven per cent. bondholders.
The convention then adjourned and long
discussion followed in the Board of Aldermen,
and finally, as the opinion seemed to prevail
there that the city was simply in selling, put
ting the purchaser of the road in the same po-
sition the city occupied without affecting any
body's interest, that Board voted to indefin-
itely postpone the sale of the road to 3, the
Mayor voting.
In the lower Board an order to postpone the
sale of the road one week was laid on the table,
so that the sale will come off today as adver-
tised.
IN BOARD OF ALDERMEN.
On motion of Alderman Andrews the
Mayors veto on the order authorizing the
committee on streets, &C., to pave Cross street
and part of Fore and York streets was taken
from the table, and vote taken to see if the
board would pass the order over the veto.
But the requisite two-thirds of the entire board
were not obtained and the veto is still in pow