The Portland daily press., 1879-05-01
Portland & Rochester.
THE CITY TO Advertise FOR
PROPOSALS FOR ITS INTER
EST IN TAE ROAD.
Probable Competition for the Possessi ON
OF the Road.


of we'll known citizens gathered at the Mayors
Office to consider the ACCESSIBILITY OF sale of
the cty's interest in the Portland & Rochester
railroad ard, if advisable to fix a minimum
price for the same There were present ex-
Mayors j. T. McCobb, w. W. Thomas, Jacob
Mcclellan, W. L. Putnam, r. M. Richardson,
M. M. Butler, Messrs. Ezra Carter, James
Bailey, William G. Davis, Samuel Rolfe, E.
III. Daveis, Fl. M. Psyson, Frederick Fox,
Joseph Walker, W. F. Millken, Ell. N. Jose,
W. G. Twomby, W. r. Wood, Charles Nc
Carthy. City Solicitor Hale, the Committee on
Finance of the City Government, and Receiver
Wescott of the Rochester road
Mayor Walker called the meeting to order.
He stated the object of the invitations extend
ed to the gentlemen present, as given above.
He said the statements made in the Argus were
unauthorized and wrong as far as5regarded any
price offered for thef oad or any disposal of it.
He would like TO hear from the citizens pres
ent who had large interests at stake. BE call
ed upon Receiver Wescott to make state
ment
Mr.. Wescott went over the principal points
reported by the city committees of 1876 and
1879, which have been fully reported in the
sired from the citizens some estimate Of what
they think the city should ask for its interest
in the road. No committee would wish to nes
gotiate sale unsatisfactory to the people at
large, and therefore the leading citizens had
been invited to consider the question. If the
road was to remain in the Receivers hands,
Mr.. Wescott said he would have to look over
papers SO as to arrange for permanent man
CEMENT
Mr.. Mcclellan asked if any company or per-
son would like to purchase.
Mr.. Wescott said he knew of parties who
would like to form company to reorganize
the present one, but they could not take action
until the city put price on its interest.
Mr.. Mcclellan thought the citizens would
Ike an offer before they could say what price
they would take.
Mr.. Wescott said somebody must first be au-
thorized to accept an offer. If the city should
say that the committee must not take below
certain price, and they should be offered more,
then all received above that figure would be SO
much gain to the city. 1t was therefore neces.
sary they should know what the citizens coz
sidered fair price.
At the suggestion of Mayor Walker, Mr..
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the PRESS report.
Mr.. b. N. Jose asked how the condition of
the road CONF pared with two years ago.
Mr.. Wescott replied that the road bed ard
track were good; the rolling stock not so good.
The money has been spent on new stations and
taken from the rolling stock, and where so tons
| of battered rails were taken out year ago and
100 last year, now 200 tons had to. be removed.
The bridge over the Saco was paid for.
Mr.. Jose asked for the amount of the city's
interest.
Mr.. Wescott said the first mortgage amou nted
to 100000 with an additional $350000, which
latter sum. by vote of the city government,
| had been made co-equal with the 100000 own
| ed blythe city. Then there was the $450,00O
third mortgage and $406. OG0 arrears of interest
on the bonded debt and the floating debt
amounted to $4,000.
Mr.. Jose asked if there was more than one
party or set of parties who wished to purchase
the city's interest
Mr.. Wescott said be knew the per cent.
bondholders and other friends of the road de-
sired to purchase.
Mr.. Payson asked what was the prospect of
the roads earnings in the year to come.
Mr.. Wescott thought the road bad earned all
it was possible, per year, during the past two
years during which he had been receiver, and
if it was desired to continue these earnings of
$21, 900 per year the rolling stock must be in
creased. If 200 tons Of iron were put in and
$4,000 ties then the road could hold its present
earnings New engines must be added, and
also new cars as the latter we're about worn
| ont He calculated $4,000 must be put into
the road during the next two years, and if that
| amount was spent for these purposes, 10 order
| to sustain the road, out Of the earnings, then
| the road must run in debt. The local business
had fallen off 10, 900 tons in freight and 10000
passengers since 1875, but the passenger rates
had increased from 35 to 45 cents, showing that
those passengers who do travel 60 further than
before. The mileage was 5000 miles
| less in 1878 than in 1876, but in
| order to keep the present earnings up
| there must be full rolling stock. On
ose section of the road the traffic had fallen off
because now the Eastern, Ogdensburg and
Rochester were all equi-distant from it and the
competitions were even. The bridge at Spring
| vale is in bad condition. A new iron bridge
| would cost 81, 500. Mr.. Wescott said be had
| placed no value on the city's interest in the
property. The Receiver is liable for about
| 81, 900, including the Deeripg and Clapp in
| functions for rnnning over their property. The
| bridge notes have been cancelled and $500 of
rolling stock notes. The $4,000 old debts con-
sist of the company's notes to the amount of
$14 900 and the rest is approved bills The
| foating debt when the Receiver took the road
amounted to $68,947 The property stands bet
I ter today than when the Receiver took 1t and
can do business with greater safety.
In answer to a question of Mr.. Richardson
Mr. Wescott said the ability remains substan-
TALLY the same as two years ago and the road,
in fact, just holds its own the earnings of the
road IN this time having been applied to re-.
duce the floating debt.
Mr.. James Bailey moved the city committee
be authorized to sell the road for q price not
| less than $200, 900, and was seconded by Mr.. W.
G. Davis. (The City Council is empowered to
| sell by act of the Legislature.)
Mr.. Davis asked what amount was in the
sinking fund, and Mr.. Wescott replied $751;.
900.
| Mr.. M. NJ Butler said he had formed no es-
innate of the value Of the road. The fact is the
| way to estimate the value of railroads has
| changed. Both the Rochester and Ogdensburg
were built with the expectations of through
travel and business, and that was expected to
| be paying Now railroad men believe that the
| way business is what pays. Another fact to
be considered is that when both these roads
were constructed they cost more by half than
what they would have cost if bHilt today.
Having then the idea that both roads would
be prosperous mortgages could be negotiated.
The speculations have turned out disastrously
If the road had cost but half what it would
| cost now its present business would have prov
| ed profitable. He thought the last two years
it had been managed as economically as posi-.
BILE, consistent with safety, but its present
business shows it must run in debt to be kept
up to the standard. The city's bonds must be
paid, and although it looks large loss to sell
for 100000 we must look the matter 10 the
face, and remember if the road is worth 5000 600
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