The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1879-06-24

AL the special meeting OF the city govern
ment held last evening to consider the sale of
the city's interest in the Rochester road, it
was decided to sell the property at public auc-
ton, as will be seen from the detailed report
When the Council first met Mr.. Fisk intro
duced the following communications:
PORTLAND, June %, 1879.
To The City Council Of Portland:
The undersigned offer two hundred and
seven thousand five hundred dollars for all the
Guys interest in the Portland & Rochester
Railroad and its securities bonds Stocks mort
cages and obligations, including all interests
IL may acquire by payment of bonds and cou-
pons issued in aid of said railroad and exclud-
ing the sinking fund, payable twenty thousand
upon notice of acceptance of the bid; and the
balance within sixty days, or at the option of
the city in ten semi-annual payments with in
terest Semi-annually at six per cent, and salts
WOODBURY. & MoULroN.
PORTLAND, June %, A. D. 1879.
10 Ne Guy G0UeTRnlent of Portland.
The undersigned who ON the 10Th day of
June, a. d. 1879, made bid for the city's in
1efest IN the Portland & Rochester Railroad,
hereby protests against the acceptance of the
bid made Tor the same by the Hon. George p
| Wescott, the Receiver, because:
lst While upon an open bidding, parties
bidding against the Receiver would perhaps
not be under any disadvantage, as they would
learn from his bids the valuation of the proper
| ty; yet, when the bidding is not open, # is
very evident that if the Receiver of the rail-
road, including all the City's interest therein
may bid secretly, he has the advantage arising
from his knowledge of the value of the proper
| ty acquired in his official position.
IND. As purchas 5r it is for the interest of
tne receiver to obtain the property at the low
| est possible price; while as Receiver it was his
| duty to protect all interests Therefore the
| CITY should not accept closed bid from him
| by the same rule by which it would refuse a
bid from the Mayor, it being the duty of each
on1clal to refrain from purchasing, and to aid
in selling at the highest price.
3rd. We were and are DESTROYS of purchas
ing, and are willing to pay fair price Our
| knowledge of the value OF the property was of
| course very largely derived from the Receivers
| Reports, and the Report of the Committee Of
| the City Council based on the Receivers Re-
| ports. While we do not question the personal
| integrity OF the Receiver, yet we are compelled
| to state that the Receivers bid of $175 600
| shows clearly that the real valuation of the
| property is higher than would be naturally in
| ferred from his official reports even though
such differences were not intended by him.
| We, and every other person bidding for this
| property, were of course considerably intlu-
enced by knowledge of the value which the
| Receiver puts upon it and therefore it is clear
| that the bidding against the Receiver, was un-
der such disadvantage that it should be re-
| opened.
We charge no bad faith on the part of any
! one, but we put our protest upon the principle
| of the following remarks of the New York
| Court of Appeals, viz: 1t is hardly possible
to state the rule of equity too broadly or too
| strongly. 1t will not permit q trustee to sub
iect himself to the temptation which arises out
| OF the conflict between the interest of pur-
chaser and the duty of a trustee. 1t was
Miller's duty as Receiver, to make the proper
ty bring the largest possible price, but as pur-
chaser this was not his interest. The rule is
entirely independent Of the question whether
in point of fact any fraud had interviewed. 1t
| is to avoid the necessity of any such inquiry,
| in which justice might be banked, that the
! rule takes 50 general form. After the purchase
by Miller, it follows that his cestuis que trust
had the right either to demand a resale of the
| property or to adopt his purchase as made for
their benefit, subject of course, in the latter
case, to his lien for advances We are ad-
| vised by counsel, that the relations of the
Receiver to the city are such that even had the
| sale to him been completed, the city would
have the legal right within a reasonable time
to set it aside, upon showing that it had not
| received a fair and full price.
We therefore protest. that the bid of the
Receiver should be rejected; or that the sale
should be reopened according to the right
expressly reserved by the city in its advertise
ment, and that all parties should be allowed to
bid anew, in the light of the knowledge of the
value of the property, derived from the
Receivers present estimate thereof. we are
willing to bid against the Receiver and all
others for the citys interest, at an open public
sale, which we will start with the following
| proposition; or at the option of the CITY, we
! offer it as an independent proposition namely:
The undersigned Wilt pay for the interests
of the city of Portland, in accordance with the
the advertisement of the Finance Committee
for sale of the cty's interest in the Portland 81
Rochester Railroad and it's securities, two
hundred one thousand five hundred (S2015OW
dollars, cash within ninety 900 days, it being
understood that the advertisement embraces
all rights and interests, except the sinking
f1,N1 ,fal. t1,A o.4r
acquire by past or future payment of any bonds
or coupons issued in aid of the Portland &
Rochester Railroad Company. And if the
city desires it, we will give the city an agree
m "a Mlth Il sa a. spFstss in form t.
against all claims of the so-called seven "a per
cent bondholders, to any portion of the
amount which we 50 agree to pay, or against
the city by reason of said sale to us arising out
of the contract dated October II, A. D. 1870
recorded in Cumberland Registry of Deeds,
book 3S1, page 347.
(Signed WILLIAM g. DAVIS
They were referred to the Committee on Fl
nance.
The order Of last week authorizing the ac-
ceptance of Mr.. Wescott's bid was amended in
the Common Council so that its purport was to
reject all bids previously made.
AT the request of the Board of Aldermen the
following committee, of conference was APP
pointed to consider the railroad matter, viz:
| Aldermen Small, Andrews and Waite; and
| Councilmen Fisk, Hall, Fitzgerald, Melaugh
| and IeWkSbury. After long consideration the
| committee through Chairman Small reported
the following order and recommended its pas
| sage:
Ordered, That the. Committee on Finance be
| directed to sell at public auction, and the CITY
Treasurer be directed to convey to the highest
bidder, by such instrument as the City Solicit
or may approve, the right, title and interest of
| the city of Portland in and to the Portland &
| Rochester Railroad and its appurtenances and in
and to all bonds, stocks, obligations and mort
| cages given by the Portland & Rochester Rail-
| road Company, including all rights, titles and
interests which said city has acquired or may
hereafter acquire, by payment of any bonds or
| coupons issued in aid of said company exclud-
! ing, however, from such sale all sinking funds
| and all rights in and to sinking funds, and said
| sale to be limited to the rights, titles and in
terests of the city, and to be without recourse
| or warranty express or implied.
That said auction take place within two
weeks from the approval of this order, at such
| time and place and upon such notice as the
| Committee on Finance may direct, but not less
than six insertions in each daily paper in this
| city; that Hon. George P. Wescott the Re
ceiver, be allowed to purchase at said sale as
| though not Receivers that no bid be received
less than two hundred thousand (S200,000) dol
| lars, payable twenty-five thousand S25 ,000)
| dollars at the sale, and the balance at the op-
|
| with interest semi-annually at six per cent. per
annum, satisfactorily secured.
The Common Council amended this order
when presented to them by the addition of the
| following:
That the purchaser shall give bond to be
approved by the City Solicitor to protect the
city from all claims by the so-called seven per
cent. bondholders and any litigation that might
| arise out of the contract dated October II,
| 1870, recorded in the Cumberland Registry of
| Deeds, book .S1, mage BAT
This order as amended passed both boards,
both having so amended the order presented
last week as to reject the bids previously made.
Orders PaSsed-To pay S. S. Merrill $50 for
a lost coupon to pay Miss Patrick 800 for ser
vices at the station.
Petitions RetesTed-Of G. P. Mattocks as as
signee asking that the bill of NJ. S. Gibson for
a city dinner March 6, 1877, be paid; of Sarah
A. Dunn for damages for falling on defective
sidewalk; bill of I. b. Reed for $780, for ser
| vices i'll Franklin wharf case
Papers Accepted-The report of Committee
| on Accounts ON examination of Auditors and
Treasurer's accounts was accepted
A Confidence Man.
A man aged about So years. giving the name
of S. Walter Clark, has been victimizing peo-