The Portland daily press., 1880-04-21
THE RAILROAD CONSOLIDATION.
What Some Outsiders Think about it.

What Some Outsiders Think about it.
reporter for the PRESS in conversation
with several gentlemen during the past week,
in reference to the railroad matter that has
been agitating the community for some time
past, gathered the following as their opinion,
differing, in measure, from those that have
heretofore been expressed in these columns.
The prevailing idea was that Messrs Brad
lee and Lord are the two directors of the Bos-
ton and Maine Railroad who represent the
wealth and power of the road. Mr. Barring,
of the banking firm of Barring Brothers, Lon.
don, not only represents a great interest in
this Eastern Road but he can command from
English capitalists, if he chooses to give the
word, all the money that he may want. Some
directors of the Boston and Maine may hold
their opinions as to consolidation and they will
be entitled to consideration and respect, but,
after all, the questions at issue ould be decided
by men like Lord and Bradlee, who can COM
mand Boston means and influence. The East
ern road is insolvent, if you like, broken, cast
down, but it still remains, and will be great
power in New England. The idea of an ar
rangement between the Boston and Maine, and
Eastern roads, is not SO absurd as it might
seem on the face. One party might ask will
solvent firm unite with bankrupt? The answer
is yes, on certain terms. The Eastern Road,
let me say, has four millions stock and fifteen
millions bonds. The bondholders are the cred
itors. Suppose the bondholders say, we will
make our bonds stock; wipe out the stock that
now exists, and give those old stockholders
new stock in certain proportion. The old
stock is worth nothing. Well, we will give an
old stockholder one share new stock that has a
value, for ten shares old stock that has none.
The Boston and Maine stockholders also agree,
we will say, that each share of their stock shall
be equivalent to so many shares of the Eastern
new stock. There you have fair basis for
consolidation.
Then comes the question, who shall be the
officers of the new road? The shrewd men
who can accomplish the consolidation can
easily arrange that. 1t isn't to be question
whether President White of the Boston &
Maine wants to be the president of the con-
solidated corporation, or President Ph;l;ns 81 81
the Eastern. 1t will be the best man for the
Place. A very large sum will be saved OH the
pay roll, in the dispensing of the services of
many men, who will not then be needed, and
yet leave the service of both roads perfectly
efficient. President White would naturally
object to any consolidation, or any movement
that might make his position precarious one.
Look at the Eastern road to-day 1t has
succeeded, in its broken condition, in control
ling the Maine Central, owning controlling
interest in it. The Boston & Maine, and East
ern own the Portland & Rochester The two
roads, properly consolidated, would control all
the railway avenues into Maine, except the
Grand Trunk and the Ogdensburg; and as far
as the latter road is concerned, it is tapped at
Conway by branch of the Eastern. 1t may
be said the Legislatures of Maine and New
Hampshire would never consent to such con-
solidation. Legislatures are human If it
could be shown that such consolidation would
build up Portland, probably no one here at
least would object Build up Portland one
would say, how absurd! Let us see. What
makes road prosperous? Business both ways.
If the Boston roads have business from Port
land and way towns enabling them to carry
goods in large quantities to Portland and way
stations as we'll as to take it from them, then
you get life-blood to sustain them. 1t is the
interest therefore of the Boston roads to build
up Portland, not to pull her down, and if Bos-
ton could transport a tenth of her population
to Portland it would benefit her roads, Presi-
dent Phillips of the Eastern recognized and
foresaw all this when he gave the Portland
Company lately such large orders.
We now come to the Grand Trunk Road. 1t
would not be necessary, perhaps, for that cor
poration to move her offices to Boston from
Portland. That road has offices there as we'll
as in Portland But it has been said that the
Grand Trunk road can supply Boston with all
the goods she wants via the Vermont Central,
and therefore it would be absurd to come all
the way around by Portland. Well, let us see.
Suppose the Vermont Central carries the
goods of the Grand Trunk from Montreal to
Boston, collects the freight money and doesn't
hand over to the Grand Trunk that roads pro.
portion? Suppose that proportion already
amounts to 100000 or more? Isn't it likely
that road would after while, get tired of
doing business on those terms? Furthermore,
with the Grand Trunk an English road, and
Mr. Barring, the Eastern road hacker, an Eng
lishman, wouldn't the two make convenient
terms for transacting that business that goes
over the Vermont Central now? The differ
ence in distance could be easily remedied in
other ways. In fact, the Grand Trunk could,
as has been said, take care of all the business
for Portland, and yet would naturally be anxi-
GUS to have a Boston outlet where at all sea-
sons of the year, cargoes could be given to sew
eral lines of steamships. Portland may have
her lines of steamers as well and these roads
would fill them. Stuff would also be for
warded from Boston over the Grand
Trunk, as we'll as over the Boston & Maine,
and Eastern, giving back freights, and good
portion Of it would be intended for Portland as
well as for the Grand Trunk. 1t is probable
that, before another year is over, the Grand
Trunk will erect an elevator in Portland to
accommodate increasing business.
We give the above statements merely as
opinions that may, or may not, have signif-
canoe that amounts almost to prophecy.
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