The Republican journal. [volume] (Belfast, Me.) 1829-current, 1881-09-08

same shall be divided, pro rata all the stock
The preferred stock would receive per annum its
six per cent dividend amounting in all to Sl6056
while the balance of said income, being fraction
more than % per cent. per annum, amounting in
all to SIG 94 could be paid to the holders Of the
non preferred stock, every year
The railroad company contracted for the building
of the road, raised the Subscriptions far as ttey
were able, and the work was begun, and much
progress in the construction of the road was made
and so much money expended for the same that
though the city subscribed $3.50, 400 in Nov. 1867
III May 1868 the city subscribed for 1896 shares Of
preferred stock at the par value of 500 EACH
amounting to Sl39 500, at which time the city
owned 5000 shares ont of the bls0 shares into
which the stock divided and for which she
had paid 500 900, and to raise the money to make
the purchase her bonds were sold at discount
And yet it is asserted that Belfast who has done
all this has not done all that was intended for her
to do but that she should also pay with the divi
dends on her non preferred stock, S3}l 9S}36 Of
the debt and interest on the debt Of the railroad
company while the preferred stock should pay
preferred stock for which she paid $500 100 no
dividends bat that the preferred stock should re
celve dividends, while the preferred stock
paid the debt and interest In the meantime there
had been municipal election, which returned to
the city government a mayor and two aldermen
who were also members Of the board of railroad
directors
After having expended the money raised on the
cltys non preferred stock, as well as that which
was raised on the individual preferred stock which
by the way, in those days we often heard it said
was given to the railroad, the road was snll uu
completed In order to proceed it was necessary
to raise more money, and the railroad company
tit to place mortgage of $50 900 upon the
| road, which act in direct violation of the
luton passed by the city government April !,
lS6' and the subscription contract entered Intob
the city subsequently, and the resolution passed
by the railroad company i'll Nov. the same year
and Incorporated into the subscription contract
The city Of Belfast vas lei to hatfy this violation
OF the original contract by its vote in the stock
holders meeting cast by It's agent who vas also
an agent Of the railroad company. The money
thus raised having been expended ana the road be
| ing still nncompeted, 1t necessary order to
complete the road 10 raise still more money Al
| this time the railroad company, through its iii
recturs, applied to the city of Belfast for loan Of
SOL, 800, which loan the city subsequently made,
| and the municipal officers Of the city OF Belfast A
| majority OF whom were also directors Of the rail
road company, voted to issue sl5 900 Ill bonds,
and ia fact did accept thereof from the railroad
| :.
| by sustaining loss OF about S3 900 How would
snch a transaction appear rs between man aud
| man, when the negotiating agent was acting for
| both parties Tins money being expended the
road was still uucompeted. BY various ways and
means the railroad company obtained sufficient
| credit to complete tile road which, when it was
finally completed and leased. had upon it a loat
| ing debt of about $50 600 The company by its
lease to the NJ &. r r company nets e.i6 0o0 per
annum, all Of which applied to the payment OF
the Indebtedness until the dtming debt was paid
Al TINS point there first any discussion as TO
the difference between the two classes Of railroad
stock While all agreed thai the preferred stock
| sho Id receive SIX per cent. dividend before the
non preferred should receive any they disagreed as
to the construction of the 18th by law Ut the rail
road company under which all dividends were reg
uiated One side conteudng that the net earnings
Of the railroad company the amount left after
| pay ing the interest npon the funded debt, while
the other contended that the net earnings OF the
road was the amount which came from It's use
into the hands of the railroad Treasurer Pending
this discussion legal opinions were obtained upon
the points at issue which opinions So far sustained
the latter position that the railroad company con
ceivcd the necessity Of changing the 18th by law
TO enable them to carry out their present siuking
| fund scheme and at the July meeun. iii lS19 Of
the railroad stockholders they dit 50 amend aid
18th by law as to meet The pressing emergency The
result and ull meaning Of this amendment did not
present itself to the mayor and aldermen Of Bel
last until after it had been accomplished THIS
! amendment, well as tile creating Of an udebt
| cdness, was gross violation OF the spirit ana III
tent OF the original contract and the result Of winch
| by mathematical deduction shows that what the
non preferred stock ownedby the ctl would receive
and interest, while of what the preferred stoo k
would receive in dividends To wit 500 9sG 60 oulj'
>6l,2?4 go towards paying the debt alone, There
lore, according To the ism bylaw al the *. tN.
as amended in 1870 the non preferred stock pay ;
the entire interest and twice as much IT the debt
Of the K X. Co as the preferred which scheme il
IN perfect harmony with the Fundamental idea as
understood by Fair Play that the city should axe
all OF the burdens and risks and the individuals IL
ceive all the privileges and guarantees The full
meaning of this amendment Of the 18th by law
having come to the people Of Belfast, and the cap
itallsts fearing that subsequent city government
chosen by the people upon tins issue may repeal
the amendment and assert their rights thoy con
ceived the idea and concocted the scheme Of tax
ing the K stock owned by the city out of its
hands and placing it in the hands of trustees abso
mtely whereby the city woold lose its right to
control its interest in the r. L Tins n why the
| II. X affairs have been connected with the Ip
! funding Of our city debt TAN PAYER
Gen. W. c. Wickham for fifteen wears
| t1,,,, 1