The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1881-02-21
PORTLAND & OGDENsBURG.
Important Action Taken by the City
Government

passed lnStructlng the Mayor to vote for the
reelection of the present board of directors
and to Aote for an arrangement by which the
bonds of the road held by the city as collateral
security should become the citys absolutely.
Friday night the City Government appointed
a committee to confer with the directors of
the road and make an arrangement for
transfer of the bonds That committee, COM
posed OF the Mayor, Aldermen Deering, An
drews and Taylor, Councilmen Mari, Meloher,
Thurston, Jordan and buddy, met the direc-
tors OF the corporation Saturday morning and
held conference, and in the evening they
submitted, at special meeting Of the City
Council, the following report and orders:
CITY OF PORTLAND, Feb. 49, 1881
To the City Council:
The special committee of the City Council
to whom was referred the matter of arrange
ments for the transfer of bonds of the Port
land and Ogdensburg Railroad Company, to
the city OF Portland, hereby report that they
have attended to the duty assigned them, and
that the directors of said railroad company
have submitted to the city through your COM
mittee the following proposition:
PORTLAND & OGDENsBURG, r. r. Co.,
Portland, Fer. 10, 1881.
At meeting of the directors of the Port
land & Ogdensburg Railroad Company held
this day, it was voted that the president and
treasurer be authorized to settle in behalf of
this company with the city, by the transfer of
all mortgage bonds of the Portland & Ogdens-
burg railroad, now held as collateral, upon the
surrender OF the stock of the ompany, also
held in security by the city, and the discharge
of the bond of the company to the CITY, dated
July II, 1872, and that they be further author
lied to agree that the company will not issue
the stock so surrendered without an order of
the stockholders under stock vote.
Attest: CHAs III. FoYE, Clerk.
And this committee recommend tie &C
ceptance of said proposition by the city, and
the passage of the accompanying order to wit:
Ordered, That the city of Portland accept
the proposition of the directors of the Portland
Ogdensburg Railroad Company, contained
In the vote OF said directors of this date, re-
ported by special committee of the City
Council, and that the Mayor, City Treasurer
and City Solicitor be and are hereby authorized
to carry into effect, on behalf of the city, the
terms of said proposition.
The report was accepted and order passed in
both branches.
The following order was then passed.
Ordered, That the Mayor and City Solicitor
be, and hereby are instructed to employ such
counsel as may be deemed expedipnt, to pro-
tect the interests of the city in the proceed
the district of New Hampshire against the
Portland q Ogdensburg Railroad; and that
the City Solicitor be, and hereby is instructed
to act with such counsel for the welfare of the
city in that behalf.
In the board of Mayor and Aldermen tie
following order was passed:
That we hereby instruct the Mayor to at
tend the meeting of the stockholders of the
Portland q Ogdensburg Railroad Company to
a Mar
protect the interests of the city at said meet
ing.
The Mercantile Trust Company of New
York, as reported in Wednesdays PRESS COM
menced suit in equity in the Circuit Court
OF the United States at Portsmouth, N H., to
have that portion of the Portland & Ogdens-
burg Railroad in New Hampshire covered by
mortgage made to secure bonds, of which the
Trust Company is a large holder and of which
the interest is in default, operated with view
to have such earnings appropriated to pay the
interest on the bonds issued on a mortgage of
the New Hampshire portion of the line, and
not merged into the general income or used to
pay interest on the bond secured by mortgage
of the part of the road located in Maine. The
suit is for the benefit of the Trust Company
which holds about $4,000 of the bonds, or
such other holders who may desire to join
with them in prosecuting the case.
In November, 1871, mortgage was made to
trustees for! S., 100000 Of this sum $500 900
was reserved, and not issued, in order to cover
the SSOO,OOO of first mortgage bonds held by j.
3. Brown Il Sons. This first mortgage
covered the road from Portland to the line be-
tween Conway and Bartlett, N. Fl. OF the
remaining $2,500,000 the city took 81, $50, 900
as collateral, to penal bond dated July 12,
1872, and the remainder of the $2,5OO,OOO was
taken by outside parties, largely citizens of
Portland, while $4,000 of this loan are now
represented by the Mercantile Trust COMPANY.
This whole $2,500,000 is secured by first
mortgage from Bartlett to the western
terminus OF the road and second mortgage
from Portland to Bartlett The road thus
owes in two mortgages $500, 900, the interest of
which has been regularly paid, and 50 800, 900,
and accrued interest. The city issued its own
scrip to the amount of 81 $50, 900, and took as
security the bonds of the company for the
same amount. and thus the debt of the road to
the city amounts to something like 81 ZOO. 900
to-day. The bonds and certain stock of the
road so held by the city was the only security
the city had for the payment of the penal
bond, and as those bonds are now given to the
city absolutely, and with perfect title, the
penal bond is properly extinguished, and the
city has the best security that can possibly be
obtained under the circumstances. The city
can now come into the courts of New Hamp-
shire as the absolutele holders of 81, $50 900 of
the bonds of the road for which it has actually
paid dollar for dollar and properly insist on its
rights. In the important litigation that has
already commenced in New Hampshire the
city will fully protect its interests, and the
City Solicitor if he thinks proper, will, under
the order of Saturday evening, employ local
counsel in that State to watch the proceedings
and will himself appear.
AS far as the stock is concerned the CITY
holds absolutely sufficient to control the
management of the road, and in order to
afford perfect protection the stock which il
holds as collateral will be returned to the
railroad corporation never to be issued, so thai
the city will still insure to itself controlling
voice in the affairs of the road
The members of the City Council are to be
congratulated upon the manner in which they
have acted IN this matter, having had a watch
full eye on the citys interests, while thu
Mayor, City Solicitor and City Treasurer have
conducted the matter to a most successful
issue having been met in the proper spirit ant
with promptness and good feeling by th,
officers of the road worthy of all praise
| Balls.
There should be large turnout at the frs
| annual ball to be given by the ,IonnShora.