The Republican journal. [volume] (Belfast, Me.) 1829-current, 1882-03-02
BELFAST, THURSDAY, MARCH ., 1Ss2.
20 the Citizens of Belfast.


acts as Directors of the b. & NJ l.. R.
T. for the past ten and one half years.
We also ask your careful perusal of 'he
appended legal opinion. by S C. Stront,
Esq of Portland, acknowledged through
o 1t the state to be one of the ablest law
V ,rs in VI ,ine For several months past
W. have been charged with grievous of
fences if not serious crimes against the
rights of the people Of Belfast. proper
regard for the opinions of our fellow cit
liens has induced us to make this publ
cation.
Iu July 1871, with two exceptions, we
were elected Directors Of the Il. r. Cor
poration. We were selected by the
municipal officers and the vote of the
cltvs shares was cast for as. We were
MI entirely new board aud knowing
something Of the involved condition Of
the corporation, accepted the trust with
hesitation. Tue financial condition of
the company was found, deplorable. A
large floating debt past due, together
with many heavy un adjusted claims were
pressing upon the corporation for imme-
date payment There was no money in
the treasury and no available assetts.
Oyer 5000, 900 Of the preferred and $780,
900 of the non preferred stock, subscribed
for had not been taken Suits were then
pending to enforce the payment of sub
scrlptlons. With enc exception, these
sll;s failed and nothing came from them
except heavy bills Of costs aga ust the
company. Less than $40, 900 from the
rental, for theyear to come, would be
available to pay debts then due. The
ttsk before us was a difficult one. The
ti)ltlnR debts and claims aggregated at
least the large sum of 100000 Tie
last cargo Of iron had not been paid for.
0 ii citizens, am ing whom were MANY Of
yolr Directors, had en- iOr5el the Cor
por4tions notes for S53, 500. to meet for
the time being, the iron claim. There
WAS large claim by the contractors, ana
4 lner us claims guaranteed by the com
panv on labor and construction account.
Pledged securities were held by individuals
OF banks, requiring large sums of money,
or otherwise lncurrlng heavy sacrifice on
the securities pledged At that time the
loan of Sl0l 800 to the r. r. c.. by the
city remained a temporary loan for which
no note had been given and no arrange
msnt for payment made The policy to
be pursued was matter Of great and
vital Importance. Several lines Of policy
Wore suggested aud discussed. That
lopted by the Directors WAS deemed by
tlom best, both for the r. r O., and
the city. 1t was this The giving of
tune notes in several ms aucss where the
claims were dfti llte and certain among
which was one to tie city for SOL, 900,
and several Others OF smaller amounts
als) the hiring OF money temporarily to
take up pledged securities and holding
them for favorable opportunity, to sell
without unnecessary sacrifice. M,ny
o.her claims were compromised and paid
as fast as the receipts Of the rental or the
accommodation Of )me of the directors
with their own private funds would allow.
Tuis policy was continued for seven years
when all the claims and notes, except the
note of the city, were liquidated The
note to the city would not become due
till 1885. From 1873 to 1885 the inter
est to be paid from the rental would bs
Sl5, ia annually aud there would remain
of the rental, after paying it, nearly $21,-
600. This sum accufnulating each year
would be more than sufficient to meet
the city's note at maturity. AS prudent
business men we deemed it our duty to
provide from the funds coming to our
hands annually, sinking fund, for meet
ing tie payment of this note when due.
This policy Of creating sinking fund
has been pursued from 1873 to the pres
ent time and twice each year a sum has
been ADDED 70 II, and bonds OF the city
OF Belfast have been bought, of which
$4,000 have been taken by the city, en-
dorse1 on the note of the r R Go and
canoe lied and the balance of the sink
ing fund now all in Belfast bonds and
amounting to $4,000, is in the hands Of
the treasurer of the corporation, who is
under $50 900 bonds for the safe care of
1t and his other trusts. The policy thus
pursued has left balance in the hands
of the treasurer, each six months which
has been carried to dividend account
This balance has been declared as div
idend upon the preferred stock. amount
ing to two and one fourth per cent semi
annually. and has absorbed all the funds
carried to dividend account. 1t will be