The Portland daily press., 1883-03-29
THE RAILROAD LEASE.
Ratified by Eboth Boston q Maine
and Eastern Roads.
Several Strong Protests from Eastern
Stockholders.

OF the Boston 81 Maine stockholders was held
this fore noon IN this city TO ratify the lease OF
the Eastern road. The personal representa-
tion of stock was larger than for years, and
proxies representing 4,200 shares favorable to
the lease were in the hands of the directors
previous to the opening of the meeting. The
meeting was called to order by President Lord,
after which the call was read by the clerk.
President Lord read the lease, after which Sol
ONION Lincoln of Boston presented the follow
ing for q yea and nay vote
Voted, That the stockholders of this corpo-
ration approve of lease of the Eastern rail-
road by this corporation, OF such tenor and mp
ON such terms as have been agreed TO by the
directors, and as are contained in paper here
with presented and annexed to this vote "a
copy of the lease) and that the president and
treasurer be authorized to execute and deliver
such indenture as may be necessary and proper
TO carry said lease into full effect, said lease to
take effect at the time in said paper expressed,
but only when and in the event that said lease
shall be duly authorized by the laws of the
State of New Hampshire.
A yea and nay vote was then taken, result
ing as follows: Yeas, 42563; noes, 1858.
The meeting thereupon adjourned.
The Eastern's Meeting.
BosroN, March 2s--A special meeting of
the stockholders of the Eastern railroad was
held in this city to-day. 1t vas largely attend
cd, many being present from New Hampshire
1t was voted unanimously to accept the legis-
laton of 1882, authorizing the directors TO issue
preferred stock in exchange for certificates OF
Indebtedness
The meeting then voted on the approval Of
the lease of the road TO the Boston Il Maine
road, on the terms already announced, and
subject to the approval OF the New Hampshire
legislature.
Col Jonas II. French, director of the Eas-
tern, spoke in opposition to the lease.
Mr.. French said that he was well aware that
nothing that he could say would affect the re-
suit of this meeting. It was a foregone con-
elusion that the lease was to be ratified. But
he was director of the Eastern road, and he
was compelled to follow bis duty as he under
stood 1t. He regretted that there were eight
obstinate men on the board of directors and
that he could not convert them TO vote OF op-
position to the lease. Mr.. French alluded to
approved of it, but MIR. Adams had not read
the document just read. Mr.. Adams advocat-
ed consolidation of the two roads. This was
no consolidation. TWAS not even lease, but
a hybrid affair. Mr.. French said that he had
lately investigated The affairs OF the Eastern
railroad and found that corporation was about
to make great sacrifices of property by the
measure. He then proceeded TO Give certain
facts and figures relating TO the number OF
miles and condition of the road beds of the
two roads together with the rolling stock and
equipment in general.
The Maine Central r. r. played large
part, and was great factor IN the proposed
lease. 1t was the feeder to the Eastern Il. r.,
and brought wealth of products from the
State of Maine and the British Provinces The
Eastern road controlled to-day this great road
OF nearly one thousand miles, and now by the
terms or this lease this corporation was now
quietly asked to attend the obsequies OF It's
great interests. MIR. French proceeded to con-
trast the difference between the earnings OF
the Eastern and Boston & Maine roads, show
ing that while the Boston & Maine had in
creased, IN its net earnings, in iiye years, but
l3 per cent, the Eastern Railroad had in
creased Al per cent, and asked why she latter
should be asked to turn its read over to the
former road. During the last five years also,
the net earnings OF the Maine Central road
had increased II per cent, which was the prop
erty of the Eastern road.
Assuming that the ratio OF increase for the
next five years would be the same as in the
past, which was a reasonable proposition, 1t
was easy to see that the Eastern Railroad
would pay between and 9 per cent. Should
the lease be effected one of the enormities of
its terms was that the Eastern stockholders
would receive but per cent. on their property
for 30 years to come. Referring to the pooling
arrangement between the Eastern, Boston x
Maine and Maine Central roads, MIR. French
said that il was an expensive one for the
Eastern, the latter being obliged to pay large
sums to the 3. & NJ. for the purpose of obyi-
ating so-calied minor competition, Another
enormity OF the lease was the prohibition of
the pas sment of dividends for 80 years which
was provided Tor by tne CLAUSE that oil the
earnings over and above per cent. should be
put into improvement. Why not provide for
the distribution Of these earnings in dividends
after all needed Improvements should be
made? The truth was that this lease was
wholly in the interest Of the Boston & Maine
Railroad The Eastern road was asked by 1t
to build terminal facilities, and other great
and expensive benefits for the b. & NJ road.
The speaker closed by saying that, though he
had no hope therefor, he believed it would be
for the best interest of the Eastern road TO
reject the lease. Col. French's remarks we're
much anplauded.
W. Parsons, a New Hampshire stockholder,
was opposed to the union, much as he believed
10 harmony and peace between railroad corpo
rations, and thought that the union would
placs too many miles Of road under the man
agement Of too few men.
j. Thomas, Mr. Palmer OF SBampscott and
others also opposed the lease.
Amidst much excitement d motion to adj
iourn for one month was voted on stock vote,
and was lost, o, 400 against, and no shares in
favor.
A vote was then taken by stock on the origi-
nal motion 10 ratify the lease, the polls being
kept open till 215. The vote was declared al
40J, as follows: Yeas 35,267; noes, ,060.
The meeting then adjourned.