The Portland daily press., 1884-11-21
THE EASTERN LEASE.
Terms of the Agreement Decided
Upon Yesterday Afternoon.
AEGAN OBJECTIONS OVERCOME
PROVISIONS FOR THE SINKING
FUND AND THE NEW REFUNDENG
PLAN.

WrkSAONS EVks lee E SANAkNG
FUND AND THE NEW REFUNDHNG
PLAN.
BosToN, Nov. 20.-The directors OF both the
Boston q Maine and Eastern Railroad Com
panies met yesterday, at their respective OFF,
Cos IN this city, and decided upon the terms OF
new new lease to take the place of that
which the Supreme Court recently decided
was illegal becauss the sinking fund of the
Eastern Company was not properly provided
for. The agreement adopted was in accordance
with the recommendations of tne directory
Committees of ths two roads, who met last
Saturday, and who, after long conference
nxsd upon the lease now adopted. Special
meetings OF the stockholders OF both corpora
tions for the purpose of rstfying the agrees
ment have been called for Dec. I'd, and it is
very probable that the new plan will so COM
mend itself at that tilns that it win meet with
but little opposition. In many particulars the
lease is the same as the old one, though in
Others and the more important parts it is rsdi-
cally different. That it may be well compre-
hended in all respects, its full text is herewith
given:
THE NEW LEASE.
This indenture, made in duplicate this - day of
"A. ID. 1884, by and between the Eastern Rail
road Company, q corporation existing under and
by virtue of the laws of the Commonwealth of
Massachusetts,, party of the first part, and beren-
after denomnated The lessor, and the Boston &
Maine railroad, corporation existing under and
by virtue of the laws of the Commonwealth, and
under and by virtue of the laws of the States of
Maine and New Hampshire, party of the second
part and hereinafter denominated the lessee:
Wttnesseth, That the said parties each for it
self It's successors and assigns, and each in con-
sideration of the grants. covenants and engage
ments herein made by the other, have granted,
coyenanted and agreed and do hereby grant, cove
nant and agree each to and with the other and its
successors and assigns, as follows, to wit:
/.
Tho lessor doth grant, demise and lease unto the
lessee. its successors and assigns its railroad and
railroad property of every description including
therein its railroad lands, and wharves within or
without said Commonwealth, branches, tracks
side tracks, road BEDS superstructure, station
houses depot grounds, depots, viaducts, bridges,
rolling Rtock, machinery, tools, furniture, telegraph
apparatus, equipment. msterial and supplies, bills
and accounts receivable, money and cash on hand
and all rights, franchises, easements, privileges
and appurtenances thereto belonging, together
with he right to demand and receive all tolls rent
premises including also therein all the right, title
and interests of the lessor in and to any and all
railroads operated by it under lease otherwise,
and in and any stock of other railroads owned by
it, all dividends thereon and the right of voting on
the same and in and to any contracts with other
railroads. corporations or individuals and all ad-
vantages and benefits to be derived therefrom;
hereby assigning and transferring unto the lessee
all its railroad railroad property, frsschises and
assets of every description, subject. however to a
mortgage made June 22d, A. d. 1876, to william
O. Rogers, VIM. B. Bacon and Willard P. Phillips
trustees. and duly recorded, and subject to ell
other legal obligations and membranes.
10 have and to hold all and singular the deInised
premises the see it's successors and assigns for
and during the term of fftyfour years from and
after the first day of October, A. D. 1888 Welding
and paying rent provided in the article next fol
lowing, and keeping and performing athe terms
conditions and stipulatons hereinafter contained
the part of said lessee to be kept and performed
The railroads and properties hereby demised and
those OF the lessee shall be used, managed and op-
Grated by the lessee in proper ordinary and udic-
lous manner. according to the best discretion and
judgment of its managers, to secure the larg-
est amount of earnings from each which can be re-
allied therefrom with due regard to the service to
be rendered the public and to the preservation of
said roads and properties in good order and cond-
tion for rendering such service efficiently and eco
The combined annual gross earnings from all
sources whatsoever of the railroads and properties
of the lessor and lessee shall be paid over and ap-
Piled by the lessee in each and every year during the
term of this lease to the amounts at the times and
in the order of priority following; to witt
FIRST, me me, lessee shall pay the operating ex-
expenses shall include, as part thereof the cost of
ordinary repairs and renewals; all expenditures
arising out of any contract, obligation business
negligence or misfeasance, however otherwise
arising, in anyway connected with the use and op-
Grafton of the railroads and properties of the par
ties hereto and including damages to persons and
property; insurance. all taxes of every description
federal, State or municipal, upon property bust.
ness franchises or capital stock; interest upon the
improvement bonds hereinafter mentioned and
payments to the sinking fund for such bonds; any
other expenditures hereinafter declared to be oper-
ating expenses; and the organization expen ses of
the lessor, for, which, in addition to sufficient on
accommodations to be furnished by the lessee there
shall be paid to the lessor at the end of each sue
cesslve three months during the term OF this lease
the sum of twenty five hundred dollars ($25OU,
(which gross annual payment shall cover and in
cude the three thousand dollars (S30OO) to be paid
to the trustees under its mortgagel
Second. The lessee shall pay, as the same become
due the rentals OF all railroad leased either the
lncunF hal ss,&1
nent debt of both the lessor and lessee schedule
whereof is hefeunto annexed, and to that end shal
pay to the lessor such sums OF money, at such
times, as shall enable it to puuctually the in-
terest on its debt as the same natures.
Third. After making tue payments specified in
clauses first and second, and from the surplus re
manning, the lessee shall retain to its own use the
sum Of six hundred and thirty thousand dollars
($63O, ,O00)
tions specified in clauses first, second and third all
surplus then remaining, up to the sum of one hun
dred thousand dollars (Sl00, ,O00) shall bs paid to
the lessor Tor its own
Fifth. After making the payments and applica
tions specified in clauses fist, second third and
fourth, and from the surplus then remaining the
lessee shall retain to its the sum of seventy
| thousand dollars (S70, 900.
| Sixth. After making the payments and applca
tions specified III clauses first second third fourth
and fifth all plus then remaining up to the sum
| of three hundred and thirty-sx Thousand dollars
1885, 600O shall be paid to the lessor for its own
| use.
| Seventh. After making the payments and appli
| cations specified in clauses first second third
fourth fifth and sixth, any surplus then remaining
shall be retained by the lessee but shall be applied
| to permanent Improvements upon the respective
properties of the eSsor and lessee pro rata
ing to mileage, including branches and leased roads
| go far as such improvements may be required and
the remainder, If any, may be applied to the pur
chase at the market price of any of the improve
ment bonds hereinafter provided for.
1 III.
The lessee shall from time to time make such per
manent improvements in and upon the demiseC
premises the requirements Of business may max,
necessary and proper. To meet the cost OF sucl
| permanent improvements and of the like improve
ments upon its own property, the lessee shall issue
| its bends. to be called Improvement bonds" Sucl
bonds shall run for the longest period allowed b.
| law, and shall be secured by sinking fund the an
| nuai payments to which shall not exceed (excep
with the written consent of the lessor) and
half Il 1a) per cent of the face of the bonds anc
which said pay ments well as the annual interes
on said bonds, shall be deemed to be operating ex
penses, and be paid out Of gross earnings as par
| thereof.
Improvement bonds'' not paid at maturity b
the sinkiDgfund provided therefor shall be paid from
| the proceeds of other Improvement bonds 10 b
issued by the lessee of the like character and SINH
lsrly secured by sinking fund.
Accounts shall be kept by the lessee and annua
| statements thereof made between the lessor anC
| lessee showing the amounts expended for perma
| nent Improvements upon the property of each, re
sPectively; and in case of any difference between
| the parties as to such accounts the same ehall b.
adjusted, when it shall arise by arbitration in tn
manner hereinafter provided, and the account
shall be restatod according TO the decision of tn
srbitrators; and at the expiration earlier termi
nation OF this lease, the improvement bonds thel
outstanding, including those pun chased as abov
provided, shall be assumed and paid by the partie
pIoportionatey to the Improvements made on tn
property of each, respectively, during the term 0
this lease.
Permanent improvements shall, for the purpos
| of this lease be as follows to wit:
| First. ANY increase in track mileage.
| Second. Any increase in the number of any elias
| of rolling stock the number in existence an
inventoried at the inception of this lease.
Third. Buildings or other structures in the ma
| ture of improvements to real estate which do nc
| replace but are in addition to buildings and struC
lures in existence at the inception of this lease;
being understood, however, that in the reconstruc
| tion of buildings and structures Gncuding bridges
the excess in cost of the structures over th
cost of restoring the old structures to as good COZ
dition as when new shall be treated as an improy,
ment expense.
| Fourth. The reconstruction of buildings an
structures and the reorganization of Yards and to-
mna facilities for freight and passengers at Bosto
and Portland.
Fifth. Such other matters and things in the nj
ture of new construction shall be agreed to /
such by the parties hereto, shall be decided to
such by the Railroad Commissioners of Massach-
setts, or majority Of them, upon the applicatio
OF either party.
Car trusts and loan for the improvement OF Il
RnotN nNuaar rf rartry MI.