The Portland daily press., 1885-06-05
RAILWAY MATTERS.
A Foreclosure of the Portland and o.
densburgs Second Mortgage.

A decree has been entered in the circuit
court of the United States for the New Hamp-
shire district, foreclosing at the expiration of
six months from May 18th, 1885, the mortgage
given by the Portland g. Ogdensburg Railroad
Company, under date of November LIST, 1871;
the same mortgage which secured the $780,
00e of bonds held by the city of Portland.
The present legal PROCEEDINGS were COM
menced by the trustees of that mortgage in
March, 1884. The difficulties then hanging
over the property were many. Only small
portion of the track was steel and the iron
rails had substantially broken down; by reas-
on of which the road was being run at very
great disadvantage, and there was a probable
ity that 1t would be unable to run trains safe
~ during the spring and the coming summer.
By reason OF the insolvency of the corporation
1t was not only unable to meet the difficulties
which were Immediately pressing upon it. but
was wholly incapable of adopting any policy
with reference to its future interests and was
entirely at the mercy of circumstances. Sew
eral attempts had been made at voluntary
arrangement looking to putting the corpora
ton upon its feet, but this required the con-
hu1b Vi oil AVG CECulpuAct ouO Wco AOuuQ W NO
impracticable. AS result there was no re-
source left for its immediate emergencies ex-
cept the appointment of receiver, and for
the permanent solution of its difficulties except
foreclosure. Meanwhile in addition to
its other troubles, it had been compelled to ar
range with the First National bank to pur.
chase its coupons which fell due January lat,
1884; the bank had purchased them and was
still holding them, and it was apparent, that
the corporation would be unable to make any
provision for its coupons falling due in July,
1884. This refers to the coupons attached to
the $4,000 of November LIST, 1870, amounting
| to $48, 600 annually.
The difficulties about foreclosing were that
| there were no statute provisions in NewHamp-
shire, and those of Maine provided for three
| years foreclosure; but the counsel finally con-
sidered that, inasmuch as the mortgage was q
| single one upon q railroad in two States exc
| cuted by the concurrent authority of both
states, it was not governed exclusively by the
local law of either State, but by the general
| principles OF jurisprudence, and therefore
| could be foreclosed over the whole line through
| both States and it is upon this principle that
the decree of foreclosure has been entered
| On the same day the circuit court entered
| decree concurrent with that of the supreme
| judicial court of the State of Maine, aathorjz-
ing the receiver TO complete the issue of $780,
| 600 of certificates and to pay the floating debt
| of about $40, 900 for supplies current, when the
| receiver was appointed, and the coupons al
tached to the $S00000 mortgage.
| AS the road is now laid throughout with
| steel and is otherwise in good condition with
the exception of some of the bridges it is be-
/ lieved that, with the aid of these certificates,
| the receiver will be able during the present
| season to pay this floating debt and all the
| coupons secured by the $4,000 mortgage
| which have come due, or which will come due
as well as hereafter to provide for them as they
| come along. 1t is therefore hoped and expect
| ed that, when the Eseason closes, all the ar
| rears which are to be provided for, will have
been paid off, the road will be throughout In
i satisfactory condition and subject to liens
prior to the city's interest, of the mortgage of
$500, 600, receivers certificates OF $780, goo and
some minor mortgages upon the depot grounds
| and freight grounds in the city of Portland,
| amounting in all to 1880. As the result oil
the decree of foreclosure at the expiration OF
| six months from the 18th of May, the title of
the whole road and it's appurtenances will vest
| absolutely in the trustees under the mortgage
of Nov. l, 1871, subject to the membranes
Just named.
An act was obtained last winter from the
legislature of Maine, authorizing the bondhol
| ders to organize corporation and receive the
| property from the trustees Concurrent legis-
| lation will be asked in New Hampshire, aud
will probably be granted; but, If not granted
the difficulty can undoubtedly be met in some
| way II this corporation is organized, the
| bonds secured by the mortgage OF November
LIST, 1871, will be converted into stock, the city
taking the major portion of the stock and
controlling the corporation as it has heretofore
| done. The burden of voluntary reorganiza-
ton for the presentations of the present char
| ter must be borne by the stockholders and
holders of the old floating debt provided such
an arrangement shall be made.
Minor Notes.
The activity in West Shore bonds is attrib-
uted to reports that the Grand Trunk is max
ing proposals looking to the control of the
| property. In this event the prospect OF the
restoration of rates would add to the value Of
| the properties, though 1t is doubtful how long
| harmony could be maintained while the com.
| petition was going on. 1t is reported that Mr.
| Cassatt, formerly of tho Pennsylvania Bail.
| road, will be appointed receiver. He declined
few days ago, but he is reconsidering the
| proposition, and now it is stated that he will
accept.