Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1885-09-28
MAINE DISPATCHES.
RAILROAD MATTERS.
A Special Meeting Ofthe City Council of
Portland Held for Considering the Re.
organization of the Portland Il Ogdens.
burg Railroad Co.

PORTLAND, Sept. 26.
Al special meeting of the city council,
Saturday night, the reorganization of the
Portland & Ogdensburg railroad as consid
cred 1t was proposed to reorganize under
the old charter and scale down the bonds to
what they are worth according to the earning
capacity of the road.
hon. w. L. Putnam, counsel for the trus
tees, in reply to communication by Mayor
Deerlng, presented letter. 1t says that by
virtue OF the foreclosure the proceedings now
pending the title of the road. is expected to
become absolute in the trustees of the mort
gage of Nov. /, 1871. on the twelfth of next
November, subject only to the first mortgage
of 100000, the receivers certificates of
$3.50, 900 and sundry small mortgage upon
the terminal property in Portland and Deer
ing.
If this foreclosure proceeds to an ultimate
result and is not intercepted by some amica-
Bile arrangement it will cut out and render
vaiueless the stock of the present corpora
ton, all unsecured debts owing by it and all
bonds issued out by it jointly with the Yer
mont corporations. The total amount of
bonds and the debt liable to be thus cut out,
with interest is probably over $4,000.
The scheme proposed for the reorganiza-
tion was contemplated by the railroad com
mission appointed by Mayor Fessenden, and
upon the suggestion of that commission legis-
lation was obtained in 1877 and 1873, author
izing the city Of Portland to unite upon such
terms the council might approve in the
plans for reorganzng the Og1ensburg X. X.
Co., authorizing the railroad corporation TO
issue stock to an amount not exceeding ST.
500, ,00C, to be denominated preferred stock,
the ordinary capital stock of the company,
and be entitled to such dividends as the COM
pany may earn prior to the common stock up
to 6 per cent per anuum, and the act gives
the holders of the preferred stock the control
of the company, until the company shall
have paid upon it at least two regular divi-
dends. The act further provides that none
of the preferred stock shall be issued for any
purpose other than for liquidating the in
debtedness existing prior to January |,
1873.
The scheme might or might not embrace
a provision for completing the road by in
Guiding in the new mortgage sufficient bonds
to be reserved for that purpose, but there
should be included in it and reserved $500 900
bonds to be used if found advisable in liqui-
dating the present mortgage eff the same
amount when it becomes due.
The financial status of the corporation
would be the following: First, the present
mortgage of $500, 900. Second the receiy
er's certificates of $3.50, 900, except as liqui-
dated, and perhaps provision could be made
for these in the new mortgage Third, the
mortgage securing the amount determined to
BE- issued for taking up the present bonds of
Nov 1871, with perhaps sufficient in addi-
ton thereto to complete the road. Fourth,
preferred stock not exceeding Sl,500.000.
Fifth. the present common stock.
The city council passed an order that the
committee on public debt consider the meas
ures proposed and report az future date.