The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1885-05-16
RAILWAY MATTERS
Eastern Railroad.

The preferred stock bill before the Legisla-
ture is the thing at present used by advocates
st . rise in Eastern stock. The bill as passed
In addition TO sn icU Go sstuiIoela.S za.~---
Railroad Company to issue preferred stock in ex-
change for certificates Of indebtedness"
Dividends on the preferred stock of the Eastern
Railroad Company, authorized by chap. LII OF the
Acts of 1882 may, if said company and the Boston
& Maine railroad shall so agree, and unless some
other disposition of te earnings IS required by any
egiSting contract or By any TAO hGung the force or
effects Of contract. be paid by the latter company,
under It's lease from said Eastern Railroad Company
recorded with Suffolk deeds, lib. 1861, fol. 16l,
and during the continuance thereof out OF gross
earnings as defined in said lease, and as charge
thereon, having the same priority under SAID lease
as the interest upon the certificates of Indebtedness
for which said preferred stock shall be issued in
SEC 3 Before preferred stock is issued under
the provisions of this act, notice of such contem-
plated issue shall be published as in case of meet
ings of certificate holders for the election of direc
tors. Said notice shall invite proposals from certi
fcate holders for the conversion OF eerti-
caes Of Indebtedness into preferred stock par for
par, and shall fix time, not less than 90 days. at
ter which proposals will not be received. Said pre-
ferred stock shall be issued in accordance with
such proposals, unless the aggregate Of the certf-
Gates proposed for exchange shall exceed the
total of the preferred stock to be issued, in which
case the same shall be allotted between the parties
SEC s. This act shall take effect upon its passage.
The words in italics in the first section we're
inserted in the bill as an amendment, and sug-
gest the legal question which is to be decided
BY the supreme court before the above act can
be carried into practical effect. They possibly
also give point to the remark of Senator
Thomas in debate Thursday, that the bill was
"harmless," !" fer SO it would seem to be, in that
it appears to authorize no act for which author
ity has not already been granted. The su-
preme court is the body which will determine
whether the conversion OF the balance of East
ern debt above $4,000, 900 into preferred stock
and the payment of dividends thereon in the
same order OF priority as II such balance debt
continued as bonded and interest bearing OBJ
legations is legal. 1t is intimated that, If the
above bill becomes a law, which it probably
| will, some method for obviating the legal OBJ
| ssacle win be devised and that Eastern COM
| mon stock will soon be dividend paying. The
| object of the bill is to benefit the present
Eastern stock by speeding the day of divi-
| dends.
Minor Notes.
| Trains will run over the Old Orchard juno
| tion railroad the coming summer. This branch
| of the Boston s. Maine has been continued the
| past two seasons.
| The Canadian Pacific managers have issued
| circular saying that the annual meeting will
| not be held until June 13, and that nothing
| will prevent the half yearly payment Of II pei
cent dividends.