The Republican journal. [volume] (Belfast, Me.) 1829-current, 1885-11-26
What Shall be Done with the Railroad Rentals

This question will soon have to be decided by our
railroad directors. 1t is very important question
One that concerns our business men and every tax
payer. The way seems so plain that there ought
not to be any question about it, yet hear that there
is not perfect unanimity among the directors as
the best course to pursue. For the past fifteen
years, or more, our taxes have been about heavy
as we could bear and they haye been growing
| higher for two years past. Now it would seem
| that anything that could be done to reduce them,
would be for the interest of the city and of the
| payers There is now an opportunity to do this
without injury to any one. By following the drec-
ton pointed out by the Court, and dividing all the
rental for the next five years the city would receive
| enough to reduce our taxes from d to a. Our
taxes would then be as low or lower in any city
| In the state thereby inducing people from outside
| to come in and invest their money. BY adopting
| this plan it would also do away with any further
litigation or contention. think after the directors
appealed to the Court it would be very inconsistent
for them to disregard their advice. 1t would certain
y place them in the wrong before the people If dv
dends are made for the next five years first
gag bonds which mature at that time, could with
out doubt be renewed at from 81 to per cent for
! 30 years longer. In the course of those years,
| enough could be laid aside to pay them The sum
necessary would be SO small that 1t would not be
felt If the rental is all set aside pay these bonds
when they mature. we have got to continue to pay
these high taxes for five years longer more, and
the money to be idle, if invested it would be at
very small rate of interest. There would also be
more litigation without doubt, as the preferred
stockholders would never sit down and be kept ont
of their interest for years longer after having the
decision of the court in their favor. The court de-
cdes that the preferred stock is entitled to six per
cent. and that il is the duty of the directors to make
dividends when they are in situation to do So
Who can doubt but that they are now In situation
to make dividends There is not a railroad in the
United Sta ties that would think of paying these
bonds when they become due, situated as this road
is, and you could hardly find a business man who
would do such foolish thing. AS to the argument,
that by making dividends the non-preferred stock
| would have to pay all the debt, the court decides
that that debt is different from the note that the
railroad company owed the city. That note is
paid and all the debt owed by the road is this
one hundred and fifty thousand dollars of first
mortgage bonds. After paying the note there
in the treasury. That sum clearly belongs to the
preferred stockholders. and should have been di
vded before I this There is also anothe matter
the suit was brought to determine the rights of
the stockholders, certain of the stockholders
without their knowledge or consent, made respond
ents in the case. They were therefore under the
necessity of employing counsel to defend them,
thereby mourning a large expense Certainly it
would be very unjust to make them pay this bill.
| Now If the directors will lay aside all prejudices
and do the best thing for all concerned, think
there will be of good feeling all round, and
we will all take hold and work together for the best
interest of the city. Another argument used by
those who are in favor of creating a sinking fund
| (Which nearly forgoD is this. They say let us
clean everything up and leave the road to posteriy
any further burden to be borne (Which don't
allow If my proposition is adopted) why should
not pOsterity bear it? They to receive the ben
efts of the road and it does that we have had
to bear this burden of high taxes about long
enough. C.