The Portland daily press., 1885-10-08
PORTLAND & ocDENSBuRc.
Further Discussion of the Voluntary
Reorganization.

Another meeting of the committee and second
mortgage bondholders was held yesterday after
noon, in the Mayors room at the city building
There were present Mayor Deering, E. A. Noyes,
T. c. Woodbury., City Solicitor Symonds. VIM. L.
Putnam, Esq, j. S. Kicker Daniel +. Emery,
Woodbury. S. Dana, H. N Jose, City Clerk Bur-
CESS City Treasurer Hersey and others. w. F.
Lgnt was present at the opening OF the meeting,
aud read the report of the committee as printed
in the PRESS of yesterday. The report was
adopted.
The opening of discussion on the report was
made by Mr. Woodbury. in calling attention to the
reference made at the meeting Tuesday evening
in regard to the issue of preferred stock to the
full amount authorized by the legislative enact
ment, or 81, 100000.
Mayor Deering said that his idea would be to
scale down this stock by canceling such part OF
it as might be deemed advisable.
Mr.. Putnam said that this course would not be
possible without further legislation, but the issue
of the stock might be regulated by vote of the
stockholders prohibiting the directors from issu-
ing more than specified amount. This was the
course pursued in 1877 by the stockholders in re-
lation to the issue of common stock.
Mr. Jose called attention to the fact that While
1t is proposed to give the outside creditors an
amount of preferred stock in exchange for the Sc
~ SeoN-
be issued for this purpose in proportion to the
amount of the claims of the outside creditors had
not been fixed upon.
Judge Symonds said that as he understood the
report of the committee their plan contemplates
new mortgage of $350,000 ahead OF the citys
mortgage, and the payment of interest on the
mortgage of the city at the rate OF two, four and
five per cent Since 1876 this road has not paid
anything upon the second mortgage now existing,
and it has incurred liabilities to the amount Of
$3.50. 900, which must be provided for by the new
mortgage. Now, said Judge Symonds, If for the
last ten years this road has not been able to pay
anything on the second mortgage. and has run in
debt what prospect is there that for the next ten
years the road can pay interest on this new mort
gage and two per cent on the mortgage OF the
CITY? Judge Symonds emphasized the TACT that
in his opinion the floating indebtedness should be
paid out OF the earnings OF the road and not fund
ed as the committees plan provide. Judge Sy-
monds added that his idea was to keep the road
out of debt by paying this Indebtedness as soon
as possible And then the report provides that
this new mortgage shall be made as large as the
road will bear, and it further provides that there
will be majority against the city,, With mort
gage just as large as the road will bear, and the
city in minority What Is Inc t cnance % te Sy
and dollars must be provided for, but the city as
owner of the road would be able, IN the opinion OF
Judge Symonds, to take care of the Indebtedness,
and there is no need of the new mortgage on the
road Judge Symonds did not see the advantage
of scaling d0WQ the Guys DoHuS W 20 per ceht VI
their face value, and putting on $350,OOO mort
gage prior to the city interest
Mr. Putnam remarked that unless this amount
was funded the road would remain in the hands
of the receiver for some years to come.
Judge Symonds said that before the road could
be taken out of the hands of the receiver the
court would require security that the payment OF
the receivers certificates would be PROVIDED LOT,
but that he did not believe it was necessary TO
continue the debt for twenty years ~. D..
In regard to the payment OF interest, MI. rul-
nam explained that the road has earned from
$4,000 to $4,000 every year during the re-
ownership, but that of this sum II has been found
necessary to expend the surplus after paying
fixed charges, in completing the ROAD, WHICH ndS
now been put in good condition.
The Mayor expressed the same opinion on this
matter as that held by MI. Putnam.
General Anderson, the receiver OF the road SAID
for the completion of the road was correct. AS
the road was originally built it was very rough
1t has been absolutely necessary 10 lower grades
fill in gravel where wooden trestles were original
ly placed and replace others with iron bridges,
that a large sum has been laid out in building the
road as it should have been built, and as the
engineer intended it to be built A large outlay
for repairs has in the past been necessary as the
for transportation across the city to the works OF
the Portland Company The erection of suitable
buildings has, however, lowered materially this
ilenl OF expense. The substitution of steel rails
for iron has also decreased the danger Of accident
occurring through the roughness of the track.
MaVOr Deering asked Judge Sym0ndS what his
idea was for caring for the $3.50, 900 Indebtedness
IN reply Judge Symonds stated that his idea was
eity's mortgage should not be put upon the road
az In such a procedure the time will come when
the CITY is likely to find itself In minority and
lose tile control of the road.
Judge SymOnds said thai It seemed TO MN that
if Inc city retains controlling interest In the