The Portland daily press., 1885-10-19

ing it.
According to one view, the time has come
for the city to take the control of its proper
| ty, of what belongs to it and of all that be-
longs to it. The city has already suffered
enough and lost enough. 1t is its duty to
the taxpayers to make the most of the secur
| ity which remains. 1t is its duty to manage
this property, with more than $1,0O0,0O0 of
membranes upon it now having prece-
dence over the city's title, just as a prudent
HORSEPOWER would manage his real estate
which was getting so burdened with debts
that he was afraid he should lose it. If such
householder should receive the income of
the real estate and use it for other purposes,
the debts would probably accumulate against
| the property till he had lost it. If, on the
other hand, he could manage to get along
for awhile without using the income for 9TH
er purposes and apply it all to reduce the
debts, upon the property, he would find his
title strengthening and the danger of loss of
the property passing away.
The Portland and Ogdensburg railroad
! property is getting heavily incumbered with
debts. so that the first mortgage and the
debts of the receiver threaten danger to the
owners of the equity, of which the city is the
larger part. Let US meet that danger by
insisting that the road shall earn all it can
and that every dollar of net earnings shall
| go to pay these prior claims which endanger
our title and which, on any plan, must be
paid in the end or sink our property. So far
| as we find the receiverShip a serviceable in
| strument in our hands to accomplish this
purpose let us use it. When it is no longer
useful let us end it. Nobody proposes to
continue the receivership longer than it is
! advantageous and necessary. Many believe
| that if the receiver will act with single eye
to preserving the property as it is and to pay
ing his debts, he can do it at the present
| juncture better than anybody else. But if it
does not prove so, there need be no fear of
sale of the road by decree of the court The
/ new corporation can secure the receivers
| debts and take possession of the road in the
! future when it becomes necessary, just as
well as to do it now when it is not necessa-
| ry. The question of the continuance of the
receivership is wholly subsidiary, to be
decided according to the event and
as the new corporation shall deem best
But the difference between applying all the
earnings of this road for the next few years
to the payment of the Receivers debts on
the one hand, and on the other attempting to
pay $4,000 a year interest on new bonds, be-
fore the receivers debts are paid, is vital
The one course, accompanied with an ad-
ministration of the road strictly In the in
| terest of the city which has put more money
into it than all other persons combined and
with due regard to the rights of all, means
| the regular payment of the interest on the
| fist mortgage, 50 that we can extend the
payment Of the principal as long as we need
to do SO I; it means, also, the gradual reduc-
ton of the receivers debts, the appreciation
of the value of our property, safety and
security in the holding of it, ability to dis
! pose of it, if opportunity offers, and the APP
proach of the time when, if we retain it, the
prior liens upon it reduced, we can safely
derive some income from it, without danger
| of the loss Of the whole.
The other course means a temporary in
come and wasting principal 1t means an
avoidance of the disagreeable duty of paying
debts by giving new notes and mortgages for
them paying interest upon them and spend
ing our income. If pursued far enough, it
means the gradual and sure approach of the
time when the scale turns against us and
with these debts which precede ours in
| creased in amount and the property dimin-
| ished in value, the property goes the way
| that mortgaged railroad property knows so
well how to travel. The descent is easy
| We have gone down a long distance. Let us
turn round and climb little now, even if
| it is hard work.
Complaint is made that those who oppose
the committees plan speak in discoaraging
way of the prospects of the road and cry
down the city's property. This same charge,
1t will be remembered, was made against tho
commission appointed by Gen. Fessenden
when Mayor, to report upon the affairs Of the
Portland and Ogdensburg and Portland
and Rochester Railroads, of which
commission Mr. Butler was chairman. Is it
improperly depreciating the value of the
city property to show just what interest the
Portland and Ogdensburg has paid over and
above debts incurred for the last ten years,
for the purpose of persuading the city that
the road cannot pay the interest which tits
proposed for it to pay for the next ten or
twenty years?
Not that the road may not pay more for
the next ten years, than for the last ten. We
expect it will 1t is in better condition. But
where is the basis for leaping from the fact,
of an annual payment of interest of some
where about $4,000 clear, to an estimate of
$100,00 and making fixed interest charges of
about that amount which are as sure to come
round to be paid as the sun is to rise.
''No Indebtedness, says Mr.. Talbot, fever
ought to be put into bonds drawing annual
interest," until there is a fund to pay at least
the interest"
This is Mr.. Talbot's language. Has any
body ever subjected what is known as the
voluntary plan for recognizing the Port
land and Ogdensburg railroad to a more
searching criticism than this? There may be
citizens who beliere that that road will earn |
100000 year net hereafter, but nobody |
can say that there is, or is sure to be, a fund |
for the payment Of that amount of interest; |
and, if not, it is great risk to put on new
mortgage which absorbs that amount of |
income.
We hope that the most favorable anticipa-
lions in regard to the earnings of the Port
land and Ogdensburg will be realized, but II
they are, it does nobody any wrong, deprives
nobody of any right, for them all to be used
to pay the interest on the first mortgage and
the amount of the receivers debts, till the
latter are finally paid and discharged
Nothing has been said recently about the
supposed exemption of the Portland and
Ogdensburg from taxation under its original
charter. We suppose any advantage in this
respect has ceased to be claimed. The
original charter was subject to be modified
by the Legislature at any time. We under
stand it to be claimed by the State authori-
ties that under that charter it is subject to
the general law imposing State taxation
upon railroads, the same as other railroads in
the State. The acts providing for the organ
ization of the bondholders into a new cor