The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1885-10-02
The Position of Some Holders of
Stock and Bonds.

To the Editor Of the Press.
The anticipated and abundant flow of liter
ature concerning the proposed reorganiza-
tion of the Portland & Ogdensburg railroad,
has set in. The fact that all the articles are
OF a common tenor, and all written by some
persons whose shrinking modesty forbids
them to sign their own names, indicates
concert of action on their part such as would
arise from a combination having in view
some object other than the common veal.
Ready writers would not be wanting to op-
pose the sale of the interest of the City of
Portland in this railroad, if purchaser
could be found who would pay every dollar,
which the city has invested in it, including
accrued interest. Interests hostile to the
possibility of a chance of competition with
second great trunk line to the West, would
either directly or through the influence of
their alliances, at once put into the field its
agents to oppose such a scheme. These in
huenceS are secret, the motives or incentives
of some of the men who take an active part
in opposing any scheme which is for the
good of this city are unsuspected by gentle
men who listen to their plausible arguments
and give ready assent to views which they
would not endorse il they were aware of the
interests or motives which incite their per-
suaders to action. Every movement made in
relation to the affairs of the Portland & Og-
densburg railroad which promises to result
favorably to the financial interests of the
City OF Portland as corporation, will al
ways draw out an active able and noisy OPP
position. The string which is played upon
is the merchants fears. They are assured
that freight charges upon merchandise from
the West viii be raised if anything is done
Tor the financial interests of the city. If
this railroad had powerful allies who con-
trolled trunk line to the West, it would be
precisely what the people of Portland once
hoped to have, and without which it will
never have volume of business sufficient to
make IL paying investment upon respect
able traction OF the money which our people
have paid out to build it.
In order to pay the investors, the road
must charge rates sufficiently high to yield an
adequate income, or it must increase its vol
ume OF business at lower rates. The city
cannot obtain dollar of interest upon its
investment unless the road is managed on
business principles, and the designs of its
projectors will have been accomplished if no
nlgner rates are charged to our people than
tne necessities OF the corporation require. in
order to make moderate payment of inter-
est to the city and other bondholders
90 long as Encouragement of this road is
under the control of the city of Portland, it
Is 1alr to presume that it will be operated in
!iic li!ueleStS oI tne business OF this city, but
u IS tlme nevertheless for the taxpayers to
remark that after having paid into the city
treasury Sl25,O perye for ten years on its
interest account, it is about time that some
thlng be done to lessen in some degree this
equivalent to an annual subsidy, which they
nave been paying for the benefit of those
who do business over the road.
The second mortgage bondholders. includ-
ing the city, have waited patiently for
ten years. without receiving any interest
upon their bonds. During all that period
the trustees never made any voluntary move
ment looking to the foreclosure of the mort
gage which could at any time have been
easily and cheaply accomplished.
1t remained for New York banking con-
Germ who owned about $4,000 in these bonds
to bring suit in New Hampshire. and they
made the road and the trustees defendants,
and II the city had not itself become party
plaintiff the road in New Hampshire would
have been sold to the highest bidder. whose
bid would have been trifing, and the city's
remaining, interest would have been the
equity IN the Portland division only. Now,
a II is not Iact ct and certainly it was not
necessity, that the expenses of these unpre-
meditated ed foreclosure proceedings have been
great. That assertion is bugaboo, put for
Wara wars! 70 conceal some purpose. hostile to the
clty,s corporate interest.