The Portland daily press., 1885-02-23

ceftlncate5 for an amount larger than the
court allowed, the court leaving it to be further
determined whether other debts should be pro-
vided for in that way. At the same time 6n
application was made to the Circuit Court In
New Hampshire to confirm or approve the ac-
ton OF the court in Maine. That was stOutly
resisted by the parties there who endeavored
to cut our road in two; but thanks to the able
and vigilant efforts of our attorney we prevail
ed in that and were thus enabled to raise the
means TO put down track which has set the
road IN profitable operation as you can see by
referring to the report of the receiver.
Still, litigation was pending and 1t beca me
apparent that upon the motion of the parties
who had proceeded In New Hampshire some
decision OF the court should be had which
would lead to foreclosure of the mortgage
How was it to be done2 Should it be BY an
order for a perem ptory sale at auction without
regard to time or purchasers or any prspara-
tion whatever, sacrificing necessarily under
such circumstances all the interests of the city
of Portisnd for they could not 60 there and
bid and buy themselves
They could not bid for the sake of compel
ling other people to pay what was fair and
right, for adroit and sagscious purchasers de-
string to take advantage of the city OF Port
land would stand back and let the CITY bid If it
dared, knowing perfectly well that when the
rsspops bility fell it had no authority to act
Inc up1n after conference betwe otne officers
OF the city, their trustees and their several at
torneys the city applied tn be admitted party
to the snit in New Hampshire that it might
there protect its own interest and it has been
go admitted and been properly represented
The case has been argued and an effort made
to secure from the court decree which, in.
stead OF ordering the property to be sold in such
Wayas to necessarily work sacrifice, we snail
have such foreclosure as shall preserve bytrans
fer the title to those who hold the liens upon 1t:
in other words, the transfer of the title to
the trustees who are to hold it until so me
proper steps can be taken for reorganization
of the corporation.
This state of things prevailing aud hoping
the decision will be in our favor we looked
about to see where we should stand aud we di-
rected our attorney, Mr.. Putnam, to see what
steps would be necessary for the protection of
the property and the protection of the city's in
terest and what legislation, il any, would be
necessary for that purpose. After careful
examination he gave us his deliberately form
ed Judgment that the statutes of the State of
Maine were inadequate to secure for the bond
holders the interest and benefit that belonged
10 them in road situated as this was within
the Jurisdiction of two States. Thereupon be
was instructed to prepare such bill to bs laid
before the Legislature this winter (for we did
not wish TO be left with two years inability on
our hands) SO that we might be prepared for
any exigency that arose. Unfortunately he
happened TO be very busy, the trustees happen
ed to be verv busy and there has been little or
no conference be wsen them 10 regard 10 the
matter, was advised of all the proceedings,
co-operated with the trustees In every thing
that was for the interest OF the city and he has
given some attention to the bill since it was
drawn.
Now it ia suggested, and hear it on eyery
side, that this legislation is designed to accom-
plish some uuderhsnded and surrsptitious
purpose: that there is some scheme, some plot,
some conspiracy, some underhsnded plan or
device to dispose OF tha interest of the city to
some combination or other without regard to
the welfare or the rights Of these people.
Gentlemen, Portland is my home; it Is the
place of my birth; it is the dearest spot in this
world to me; it is the scene where l hope all
the rest OF the enjoyment OF my life will come
to me, and tell you that no act Of mine ever
consented to the prejudice or sacrifice of her
interest. And pledge you my word upon
ny character, which is such as lmay have
been able to via By living here nearly
ftty-six years, that these transactions have
been sincerely for your interest and for no ones
else. And wherever there has been a choice
between two ways of moving, and one OF them
seemed TO be more favorable to the city than
the other, and where the trustees in the honest
discharge of their duty to all the bondholders
could make selection, there has never been
one 1nstanps hesitation in pursuing that
course which shonld best secure and protect
and advance the welfare of this city as it is in
volved in this corporation.
The bill that has been presented has in it
some objections. There has been an amen d.
ment put on TO it, which is none of our work
that provides in most indefinite language tn at
whoever buys this road or becomes possessed of
1t by any form OF foreclosure shall be forbidden
to organize new corporation uDtil they have
provided FOR the payment OF large amount Of
floating debt. There is some floating debt that
it is equitable should be paid Like pay rolls
and supplies for running the road, such bills as
courts OF equity call upon corporations of this
sort to pay prior to the claim of the mortgages
and which we have always been in favor OF
paying, and which we have sought permission
OF the court to pay out of the proceeds of the
road. NOW. ii the amendment only applied to
these bills we should have no objection, bat If
the amendment is left in the indefinite and un-
certain form it nov is, to be interpreted by the
courts. no man can tell how until the jade-
ment comes, yonr interests are prejudiced, III
you become owners of the road by foreclosure
you are liable to be harrassed by suits on the
part of persons claiming demands as part of the
floating debt which you ought not to be called
upon to pay. 1t is admitting to priority over
you who have been secured, those who have
given credit without security and who have no
claim or preference over you. If the court
should order this property sold at auction, as
ft may, what would be the effect? You your
selves Can judge of the effect of some person
whispering around among the bidders that
there is an indefinite amount of floating debt
which must be paid before you can get title to
the property. Is it $100, 900, or $3.50, 900? Who
can gainsay that il may include all the unpaid
coupons upon the mortgage which we are deal
log with. VINO can say and who can gainsay
that it will include those liabilities resting up
on Us by lack of good faith upon the part of
the corporation in Vermont iD connection and
conjunction with whom this enterprise was Or
igiDaly devised.
Another unwelcome phase of this matter Is
that the bill does not provide any means by
which the city of Portland would have any
right under any circumstances to expend any
more money. You will at once say who wants
TO expend any more money; why should it con-
Ter the power to exDend any more? will tell
you. II this property should chance to be sold
the bondholders would have a right to bid, and
so FAR as any portion of the bondholders unite
In becoming purchasers their pro rata share of
the purchase money could be paid in bonds;but
as TO that part of the bOndholders who may re-
fuse to join in the purchase, and who may say
you have bought the property now pay us our
pro rata amount on our bonds," money must be
paid. Now with the city having 81, $50 900 of
these mortgage bonds, it is of the utmost i'm
portance that they have the ability at least to
cheek and thwart any combination which may
seek TO wreck thier interests. The remsiuing
bon dholders own in small quantities; they are
not speculators III railroads and, like the city,
have bad about as much of this M after as they
think is profilable, and they could not get
up any syndicate to buy it / should hope the
day Won never come when the city Of Port
land would i6ol called upon to aise dollar
further iu this matter, bat I do most sincerely
believe, and think every business man wheu
he reflects on the ma ter will see, that it is for
the interest of the city of Portland that there
should be at least the power to protect them
selves from being imposed upon and their
property wasted, AMI not have their hands
tied.
If there is any gentleman here who wishes to
ask me a question | will answer it 1 do net
propose to engage in any controversy or discus
sion that may take place here.
There is one other fact to which I wish to
call your attention, and that is the peculiar
condition of this road in runni5g only to Fab
yan's, where it is obliged to use another road
for about 20 miles, and is doing business over
that somewhat at the mercy OF the other COR
poration. Ii at any time they should see fit to
establish rates much higher than at present,
it would practically be stopping the railroad
at Faoyan's. Ii an attempt of that sort should
be made, the result would be that the road
would only run into the woods and be- OF no
value to the city Of Portland as a business
road and the merchants would be unable to
get anything over it because the road could not
leap that gar aud could not sffor9to pay the
rates that might be imposed. IL may be neces-
sary at some time or other nnder some circum-
st<nces to look about in the interest of the city
of Portland for some help to bridge that if
traculent spirit is shown on the part of those
who are masters of the situation. These are
things you know, and you know that the Leg
lala ure meets once in two years ouly, and