The Republican journal., 1885-09-17
Dividends, or What !?

was Pupllsueu Ill lne JOURNAL ana tne Frog
Age. Both papers have called attention to il
and have expressed opinions that dividends
should hereafter be declared by the directors a.
directed by the court. There is large amount
of money lying idle in the treasury and avail
able for dividend. And yet there Is no sign
given by the directors that they will in the flu.
ture declare any dividends. Meanwhile the
city government has met but maintained an
ominous silence. If they bad manfully accept.
ed the situation and indicated any intention OF
reversing their policy, l would not say one
word that may SAVIOR of exultation over this le-
gal victory, or of censure of those who are now
so clearly shown TO have been ''false lights" as
well as ''false prophets" to the city for the last
four years There was bitterness enough in
the past controversies. and the bitterness then
engenJered has not, | fear, wholly died out.
| To eXtirpate it entirely spirit of justice and
fair dealing should be manifested on the part of
those who have created it. If they will not dc
this, the party that endorsed and sustained
them in their crusade should refuse to support
directors-who were so unjustly accused of dis
honesty, corruption and wrong-doing, that
those who endorsed these accusations by their
votes should now refuse to follow these leaders
| further In acts Of INJUSTICE. If they will make
known such determination, there will be an
| immediate change in the policy of the railroad
/ directors. That correct public opinion NAV
be created, and its pressure definitely brought
to bear upon the directors, it is necessary.
/
| ions of the past, and to place the accountable
lily and responsibility of the results upon the
proper shoulders The retrospect is not pleas
ant but it is instructive.
| This contention had its beginning more than
! four years ago. In the summer of 1881 an or
eanized effort was made by the city govern
ment to refund at per cent. the then out
standing debt of 100000 drawing per cent.
interest. Differences arose in the committee as
to the mortgage of the city's railroad stock to
secure the new bonds. Capitalists, who We're
| ready 10 take large amount of the new bonds,
asked that the stock should be placed in the
hands of trustees. The city government voted
to place the stock in the hands of trustees but
to reserve to the city the right of voting on the
stock, and hence of directing the policy of the
railroad company as 10 dividends. As nobody
apparently wanted these bonds thus secured,
the syndicate that stood ready to take about
100000 of them previously now refusing, no
sales were made and refunding stood still. At
the same time money was everywhere abun-
dant and seeking investments. Other cities
were refunding their bonds = our city did
appeared in the Journal signed Fair Play,
calling public attention to the dead lock in the
refunding movement and asking the cause of
this failure. He said ''the apparent cause is the
determination of the controlling power in the
city government to change the existing order of
things in the management of the B. & NJ. L..
K K. Co. and the distribution of its income"
In second and third communication he said
Il repeat the statement that success in the re-
funding movement-so important to the tax
payers of Belfast-is not achieved because ii is
the determination of those having the matter
in charge to change the management of the
railroad and the disposal of its rental" The
city government prefers refunding should fail
rather than have the matter of the income adj
justed and fixed. Is this dallyng satisfactory
to our tax payers! Are they willing that re-
funding which would reduce the city taxes
many thousands of dollars should be DELAYED
till authorized? Which is the more important
to them, that refunding succeed or that the
disposal of the railroad rental be changed?
The issue is a very simple one.'
And now to show how insignificant in impor-
tnt Ia l., nl,.
railroad rental compared with the reduction of
taxes to be obtained through refundlng the city
debt, will present in summary the results
that would ensue from the adoption of tnree
different methods.
LIST. Under the present plan the city is re-
ceiving S6.2S2 each year on its preferred stock.
After 1856 it will receive SS.316 on its preferred
Of Sle,7Ol Per annum.
2d. Dispense with sinking fund. let the debt
continue, and divide the rental after paying in
terest Oh the debt in dividends to the stock.
The city would receive the present year, and
each year afterwards, $3.50 on preferred and
S6,215 on non-preferred stock, in all S14,620.
3D.. Divide all the rental and apportion on
red. an equal part OF the interest on the debt
the city would receive Sob on preferred and
sll .Gl2 on non-preferred stock, in all S11.125.
Replies from Tax Payer on the part of the
city government were published and general
discussion of the rights of stockholders took
place. The journal spoke as follows;
The communications from Fair Play" and
"TaN Payer" and he card of Mayor " oodcock.
recently published. have supplied all the data
necessary TO thorough understanding of the
refundlug question. No one who has read these
articles closely need be at a loss upon whom to
place the responsibility for the present dead
Jock. What has been said concerning the rela-
tons between the city and the railroad com
pany, though interesting, is not specially impor-
tant at this time. We know of no reason why
this matter should have been brought into the
controversy unless to arouse ii feeling sure to
embarrass if not defeat the proposed refunding
of the city's Indebtedness.
But for the issue raised by Tax Payer and his
associates, refunding would now be in progress.
Delays are dangerous, and it is doubtful if the
work could now be begun and carried out with
such assured prospects of success as before this
controversy arose. The real taxpayers, those
who have the welfare of the city at heart, have,
we think, good cause for complaint against
those who have delayed. if not defeated, the
refunding movement. The plea upon which
The discussion then continued for several
weeks in the Prog. Age. But nothing in the
way of refundlng was accomplished or even at
tempted. In December paper for gratuitous
circulation called the Tax Payer was started
and was published semi-monthy until the
spring election. 1t need not be characterized.
Copies are now preserved as curiosities to show
the bitterness and injustice of the attacks made
upon the directors. A club room was opened
and league formed pledged ''to vote for the
election of municipal and other officers who
will pledge themselves to carry out our wishes
in this respect SO far as they are able, and who
viii see to it that men are selected as directors
of our railroad who will mete out even and
exact justice to all stockholders in said road"
AT the spring election the so called Tax
Payers party was triumphant. The voters
of this city chose to endorse and approve the
charges made against the railroad directors.
and to demand their removal from office and
change in the distribution of the railroad rental.
Doubtless they were induced to do so by the
promise SO continually made of great reduc:
ton in their taxes. 1t was asserted and
promised that a distribution of the railroad
rental should be made so as to put into the city
treasury nearly three times as much as it was
then receiving. How that promise has been
kept your readers know. Instead of receiving