The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1885-10-02


a small part of the debt actually due them,
nut tnls they want assured. They know that
Tue present earning capacity of the road can
proFide Tor the payment of interest upon
ponus issued for a fractional amount of the
SUI sum now due them, and for the balance due
them they are content to wait for the future
development of the property.
1nelr interests are Identical with the cor
porate interests of the city. They do not
expect and would not advocate any move
powers OF the City of Portland, and no man
81 ntelllgence and honest purpose will for a
moment believe that this city government
naVe III view any purpose or would sanction
any cnange Which would lessen the city S
powers to control the road. The reorganiza-
oon scheme mentioned by Mr.. Putnam, and
Wnlch every bondholder endorses as soon as
understood, contemplates the preservation to
some extent of everybody's rights. The
business men of this city invested many
thousand dollars in the common stock of this
ROAD. 1t does not require one to point to the
circumstances of the appreciation of the
stock Of the Atlantic & st. Lawrence road,
od Oh the Maine Central, of the Eastern, of the
Chlcago d Northwestern, and of numerous
ON otner roads, in order to support the assertion
tnat POSSIBLY the future may make this COM
mon stock OF value. The day may come soon
Wnen the common stock will control the
road, and $780, (seven hundred and fifty
thousand dollarsl invested by the city there
In be made of value.
it IS not proposed by the advocates of this
scheme that the city shall have less than a
controlling interest in the amount of the
stock proposed to be issued. They know very
well that the City Government would object
TO ass other arrangement, and besides they
have no wish to change the stock control Of
the corporation. Holders of unsecured in
debtedness, including many of our own peo-
pie who have furnished supplies to the road.
VIII De saved IN some measure by receiving
preferred stock for part of their claims,
and holders OF consolidated bonds must ac-
cept percentage of their claims in prefer
red stock, percentage of the amount due
the second mortgage bondholderS will also be
paid in preferred stock. When two divi-
dends have been paid upon the preferred
stock; then the common stock will again con-
troll the road. In any event, the city will
nave controlling interest in both preferred
aud common stock, and in addition will hold
mortgage bonds worth as much as those now
held bylt, upon which it will receive regular
payments of interest, although at first the
rate may be low; but this mortgage will be a
sheet anchor to preserve safely the city's in
terest in the event of future extensions.
what more can any advocate of the city's
rights ask for?
Now why don't the bondholders desire to
reorganlZe upon the basis of foreclosure?
Because such scheme is not for their in
tereSt. The enemies of their and of the city's
interests at AuSusta last winter caused to be
stricken from the bill for reorganization,
provision under which bonds for a percen-
tage OF the bonded debt might be issued and
left the bondholders the only alternative of
taking stock for their bonds. 1t is unneces-
sary to say who did it, but it is safe to saw
that hostile interests did it,
The bill as submitted by Mr.. Putnam con-
tanned such provision which would have
turned into the city treasury at once, some
income to lessen the heavy burden of the tax
payers. Such an issue of bonds would have
made diversion of the income of the road to
other purposes difficult matter. The fore
closure scheme advocated by Subscriber
and Citizen" and by an editorial in the Press
has in yiewt he building gilmore road at cost
OF nearly half million of dollars which will
result in diversion from the CITY treasury
OF the income OF this road for many years,
and practically by ways and means available
in eventually wiping out all of the city's con
trolling pecuniary interests, and that before
be,rGre!
The ground which Subscriber" and "Cit-
lZen" take is the same that Shylock took
when he demanded the pound of flesh.
1t is the argument of the usurer and of the
oppressor.
:, The City Of Portland is not ready to act in
the role of the screw who, because the law
VIII let him, will therefore seize all and de-
prlYe other honest creditors and stockhold-
ers OF their chances, nor is there necessity
for so doing in order to preserve the proper
ty of its citizens.
This business is entirely matter of muni-
opal concern. 1t does not involve any poll
tlcal issue, yet this proposed scheme is met
by what appears to be an attempt to give
political color to it, by publishing in the
PRESS nearly all articles opposing It and as
sailing Mayor Deering without Just grounds.
1, ,apprenend that my political associates
VIII not suspect any leaning on my part to-
wards Democracy. while in the open light |
DO not hesitate to denonnce the acts of gen
tlemen who either wilfully or in ignorance
OF the true situation, undertake to assail the
motives OF the Mayor or of the City Council,
in the, steps which has been taken to have
something done for the interests of the city
and OF the bondholderS. One writer asks
why don't they obtain the advice and
opinions OF Mr.. Putnam, counsel for. the
trustees? Suppose he gave it! which ever
because Mr.. Putnam is principal counsel for
the Boston y Maine railroad, and they would
assert That he was insensibly biased, if not
actually interested.
Why not obtain the advice of the trustees?
The adivee of the trustees may be good, but
no better than that of many other gentle
men. Their business as trustees is to hold
the property and turn it over to the bond
holders, and beyond that, unless they own
bonds themselves they have no further in
neyermoved to assert the rights of the bond
holders until obliged, although interest had
been defaulted for years, and besides two of
them were formerly counsel for the Eastern
road, and critics might question their advice
as biased. Why not of Mr.. Libby and Judge
Symonds?. might answer, by making the
same inquiry concerning many other talent
ed and successful citizens of Portland, who
have interests to serve.
This business ought to be managed and di
rect ed by men who have an actual personal
and Immediate pecuniary interest in the sue
cessful reorganization of the road, and not by
theorists. Not by cold blooded servant. OF
soulless corporations, who would take the
pound OF flesh because they have the knife
and the victim in their hands, but it Should
be done on the broad basis of the greatest
good to the greatest number, and let it be
said for once i'll the history of railroads. that
this road is not built up by injustice or hard
and frigid legal right, upon the ruins of the
investments of honest, hopeful but deceived
and deluded investors
Let Subscriber" and Citizen and the men
who advocate or oppose in the newspapers
the measures in relation to this road, come
out over their own signatures, and thus add
to their statements whatever weight of per
sonal confidence is reposed in them by their
fellow citizens, and enable the public to
Judge in whose interest they are acting.
WILBUR f. LUNT,
in behalf OF some holders of stock and bonds.