The Portland daily press., 1885-10-14
Amended Report of the Bondholders'
Committee.

Amended Report OF the Bondholders'
Committee.
The committee of the bondholders OF the Port
land g. Ogdensburg have submitted an amended
report as follows:
To the Holders ofthe Second Mortgage bon0s OF
the Portland &c OgdensbttTg RG9tT0Q,d:
Your committee have investigated tne dIidhS VI
the Portland K Oedensburg road and submit to
YOU plan for the reimbursement Vi enS pleSeH!s
Indebtedness of the road. rms plan we Deltexe Is
in its substantial details, the one most certain 10
secure tine property rights of the bondhoiders and
esnecially to preserve the property against the
nnssibility of accidents, financial misfortune or
We recommend that the present capital stock
be retained, the city of Portland having majority
The first mortgage upon the Portland division
does not mature until 1900 and this need not be
We then find an Indebtedness in receivers certi-
fcates. These are bottom lien upon the whole
property, and their payment must IN any event De
The sum thereof is now S250,oOO, bearing in
terest at per cent. per annum.
We also find due the balance OF loan, caleu tne
Dalton extension loan, the payment OF when Is
secured by pledge of $108,000 of the second
mortgage bonds of this road; -, 4,,o oourts
if he has funds which he can apply TO take up tne
loan. The amount is $26,797.o2 with accruedln In
part of Of the rolling stock of the road, both loco
motives and cars, is subject to the liens OF the
Portland COMPANY ana GI1e w dSun NduudSbuinS
Company and payment of their claims must pc
provided for in the sum of S27, 9O5:76 ...o
Payment of coupons on the nrss nc lnoiIsa tse
bonds. due in July 1885 and January 1856 IN tne
sum of S4S, 600 And coupons on receivers GER
tifcates due November /, 1885, in the sum OF
81 800 must be provided for.
For the preservation of the rolling stock, an az,
diton must be made to the locomotive round
house. at cost of $780, and expenses III nGIlg
IN car shops incurred to the amount OF S3OoO III
ali $4,000. u,o os
There will be due on bridges, now in course OF
construction. balance of 81. 227.
The necessities of the road require IN tn ne near
future the building of iron bridges on the me III
New Hampshire at cost OF anu La T, nd
at a cost of $780, 90. Provision must De nliiue
for these items Of expense, but Immediate pay
ment is not required - .,o an
The mortgage upon the land where the car
sbops stand is SIS 900 and mortgages of the Office
and other lands $500. M -. e. LA
Against this amount we can credit item Ier old
iron on hand S25. 00O and net earnings OF rOau
to January 1, 'S6. $4,000; in all, $40 ,OoO; Co.
1t will be SUFFICIENT II we provide security Tor
the sum of $4,000 which we believe VIII pc
sufficient sum to meet these obligations and 70 re-
lease the road from the hands OF the receiver
and which sum added to the amount OF tne .c Ger
tifcateS issued will make an aggregate OF Sooo,-
OOO Nearly all of this sum is now nrSt lien Up
on the property of the road, and until me cerll-
Gates are paid, or provision made Tor tnen pay
| ment neither the stock nor the bond holders can
assume control of the road,
If we should leave it for the receiver 70 aGcOat
| plish the payment of the above mentioned
| amounts. the bondholders would be Obliged 10
wait from seven to ten years before receiving the
The committee believe that loan of the whole
| necessary sum of $1,000 may be enected Dy
giving It preference as first zen bea .1e NEW
| mortgage to the amount OF S3OO,OOO, bearing III
| terest at per cent per annum.
We now come to the reimbursement Of the seco nia
| mortage indebtedness We have taken the GATE
| of November /, 1884, when the coupons became
due next after the appointment of the receiver.
At that time and now the toCai
amount of bonds considered as sofa - 80.
| Observation-Disclosures. 1857 300
Accrued interest at that date. ......... 14s5,714
Total amount to be provided for. $3.s73, PA
| The interest of the City of
| Portland therein. 81 O92,oOO
persons is. ..'a ~ .e 1,7so,714
| The city having plurality ,,,.se
The liability Of the road
upon the consolidated
bonds and notes endorsed
| for Vermont corporations
aggregate about. 1O9,O0O
| And the unsecured indebt-
edness not exceeding. 4i,ooo
Total $4,000
A new mortgage should not overload the read,
but it should nevertheless he as large as the re-
sources of the road will permit.
We have investigated the earning capacity OF
the road and there is no doubt that II the finances
of the road are adjusted as we contemplate and
its property put in first class condition, as the
means provided will permit then the net earning
capacity of the road available for the payment OF
| fixed charges, will exceed 100000 per annum,
with prospect of fair increase In the near
future.
We propose the issue of twenty year bonds: Sc
cured by mortgage on the whole line for $780,
O00 or q fraction over twenty-five per cent OF the
amount due on the second mortgage bonds as afore-
said, the bonds to hear no interest for the hrst
two years three per cent; per cent ior tne next
aid Ave ner cent For the next five years This in
terest the road can easily pay: - 900 -.
We also propose the issue Of II .oOoooo IN pre-
ferred stock that being the fulI amount autEor-
This stock will be entitled to receive any sur
| plus earnings above fixed charges, to the amount
of six per cent per annum, any excess being at
the disposal of the holders OF common STOCK, al
ter two dividends.
and unsecured debts will accept of fair per cent
age of their claims in settlement thereof, we pro
fion of this issue of stock to which the city OF
Portland would be entitled, after the payment OF
the last mentioned claims. might deprive, it of a
priety of the city of Portland always retaining
control of this property, we propose that $500
Portland and the balance. after adjusting the
claims above mentioned shall be divided pro rata
among the private bond holders.
This plan will always give the city good ma
iOrty of the common and preferred stock, and al
so practically of all the bonds to be issued Tor tIe
preference bonds being for small amount ana Q
prior lien, can always be taken care OF by the com
pany's earnings, and will never come in to share
with the city and other bond holders in the con
troll of the road.
justed will be as follows:
First mortgage on Portland DIVISION. .S oUO,OOt
Mortgage on whole property to secure
1st lien preferred bonds. 100000
Bonds in lieu of present I'd mortgage oo
bonds. ACKNOWLEDGEMENTS. SfO,oUe
Total. So, o7O, ooC
Before the expiration Of twenty years the bust
ness of this road will so increase that with fail
management its credit will be of the best and its
indebtedness can then be readily placed as may
then be for the interest of the road.
The advantages to be derived from this plan Of
adjustment over any scheme of foreclosure are
manifest.
A valuable charter under which the road may
be saved from taxation to the amount OF many
thousand dollars, will be preserved, the common
stock will be saved. litigation and its attendant
evils and expenses will be avoided. A strict
economy in the management of the road will be
necessitated by the regular requirements OF the
payment of fixed charges, the diversion OF the IN
come of the road to other enterprises prevented
and the property of the present bondholders II
this road safely secured, protected from accidents
or mismanag9ment. ,
We believe this plan to be emphatically for the
hest interest of all parties concerned, and we urge