The Portland daily press., 1885-10-14
PORTLAND & ooDENsRuRo.
Judge symond's Remarks at the
Citizens Meeting Last Night.
Resolutions Adopted Favoring the
Foreclosure Plan.

hcC6pllOu Idll hdS Wcli ulSu Aaog OfChlA6 "
the citizens to consider the best means of protect
ing the ctys interest In the Portand& Ogdensburg
railroad. The meeting was called to order by Chas
Mclaughlin who nominated Willard II. woodbury.
as chairman and Mr. NJ N. Riggs as secretary.
Among those present were Hon. Charles NC
Laughlin, Hon. c. F. Libby, Hon. Henry b.
Ceaves Hon. George f. Talbot. Hon. George w.
True Hon. w. f. Lunt, Hon. W. G. DAVIS, Messrs.
S. w. Thaxter, Geo. s. Hunt. Willcord I'll. WOOD
bury, s. r. Small. P. Fl. Brown, Charles j. Chap
man, M. f. Hammond, Thomas Shaw, H. W.Gage,
John E. Dewitt, Woodbury. S. Dana, Capt. Charles
H. Chase, Daniel F. Emery and Theodore =.
Woodbury..
Mr. Woodbury. then called upon Judge Symonds,
who spoke substantially as follows:
Mr. Chairman and FeltolV Citizens:
AS a citizen who has given some time to care
full study of the questions involved and III answer to
the request which have had the honor to receive
from number of gentlemen, propose TO speak
to you as briefly and as clearly as can in regard
to the relations existing at present between the city
of Portland and the Portland &Ogdenspurg railway
with suggestions and expression of opinion on my
partas to what the wisest course OF municipal &C
ton to be taken in reference 70 securing ana reta
ing the property rights and interest of the city in
that railroad until itself after fair negotiations and
upon fnll consideration and discussion OF the sub
ject shall determine to dispose OF its interest.
/ shall speak simply Of the present and make
no review of the past municipal connection. That
the Portland & .0gdensburg railroad has not
were entertained in regard to it. Is fact which Is
a common source of regret to all the citizens OF
Portland, which has involved us in a common loss
and entailed upon US common burden. And the
question is at the present time how best to deal
with the burden which has thus devolved upon
the city and how to render available as security
for the large loans which that railroad received
what is left of the property, and OF the rlgnt ana
interest of the city in that property.
/ make no review of the past, no charges or
ordinations in regard to it. make no attack
upon anybody's motives in regard to the plans
which we are at present considering for the reor-
ganization of that company. For the purposes OF
this discussion coneede to all gentlemen differ
ing with me in regard to this matter precisely the
same fairness of motive which l would claim Tor
myself.
densburg Railroad of which we are speaking? |
shall speak wholly upon recollection this evening
and only with that substantial accuracy wnch u
necessary for general discussion OF the subject. !
suppose the railroad may be described as about
ninety miles of railroad extending from the CITY
ei i @s to Se Fsban station then
gap of seventeen or eighteen miles OF the original
location which has never been constructed then
Connecticut river. This railroad. with Its sta
tons, equipment, rolling stock and ap-.
gs Is w and ass
Now how stands the title to that property? AS is
well known, although it is well for me to run over
SION si,,S t the line o railroad from Portland t. the
town Of Bartlett In New Hampshire, with its
equipment and appurtenances s SUBJECT 70 wnat
bonds IN isf tie sum of 100000 falling due in
the receivers certificates, which shall consider
later, we may consider the mortgage OF $500, 900
ssrte IN mortgage Ike city has inter
est. 1t is prior encumbrance on the road that
must be provided for under any plan of feorgani-
much tI as sin in the other The first mortgage was
| dated Nov. l. 1870. Precisely year from that
UPON the road, which we may describe as mort
| gage for two and one half million dollars although
I was nomnally for So 300 900, but $500 900 OF OF
| the first mortgage, and they have never been is
| sued and form no part of the liability of the COM
| pany This two and one half millions constitutes
the Second mortgage on the road from here to Bart
lett, and that is the mortgage IN which the CITY
bonds Secured by that mortgage, amounting, with
| out interest, to 81 100000 for which the city
| issued its municipal bonds dollar for dollar
Leaving out of view then, for the present the m
| debtedness caused by the receivers certificates
| the interest of this city In the property nave
| described as the Portland s. Ogdensburg railroad
the city owning seyentenths OF the stock, and It's
| interest In the second mortgage bonds to the
the stock is concerned except SO far rs it may be
| of value in any contingency Tor the purpose OF
giving some control of the road 1t is not regarded
BY anybody as retaining any pecunisry value The
city owns seven-tenths of the stock but the stock
| does not own the railroad. The railroad is mort
more than the present worth of the entire railroad
property. The city's interest, then, in which
| second mortgage for 81 100000, Now, as is well
| known, after long proceeding In court the his
tory of which it is not necessary to give at the
present time-a proceeding in which the city took
part-a decree Of foreclosure Of this second mort.
| gage has been obtained. On the 18th day OF
| States for the District of New Hampshire, a de-
| cree of foreclosure was fled under which, unless
the Portland Ogdensburg corporation pays the
right as mortgagor is barred and foreclosed, and
in order to understand precisely what that decree
| OF foreclosure Is will read 1t.
| Judge Symonds read at length from the decree
| Of foreclosure. and proceeded as follows:
obtained by the able and vigilant action of the
| trustees under this second mortgage and Of their
counsel, which Is an absolute and uncondltlona
| title deed to this property In Maine and New
| Hampshire with all its equipment and appurte-
nances, and which discharges all prior liens. ex-
which involves time and expense to obtain, and
| which conld not have been obtained in this case
as easily as 1t has been except Tor sort OF com.
mon consent, under which the action OF the court
| has proceeded That Is the decree OF foreclosure
| which it is proposed by some gentlemen OF the
REORGANIZATION of the road precisely as if such
| foreclosure had taken place. l am one OF those
who believe. in that foreclosure and proceeding
| under II. (Applause). Do we not want strong
title to property rather than weak title? Do we
not want title to property that Is free and clear
| clear from encumbrances which are not known,
rather than to have the title to the property OF a
corporation which has been In existence seven
teen or eighteen years and ON which there may be
claims which, so far as know, are included in no
| statement in this case? How do we know what
claims are in existence against this old corpora
ton which it Is proposed to perpetuate? This
corporation has been doing business eighteen
years. Do we want to take that property, with
existing upon it,, and hold ourselves subject to
them, when. under the decree of the court, we
tio r tits title to that property think not. The
Portland & Ogdensburg Railroad Company know
and its books, win show, what debts are made
| they may show what claims have been made upon
it, 1t may be within the knowledge of the officers
Of that corporation what claims have been made
work out the details OF this second plan which is
proposed and which shall hereafter consider,
| and be included In the plan which is proposed,
when the details are hereafter wrought out,
have only general outline under which it is pro-
posed to proceed, but when the papers are drawn
there Is the elaboration of detail to 60 through
| and we know not what may be included in it. And
certainly If it is proposed for the city of Portland
to waive its fun title to this property for the pur
third mortgage Indebtedness if it is proposed to re-
ceive them into a participation in the reorganiza-
tion.itis exceedingly objectionable For It is well
| sued In fraud of the rights of the Portland & Og-
densburg Railroad Company, that they have al
| ways been resisted by the corporation itself and
| defended against In q suit in court; 1t is well
known that the Portland q 0gdensburg Railroad
| Company never received a QOllaf OF Denent from
| them and that they were issued In fraud of the
rights of this section of the road by certain YER
| mont railroads which proposed to make through
line and certain legal liability except in case of
foreclosure may attach to the Portland g. Ogdens-
| burg Railroad Company to pay them But the
| foreclosure cuts them of. They no longer have
| any legal standing and they never had any moral
| or equitable standing fApplause.)
Now, say II that class OF claims under aIsystem
of reorganization Is to be admitted to priority
the City's claim, when the city paid dollar for dol
| lar for every bond that it holds, we know not
| what unsecured claims are to be added to swell
| this Indebtedness when the details of this volun-
| tary plan are carried out. This foreclosure gives
us full and absolute title to our property, and
| gage do it merely for the sake of brevity, for
Of course intend to include all the associate bond
| holders under the second mortgage who hold
| bonds secured by the same mortgage as the mort
| gage to the city. But am not supposed to con-
eede as shall hereafter have occasion to state,
that the interest of the Individual second mort
| gage bond holders is identical with that of the
city. IIthink there is broad line of distinction
| between them which shall hereafter point out
| Now, to obtain a foreclosure OF a railroad
| mortgage, in two States, is not thing to
| be done in a minute 1t takes time
| and ability and involves delay and ex-
| pensc, and when it has once been secured it
seems to me that the reason should be urgent
| which should induce anybody having an interest
| In that decree to waive his rights and trust to
| something else. When the mortgage has been
foreclosed and the mortgage has got full title to
his property, and the right of possession and the
means of enforcing his right of possession in his