The Portland daily press., 1885-10-19
SEARCHING FOR LIGHT.

ton.
SEARCHING FOR LIGHT.
In an article in Saturdays Argus Mr..
George F. Talbot appears at first as seeker
for light and, later, as very adroit and able
advocate of the proposed voluntary plan of
recognizing the Portland and Ogdensburg
Railroad. He begins by slurring the meet
ing of business men of Tuesday evening as
incapable of elaboration because Che says
somebody had prepared beforehand the
resolutions which were submitted and unan-
imously adopted as expressive of the sense
of that meeting. What evidence Mr.. Talbot
has that the resolutions were written before
the meeting assembled we do not know How
it follows because somebody has seen fit to
write out in advance a resolution to be sub
mitted to the judgment of deliberative
body, therefore the assembly is rendered una
BILE and incompetent to consider it, or to pass
upon it properly and fairly, we do not per-
ceive. Is that the case of a magistrate who
has written out his judgment beforehand,
and is therefore deaf to evidence and argu-
ment? 1t does not seem so to u.s. The res
olution offered is merely the shaping of a
proposition for the meeting to act upon, and
becomes effective only to the extent to
which it is approved and adopted by the de-
liberate judgment of the body to which it is
submitted. All this is obvious enough
Now at the meeting on Tuesday evening
ample opportunity was given to all persons
to be heard on either side of the question
under consideration. When Judge Symonds
had finished, Mr.. Talbot himself proposed
certain questions, which were answered
The chairman announced that the subject
was open for discussion. Mr. Woodbury. S.
Dana, stating that the subject was not
wholly free from doubt in his own mind,
requested the gentlemen present who were
in favor of the mutual agreement plan to
present their side of the case. Mr.. Lunt and
other representatives of the bondholders
were present and they were silent. In this
state of fact is it becoming for Mr.. Talbot,
when four days afterwards he first opens his
lips on the subject, to open them with a
sneer at the meeting which waited to hear
him, as Sin no position to deliberate, any
more than magistrate who has his iudg-
ment already drawn up in his pocket is in a
position to be influenced by evidence or argu-
ment?"
This is in the same vein as Mr. Putnam's
reference in Fridays Advertiser to the Com
mercal street merchants who have studied
these questions and are opposed to the COM
mittee's plan, as being by the ears" and his
dragging into the public prints private
conversation in which language is attributed
to one of the participants which he denies
that he ever used. What Mr.. Putnam
means by "being by the ears" we do not
know but we submit that there is neither
force nor dignity in such expressions when
applied to citizens, whose stake in our mu-
nicipal welfare is reasonably large one
and who meet for fair discussion of ques-
tions affecting the common interest, making
no attack upon those who differ from them
and giving all full opportunity to be
heard.
For what reason does Mr.. Talbot refer to
the fact that by the foreclosure under which
the present Maine Central was formed, "se-
curities were suppressed as worthless
which had real value dollar for dollar, and
that it only required little more faith and
a little more scrupulous consideration to APP
preciate and preserve them?"
If this was true in that instance, it was an
objection to that foreclosure. But Mr.. Tai
bot would not say that the same objection
applies to the present foreclosure of the
Portland and Ogdensburg. In the case with
which we are dealing, it is the second mort
gage which is foreclosed, and all the proper
ty acquired by the foreclosure does not pay
one-fourth of the second mortgage debt. The
mutual agreement plan proposes to scale
down this second mortgage debt to less than
rs per cent of its total amount. So that both
plans recognize the undoubted fact, and all
parties agree, that the value of the property
can never even approach the payment Of the
second mortgage, and therefore that the fore
closure cuts off nothing which has actual
value. The second mortgage bondholders
have just as good title on moral and equi-
table grounds, in simple fairness and justice
to all they get by the foreclosure, as they
have on strict legal grounds. The third
mortgage bonds (besides the fact that there
is total want of equity or right in them on
other grounds which have been stated here
tofore) and the unsecured debts are simply
claims against property which is more than
exhausted by its application to the payment
of prior liens. There can be nothing left to
pay third mortgage, when second mort
gagee only gets 25 per cent of his claim; and
when corporate property is not enough to
pay the mortgages upon it, the original stock
can neither have nor represent any actual
value. Mr.. Talbot applauds the result of the
Maine Central foreclosure in every respect ex-
cept that it suppressed securities which had
a real value. The foreclosure of the Port
land and Ogdensburg has no such result as
that. Why then does he cite the Maine Cen
trail foreclosure as a warning and terror
to usP
Again, Mr.. Talbot refers to it 'ds matter |
Of dispute" whether the city will have ma
iority of the stock in the new corporation |
organized under the foreclosure.
Who disputes it?
Mr.. Putnam has uniformly asserted the
,itys majority-interest under the foreclos-
Ire in all his published statements. He does
10 in his letter Of October 9TH, which he pub
ished in the Advertiser Of Friday evening.
Judge Symonds stated on Tuesday evening
hat, while he hoped an auditor or COM
nittee would be appointed to ascertain what
he exact proportions of stock in the new
would be between the city and
Ill other interests combined, still according
% the figures of the city treasurer which he
believed were correct the city must in any
went under the foreclosure hold more than
lalf of the new stock If the whole ST. 150,-
90 second mortgage bonds, not held by the
ity had been issued and were now outstand-
no with all the coupons on them, it is only
,,oot+ar IF Communication to show that the |
mount of the principal and of the overdue
oupons upon them ION which the new stock
based) is less than the amount
ED by the city, while several SON
iderations will undoubtedly increase the
ity's relative proportions above the result
0 indicated. 1t is therefore mathematically
ertain that the city will have majority-in-
crest under the foreclosure; so far as we
now ithas been uniformly asserted by
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