The Portland daily press., 1885-10-16
The Portland G. ogdensburg Re-
organization.
LFrom the Eastern Argns.l


Judge Symonds contributed some very i'm
portant considerations touching this matter on
Tuesday ning-considerations which the
thoughtful citizen cannot afford to ignore. All
concede that reorganization through foreclosure
will give a clear, perfect title to all the value
there remains in the enterprise. What is such
title worth in the present case? That depends
upon the amount of unadjusted claims outstand-
ing Nobody can now tell with certainty the
number or amount. But it is known that there is
a claim, or class of claims, that have been made
upon the company and have thus far been resisted
by it-that they are of quite large amount, and
that foreclosure will settle them forever. Is there
any other way of getting rid of them except
through expensive litigation? If not, foreclosure
should proceed to consummation A clean title
secured in this way may become all important,
not only to perfect the present security of the
property, but to facilitate its advantageous dis
posal when opportunity offers.
But foreclosure probably means continuance of
the receivership, and postponement OF any receipts
by the city from the property, for an indefinite
period. The latter result is certainly undesirable;
but it is not wise to undertake to secure the an
nual receipts proposed by the committee at too
great risks to the sacrifice of important ultim
ate advantages. Much as we wish to see the
burdens of the city lghtened, we are free to con-
fess with the evidence thus far adduced, that our
Judgment is against making the attempt 10 secure
relief in the way now recommended by the COM
mttee
We fear that If attempted it will fail. We fear
that the committee are over Sanguine as to the
ability of the road to make the earnings estimated.
Its history hitherto does not show it. No new
source of local income, beyond the natural in
crease of business is pointed out, while receipts
from prospective through freights beyond cost of
transportation, are dubious as ever. The multi
pcation OF drought lines WILL even at fair rates,
reduce profits of the business to the lowest figure
foT years to come. And failure to yield the
estimated revenue for the next ten years would be
simply to repeat the history of the past ten years
with Still more unfortunate results to the city's
interests.
Therefore with the light before us, our judge
ment is that the foreclosure is the path of safety
The Receiver under the supervision OF the Court
will conduct the enterprise with all the economy
possible and every dollar earned beyond neces-
sary expenses will go TO the payment OF claims
having precedence Of the ctys interest, until the
city elects to take the property out OF his hands to
SELL lease, or otherwise manage it.
Ii the committee can satisfy our citizens that
the mode of reorganization which they propose
will eXtinguish all claims, and litigation OF eaims
against the road, and that the road will beyond
reasonable doubt annually earn hundred thou
sand dollars year over and above necessary eX-
penses as they estimate, then their plan would,
FOR aught can see, be wise, and ought to be ac-
ceptable. We should certainly prefer 1t to fore
closure. Over the points named hang our doubts
and In the presence of doubts the line of greatest
safety is always to be chosen, even at some pre-
sent inconvenience and perhaps cost.