The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1886-12-07


The regular monthly meeting of the City
Council was held last evening.
In Board of Mayor and Aldermen.
The Mayor presided, and all the members
were present.
PORTLAND & oGDENsBURG.
The following communication was receiv-
ed from City Solicitor Symonds.
PORTLAND, Me-, Nov. IS, 1885,
Hon. Charles j. Chapman, Mayor of Port
Dear Sir:-You will remember that at the
meeting of the bondholders under the mort
cage Oh the Portland q Ogdensburg r. 4.
company, dated Nov. 1, 1871, for the orgapi-
cation OF the new corporation, the following
notice was filed in behalf of the city, and re-
corded as part of the proceedings of that
meeting:
Here follows the notice by the
city to the bondholders under the
mortgage from the Portland q Og-
densDurg Railroad Company to Samuel i.
Spring ct ais, trustees, dated November /
iSol. Inc notice was that the city claims
tne right OF computing interest on its regis
tered bonds secured by said mortgage, from
the date of the mortgage, Nov. /, 1911 1t
Delng understood by the CITY, that other
bondholdefs denied the citys right to COM
pubS uH SUCH DOHuS DIlOr 10 NAV i.
1873, the city gave notice that it would act
only on what was conceded to it at the meet
ing Tor reorganization, reSerying its claim to
be afterwards legally determined. This ac-
ton was taken that the formation of the
new corporation might not be delayed
According to my minutes, the amount due
upon the city bonds at the foreclosure, If the
interest were reckoned from the date of the
mortgage, would be So, 1000; If the inter
est Is reckoned only from May LIST, A. D.,
1879, the amount so due would be $4,000, 500
Unuer the circumstances it seems to me
equitable for the city to claim interest from
the date OF the mortgage, and advisable for
the city to have this claim legally determined
II 1t Is opposed by the other bondholders.
TOT TINS purpose would propose the follow
ing mode of proceeding:
The question can be raised in either:of two
ways. FIRST. Upon refusal of the new cor
poration to issue stock to the full amount
claimed by the city the city can apply to the
court to have its right determined in equity.
Second. Upon vote of the new corporation
TO issue the amount of stock which the city
claims, the other bondholders can oppose the
carrying out of that vote by proceedings in
equity instituted by them.
L advise that the latter course be pursued
A vote OF the new corporation Ito issue the
amount of stock which the city claims can
be passed for the purpose of raising the legal
question, and with the understanding that
opportunity is to be given to all persons Op-
posed TO present the questions involved to
the court for decision Then, if any parties
III interest resist the city's claim, they can
apply to the court to restrain the carrying of
the vote into effect, and so the question will
be fully raised and determined.
III does not seem to me to be right to give
our opponents the advantage at the start of
city's claim when the claim is made in coed
faith and only direct and immediate adj
ludlcatl0n upon 1t is sought. and when at the
same time the new corporation is controlled
by the city.
propose should be passed for this purpose at
the next meeting of the Portland & Ogdens-
burg Railway, and submit to you that such
action should be taken at that time If the
matter IS delayed. the tendency is to resist
the clty's claim more and more, and L think
you Will agree with me that in view of the
large amount involved it is important to
have the question decided as soon as possible.
Very truly yours,
JOSEPH w. SYMoNDs,
City Solicitor.
The accompanying vote, referring the mat
ter to the Mayor, with instructions to request
the directors of the Ogdensburg to pass vote
providing for the issue of stock to the city to
the amount claimed, was passed.
THE MUNICIPAL DEBT
The Finance committee reported in regard
to the refunding of the Municipal Debt, that
probably the largest part of the bonds fall
ing due. July l, August 5, and Novembera1.
1887 and January l, 1888, amounting to $500,
GOO viii have to be provided for by refund-
ing; An additional sum of between $4,000
and $4,000 is required in addition TO the
amount OF the building loan sinking fund,
and the committee recommended that such
sum be raised in addition to the $3.50. 600.
During the next ten years, the maturing debt
VIII probablyiexhaust the sinking fund and.
the committee recommended the passage of
an order providing that the Finance Com
mlttee procure steel plate for printing four
per cent bonds, principle payable in twenty
I'VE years, but optional after fifteen years.
Principal and interest are to be payable at
Portland and Boston, the committee to pro-
vide for the issuing and disposal of bonds in
such manner as the City Council deems best.
The report was accepted and the order
passed. Statements of the city's indebted
ness at date were read, The total indebted
ness in bonds is SO, 1864, 800, trust funds S13.
600; total 1927, 800 The following is
statement of the bonds outstanding April 1.
1877, December g. 1886, and the decrease:
Municipal So, 195, 200 s $4,000 81 800. 200
a Y -. L r K. $4,000 1000 246OoO
Building Loan $4,000 100000 $4,000
Z. 4 +. r. R.. 1,150,000 1,043,5OO 1O6'500
Z. q o. X r.. 1,350,000 100000 100000