The Portland daily press., 1886-11-30
PORTLAND & ocDENsRuRc.
A Formal Proposition from the
Maine Central,
What Leading PortIanders Think
About 1t.

About 1t.
We understand that soon after the re-
organization of the Portland & Ogdensburg
Railroad Company, committee of their
directors was appointed with view of leas-
ing the road to some other corporation. The
matter was talked over informally with
directors Of the Maine Central and the result
was that committee was appointed to con-
fer with a committee of the Portland &
Ogdensburg in relation to the matter. After
consultation an informal proposition was
made by committee of the Maine Central
to the committee of the Portland & Ogdens-
burg Railroad. Thereupon the Portland &
0gdensburg committee desired formal pro-
position in writing. The matter was dis
cussed by the Maine Central directors at their
meeting last month but no definite action
taken except to recommit the subject to their
committee with power to make a formal pro-
position, if upon re-examination OF the
matter, and especially of the earnings of the
Portland & Ogdensburg for last year, they
should deem it advisable The committee,
after such examination, authorized the pre-
sident to make the following proposition, to
the Portland & Ogdensburg committee,
which was submitted to them some time
last week
The following was the propositions
PORTLAND, Nov. 20, 1886.
Hon. 9. j. Chapman, Chairman Of Committee
on Portland &c Ogdensburg Railroad:
Dear Sir:-The question of making pro-
position for lease of the Portland & Og-
W : Z I'd
of directors of this company to committee
with power.
The committee have fully considered the
matter and carefully examined the report of
your treasurer for the year ending Sept. 80,
1885, At our last interview with your COM
mittee which was before the closing of the
year it was represented to us that the net
earning for the year would be $780, 900, and
the gross 100000. We find by the report re-
ferred to the result was $4,000 net and
$36l 200 gross. An examination of operating
expenses show that much less amount was
expended on the road bed during the year
than can reasonably be expected in future
years. The committee concluded that $780,
600 net would be fair estimate for the year.
In view of this reduction of the gross AID
net the committee feel obliged to modify the
figures suggested at the last meeting and
now authorize the following proposition, to
hold good reasonable time for your con-
sideration
The Maine Central Railroad Company will
make perpetual lease of the Portland d
Ogdensburg Railroad, assume all liabilities
and interest charges, and pay yearly rental
OF one per cent ON its capital stock for the
hrSt three years, from execution of the lease,
and 2 pei. cent per annum on capital stock
forever after, rental payable semi-annually.
Respectfully yours,
ARTHUR SEwALL,
President
The committee of the Maine Central re
ported their action to the board at the meet
ing yesterday afternoon and their action
was approved by the board.
The proposition gives the city $4,000 a
year for three years. and $4,000 year after
that time. The original amount of the bonds
was S1,35o,0O0. So that the city would
receive for the first three years about / %
per cent on the original outlay and after
three years about 1-S per cent.
CHARLES j. CHAPMAN.
The Mayor said that until the meeting of
the directors of the 0gdensburg he did not
have any opinion to express in detail He
did not consider this proposition of the
Maine Central as favorable as the preceding
informal one, the gist of which was pub
lished by the PRESS, and as the informal one
was not considered liberal enough to war
rant acceptance in the view of majority of
whether the Board would advise the accep-
lance Of this one, even apart from other con-
slderatlons.
SIDNEY w. THAxTER, ESQ.
The proposition of the Maine Central rail-
road to lease the Portland & OgdensburgIrail-
road strikes me fayorably. / think the city
should dispose of its interest in the road on
the first favorable opportunity The COM
mercial interests of the city should be first
considered, and no proposition should be en-
tertained that did not give sufficient guaran-
tee that the purpose for which the road was
projected, VIZ: the establishment of per-
manent through line to the West, should be
carried out. This ought to be condition of
any lease. Such guarantee | believe the
Maine Central railroad would give, and
would be abundantly able to carry out. 1t
requires the building of only short piece of
road to connect the Portland 81 Ogdenshurg
with the Canadian Pacific, and open a way
for it into this city and the lower provinces
over the Maine Central. | think the COM
promoted by putting this road in the hands
OF the Maine Central than any other corpo-
ration. Some of the advantages that would
accrue to the road itself would be: Taking
it from the hands of the Receiver, which is
OF necessity an expensive and wasteful way
of managing a corporation; a large reduc-
ton In the cost of managing the road; a
rapid development of its growing and profit
able summer travel The matter of rental is
of secondary consideration. The first prop
osition OF the Maine Central seemed to me
talr offer, and one that ought to be accepted
If nothing better was made. The modified
terrss do not seem to me equal to the great
advantages that would come to the Maine
Central with this road in It's possession.
B. f. HARRIS.
Mr.. B. f. Harris of the firm of Howes.
Hilton & Harris, said that in his opinion the
proposition is one to be rejected. The road
in the opinion of Mr.. Harris is worth to the
city $2,500,000. Perpetually leasing the road
at two per cent would in reality be selling
the property for ons-third of its value or
$S33,00o. We are not anxious to sell the
road until we know where the Pacific roads
are going to strike the coast. We have paid
our taxes to support the road a good many
years and we can afford to wait until we
learn the true value of the road and can reap
the benefit of it. 1t should be borne in mind
at all times that any proposition from the
Maine Central means proposition from the
Boston IL Maine, because the Maine Central
stock Is controlled by that company. The
key to the seaboard for the Canadian Pacific
is the White Mountain Notch and that is
controlled by the Portland & Ogdensburg.
think we had better hold the fort.
WESTON F. MILLIKEN.
Mr.. Weston f. Dfilliken said that he had
hoped that lease could be effected under
the former proposition to pay one per cent.
for five years, two per cent. for the next
five, and three per cent. afterwards The
present proposition is equivalent to an offer
to pay 100000 annually for the first three
years and $4,000 afterwards. Mr.. Milliken
said that, in his Judgment the city would
derive more benefit from the road if leased
than if run by the city through the Portland
d Ogdeusburg Railway Company. The line
is only ninety miles long, and in making con-
tracts with longer roads must be at disad-
vantage, which would not exist if the Port
land d Ogdensburg was controlled by so
strong a road as the Maine Central, with
which connecting roads would have to deal.
II am in favor" said Mr.. Milliken, "of
leasing the road in accordance with the
present proposition"
ALBION LITTLE
was not prepared to say at the present time,
without all the figures before him, whether
he considered the offer fair one or not. but
the able manner in which the Maine Central
railroad has been managed, and the local
treatment Portland has received from the
road, would justify either the acceptance of
this proposition or one that the figures
might justify whether in larger or smaller