The Portland daily press., 1888-07-26
CITY GOVERNMENT.
Adjourned Meeting of the City
Council Last Night.
Mayor.chapman Gives His Opinion
of the p. & o. Lease.
An Unanimous Vote In Favor of the
Lease.

land u Ogdensburg lease be taken from the
table. Mr.. Hobbs stated that at the last
meeting he moved that the papers he laid on
the table because he did not think the mat
ter should be too hastily decided. Inasmuch
as the proposed lease was to last 900 wears
he thought that it ought to be good enough
to bear putting off for one week. He then
moved that the order introduced at the last
meeting in favor of the lease be passed.
Mayor Chapman said that before the mo-
ton was seconded he would like to make a
statement in regard t. the lease. Several
persons bad asked him his opinion concern
ing the matter. and with the permission of
the board, he spoke as follows:
MAYOR CHAPMAN's REMARKS.
1t has not been my purpose to ioin in the
DEBATE upon the subject of the p. q O. lease
put when consider my relation to the road
and the city, It seems most proper that AT
your request, should furnish you any infor-
NATION upon the subject within my lower,
ana, also, state the reasons which have COM
PEELED me to the decision that it is expedient
Tor the city to ratlfy the proposed lease to
the Maine Central. l believe that ali onr
citizens. with rare exceptions, are endeayor-
ing 10 satisfactorily solve the problem where
III te 4; cty inIeIests, present and prospective,
seeking such information as may throw ad-
ultional light upon the situation.
before entering upon the discussion of the
ii;eaSe, WIZ, Win your permission, as pre-
urinary, hastily run over the history of the
L d. .. road. 1t was chartered in 1897 ~
open another line of communication To the
west; Its construction was commenced
ID september, 1869, and carried as far ne
West Baldwin upon stock subscriptions of
s nss CITY ana Individual citizens. Then it
IRON the proceeds Of which it was extended
10 North Conway. To secure further con
struction second mortgage was placed mon
the road, November LIST, 1871. for 40 0on ooa
ana oy popular ar vote July 1st 1872 the city
exchanged u $50 900 fits bonds for an eoual
amount OF Z. d o. bonds under this mort
gage. From the proceeds of the city bonds
largely, the road was extended to FahvanS
Inc company failed to pay the interest npon
tne city bonds March l. 1876, since which
a e,,nv .ne lpau mas maintained precarious
eAis tence, being continual source of solicit
tude TO It's officers, of anxiety in municinaI
circles, and. from failure to meet its ohliga :
lions, heavy burden to taxpayers. With
OUT stopping to describe the financial en-
DAFT .s which resulted in placing the
Ioao IN tne hands of receiver, or the ex-
IRENE difficulty and skill with which ,fs
guidance was accomplished through the sncs
cessive stages of foreclosure and reorgani1e-
tion, Will state that it has all along been
20 IN I ~ Jul c,tizenS tnat the city'S inter-
est should be disposed of at the earliest
practicable moment consistent with orr
nlghest advantage. A commission apnointed
under Mayor Fessenden, in 1876. composed
oil Messrs.. Butler, Thomas, Putnam, Rich
ardson ana swan reported as the conclusion
OF tnelr investigation, that at the pronar
tine, whether Immediately or in the future
ana az falr valuation after due nepotia
ton, the city should dispose of IFS inferas,
an ana apply the proceeds to the reduction Of
During the period of foreclosure th;s -,
icy could not well be carried ont, hnt with
the adoption OF the act providing for reor-
ganizatlon OF the road under the foreclosura
Oh the second mortgage, the city obtained
permission to sell or lease its Interest
mlth view TO the greatest possible security
Tor the city In consummatng such sale or
lease went before the legislative committea
WINE the act was under consideration and
urged ratification by the people as final
condition precedent to selling or leasing tho
ROAD. such condition was Incorporated in
It relieves I anu can assure you gentlemen that
sponslDlllty at the present time. The re-or-
ganlZatl0n of the road occurred in lima 1859
and, very soon afterwards, a subcommittee
ol Jour members of the board of p. e O di-
reetors was appointed to consider the whole
supJect OF the future disposition of the road
FROM that time, as chairman of that sinh.
committee, can bear testimony that every
possible outcome for the road has been eore
iuliy studied, and no efforts have been shared
70 arect the ctys interest into such system OF
cnannei as should seem best calculated To nro-
motePortland's highest commercial and tann
cial interests. Repeated attempts have been
maze 10 lease to the Canadian Pacific INT
were unsuccessful for reasons well known to
yourselves. Other railroad systems have
o oudn vonlelred or communicated with, and
enoeavors have been made to Interest thase
persons, even as far West as Minneanolis
VINO were engaged in constructing The Sanli
Ste' Marie road, but, during all this while
the only party which has made n diroo+ nfFe,,
10 ~ sI hn sne &. q y by lease or purchase
position OF that road, substantialIy the same
az now made, was not accepted Tho o,,aS
ZION may. be. asked, why accent nnu, IJho a,
was previously declined. The a mUw m"d e
pam. 90 long as the Boston & Lowell sys.
tenn held the Western connections az r. os D.
q o. in New Hampshire and vermont ont !;
was not prudent to lease the P. & O.
10 rival system; nor would il have harmon
izeo Win the plans of the Canadian Pacific
at Ihat tlme holding close traffic relations
WIN tne Boston d Lowell. But when the b
q II. system became merged in that of the
Boston d Maine, the whole situation insta nj.
- changed. Then the Canadian Pacific
quickly established relations with the r &
M. and the T. d 0. also became denendent
upon lnat road for through connections
central mQne
lts 1rst proposition, the Canadian Pacific HAD
not built across our State, and western nro.
ducts destined for the interior of Maine Fay
ceptlng Grand Trunk freight, OBLIGED
70 pass through Portland as channel Of
ist much longer, and the acquisition Of The p 3
q "; by the Maine Central will prove now.
eer1ul factor in continuing this flow Of traffic
through our city as against its diversion m
CANADIAN Pacific points of connection North
and East of us. -'oi' III
:, And now few words as to the nrenara-
t tMa and contents of the proposed lease
Mnen our committee finally decided that mn.
ueT all the circumstances it was a wise tbino
70 70 tease 70 the Maine Central. and had satis'
ned ourselves that the C. p r r Go sh Sasis
the same opinion, then it came 10 q onastion
OF Terms ana conditions. Here, again. lef
me assure you, gentlemen, that every possi'
PIE advantage was sought for Portland and
tne proposed lease represents the utmost re-.
sun suiss OF our laDors after weeks of consulta-
Ilon. Inc original lease drawn bv Judge
oymonds contained every condition and nro-
provision In our favor that could he
suggested, and in such shane II wont
before the Maine Central committee
lney amended 1t in some respects, but alto
gesIer not unfairly, and venture the opin-
ION that. If any of us had been member of
the Maine Central board of directors. he
would have been unwilling, with due regard
TO his trust, to have conceded more liberal
terms. For the legal opinion of Judge Sv-
monds entertain the most profound respect
and from intimate association with him as
CITY solicitor have learned that whenever
ne mas fnished pointing out the legal defects
IN any instrument, from the citv's stand.
point, 1t is certain that the subject is ex-
nausea. lie has followed that rule with The
proposed lease, and, weighty as his obiec.
lions may be, yet they do not, to nv mind
constitute Sufficient reason for its rejection
His objections to the lease are:
l. Inc transfer of the property Is so
nroad as to cover corporate records, etc. of
This objection seems unimportant in view
OF the stipulation of the Maine Central for
the maintenance of the p. & o. organizatior
ana the appropriation Of $500 annually fol
that purpose.
z. The commercial interests of Portland
are not sufficiently guarded
In lhls portion of the lease, perhaps. / am
as much interested, personally, as any other
individual citizen. While believe that the
hlghest protection for our business interests
must De located in the good faith and self
interest OF the Maine Central road itself vet
the strongest covenants are entered into to
perform what we should naturally expect.
The Maine Central covenants to use ali rea.
s0naDle efforts to secure to the city of Port
land as favorable terms for through line bust
ness as are giUen to other atlantic cities.
and, furthermore, that all facilities and in,
ducements reasonably within its power
shall be extended to the G. p. r. r Co. OF
any other railway company to make the city
of Portland terminus for through business
and freight from the West. Ii this language
means anything, it certainly means that our
commercial interests are to be promoted
and have we any substantial reason for
thinking nfharwcp9