The Portland daily press., 1888-07-26
The Portland & ogdensburg Railroad
Lease

approval with undue haste? The lease was
prepared and approved by the railroad cor
porations themselves, less than two weeks
ago; and was first brought to the attention
of the city government on the 18th inst. An
effort was then made to have action upon it
at that time, but after some discussion 1t was
postponed one week. In the meantime but
little has been said about it. and that little
has been said in its favor. 1t looks as If the
promoters Of the scheme feel that no time is
to be lost in securing the execution Of the
lease. One step has already been taken.
win the citizens of Portland ratify the ac-
tion of the City Council?
Portland has a great interest in the Port
land & Ogdensburg railroad. 1t owns ma
jority of its stock, and thereby can control
its policy. 1t is the eastern terminus Of the
road. 1t contributed its money freely
towards the construction Of the road, be-
cause its citizens believed it would build up
the material prosperity Of the city. They
believed that a considerable portion Of the
products of the West destined to foreign
ports would find It's way over the road to
Portland. and here be shipped for its desti-
nation, and that the commercial prosperity
of this port would be greatly increased
thereby. They believed it would be able to
compete in a larger measure than before
with Boston, as commercial city. This has
been the hope Of our citizens ever since.
And the first question that arises in the
minds of thoughtful citizens Is, what will be
the effect Of this lease upon Portland's inter-
ests? II the lease is made, Portland sur
road for all time. The lease is practically
conveyance Of the road. The difference be-
tween term for 800 years and absolute own
erShip Is merely nominal. Although the
lease provides that the corporation shall
keep up its existence and organization, it is
merely to carry out the wishes Of the lessee
corporation; if the lease is made, the Port
land & 0gdensburg Corporation is TO do the
bidding of the Maine Central railroad, or
the corporation to which the Maine Central
may hereafter lease its system. or with
which it may consolidate. And Portland
makes this surrender for a small pecuniary
consideration as compared with the money
principal and Interest," it now has invested
in this road. If Portland could
afford to invest S2000,000 in the road original
ly, for the purpose OF controlling its policy
in measure in its interests, cannot it now
afford to waive temporarily the small rental
it is to receive under the lease for the same
purpose. If Portland is ready to surrender
its control over the policy Of the road, it ought
at least to try and get as m2eh as It's interest
in the road is reasonably worth. There may
be some party who will give the city much
more than is offered in this lease for the
city's interests. Consummating this lease
hastily and quietly will prevent such party,
II any there be, from, coming forward and
competing for this road
Another question yitally interests our cit
lzens: What is likely to be the policy of the
road II this lease is made? The nominal
lessee is the Maine Central Railroad, but the
Boston 81 Maine Railroad through its lease
OF the Eastern Railroad has the control Of
the Maine Central and it is probable that
the two corporations will be united by
permanent lease or consolidation at no dis
tant day.
tion OF the lease is very significant on this
point. Provided, however, that in the event
OF the lessee's leasing their system to, or con-
soliidatlng with, any corporation operatinga a
connecting railroad or system Of railroads,
the lessee's interest in the demised premises
snail pass by such lease or contract of con-
solidation'" This, no doubt, refers to action
already contemplated. The policy of the
Boston q Maine in the past toward Portland
certainly has not been considered very IA
yorable to Portland's interests. Judging of
the past we should hardly be willing to rely
upon that corporation for our prosperity.
The Boston q Maine Railroad within the
past year, has taken lease Of the Boston 81
Lowell Railroad and its leased lines. These
latter include the Nashna & Lowell, the
sumpslc Railroad. 1t is making every
possible effort TO get control of the Con-
cord and the Northern Railroads in
New Hampshire, and feels confident Of sue
cess. IL already has the Manchester Il Law
renee Railroad and the line from here to
Worcester. With the Boston IL Lowell Rail-
road 1t acquired its extensive and costly
wharf property in Boston and at Mystic
probably the most extensive and costly
wharf property in Boston. The acquisition
Of this property was one great inducements
to the lease of the Boston Il Lowell railroad
It pays a large rental to the b. & l.. r. r.
Tor It's property, more than the past earn
lngS OF the property would seem to warrant
1t naturally hopes to reimburse itself and
make money by directing the western busi
ness to Boston and there utilizing its extern
siye wharf property. The policy Of the Bos-
ton u Maine railroad undoubtedly is to take
the through western business over its New
Hampshire lines, and to use Boston as its
sea port connection: Its owners and mana
gers are largely Massachusetts capitalists
and its most extensive property is in that
State. 1t is for its interest to disable the
Portland Ogdensburg Railroad as COM
petitor for the business involved in its policy
by taking IL into the hands Of its friends
and ultimately into its own hands. Can
Portland afford to assist the Boston &
Maine Railroad in this policy, for the small
pittance that is offered in this lease
Judge Symonds has ably pointed out some
legal ODJectlOnS 10 the lease that demand
careful consideration. There Is one other:
The Portland d Ogdensburg Railroad is q
New Hampshire corporation as we'll as a
Maine corporation, and under the laws of
that State 1t cannot make the lease proposed
without unanimous consent of its stock
holders, and this is not to be expected,
Single dissenting bondholders now entitled to
stock in the new corporation can prevent this
lease from being consummated in New
Hampshire. The New Hampshire court
has already so decided in the case of Dow
against the Northern railroad.
The lease in question may benefit the
lasge private bondholders Of the Portland e
Ogdensburg railroad who are also largely
interested in the Boston & Maine railroad
system, but it is likely will cause a loss to
Portland of all the advantages it has gained
by its munificent expenditures of money In
the past. 1t is well to bear in mind notwith-
standing current reports to the contrary
that the Portland Il Ogdensburg railroad Is
in better condition today in its road bed,
track. bridges, alignment and equipment
than at any previous time in its history, and
that the money investment in the enterprise
IS larger and capable as a railroad Of pro-
ducing larger returns than ever before.
Hadn't this matter best be discussed and
carefully considered in all its bearings by
our citizens before ratifying the lease. -