The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-07-19
CITY GOVERNMENT.
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award, and If we do not perform the award
you can step in and take possession.
Now comes the mortgage clause. 1t is said
that if the mortgage should be given and
foreclosed. you lose the road Well, suppose
the present mortgage should be foreclosed.
The receivers certificates are now an en-
cumbraDce on the road, and there are liens
upon 1t. Suppose they are foreclosed. What
are you going to do? Now it is certain that
the Maine Central Railroad cannot sell
bonds secured by leasehold interest. The
laws of many States prescribe what bonds
and securities may be taken by trust institu-
tions, and you will never find anybody that
will take bond secured by a leasehold inter-
est If they issue new bonds do not see that
you will have any greater debt in proportion
to your property than you now have, and you
win have in addition the guaranty of the
Maine Central that they will pay them. On
page IA they guarantee to pay the bonds and
interest when it becomes due. Finally you
are onot obliged to renew after the term
expires, and whoever does live at that time
and represents the Maine Central Railroad
Company will have to pay those bonds.
Now, in regard to the application Of the
proceeds. III we could foresee precisely what
improvements and what expenses are de-
manded to put this property in paying con-
dition we could specify more particularly
than we have done. We undertook to do so,
but found that it was utterly impossible be-
cause we do not know what win be best to
90. GU nave Dcen running the property at
a loss, while it was in good condition.
1t has been put in such con-
dition by the issue of the re-
ceiver's certificates, and that there will soon
have to be another issue unless something is
done you can judge as well as l. Now we
want to have certain improvements, we want
to extend the road, and we put in here the
provision that we may mortgage 1t to the ex-
tent of $4,000 a mile. Everybody knows
that no railway can be built up there in that
country for $4,000 a mile. Somebody has
got to put in more, and who is to put It in +?
The Maine Central Railroad Company? Sup
pose they fail and it goes back into the hands
OF the city, then you get-and that was
clause resisted most strenuously by the di-
rectors Of the Maine Central Railroad Com
pany--all the benefits of the improvements
for which the money was spent and much
more with it, and it is only fair that YOU
should take the burdens that represent The
indebtedness as well as the improvements.
If you would agree that there shall be an
accounting on the one side for the inn
provements on the property, they would
be very. glad to do it. But the point
is simply this, our extensions and i'm
provements are going to be more than
the mortgage, and when you take possess
ion and get the benefit of the improvements
costing much more than the mortgage in
debteness it Is no more than fair that you
should take the property Just as it is with
It's encumbrances and its improvements and
take the burdens as well as the benefits. L
have never known-and we have had many
mortgages for specific purposes-any money
to be mis-applied by the officers of the Maine
Central railroad. 1t is true that they are
made to the extent Of three hundred thou
sad dollars the judges of needed improve
ments on the demised premises and new con-
structlon. suppose that means no more
than this, that you take the benefits for
which the money was expended and get
good deal more with it, for if you build
railroads up there apprehend that nobody
will claim that they can be built for less
than $4,000 mile.
JUDGE wEBB's REMARKS.
Judge Webb being called upon said that he
knew nothing about the preliminary negotie.
tions and had only read the lease since it
was published in the newspapers, and had
not given 1t that careful consideration which
1t had received from the gentlemen who had
preceded him. His duties as trustee, and
those OF his associates, are not touched by
this lease. They have gone forward and
protected, as far as was in their power, the
interests Of the holders of the bonds secured
by the second mortgage, and the title 70 that
property is today in the trustees subject to
the rights OF the receiver and the parties
who have taken its certificates and the
rights OF the bondholders on the road from
here to Bartlett under the eight hundred
thousand dollar mortgage, But, as a pri.
vate citizen Of Portland and, to small ex-
tent, pec9niarily interested in the corpora
tlon,i he did feel great interest in the lease.
He believed it highly expedient that the
property should be put into some
hands that can manage it more profta-
bly, than it can be managed under
the present condition of things, 1t is now
some two years since the foreclosure was
c0nsummated and nobody has got any inter-
est or benefit from the property except such
as incidentally may come to them flom the
improvements that have been made upon it
by the receiver, for the cost of which the
property itself has an additional encum-
brance. II, in any event, it should become
Imperative to spend more money upon the
property it Can only be done by the receiver
obtaining permission from the court to put
further incumbrance upon 1t. 1t therefore
seems that every interest requires that the
stockholders In this corporation should
make most vigorous effort to put the prop
erty into hands where it may be managed so
as to produce some income. The question is,
Is this an offer that we can safely accept?
When you have any commodity for sale,
or any property to dispose of, after keeping
1t in the market month after month, and get
ting but single offer, or an offer from but
one party. and that party not being quite
willing to adhere to the original offer, which
was refused, what good reason is there to
suppose that by. waiting longer you are to
get higher price? If there be anybody
that is prepared to make better offer, why
have they kept silent? Have they been
dealing with US candidly and frankly as cor
porations or individuals, who are ready and
willing to deal fairly with us and give us
what. they believe it to be worth, or have
they been lying back until we should be in
desperation and take whatever they might
see. tit to offer; or are We dealing frankly
their offer only to use it as lever to induce
somebody else to do little better? That
does not seem to be the way that stockhold-
ers of q corporation ought to operate.
Judge Webb said he had listened to the
suggestions of the. City Solicitor, and it
struck him that his legal objections were am
ply, completely and fully answered by Mr..
Drummond. Judge Webb then reviewed at
some length the objections that had been
raised by the City Solicitor In much the same
line OF argument as that presented by Mr..
Drummond.
After Judge Webb had finished speaking
the convention dissolved.
In Board Of Mayor and Aldermen.
After the board had been called to order
Alderman Smith said: 1--WE have had in my
judgment full hearing upon this important
question. and suppose that every member
has made up his mind in regard to it. As for
one am decidedly in favor of it, and hope
some action will be taken tonight in regard
to it."
Alderman Hobbs wanted the matter laid
on the table for one week.
Alderman Galley presented the following
order. and recommended its passage. Alder
man Smith seconded the motion of Mr.. Cat
ley:
Voted-That the following draft of proposed
lease OF the Portland Il Ogdensburg railway to
the Maine Central Railroad Company approved
by the directors of the Maine Central Railroad
Company on the 18th day of July, A. d., 1888
and by the directors of the Portland & 0gdens-
burg railway on the 10th day of July. A. d.
1888, be and the same is hereby assented to and
confirmed by the City Council Of the City of Port
land, subject to Its ratification and confirmation
by majority vote OF the legal voters of the City
OF Portland voting in ward meetings called ac-
cording to law, to wit: Insert lease.l
Mr.. Hobbs said he was in favor of the
lease but if it was to be acted upon tonight
he would vote against it,
A motion to lay the order on the table for
one week was passed by vote of four to
three, Aldermen Galley, Smith and Shaw
voting in the negative.
1t was voted that the Board adjourn to one
week from last night, when the matter Of the
lease should be the special subject to be con-
sidered,
IN Common Council.
Absent, Messrs. Floyd, Hill and Irish.
Mr. Crockett offered an order for the re-
moval of the stumps of electric light poles at
the corner of Commercial street and Custom