The Portland daily press., 1888-07-19
PRICE THREE CENTS.

nlnLn section should be extended In the in
stances In which the lessons may take pos
Now, in regard to the thirteenth clause
there Is single matter there
tnat might perhaps be explained. You will
perceive that there are assigned TO the Maine
central railroad Company any mortgage
bonds OF the Portland Il Ogdensburg Rail-
road Company, pledged as collateral securi-
W. Inere are bonds of the issue Of 1871
amounting, with principal and interest. 10
Sl95, ,lSO, which are pledged as collateral Sc
cprty Il re- remember rightly, to secure some
drawn, and as thought 1t ought TO be, these
bonds were not TO be considered as assets OF
the Z. q o. Railway, inasmuch as they were
its own bonds, or rather bonds Of its prede-
cessor, and thought that stock ought TO be
cancelled, and thereby the stock In the new
corporation diminished to that extent. So
long as the lease Is In force, IL will make no
difference TO the city whether 1t Is cancelled
or not; but II, for any reason, the lease
should be forfeited, IL will diminish the
amount to be paid by the Maine Central X. X.
without OBTAINING you longer will refer
70 the l4th section which seems TO me the
most Objectionable Of any section In the
lease, understand that under the 18th sec
uon the lessees may first put anew mortgage
oI SzV,OOO mile on the road. As 1t stands
now the road Is about 30 miles long, and that
means mortgage Of one million and eight
hundred thousand dollars. They may, in
addition to that, put on mortgage OF 500
700 Tor every mile the road Is extended be-
yond us present terminus, and whenever
they call upon the 7. & o. for bonds 10 that
amount they must have the bonds Of the les
S0r company. There Is no provision by
which the lessor has any control Of the pro-
ceeds or application Of the bonds. but they
20 into the hands Of the Maine Central
market as they see dt. They agree that they
Will apply the proceeds in certain ways, but
there are no stipulations by which the
lessons shall have any control what
ever. ever Of the .aaERPdE application Of these
p. & o. road is obliged to join In the mort
gage securing these bonds so that the mort
gage becomes prior encumbrance upon this
property, and, II such a mortgage should be
foreclosed. the title to the p. 4 o. road Is
gone, and the city's right TO rent under the
lease Is gone, and an absolutely superior title
takes precedence. Now have already stated
what IS provided for In regard to the applica-
ton OF the proceeds OF the bonds, but had
reference more particularly 10 the first sec
end and third provisions. They are first 10
pay the receivers certificates and debts i'm
CURED by him; second, to pay the $4,000
bonds; and third, to pay the S30O,OO0 for
needed improvements upon the property:
That makes about 81, 100000. Beyond that 10
1t Is provided, II 1t is used for permanent i'm
prevements, they shall be such as are
approved by the directors Of the les
s0r, or IL they do not approve, BY
the decision Of the Railroad Commissioners.
Now do not think there Is any very specific
provision In the clause that the Maine Cen
trail railroad shall ever pay these bonds It
does say that they shall bear the guaranty OF
the Maine Central railroad, but how are they
to be paid9 1t provides expressly that
whenever the p. Il o. Is called upon to issue
new bonds TO retire them, 1t halIissue them;
and do not know why they could not be
continued on the property 70 the close OF the
term OF the lease. The only specific agree
ment there at the close, the Council will OBJ
serve, Is, But said lessee shall pay the In
terest on said bonds so issued during said
term, as 1t becomes due" Now that clause
originally read, ''but said lessee shall pay the
interest on said bonds as 1t becomes due, and
shaH ultimately pay all bonds so issued dur
Ing said term. and at the expiration thereof
surrenderthe property so demised to the les
see, free fr0GQ any eneumbrances Of any
such mortgage. NOW / have called atten-
tion to the fact that. to my mind. the
lessons should have someoGntrol Of the ap-
not nave 1t rest on the agreement Of tBeies=
see 70 50 apply them. i have called atten-
tiOn to the fact that the lessee Is to pay the
interest, and that there Is a provision BY
which the L. 4 .. Is required 10 issue new
bonds to the extent Of the principal, and
then to the proYtso that II this lease shall be
determined by entry Of the lessor for breach
OF condition, both the principal and interest
Of said bonds shall be assumed and paid BY
the lessor. That Is 10 say, II the Maine Cen
own lease so that the p. 81 D. has to take
possession to preserve its rights, It assumes
the whole debt. Now, to my mind that Is
not fair provision as between the contract
Ing parties, and, so far as any legal advice as
counsel Tor the city Is required Of me.
should advise the nOn-aceeptance Of a lease
which contained such clause as that Is.
nave stated In a general way my objections
70 this lease, endeavoring 10 c0nhne myself
simply to the legal aspects Of 1t. l do not
cause understand perfectly well that moth
Ing OF that sort Is required Of me.
councilman Crockett asked whether, In
the opinion Of the city solicitor it would be
better Tor the city council to vote to lease the
road under this lease, or for the city 10 re-
tain its interest; in which way would the
city run the most risk.
Judge Symonds-S0 far as my judgment
in regard to the matter Is concerned,
and cannot disconnect myself altogether
from the consideration OF the legal aspect of
the case, should prefer to keep the pro-
perty as IL is rather than to aoOopt this lease
In the precise form In which IL stands today.
do not understand that the road Is in a
very bad condition. In many respects IL Is
in good condition. The city has a contrOll-
Ing interest 1t 1t, and controlling interest
in railroad Is worth good deal. SO far as
am concerned, / do not consider this lease
In some Of these repsects that have indi-
Gated a fair lease, and 1 should not be dis
posed to accept it In its present from.
Alderman Smith said that as Mr.. Drum
mond was present the convention would
like to hear from him as 1t wished to hear
both sides Of the question.
HON. JOSIAH DRUSIMoND's REMARKS.
Mr.. Drummond said: lido not come here
at the instance Of the Maine Central Rail-
road, but at the suggestion of the Mayor.
do not understand the provisions Of the
in one or two important particulars. l under
stand It entirely different The provisions
as to the transfer Of property think would
receive practical construction. l do not
apprehend that anybody would question
their claim to their records, for we have
up their organization. The idea was that
they lease us all their property, and this was
put In here, as lawyers generally do, to in
clude 1t all, but as for their records, that Is a
matter that nobody would ever. think OF
claiming. Then as to business; the Judge
suggests that the clause that 1t will use all
reasonable efforts to give tc the city Of Port
land as favorable terms for such business as
are given to Atlantic cities," means given by
the Maine Central. did not have that idea
In my mind when | wrote IL, and think 1t Is
a limitation that Is not in there. IL Is well
known that Boston and New York have GER
tain rates from the west, and we agree TO use
all reasonable efforts to give Portland as fa,
vOrable terms as other Atlantic cities re-
ceiye. so understand IL, and our people so
it.
Now as to the proviso that the lessee may
with the consent Of the lessons board Of al
rectors, sell and dispose Of property not re-
qulred for the operation and use OF the rail-
road and apply the proceeds for the improve
ment OF the demlsed property. / think the
Judge did not notice the last part Of the sec
tion. IL SCENE TO me that II cannot receive
any such construction as he puts upon II.
The reason Of putting in the privlsi0n that
the president Is made the attorney Of the les
sor was to save the necessity Of the meetings
Oflthe board Of directors Of the corporation
TO authorize 1.-THE sale Of any little piece Of
land or other property that was not needed
OF required for the operation and use Of the
railroad.
Now on page nine, where the Judge makes
an important objection. he takes one which
think Is not well taken. The Maine Cen
trail Railroad Company Is not willing to take
a lease of the p. Il o. road under such cir
cumstanees that when they shall obtain the
permission OF the legislature, as they nave
got to do, to lease or consolidate their sys.
tenn, II can be prevented BY the I. x Y. road
should they see tit to obJecs 70 II. Inc
Maine Central road have no power now 10
lease or consolidate their system OIL roads,
and. n the time ever comes when the legisla-
ture shall deem IL for the interest Of the peo-
ple OF Maine TO authorize such consolidation.
and they are looking forward a very long
time,-099 years, substantially a perpetual
lease--they are not willing TO give the p. n
%. road the power to tie them mn and aaxy