The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1889-10-12

Five years after the railroad company had
defaulted In the payment Of interest upon
the city scrip, that during that time had
been paid by the city at the rate OF sol 700
yearly, the company, on February ~, 1881,
voted proposition ito transfer all mortgage
road Company now held as collateral, upon
the surrender Of the stock OF the company
also held by the city and the discharge OF
the bond OF the company to the city dated
July u, 1877" and on the same day. the city
council passed an order accepting the pro
position, and authorizing the Mayor, City
Treasurer and City Solicitor TO carry into
eiIect IN IT., behalf OF the city the terms OF SAID
The order Of the City Council was ap-
proved Dy the Mayor on February 2i, 1881,
and on the same day the city officers, author
lied to do so, reported to the City Council.
'that they have received from said company
transfer to the city Of the absolute title OF
Ogdensburg Railroad Company formerly
held as collateral, and have surrendered the
stock of said company also held as security
by the city, and have discharged the bond
of said company 10 the city, dated July II,
1872. in accordance with said order" and on
the same day this report was accepted by
the City Council BY this settlement be-
tween the parties. the city took the absolute
title to the mortgage bonds with all the
coupons on them that had ever been de-
livered to it. and Is entitled to convert them
into shares OF the new company 50 far as
they remain outstanding and unpaid.
Coupons amounting to $3.50 had been cut
from few of the railroad bonds before they
were delivered to the city, and, therefore
| This amount must be deducted from the
amount Of shares voted the city.
Coupons OF city scrip amounting to S127,
| 260 were paid by the railroad company as
they fell due and were delivered TO the city
treasurer. The payment Of these coupons
by the railroad company operated under the
act Of the legislature authorizing the loan,
as payment of an equal amount Of coupons
upon the railroad bonds held by the city; for
by the terms of the act the city treasurer
was required to cancel and surrender TO
the company interest warrants" attached 10
the railroad bonds equal in amount to the
interest coupons on city scrip paid by the
Company.
Equity holds that to have been done which
ought to have been done; and when coupons
upon city scrip we're paid by the company
and surrendered into the city treasury II be.
came the duty OF the city treasurer to cancel
like amount of coupons upon the railroad
bonds In his custody. 1t was his duty to do
it. and equity regards 1t as done.
The plaintiffs and the city are entitled TO
be shareholders In the new corporation 10
the exact proportion of their respective
debts against the old railroad company; and
II either should insist upon receiving shares
of stock greater In amount than its debt, the
legal rights Of the other would be invaded
exactly so much; for the increase Of one
fraction correspondingly decreases the re-
mainder of whole.
The plaintiffs should not complain Of any
disposal made by the mortgagor of the bonds
issued and sold to others, If there be no over
issue Of bonds; but they have right TO hold
their aliquot shares In the security, computed
| from the whole amount Of bonds issued anC
| outstanding. III none Of the bonds issued
have been paid. the plaintiffs could not mur.
muir; but when part of them were paid, tha
| liability was extinguished and the security
became correspondingly increased.
Payment to the city cancelled so much O.
| its debt; and 1t is impossible TO revive tn,
amount so paid by any arrangement between
the city and the railroad company, its debt
or, to the prejudice Of the plaintiffs and o.
| others of like merit.
Bill sustained. Shares voted TO the city oi
Portland reduced s12zS9o. Decree
accordingly.
Peters, g. j.. Walton. Danforth ant
Virgin, j., concurred, and Emery j. con
| CURED in the result.