The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1889-10-12
Tho city's Stock In the ogdensburg.
In the organization of the Portland <, no.

IN the organization OF tne P0rtlanQ ~ Og-
densburg Railway, the new corporation
formed upon foreclosure of the mortgage
given by the Portland & Ogdensburg Rail-
road Company, the bonds secured by that
mortgage became stock in the new company,
and every holder of a railroad bond or of
coupons upon it overdue at the date of f.
nal foreclosure December 10, 1885, was en-
titled to corresponding amount of stock in
the new company.
The city Of Portland was concededly the
holder of railroad bonds and coupons upon
them overdue at foreclosure amounting to
S2,200,500, and was, therefore, without dis.
pute entitled TO 22,005. shares.of stock In the
new corporation of the par value of 500
each. This gave the city of Portland, in any
event, a majority of stock in the new rail
road, but it was further claimed In behalf OF
the city that the city was entitled to $685.
500 more Of the new stock on the ground
that 1t was legally the holder of that amount
(S2S3,500) of overdue coupons besides the
amount of overdue coupons included in the
$2,20O,500. This claim for $3.50. 500 Of addi-
tional stock, and the dispute concerning it,
arose from the fact that at the time the rail-
road bonds were delivered to the city as col
lateral security for its loans, the overdue
coupons upon this railroad bonds, overdue at
the time of the delivery to the city, were not
cut of, while the coupons on city scrip when
sold were cut off; therefore the city all the
time was the holder of certain coupons upon
the railroad bonds which exceeded in amount
the outstanding coupons uppn municipal
wv fhn A.,
were held as collateral security.
The railroad company claimed that
such delivery of overdue coupons upon
the railroad bonds to the city was unauthor-
lied and illegal, and that the city was not
the rlghtful holder of such overdue coupons.
The railroad company further claimed that
under the provision of the original charter
OF the Portland q Ogdensburg Railroad
Company, whenever the railroad paid any
OF the coupons upon the city scrip, the rail-
road company became entitled to the dis
charge or cancellation of an equivalent
amount in the railroad coupons, and upon
both these grounds the railroad company de-
MED the city to be the rightful holder of the
S2S3,5O0 In overdue railroad coupons. The
city, on the other hand, claimed that wheth-
er the delivery Of such overdue coupons to
the city as security, was originally authoriz
ed or not, 1t was subsequently ratified and
confirmed by the railroad company, and full
title was, by express vote of the railroad
company, given to the city to those overdue
coupons as well as to the other railroad cou
pons and bonds And this was the question
In controversy in the case which is disposed
Of by the opinion of the court, published
elsewhere. The court sustains the claim Of
the city so far as declaring that the deposit
Of the overdue railroad coupons to the city
as collateral security was valid, and the
opinion declares, in substance, that the city
became the rlghtful owner Of those overdue
railroad coupons, as we'll las of the bonds
themselves and the coupons which matured
after the dates of the several de-
hVerles OF the bonds to the city,
and this decision, standing alone, would
give the city the full amount of its claim,
S2S3.5O0 in addition to the stock heretofore
conceded to it. But the court reduces this
claim by allowing the railroad the benefit of
Whatever payments it made upon the city
scrip and in SO far as the coupons upon the
city scrip were in fact paid by the Portland
ogdensburg Railroad Company, the city
aiio"s such payment its effect to cancel a
corresponding amount of the railroad cou-
pons held by the city, and according to the
prooi III Inc case the amount Of such nav.
ments upon city scrip made by the railroad
was $l27,S9O. Ii the whole claim of the citv
had been allowed, the city would have hc.
come the holder OF 24,S40 shares in the new
railroad, and this number (24,S4O) had been
voted to the city by the directors of the