The Portland daily press., 1895-02-13
Report Of The Committee Appointed
10 Investigate
THE AFFAIRS OF THE BANGOR
PUBLIC WORKS COMPANY.
The Committee Recommends the Scaling
Down of the Bonded Indebtedness and
General OBSERVATION-DISCLOSURES In
debtedness will be Reduced From
$1,OOOOOO to 5000, GEO.
Especial to the PRESS. J

Especial to the PRESS
Bangor, Me-, February 12.-The long
expected report of the committee APP
| pointed by the bondhoIders of the big
| public works company of this city to
| investigate the company's affairs and de-
eide upon some plan of reorganization
for scaling down the bonded indebtedness
| to an approachable limit, made It's re-
port today. The committee consists of
President e. A. Wilson of the Maine
Central, Judge Andrew P. Wiswell of
| the Maine Supreme Court, and G.. A.
Stone of Boston. The latter was select
ed by his associates ss an electrical ex-
pert. Neither OF the members of the
committee has any interest of any kind
in the company. The Public Works
Company was organized largely through
the efforts of f. II. Clegue of this city.
backed by the Thomson-HousIon concern
and others. Into this company was
merged the Brewer Water Company.
with capital stock of $50, 900, and
bonded indebtedness Of $75,00D. The
Penobscot Water and Power Company,
with capital stock of 5000, 200, and
bonded indebtedness of the same
amount; the Bangor Electric Light &
Power Company, with a capital of $780,,
600, and bonded indebtedne ss of $275,-
600, and the Bangor Street Rail way
Company, with a capital of 5000, 600,
and bonded Indebtedness of $500, 900.
The Public Works Company issu ed
81. 900, QUO worth of bonds to refund tn ,ss
of the four companies, and an exchanges
at par was to have been made, but was
never fully effected. The committee
expresses the opinion that this exchange
was not legal, and recommend that the
original holdings in each case be re-
stored, but it says the only posi- ole ay
to handle the business of the four cor
and IL believes that the enterp rise can
pay per cent upon 100000 only. The
recommendation is therefore made that
all of the common stock and the million
dollars worth of bonds which will be
outstanding, be cancelled, ana an issue
of 5000, 900 in bonds be made, $50, 900 OF
the proceeds to be used for improve
SIS, ,0O0 given the Public Works Compa-
ny on account of the value which it has
added to the properties By the consolf-
dation. The remainder is to be distribut-
ed. as follows: $4,000 to the Brewer
Water Company, $4,000 TO the Psnob-
scot Water & Power Company, $4,000
to the Bangor Electric Light & over
Company, and S150,0o0 to the Bangor
Street Railway Company.
Some heavy losses are sustained under
this plan. In the case of the Public
Works Company, bondholders, it is ~
per cent, and IN that Of the Bangor Elec-
trio Light & Power Company Ga per
cent, while the common stock is all
wiped out. New stock to the same
amount as the bonds is recommended,
to be distributed among all bondholders
except those who have the Bangor Elec-
ric Light & Power CompaDy's first mort
gage bonds. This will leave $50, 600 in
conn stock, which is to be given un.
der the committees plan to the bond ana
stockholders of the Public Works Com.
any, and second mortgage bondholdass
of the Bangor Electric Light q Power
Company, in the hope that their heavier
losses may at some time be reduced by
the value of their stock. This plan is to
be su omitted to the bondholders. but
today's meeting authorized the commit
tee to take all the necessary steps to pro-
tect the properties, even to the extent of
having receiver appointed should COM
plications arise and make it necessary.
Ii is generally believed that the interest
ed parties will be glad to accept this
scale down and realize something, even
if ever so little, upon their Investment