The Republican journal. [volume] (Belfast, Me.) 1829-current, 1915-05-20
Shall We Sell The Railroad?
II is Only a Question of Price.

Ihere was standing room only in the NUM-
cipal court room Friday evening, May l4th, at
meeting of citizens called to consider an
offer from the Maine Central Railroad Co. tt
buy at par value. 500. all the stock, common
Lake R. R. Co., and to decide whether the cit,
should sell the road at this time and at this
price and thus be released from debt with the
exception of $4,000 of 20-year bonds, which
cannot be retired until their maturity unless
by consent of the holders, and which are not
railroad bonds
1t was a representative gathering of citi-
zens, animated by common purpose, to
act for the best interests of Belfast, and tn e
question was fairly presented in its various
phases and fully and freely discussed.
Mayor Charles R. Coombs presided and in
opening the meeting told of the visit of him.
self and Clement W. Wescott, chairman of
the finance committee, to Portland, May 10th,
to meet President Mcdonald of the Maine
Central Railroad Co., by appointment, and how,
aI1er a 1ull discussion of the matter, Mr. Nc
Donald made the offer of $lOO per share for
the railroad stock. He said that Mr.. McDon.
aid was frank and friendly in his talk and they
REGARDED his offer as merely tentative one on
which to open negotiations In fact, he told our
city officials to come home and confer with the
business men of Belfast and if they had a
counter proposition to offer he would submit it
TO his board of directors, In conclusion Mavor
Coomos said that it was a matter for the citi-
zens OF Belfast to decide. and that he hoped
to hear from the representative men present.
he then called upon Mr. Wescott. who made
plain and candid statement, fortified bv
omciai facts and figures, giving the pros and
cons of the matter without bias, He told
what the advantages would be of selling the
stock and relieving the city of debt and of the
profit the city might realize by retaining the
stock until after the expiration in 1921 of the
lease to the Maine Central. He said. however
'hat that would be gamble as 10 one could
foresee what might be the railroad conditions
in 1921 He instanced what had resulted from
government interference with the New York.
Hartford & New Haven and the Boston &
Maine. Mr.. Wescott readily responded to the
many questions asked and the question was
thus fully presented before the meeting.
In the discussion which followed Messrs w
H. Quimby. Ira M. Cobe, A. B. Stantial. M w.
Lord, W. J. Dorman, F. W. Brown, DR.. G.
Kilgore, Selwyn Thompson, James H, Howes
and others took part Mr.. Quimby referred
to the fact that the Maine Central had sur
veyed route for shore line to connect with
the B. & A. in Searsport and said if that road
was built our road wouldn't be worth thirty
cents, as it would have only the local traffic
between Belfast and Burnham. Then some
one spoke of what the conditions would be if
the Maine Central did not renew the lease.
The city would then have to buy rolling stock
and run the road and it would become labil-
ity instead of an asset. Municipal ownership,
as Mr. Cobe said has been failure whenever
tried.
After this informal discussion attention
was concentrated on the price at which the
city would sell. Of course everybody wants
the highest price possible, but $12O for the
preferred and par for the common stock was
suggested as probably all the stock could be
sold for. This would relieve the city of its
floating debt, bring into the treasury $5O-
600 IN cash and permit of a reduction in the
tax rate of nearly 81 per hundred, and give
the city as much money as is now appropriated
annually. When Mayor Coonbs called for
vote it was practically unanimous in favor of
asking $l20 for the stock, preferred and COM
mon.
1t is unfortunate that while this important
matter is pending it should be predjudiced by
statements in out-of town papers. and more
particularly in the headings. One paper has it,
belfast Not to Sell Railroad" That is wholly
unwarranted. Belfast has made no such de-
csion. On the contrary, we believe that
large majority of the citizens desire to sell the
railroad and it has been advocated more or less
strenuously for many years and is by no means
a new proposition. Another paper has it,
"Befast Turns Down Maine Central's Offer'
That does not fairly state the case. Mr.. Nc
Donald's offer has been met by counter offer
from the city, which will have due considera-
ton, and it is hoped and expected that an agree
ment mutually satisfactory will be reached.
The action of the citizens at this meeting
has been communicated to President McDcn-
aid of the Maine Central and the nature Of his
reply will determine further moves in the
matter.