Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-06-20

- N N paYmaat a In January I
c00ounB - TINT protective commit
- az the hundhnideR1 hagan 70 be
1ok0n4 fu8 the puTpo of pruceed-
m1 10 1uRecaono the mmfsAgeH. An
tos fuznalities were NOT completed
oe1Anso the others were informed
ro@ tnese defaufted coupons had
bean paid in fuIl and inferest ON same
ID o4fe Of payment and further tina,
oponS due July would be paid.
Consequently - fAr n the property
covered by TIM three mortgages. the
roa0 vas a Huing concern precisely
Ine same an ii was whea the bonds
were issued.
your Honor has instructed that
tnese proceedings are merely pre-
urinary and opened the door 70
further proceedings which miEaa, in
VoiTe a sale Of properties. but the
pne1ent proceedings involve 4 pes
sinie change n the operation of all
Inc properties covered by these three
mortgages as a going concern and
from our point of view rhese first
proceedings rest on the same funda-
mental rights as would question Of
sale. AND with our view of these
nights we feel We must Al the very
outset oppose wha: viii seriously
Affect these properties as a going
concern.
The fundamental upon which We
stand is the protection of property
rights by the court which haR ADMIT
tedly extremely broad powers. From
personal acquaintance and profess
nnna1 relations with Your Honor be-
fore you were elevated TO the bench
We know Nuu have always stood
firmly 10 guar and protect such
rights and we have implicit conf
oence thai you hare the same desire
ana purpose IN your judiciaI capac-
ity 20 safeguard all legal and eau.t-
able rig hrsof property Nor should
We be considered as standing selfish
~ upon our rights. Mr.. Sweeney
sad that recelveds had thei: troub-
les. The stockholders whose stock
has become worthless have had their
troubles; the bondhnlders Of the Z
A d W Railway have their troubles
but each one has his own IN me or
uet II WHICH Llef come.
So far as We are concerned our
investment was made upon a certain
definite unit or properties. then a
successful and going concern. If
later IN the exercise of business judg-
menf which judgment may or may
not prove to be such. others purchase
our properly subject 10 our nights
and proceed 20 unite them with 9th
or properties. they cannot com plain
# we by reason of being first IN me
field have rights that are legally,
equltabiy and practically prior %
theirs and Of substantial -alue: and
while We may have a feeling Of re-
greet thai they may be II a disad-
vantage and financially suffer. we
nevertheless have the right 70 the
tlH benefit of our security and this
cour- must stand 10 protec- US N the
tuN advantage of our prior rights
We approach even what has been
called this preliminary mat-er IN The
belief these are the fundamental
principles which so down 20 the very
root Of the matter.
It has been SAID that this properly
and franchise of The Augusta. HALO
well and Gardiner railway was con-
veyed by decd. -irst to the Augusta
Winthrop d Gardiner railroad and
then later 10 the Lewiston. Augusta
4 Waterville railroad. hut such deed
Is one Of the usual details of organ
ixing - succeeding corpora ton, but
SUCH deco merely passes ON these
franchises and properties with all the
rights connected with them and they
neither enlarged nor diminished by
such conveyance and the grantee un-
der SUCH deeds stand in the same po-
sitlon nat we DO ourselves because II
il became necessary for us 20 take
over the property secured by our
mortgage we obtain by foreclnsinE
which is IL form . conditional deed
of such property and franchises.
The first franchise IN the line il
that Of the Augusta, Hallowen &
Gardiner railroad created by the
private and special laws. Chapter as
Of 1899.
Mr.. Basse1, referred 70 the provi-
slons Of this charter 10 the effect
that the corporation should MAINTAIN
a suitable conveyance az all times
for passengers. and If not possible to
do so by electrical power, must 60
50 by animal power. He commended
that this was an expressed manda-
tory duty of the Legislature 10 main
tain service stronger than the ordi-
narily empIisd legal duty in public
utility corporations Of this kind.
showing that the Legislature intend
ed If the corporation could not main
tain service by electricity which as
Mr.. Macnmber sand was then for the
first time being used for traction.
must use animal power which up ID
that time was custpmnr;fy used. and
therefore as regards this property
and franchise Of the Augusta Halo
IN the mandatory ciass. This pruvi-
sion did not apply 70 that part Of the
system which ran from Augusta o
Winthrop. But the Augusta. Win
lhrop & Gardiner railway received
these properties Of the, Augusta
EaIlowell & Gardiner railway sub
iect 70 this mandatory dury and with
this duty il passed on to the Lewis
TON. Augusta & Waterville railway.
tia, corporation which was still II
existance. and the Stockholders of
tina. corporation. albeit the stock
might not be of financial value, were
subject 10 the same duty. And the
RECEIVERS of the court who merely
have possession Of the property hold
il subject TO all its fundamental