Year: 1875

Total 81 ,S72, ,704 80
being an average Indebtedness of $28,033 per
mile


The net earnings OF the whole line for 1874
were 1884, $3.50, sum sufficient to pay interest
on the whole Indebtedness at the rate of Al per
ce1t. per annum.


Your Committee having carefully verified
these figures by their own accountant, and
having personally seen that the roads and their
equipment have been kept up to the average
standard of New England roads, could but come
to the conclusion that the property was well
worth saving in the interest of the creditors and
that with proper management and attention,
and with forbearsnce and mutual confidence on
the part of those interested as creditors and
shareholders, there is no reason why the Con-
solidated European and North Amerlcan Rail-
way Company should not only pay its just debts,
but eventually prove good investment for
those who have the courage to stand by it in its
days OF adversely.


This great trunk line, connecting the mari
time provinces with the whole railway system
of the United States passing through a coun-
try capable of idefnite development. with
connecting roads which have as yet only just
begun to add their business to its own, has
before it a future which should encourage every
one interested to take hold with good will and
courage to lift it from its temporary embarrass-
ments and secure for themselves the benefits
which must result to those who are far seeing
enough to be willing to f0rego for while
present income with the certainty of prospective
results which shall amply reward them for their
delay. The maritime Provinces with their pop
ulation Of nearly one million, must find their
outlet by land to the United States over this
road and with the intimate and vast business
relations between the two countries, there can
not help being, if properly develoDed, enough
passenger and freight traffic over this road 10
pay the interest upon cost so moderate as is
the Indebtedness of this road. Add to this
what must inevitably come, as soon as the
bridge is built at st. John and the gauge made
mil tto A
The transportation of mails and passengers to
and from Europe bs way OF this route, and its
connections to Halifax, and you have pros
pective business which must of itself pay a
large return upon the investment.


In addition to its line of railway, the Consol-
dated European and North American Railway
Company has other property OF very great val
ue and which should not be lost sight OF in our
consideration of gthe value of the line. This
embraces the very valuable wharves, stores and
store property at Bangor and the ferry, wharf
and other real estate at st. John, a land grant
from the state OF Maine of about 100000 acres
of land, together with unpaid stock subscrlp-
tions and other property which were embraced
in the statement of liabilities and assets made
TO the creditors at your preliminary meeting.
OF these, the lands granted by the state of
Maine are tie most valuable at the present
time and estimated by competent judges to be
worth at least fifty cents per acre at forced
sale; but your committee believe that if their
propositions are accepted and time given to
turn these to the best advantage, there may be
realized from these lands much larger sum
and that from their proceeds and the sale of
property not actually needed for the purposes
of ths railway and collection of unpaid sub
scriptons, there may be obtained a sum which
shall reduce the indebtedness of the company
at least $600,000.


The Committee proceed to set forth the pos
sibilities of the road, in connection with the
growth of Aroostook, and the mineral and ag-
ricultural resources of Piscataquis; and in view
of the future promises of these sections of the
state, conclude that the property is worth saw
ing by those creditors, outside of the bond
holders. The committee further state that they
found great difficulty in coming to a plan on
which the creditors of the road could agree, and
at the same time rescue the property aud put it
upon foundation upon which it would pay.
After this statement, the co nmittee proceeded
to develop their plan which is as follows


We found that there had been issued Al, ,293,
representing par value of 81, ,129, 800, and
that OF this amount 30,556 shares we're held by
trustees for the benefit OF the International
Railway Construction and Transportation Com
pany, and that the practical control and man.
agement of the consolidated roads were in
their hands.


We entered into negotiations with this CON-
pany to obtain such an amount OF stock as
would enable those in your interest TO secure the
cOutrol of the whole property, ana atter much
ielay and several protracted interviews, we
have agreed with committee, representing
sale company,to present and ask your adoption
of certain resolutions, and to take sach further
action will result in securing for your benefit
10000 shares of this stock, representing par
value of S20000O0; thus giving you, with the
stock already owne by creditors, large ma.
jority of all the stock and its absolute con-
troll.


With this as basis of organization, we
think that we see our way clearly to the fur
ther steps requisite for carrying out our plans
for so arranging the floating debt temporarily
as to secure its future payment, providing the
bond holders will act concurrently with us and,
whiie aiding us to obtain our just dues, secure
Tor themselves the payment of their own debts,
without risk and without giving up any of
their present security.


That the real interests of all classes OF credl-
tors of the Consolidated European & North
American II iiway are identical must be eyi-
dent to all who examine :he subject honestly