To the ^First Mortgage Bondholders of the Portland and
Ogdensbnrg Railroad:
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At a meeting of the First Mortgage Bondholders of the Portland & Ogdensbnrg
Railroad Company, duly called, in accordance with the Statute, the Trustees of the
Mortgage were directed to apply to the Court for the appointment of Receivers for
the property, or failing in that, to take steps for the immediate foreclosure of the
Mortgage, and to obtain possession of the property under the Statute.
Acting under these instructions, the Trustees prepared a ^Mll in Equity, which was
recently filed and argument was had on motion for Receivers, before Judge Libby of the
Supreme Court.
The decision of the Court, while refusing the appointment of Receivers, substanti-
ally orders such a System of accounts and payments as amounts to the same thing so
far as the First Mortgage Bondholders are concerned. '
f -
Pending the filial promulgation of the order of the Court, the Directors of the
Company, finding their receipts sufficiently large to admit their carrying it out, have
made a proposition to the Trustees of the First Mortgage substantially as follows:
They ask the First Mortgage Bondholders to fund the coupons maturing January,
1877 ; July, 1877 January, 1878, and July, 1878, into an interest scrip, payable in
twelve equal payments, the first, October 1st, 1877, and thereafter semi-annually in
April and October of each year, until the entire amount is paid, the last payment,
April 1st, 1883, extinguishing principal and interest; the coupons so funded to be
deposited with the Trustees of the First Mortgage and to remain in their hands until
final payment of the scrip issued in their stead.
If this arrangement is accepted it is upon the condition that the Trustees of the
First Mortgage, upon a request of a majority of the Bondholders, shall withdraw the
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legal proceedings now pending, and shall simultaneously begin foreclosure proceedings
under the Statute, said proceedings to continue, until the Company pays the coupons
as they mature, falling due January and July, 1879, and has in the mean time also
regularly paid the interest scrip maturing previously, when the foreclosure proceedings
are to be withdrawn.
It is further stipulated that this arrangement shall not be closed, until the written
approval of Bondholders holding at least $600,000 First Mortgage Bonds is obtained.
The etfect of this proposed settlement is, that if carried out, the First Mortgage
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Bondholders will immediately begin to receive an instalment of the amount due them,
one-twelfth of the princjipal and interest of the four funded coupons; will receive an
equal amount every six|months thereafter, until April, 1883, when the entire amount
of principal and interest of their funded coupons will be paid,—and will on the 1st of
Jan., 1879, and regularly thereafter, receive the amount of their coupons in full, fore¬
closure proceedings going on until the coupons of January and July, 1879, and previous
payments of the funded scrip have been regularly met; the rights of Bondholders
being thus effectually guarded.
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The Bondholders in this city approve the above arrangement, and the undersigned
Trustees of the First Mortgage, recommend all Bondholders to consent to it, as being
very much the best course for them to adopt, to protect their property and secure
regular payments of interest.
There is no reasonable doubt that the Company will be able to carry out its
promises fully and promptly, and thereafter to pay interest promptly and regularly.
If you concur in the expediency of the plan proposed, please sign the annexed
request, stating therein the amount and numbers of the Bonds held by you, and return
by mail to Philip Henkt Brown, one of the Trustees.
Yours, etc., S. E. SPRING,
W. F. MILLIKEN,
PHILIP HENRY BROWN.
Portland, Sept. 18, 1877.
To S. E. Spring, W. F. Milliken and Philip Henry Brown, trustees under the
Mortgage of the Portland & Ogdensburg R. R. Co., dated November 1, 1870:
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As the holder of bonds secured by said mortgage to the amount of $
numbered respectively,
I approve of the acceptance of the proposed arrangement d(pscribed in your circular
letter of September 18, 1877, and request you to do all things necessary for its con¬
summation.