Chapter 381.

An act to enable the city of Bangor to extend further aid to the Bangor and Piscataquis
Railroad Company.

Be it enacted by the Senate and House of Representatives in Legislature assembled, as follows:

CHAP. 381.

SECT. 1. The city of Bangor is hereby authorized to make a further loan of its credit, in scrip to be hereafter issued, to the Bangor and Piscataquis Railroad Company, to aid in the completion and equipment of its railroad from Oldtown to Dover, and for other necessary purposes connected therewith, upon the following terms and conditions, and not exceeding the sum of one hundred Amount of loan. and twenty-five thousand dollars.

SECT. 2. If this act shall be accepted as hereinafter provided, Conditions. whenever the directors of said company shall from time to time, within one year from and after said acceptance, decide by their vote that it is for the interest of said company to receive a certain part of the scrip authorized to be issued for any of the above purposes, and the president of said company shall communicate said vote to the mayor and aldermen of said city, and request them, in writing, to issue and deliver to said company such part of said scrip as is required by said vote, then if said mayor and aldermen are satisfied that it will be for the interest of said company to receive a part of said scrip, authorized by this act to be used for any of said purposes, they shall thereupon certify that fact to the treasurer of said city, stating to him the amount of scrip to be issued and delivered at that time, and he shall forthwith issue and deliver to said company said scrip to said amount, and so on, till the whole amount of said scrip authorized by this act, shall, if necessary for said purposes, be delivered; said mayor and aldermen to decide whether the same be necessary. All of said scrip shall be signed by the city treasurer, and countersigned by the Scrip, how signed, mayor of said city, and shall bear date of the first issue thereof, made payable. and be made payable to the holder thereof in such sums as said directors may determine, with coupons for interest attached, reckoned at the rate of six per cent. per annum, payable semi-annually, free of government tax, the principal payable on the first day of April, in the year of our Lord one thousand eight hundred and ninety-nine, in Boston; and be secured by the bond and mortgage Bond and mortof said company, hereinafter mentioned, which shall be executed gage. and delivered to the city treasurer on the first issue of said delivery of any of said scrip.

issued, and when

bonds to city in
double amount
of scrip of city.

SECT. 3. Concurrent with the first issue and delivery of any Company to issue part of said scrip as aforesaid, the president and directors of said company, in their official capacity, shall execute and deliver, or cause to be executed and delivered, to the treasurer of said city,

Conditions of

same.

CHAP. 381. the bond of said company in the penal sum of double the amount of said city scrip authorized to be issued by this act; said bond shall be made payable to said city, and shall be conditioned that said company will duly pay the interest on such scrip of said city as shall be issued under and by virtue of this act, and said government tax, and also the principal thereof, according to the tenor of said scrip; and in all respects will hold and save harmless said city on account of the issue of the same; said president and Company further directors shall also, in case of the issuing of said scrip of said city, as provided in section two of this act, and simultaneously therewith make, execute and deliver, or cause to be made, executed and delivered to said city treasurer, the scrip of said company, payable to the holder thereof at the same time and for the same amount as the scrip then issued and delivered by said city treasurer to said company, with like coupons for interest attached, Same to be held as which scrip shall be held by said city as collateral security for the

required to issue its scrip to city.

collateral, and

sold by city in

default of conditions.

Company, upon

first issue of scrip,

company to city treasurer and

mortgage of corporate property.

fulfilment of the conditions of said bond, and in default of any one of said conditions said city may from time to time sell said scrip, or any portion thereof, by public auction or auctions, in the cities of Bangor, Boston or New York, or either of them, after sixty days notice in writing to the president, one of the directors or any three of the stockholders of said company, naming therein the time and place of sale. The net proceeds of all such sales shall be endorsed on said bond.

SECT. 4.

The president and directors of said company are hereto deliver bond of by authorized, and it shall be their duty in their official capacity, upon the receipt of the first issue and delivery of said city scrip, and upon the delivery of said bond of said company to said city treasurer to secure the payment of the same, to execute and deliver or cause to be executed and delivered to said city treasurer a mortgage of said railroad and of all the property of said company, real and personal, which said company then has or may thereafter acquire, together with the franchise of said company without prior incumbrance except as hereinafter mentioned, which mortgage shall be in due and legal form and executed according to the laws of this state, and contain apt and sufficient terms to secure to said city the fulfilment of all the conditions of said bond and said mortgage, so executed and delivered and recorded in the registry of deeds for the county of Penobscot, shall to all intents and purposes be and the same is hereby declared to be a full and complete transfer of said railroad of all the property of said company real and personal then owned by said company or subsequently to be acquired, wherever the same may be found or situated, and also of the franchise of said company, subject only to the conditions and exceptions contained in said mortgage.

erty to be subject

to prior mort

gages.

Said mortgage, property, real and personal, and said franchise, CHAP. 381. shall be subject to all mortgages heretofore given by said company Mortgaged propto said city and now existing, and also to one other mortgage hereafter to be given by said company to said city, under and by virtue of the provisions of an act to authorize the city of Bangor to aid the construction of a railroad into Piscataquis county, passed February twelve, eighteen hundred and sixty-eight, and an act additional thereto, passed February eleven, eighteen hundred and sixty-nine, which mortgage said company reserves the right to give, on receiving the scrip of said city, to which said company may hereafter be entitled agreeably to the provisions of said two acts, which mortgage, when executed and recorded agreeably to the provisions of said two acts, is to have priority to said mortgage executed and delivered under the provisions of this act; provided however, that said city shall at all times, whenever the Proviso. mayor and åldermen may so decide, after the issue of any scrip contemplated by this act, and before all the scrip thus issued shall be extinguished, have the right to take and hold possession of all the real and personal property of said company until said scrip shall be extinguished, subject only to the rights of said city under the mortgages hereinbefore mentioned, anything in this act to the contrary notwithstanding.

conditions
broken.

foreclosure to be complete.

SECT. 5. For the purpose of foreclosing said mortgage for Foreclosure, for conditions broken, it shall be sufficient for the said mayor and aldermen to give notice according to the mode prescribed in the revised statutes for the foreclosure of mortgages by publication of notice thereof, which may be published in a newspaper printed in Bangor, and a record thereof made within thirty days after the date of the last publication in the registry of deeds for the county of Penobscot, which publication and record shall be sufficient for the purpose of such foreclosure. Upon the expiration of three Upon expiration, years from and after such publications, if the condition shall not within that time have been fulfiled, the foreclosure shall be complete, and shall make the title to said road, and to all the said property, real and personal, and said franchise, absolute in said. city. Said foreclosure shall not be considered as the foreclosure of any other mortgage now given, or hereafter to be given under said two acts, by said company to said city, nor shall any of the proceedings or remedies under, and by virtue of this act, in any way affect the rights and remedies of said city or of said company, under and by virtue of said other mortgages, and under and by virtue of said two acts.

SECT. 6. If the directors of said company shall at any time neglect or omit to pay the interest and said tax, which may become due upon any portion of the scrip issued and delivered under the provisions of this act, or to pay the principal as it becomes

Said foreclosure foreclosure of any

not considered as other mortgage.

Interest, nonprincipal, or nonbond, city author

payment of, or

fulfilment of

ized to take pos

session of road.

Notice.

CHAP. 381. due, or to comply with any of the conditions of said bond, the city of Bangor may take possession in the manner hereinafter provided, of the whole of said railroad, and of all the property, real and personal, of said company, and of the franchise thereof, and may hold the same, and apply the income thereof to make up and supply such deficiences that may occur while the same are so held, until all deficiences shall be fully made up and discharged. A written notice signed by the mayor and aldermen, and served upon the president or treasurer, or any director of said company, or, if there are none such, upon any stockholder of said company, stating that the city thereby takes actual possession of the whole line of the railroad, and of the property and franchise of the company, shall be a sufficient actual possession thereof, and shall be a legal transfer of the same, for the purposes aforesaid, to the city, and shall enable the city to hold the same against any other claims thereon, except the claims of said city hereinbefore mentioned, until such purposes have been fully accomplished.

Possession, how

taken.

Moneys received, how applied.

Payments to be made to city treasurer monthly; how applied.

Liability for

wrong application of money.

Suit in equity authorized.

SECT. 7. All moneys received by or for the said railroad company, after notice as aforesaid, from any source whatever, and by whomsoever the same may be received, shall belong to and be held for the use and benefit of the city in manner, and for the purposes herein provided, and shall, after notice given to the persons receiving the same, respectively be by them paid to the city treasurer, which payment shall be an effectual discharge from all claims of said company therefor; but if any person without such notice shall make payment of moneys so received to the treasurer of said company, such payment shall be a discharge of all claims of the city therefore, against such person. All moneys received by the treasurer of said company, after such notice, or in his hands at the time such notice may be given, shall be by him paid to the city treasurer, after deducting the amount expended or actually due for the running expenses of the road, for the services of the officers of the company, and for repairs necessary for conducting the ordinary operations of the road. Such payments to the city treasurer shall be made at the end of every calendar month, and shall be by him applied to the payment of all the interest and such tax, and principal due as aforesaid, and any person who shall pay or apply any moneys received as aforesaid in any manner contrary to the foregoing provisions, shall be liable therefor, and the same may be recovered in an action for money had and received in the name of the city treasurer, whose duty it shall be to sue for the same, to be by him held and applied as hereinafter required.

SECT. 8. For the purpose of effecting the objects prescribed in the two preceding sections, the mayor and aldermen may cause a suit in equity to be instituted in the name of the city of Bangor,

Injunctions, S. J.

court, powers of,

in relation to

same.

in the supreme judicial court in the county of Penobscot, against CHAP. 381. said company, directors, or any other person, as may be necessary for the purpose of discovery, injunction, account, or other relief, under the provisions of this act; and any judge of the court may issue a writ of injunction or any other suitable process, or any such bill in vacation, or in term time, with or without notice, and the court shall have jurisdiction of the subject matter of such bills, and shall have such proceedings and make such orders and decrees as may be within the power and according to the course of proceedings of courts of equity, as the necessities of the case may require.

interest or principal.

City may take

possession, and

appoint requisite

officers, &c.

management of

road.

SECT. 9. If the said company shall at any time, neglect or omit Non-payment of to pay the interest which may become due upon any portion of the scrip issued and delivered under the provisions of this act, or to pay the principal thereof, as it shall become due, or said government tax, or to comply with any of the provisions of said bond, then said city of Bangor may take actual possession of said road with all its appurtenances, and manage the same as fully as a board of directors of said company for the time being, may appoint the requisite officers and agents, and discharge the same, may fix the rate of fare and tolls, subject to the restrictions of the charter Powers of city in of said company, and may demand and receive the same, with the right to prosecute and defend suits in the name of said company, and may do all things which said company itself, or the directors thereof, might or could lawfully do, and after paying the running expenses, said city may apply sufficient of the earnings of said. road to keep it and its buildings and equipment in repair, and to prevent any deterioration thereof, and to provide for such new rolling stock as may be necessary and then to apply the residue of said earnings to the payment of said interest, coupons, script or bond as aforesaid, and government tax; and whenever said interest, and all dishonored coupons, scrip or bonds, secured by said. mortgage referred to in this act, shall have been paid, said city shall relinquish the control of said road, and deliver any property of said company in its possession to said company, or its assigns; provided however, said city, its officers or agents, while operating Proviso. said road, under the provisions of this section, shall not be liable, except for malfeasance or fraud, and shall have the right to apply any funds received from the earnings of said road, to pay any damages that may arise in the management thereof, for which said city shall be liable in law to third parties; and the delivery back to said company any property of said company in its possession, shall be no discharge of its lien thereon, nor prevent said city from again taking possession of said road and property on any future breach of the condition of said bond.