The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1854-04-26


of enterprise and libcrality in their sue
cessors, but We will protect their gift
Before the adjournment, the Chancel-
lor requested the Sheriff to hold up and
exhibit the cloak, remarking, it was q
beautiful one, and the town would know
how to value it. c.
The Rutland and Burlington Railroad.
We find in the Boston Trorel1er a
full report of the proceedings at the
special meeting of the stockholders of
the Rutland Road held at Bellows
Falls last Wednesday, from which we
abstract the following facts.
The statement of the Treasurer
showed that the u.f,mded liabilities of
the company after dcducting the value
Of the second mortgage bonds oil hand,
estimated at S374,700,00, supposing
them to sell at 60 cents on the dollar,
amount to 81, POI ,30S,25, of which
sum the notes payable are 1902
514 o. and the remainder mostly six
pei cent. bonds due in whole or part,
Mr.. Smalley of Burlington, stated
that it was proposed as the only means
left of paying this floating debt ofover
a million of dollars, to offer to tho
creditors the bonds of the company at
par. lie therefore offered a series of
resolutions, authorizing the Directors
to execute third mortgage upon the
property of the road for the sum of
81 100000 bearing interest at the
rate of 7 per cent, payable semi-an>
nually, none of such bonds to be dis
posed of for less than par, and the
Directors not to have authority to
pledge these bonds for the debts of
the Company. The bonds to run 10
1868.
After considerable discussion the
resolutions were passed.
A committee of investigation into
the affairs of the Road was also ap-
pointed to whom full powers were Civ
en-.
VIM. r. Lee, the late president. re.
piled 10 charges which had been made
against him. lie stated that at the
timc Of his accepting the Presidency
of tho road, he rested upon the last
Annual Report for his knowledge of
the affairs of the corporation and that
he, as well as the stockholders, was de.
ceived by its fallacious statements.
According to that Report the floating
debt due April 80, 1858, was only
$4S5, 4S6 50 whereas in fact it was
81, 247 ,94S 81 after deducting assets
at their cost. In the Report the as
sets were put down at their cost as if
that were their true value. They
amounted to $601 ,034 90. After a
minute examination of these assets,
which consist Of Vermont Valley Rail.
road and Telegraph Stocks, steamers,
barges, six and eight per cent, stock
&C., he came to the conclusion that
their total cash value was $160, 1000.
Deduct this from the floating debt and
the amount due, was a trihe less than
$1,7O0,OOO. lie felt compelled to
state that the earnings were likewise
greatly exaggerated. They we're
stated in the Report to be $266, $50,
II for the year, against S165, 1876 II
Of the year previous, a gain of 80 per
cent, whereas in truth they did not a.
mount to SIG, 600, making a differ
ence of $3.50, 900. lie remarked that
they we're now in some cases carrying
freight at less prices than the actual
cost.
lie accepted the Office of President,
he said, in order to bring about con-
solidation of the two Vermont Roads,
in accordance with the company's vote.
lie had faith in the advantages of a
united interest, and did not doubt that
the Directors of the Rutland Railroad
were as sincere os himselfin their pur.
poses, but after effecting a harmonious
union of interests, making the Rutland
a sharer in the Northern and Ogdens-
burgh traffic on equal terms with the
Central, and laboring to bring about
a consolidation, he found that the Di-
rectors of the Rutland Road were at
heart opposed to Union. The consolid-
alton project failed because not single
Director encouraged the effort and the
stockholders almost without exception
opposed the measure. He denied also
that he had obtained money from the
Vermont Banks after he knew the road
was insolyent.
Mr.. Bradley replied to Mr.. Lee.
"lie believed that the report of the
directors last year was substantially
correct, and that with proper manage,
ment the receipts now should be at
east $500, 900, ifnot 100000. The
materials for the report ef June last,
he said, were furnished by the treas