The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1859-03-09
From the Boston Traveller.
Vermont Railroads..


Vermont Railroads.
The annual statements of the Trustees
of the Vermont Central and Rutland and
Burlington Railroads, buve just been is
sued. From the former, we gether that
the running expenses for FIVE years past
average 30 per cent, to which is to be
added S4s3,300 paid for Improvement
on Roads, Renewals, &c., which probably
includes large number of freight cars
that have been sc. tered from Providence,
R. l., to Buffalo, N. Y, enormous law.
yers' fees, salaries and variety of pick.
ings. The running expenses Of the Rut.
land r. R. for the past two years are 80
and ae4 per cent and to this is to be add.
ed as paid, since In the possession of the
Truste's, for land, cars, engines, &C.,
$4,000, which leaves the net earnings on
hand 1914, "a, about $3.50 more than
last year. In the running expenses of
these roads charges are included which
some other roads place to construction
where that account Is kept open. There
can be no doubt but that these roads can
be run as cheap as our New England
roads, say so to so per cent, and this
would entirely change the aspect Of their
affairs. One of the largest items of ex.
pense is fuel, and this does not cost them
one half as much as on the roads leading
from this city.
The Legislature of Vermont last year
passed just law. allowing bondholders to
elect their Trustees annually, subject to
the approval Of the Chancellor, and under
this law the bondho,ders elected new
Trustees. In the case of the Rutland
Company,the old trustees protested against
their approval. and in their protest (refsr-
ring to the time they were Arst appoint.
ed) say -
That they were also advised, and full.
ly believed that they were not by law sub.
ject to removal from said trust, either by
the parties interested or by order Of any
Court, 80 long as they executed said trust
honestly" 30.
The bondholders lst and I'd mortgages,
also signed a petition TO the present trus.
tees, after the election Of the new trustees,
requesting them not to oppose the con.
frmation by the Chancellor. All the FIRST
mortgage bondholders to whom this pet.
ton was presented signed it, with but q
single exception.
The decision of Chancellor Bennett is,
that although the bondholders had done
every thing correctly in the election Of
their new trustees, yet it would be VIC.
lation OF contract to confirm them, or,
in other words that it would break con.
tract made with an insolvent corporation
whose right of redemption has been sold
at auction for few dollars, whose stock
is worthless, and probably Its Sd mortgage
bonds also. A Judge Of Vermont now
prctends to own the stock, who is also
large SHARED officer employed by the
trustees, and whose bill Tor previous servi.
ces, paid this year, was 50 large as to make
the trustees hesitate about paying 1t until
it was approved by Chancellor but as
this same Judge and Chancellor had pre-
viously passed upon the Vermont Central
accounts, it appeared small in comparison.
He elects his own directors, whose expen.
ses are paid from the earnings Of the
road-ons o. the directors elected this
year is superintendent of the Cheshire
Railroad. 1t is of great importance that
the Rutland Road should have superin-
tendent for its own road alone, whose req.
idence should bs at Rutland.
If the bondholdsrs call meeting, the
trustees do not attend. but seem to think
they are only amsnable to the courts Of
Vermont.
The Central trustees contract debts for
large amounts, for which they should be
held responsible. If the expense cannot
be paid from the receipts Of the roads,
they should cease inning them. They
have been operated long enough for the
benefit of the State Of Vermont and its
lawyers. aud at least one Boston lawyer
has been enriched by them. The trustees
Of the Rutland have never contracted
debts or given cut notes.
1t is time that these roads were run
for the benefit Of the owners. Their bus
inees will doubtless increase, but If the
great expenses are to be kept up, the
60ndhoiaers should act at once take
up tbs rails and sell off me equipment.
dspots, &C.. and then attach The prop.
erty IF any persons Wko A0se m,s9sed
he income rffhs rSad. The following
are two extracts from the Report OF Geo.
P. Marsh, Railroad Commissioner, to the
Legislature of Vermont, dated Oct. l4
1858:
The funds remaining at the disposal
OF the managers Of the Vermont Railroad
after the payment Of necessary current
expenses, though large enough to serve as
a temptation to private fraud and speeu.
lation--especiaIly where, as in NEST of
our railroads, there are none who are BEN
e6cially interested to such an amount as
to make it worth their while to exercise a
vigilant personal watchfulness over their
Ogents--are not sufficient to furnish the
means FOR any very extensive schemes of
public corruption. Besides this, the
stockholders and creditors of these roads
are generally non residents, and OF course
possessed of little mans of bringing to
bear any direct improper inhuence--and
as most of the shares subscribed and of
thu securities issued for moneys advanced
for the construction of the roads have
passed into the hands of strsnssrs, Ut Q