Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1872-10-18

.
BY the terms Of this compromise it was
provided that the road should be held per-
manently in the hands of the Court of Chan
Gerry, and the earnings, after paying the ex-
penses of operating and maintaining the
t property, should be distributed among the
holders of the several classes of securities ac-
, cording to their order of priority.
BY the provisions of this last decree the
, status of the parties became fixed and the
relations of the trustees and managers to
the property and to the security holders
f were established, while at the same time
their relations to the public as common car
f riers charged with the duties and incidents
attaching to such position were defined.
From the date Of the settlement of the
conflicts among the security holders the
road began to develop its business.
The fact that harmony was restored in
spired confidence, the public were reassured
and all the material elements of growth and
prosperity began to manifest themselves
along the whole line. The stimulus thus
given to the business created new and con-
stantly increasing demands for enlarged fa-
cllities, and these in their turn created the
necessity for increased expenditure The
limited and deprecated equipment was soon
found to be inadequate to meet the demands
of the increasing business Additional
trains were required, and as these increased
in order to secure an economical working of
the road was rendered more imperative.
These improvements and enlargements re-
quired large outlay of money, and with a
road under corporate management would
have been supplied by an increase Ofits cap
ital account and thus the earnings of the
road would have been held legitimately to
be applied to the payment of Ofdiyidends. But
under the peculiar management incident to
a road in the charge of the Court, the road
had no means out of which to meet these
necessary expenditures but the earnings of
the road itself, except as money was from
time time obtained upon the credit of the
management. As these necessities forced
themselves upon the managers, authority
was given by the court to make, in some in
stances, long loans, or to convert temporary
loans into funded loans, and these loans now
constitute the trust liabilities of the man
agement, and are from the very necessities
Of the case a first charge upon all the pro-
perty in the hands of the managers.
The branch into Burlington was construct
ed out OF the earnings of the road. The
wharyes at Burlington to accommodate the
: large lumber business were built. Then
followed the purchase of the Stanstead,
Shefford 4 Chambly Railroad, and imme-
diately thereafter came the demand for the
construction of the new road to the Canada
Line, in the town of Highgate, in compli-
ance with the charter Of the Vermont and
Canada.
In 1865 the wants Of the road, thus rapid
ly expanding by the opening ofnew avenues
for business, demanded large increase of fa-
cilities, and for this purpose authority was
given to make loan on ten years time, and
the hrst equipment bonds were issued. This
loan, as stated in the order made by the Chan
cellor, was for the purpose of purchasing
equipment and for necessary improvements.
In 1867 an additional increase ofthe cap
ital stock Of the Vermont K Canada Road
was authorized to the extent of two hundred
: and fifty thousand dollars, which was to be
expended first in payment Of the S97 900 and
interest, amounting in all to about STA
500, due that company under a former de-
cree, and which was about maturing, and
to pay dividends falling due lst June 1867,
and the balance was to be sold to apply
to the extinguishment of trust liabilities.
Authority was also given to issue the
notes of the Trustees and Managers to the
amount Of five hundred thousand dollars,
and to secure the same by a pledge of the
stock and first mortgage bonds of the Stan
stead, Shetford Champly Railroad, in the
hands of the Trustees and Managers and
which are now held by the Managers as as
sets for the security of these notes.
. The said notes thus issued were to be de-
liyered to the holders of the first and second
mortgage bonds in payment Of coupons ma
turing in June and December then follow
, ing. OF these notes SAB 800 have been is
sued and disposed of in accordance with the
decree Of the Court. The balance are now
in the hands of the Trustees and Managers
as assets.
The Trustees and Managers were also au-
thorized to borrow three hundred thousand
dollars to extinguish the liabilities of the
Trustees and Managers incurred in the
development and improvement Of the prop
erty.
In 1869 further loan of five hundred
G thousand dollars was authorized, and if APP.
! proved by the Committee of the First anC
Second Bondholders and the necessities o
the road required it, an additional five hun
dred thousand, making in all one millior
dollars.
Q In 1871 authority was granted the Yer
mont Il Canada to further increase theil
t capital stock to the amount of five hundred
= thousand dollars and to deliver the same t.
the trustees and managers in settlement o
! certain expenditures made by the trustee
= and managers for and in behalf of the Yer
mont & Canada Road, and also authorized
t and empowered the trustees and manager
t to issue their notes to the amount ofone mil
/ lion of dollars to be indorsed and guaranteed
= DN the NeruOnI ~ Odnd(td company, IOE III
0 purpose of paying the liabilities incurred b,
S the trustees and managers in supplying
0 equipment and in other necessary improve
ments of the property.
: All these several orders and DEGREES wer
: made by the consent and with the apprOba
: ton of the Vermont Il Canada Company ant
t the Committee of the First and SeconC
!, Mortgage Bondholders.
+ The amount of all these securities may
e therefore be stated thus
/, Vermont Canada original stock .......s sis 80
;, Addition by compromise decree to pay back -.
rents. bJI ,IO
Addition to pay bondholders. ............. $4,000
Toward building Swanton Branch. h......... $4,000
: To reimburse trustees and managers for ex-
: peudltures on their account. ........... $4,000
n $2,Ooooo
Il Original First Mortgage. e........ 100000
Increase to pay back coupons. 100000
n S. s. and G. Bonds to pay coupons
= of First and Second Mort
- cages. eS...................s.... JOO,HD
l. Equipment bonds. ............... 100000
v Vermont 4 Canada gudrsnteedS's 100000
;: - s6,5oo,oo
ie s9,5oo,oo
:, The interest on this debt chargeable upo1
~ the funds of the road, is as follows
. Vermont and Canada stock, ,s3,ooooO0 Sp; c. $4,000
- First Mortgage Bonds. 100000 : " 2l0Ol
i S. S. and q. Bonds. 100000 . :. $500
he Equipment loan ......... 1000 600 t. a. l6000
: Vt. & Can guar'nt'd per ct 100000 . " 5000
s9,5O0oOo s725OC