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

| sistent assault Of the enemies OF the road
upon its credit and the stringent close money
market the trustees and managers We're
compelled temporarily to pass their matur-
ing obligations. With resources more than
abundant to pay all its liabilities, but not
for the moment available, with road never
in all its history more prosperous with busi-
ness and earnings in excess OF any former
period, in all its appointments in the high
est state of efficiency, it was nevertheless
forced to yield to the combined pressure.
| With the motives which have actuated
those who have thus assailed the character
and standing of a great a successful en-
terprise, the managers have 1t this time and
in this place nothing to do. They have here
to do only with the causes which produced
the result so far as they themselves are con-
cerned in it.
The statement of the treasurer accompa-
nying this will give the amount Of the float
ing debt and the cause oft, together with
| the resources of the road.
From this report it appears that on the
| first day of June the total floating debt was
! s., ,878, 164 AZ, and the available assets were
| 81 ,349, ,249.57, leaving the actual floating
debt 81 ,528, ,9l4.85.
The debt consists in large part OF the def
ciencies in the earnings of the Ogdensburg
and Rutland Roads to meet the expenses of
the rentals.
The reasons which existed at the time for
making the contract for operating the Og-
| densburg and Lake Champlain Road were
considered good and sufficient by all the par
| ties to the negotiation.
! The subject was we'll and carefully ma
| tured, and the value and Importance Of the
road to the Vermont Central and Vermont &
| Canada roads, as we'll as to the interests of
| the whole line, We're fnlly conceded.
| ing with the trustees and managers were
| the committee Of the Vermont * Canada
| Company, specially appointed by the Board
of Directors for that purpose.
! After the completion of the negOtationsand
! the terms of the contract had been agreed
upon and the preliminary contract had been
| drawn, the Directors Of the Vermont & Can
ada Company called a special meeting of
their stockholders specifying the object of
question of authorizing the lease.
At this meeting the whole question was
fully discussed by the stockholders, and they
voted unanimously to authorize the Pxccu-
ton of the contract
| The contract is in the name Of the Yer
mont 4 Canada Company, the Trustees and
Managers joining in the contract and agree
ing to carry out its terms and provisions.
The rental paid for the road, while con
sidered large at the outset, and with full
recognition of the fact that loss would ensue
in ali probability for the first few years, yet
as the term of the period ofmanagement ex-
tended for twenty years, it was believed that
! the growth and development of the property
during that period would fully justify the
undertaking, and that all losses which might
arise from the early period of the contract
would be more than covered during the
whole term, and a handsome profit result to
the Vermont Central and Vermont and
| Canada Roads.
In this view the other roads in the line
from White River Junction to Boston, who
are also in interest in the contract, fully
shared. Yet with this fact fully in view, it
was thought advisable TO secure the control
Of the road, and the contract was according
ly executed by the Vermont & Canada Com
pany, by their committee appointed fol
that purpose and by the Trustees and Mana
gers.
The deficiencies, therefore have not come
unexpectedly nor are the trustees and
MANA gers surprised nor is their faith and
confidence in any manner shaken in the
value of the contract; nor are their views
changed as to the wisdom of making it. The
deficiencies are by no means altogether
losses, as has been enormously stated. On
the contrary, while the Deficiencies 90 to
constitute a portion of the present debt OF
the trustees and managers, a large sum
should be charged to account of assets.
Precisely to what extent this should be
done can only be determined by a re-yalua-
ton and appraisal of all the property en-
braced in the contract. Certain it is that
to the extent Of the new equipment added,
and the large amount of wood and other
materials on hand, together with the new
stations and other buildings added to replace
old ones burned or otherwise destroyed, the
improved condition of the track, ex-
pcnditures on wharf and terminal
property, all these, which conSti-
tute large expenditure, enhancing the
value Of the property and are embraced in
; the current operating expenses of the road
! are in fact assets, and should not in any
} sense be charged to the account of loss, as
al the final or sooner determination of the
} lease the whole property is to be revalued
and appraised, and the Iessees have the full
benefit of the improvements and enhanced
valuation.
to the lease of the Rutland railroad. The
deficiency there is larger in proportion than
) on the Ogdensburg and Lake Champlair
railroad. Yet large expenditures have
been made which are properly assets, and tc
some extent available to apply toward the
rents to be paid.
The account of the trustees and managers
tor work done on the Addison road, IN order
to put it in proper condition to be operated
is clear asset, and applicable in the hands
Of the trustees and managers to the rents tC
become due to the Rutland railroad. Yet
, this sum is included in and constitutes a
part of the operating expenses of the road
| and hence swells the deficit against the trus
tess and managers, and constitutes a part OF
their present debt.
In addition to this a considerable outlay
of money has been required to complete anC
| protect the road where it was washed away
by tho terrible freshet of 1869.
Equipment has also been added, the track
grently improved, two old station houses
which were burned rebuilt in substantial
form-all embraced in operating expenses
vet not chargeable to loss,
; Thus reduced, the actual losses on thest
roads will fall below theamount estimated by
the trustees and managers at the time O
taking the lease. The trustees and manager!
! do not by this mean to underestimate the
real losses on these roads, yet the extrava
: giant statements made in reference to then
in the public prints are not justified by the
g facts in the case. The large expenditures
2 Immediately demanded are, however, made
and will not probably be required again tt
/ anything near the same extent, while OF
g the other hand both roads are i'm
proving in their earnings, and it IS no
/, unreasonable to believe that the coming
+ year will show a large and favorable reduc
ton of deficit Indeed, at the present ratio