Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1872-09-26
VERMONT CENTRAL RAILROAD
Alleged Financial Troubles
INTERESTS OF THE RUTLAND
RAILROAD, ETC, ETC.


For some time past painful stories
have been in circulation in reference to
the financial difficulties of the Vermont
Central railroad. Precisely what the
foundation of the trouble is, does not
seem to be clearly understood. True it
is, as we recently announced, that a
large loan has been authorized, by the
Court Of Chancery. It's bonds and other
securities have been depressed in the
Boston market. Vermont q Canada
stock, which q short time ago was eager
| ly sought for at and above par, sold, Fri
day for seventy cents. 1t has been stat
ed that these embarrassments were but
of temporary nature; how it is we
know not The New York Herald, of
Saturday, contains a dispatch which
may or may not throw light on the mat
ter. We lay it before our readers, with
only a slight condensation, without eX-
pressing or intending to express any
opinion on its truth or falsity:
"Trouble exists in the corporation con-
trolling the Vermont Central railroad.
1t has always been supposed that that
great organization, controlling nearly
every rail in the Green Mountain State,
with outlets to Long Island Sound and
Lake Champlain, could never fail. Ey-
erybody among outsiders presumed with
some show of reason that the traffic of
/ such a thoroughfare would not only
prove remunerative, but very profitable,
/ and the fact that the contrary is the case
/ will be bit Of information to many of
| this class. The statement is made that
/ the road lost last year. on the Ogdens-
/ burg line, one hundred and seventy-five
thousand dollars; and on the Rutland
/ line three hundred and sixty thousand
dollars; while the earnings of its own
main Iino-one hundred and eighty-four
miles are not sufficient to pay the inter
est on its one hundred and twelve mil
lions Of dollars Of bonds and guaranteed
stock 1t is reported that its balance
sheet is behind nearly two millions of
dollars, which is represented by float
ing debt, and that it is proposed to meet
this by furtherissuc Of mortgage bonds
10 JhaJ amount Nuch are SAID 70 De the
facts SIN the case as presented before
pfQtTac!eu heetlh9 OF the olncerS OF the
company, which commenced in Boston
some zen uaS ago Inc causes Oh lDlS
S'"'U "I ''Ii''i'2 nave never oecil lll"ue
PuOiie' "''lioosH grave charges u ms
management nave oeen maze against
snhofy persons among those VINO cohtroI
inc Ioau' among "'ner "SSerIioHS II IS
s51u tnav lht Ioao mas peeh rum not lot
Ine puDIIc GOOD ana 'ilat some nave
acquired wealth. WINE the StocA"oIoerS
nave grown poor
several leases d coAhec'fhS ROADS,
when wee Supposed 10 nave oeen maze
ny the oLicerS lor lhe Dencht OF the
company, are no" stated 10 nave been
maze personal LOT Ihe oeneiI o. .he ON
GERS aloie' one Oh Ilclil' Vilat Oh tLe Ne"
London Noftherh ralIroad' having Deeh
made out III the name OF three lndiVld-
ualS' Inc sullivan railroad Is also sad
to nave been acquired by a personal
lease, and there are rumors OF other
transactions OF a similar nature. With
out Vouching tor'the truth OF these state
mcnts, it Is, nevertheless, Il tact that
they are freely circulated about the
street. Another assertion-and a serious
one, Ii 1t be true, Is that the National
Despatch Company, which should have
yielded a revenue to the road, was and is
really a burden by existing contract.
This company, by the way was estab-
lishcd to supply q great want. The
western railroads have always been in
sufficiently supplied Withcars for freight,
and, consequently, II loaded car was
run through from an eastern road the
western people were apt to seize and re-
tain 1t in their possession for an ndeti-
mite period. Consequently men were
Kept in constant employ, travelling
through the western states to ind and
return cars belonging To their respective
roads at the east. Hence the establish
mcht OF independent freight companies,
who make contracts with existing rail
roads something like tins The freight
company agrees TO establish agencies IN
all prominent clues' collect freight and
snip II III cars made at thelroWn expense,
through 10 WhaI ever oeS'inatlon 1t may
nave "lio"lhS inc Iallraoo company 10
collect ana receive all the money receiv-
ca loF conveyance inc ta.lroau company
III return pays inc IFe!ght company
Speclllc sum Ior eacn hllie run ny each
car over Inelf roao' IN TINS way the
railroad Is relieved or the bother OF run
nln9 their local freight cars over the
tracks OF other roads, and the operation