Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1872-09-26

previous month, ana the largest IN the
history of the road It is said that it
can be shown from the books of the
company that, besides paying all its OBJ
legations since 1862, it has earned about
one million dollars, which have gone in
to the construction account. The in
crease of tonnage since June l, 1862, is
233 per cent, and the increase of earn
ings 207 per cent. 1t will be seen by
comparing this with the increase upon
the Boston and Albany that it presents
a favorable showing. The increase earn
ings of the latter are about 276, and ton
age 227, per cent the larger percentage
of earnings is due to the larger amount
of local passengers and freight over the
Boston and Albany.
The leases of the Ogdensburg and
Rutland roads were made with the full
consent, as we have above stated, of the
stock and bondholders of the Vermont
Central and Vermont & Canada, through
committees chosen by them. The lease
Of the Ogdensburg was made for twenty
years. 1t was anticipated that the de-
ticiency on the line would probably be
in the vicinity Of half a million of dol
lars before it would begin to cover the
rental, and it was supposed that the de-
vclOpment of the road would begin to
pay in three years from the time of the
lease. But the business of the line du-
ring the past year warrants the belief
that it will begin to pay much earlier
than was anticipated, and if it is MAN.
tanned the Vermont Central win have
the benefit, proving to be very large. On
the Rutland the losses have been some
what larger but the business on the line
has largely increased during the year
The New London and Northern is not
leased by the line, but by the managers
in their business capacity but notwith-
standing this, it is run for the benefit of
the line and all the surplus earnings, it
is said, are turned over to its treasury.
The lOudest cutlery is made regarding
the National Despatch Company and the
Vermont Iron and Car Company. The
facts CLEANED from interested and disin-
terested parties do not seem to warrant
the reckless statements that are made.
The history Of the National Despatch
Company, in brief, seem to be this:
About 1868 a patent freight car, so ar
ranged that it could run on narrow or
broad gauge, was brought before the at
tention of New England railroad man
ayers. At that time Boston had no
through business in winter-its only
communication was west of Ogdensburg
over the Grand Trunk by rail, which is
a wide guage. Tt was examined by the
managers of all the roads, and it was
conceded that if it worked as it promis-
ed it wOnld give to Boston what it had
so long sought in the quickest and least
expensive way. No one road would I'M
dcrtake the patent as q company, how
ever, and accordingly company was
formed of individual managers with
the intention of thoroughly testing it.
Thirty cars were built after hard strug-
Gle to secure the necessary capital,
which cost about so per cent. more than
the ordinary freight car. The company
appears to have been formed openly
and contracts entered into with the north
crn roads. All the companies in the
lines between here and Chicago agreed
to pay two and half cents per mile for
car service. After running awhile the
rate was voluntarily reduced by the
company to two cents per mile. But
this rate does not pay so much as one
and a half cents by the old style cars,
owing to the increased cost of the cars.
For what one thousand cars OF this pat
cnt cost, 1921 cars OF the old style can
be built The railroad companies in
the line never objected to the rate, ncy-
or objected to the company. They went
into it. as we have said. fully under
standing it: and more than this it is
in the power Of the Vermont Central
line at any time to purchase the cars and
property of the company at their first
cost.
The Vermont Iron and Car Company
seems to have been organized for the
benefit Of the road. The Vermont Cen
trail line not having any means to pnr-
chase new rolling stock. and the great
increase in business demanding new
stock. this company was formed to fur
nish cars to bring grain from Ogdens-
burg to Boston. Their cars can run
only on narrow guage. 1t was deemed
wise and prudent to create such a com
pany distinct from the National Despatch
Company. because the cars could be built
at so much less cost. The stock Of this
company can be purchased at its first
cost like that of the Despatch Company,
by the Vermont Central at any time. 1t
is declared that it can be shown by the
books of the company that these cars
have been a source of income to the
main liue-and that it will be shown in
thC statement of the managers forth
coming is promised. It has been assert
ed that these cars were built at st. AL
bans. and to the personal profit Of some
of the managers. This seems to be
without foundation. The records show
that they were built at LacOnia. n. H..
by the Ranlett Manufacturing Company.
and the bulk of those Of the National
Despatch Company were also built
there
It would seem from examination of |
the main points in the case that the eff |
forts to break down the combinations |
effected by the managers and trustees |
will be utterly futile. So long as the |
Central railroad pays the rental of the |
lease it will, according to
the conditions of the compact, hold it. |
Thus far as has been shown above, this |
has been done and promptly, and the !
friends Of the managers, who are best |
informed concerning their ability. de- !
clare that this course will be pursued in
the future The promise OF the mana |
gers is that their statement now prepar-
ING for early publication will be a full |
and satisfactory explanation, full eX-
pose Of the affairs of the road and COM
olete reply to all the charges that have
been made. For the present the advice
IF the best Informed is, Don't sacrifice
your securities.
It is evident that the tactics of Wall
street have been transported to Boston,
and that parties have taken advantage
IF the temporary embarrassment of the
managers to deprcss the securities of the
Vermont Central and the Vermont &
Canada, rot alone with the hope of
breaking up its leases but of making
money out Of those who are induced to
'ell out of the panic they are endeavor-
NC to create. The management of the
Vermont Central have the authority of
he Court of Chancery to issue eight
hundred thousand of special equipment
ponds for the funding of the present
loating debt of one million five hun
lred thousand, and arrangements were
nearly completed for the placing of that
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