Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1872-10-11
TIRE NEW LONDON LEASE.

be taken directly to the trustees and mana
gers.
The parties hadno idea of any personal spe-
culation in it, but took it temporarily IN tins
form for the benefit of the line. They have
never in any form received one cent from 1t
individually. nor has there been any DIS
elimination in favor of it in division OF
rates, or in any other possible form Tor the
benefit of the lessees.
The lease itself contains the provision Tor
its transfer to the Vermont Central road at
a proper time, and they are the only parties
to whom tn. transfer can be made.
The managers deemed it important for the
interests of their line that this lease should
be made. That it has been of great value
to all its interests can, as they believe, be
satisfactorily shown.
The same is also true Of the Sullivan road.
There existed at the time OF its lease dim
culties in the way ofits being then brought
in as part of the Vermont Central line. The
question was submitted to Hon. l.. b. Perkins
and Hon. Andrew Tracey, then counsel for
the Trust, and after a careful examination
they advised that the lease be taken IN the
form it was 1t has been held since that
time steadily to the purpose Tor which IT
was taken, and at no time has 1t been used
in any sense whatever to the injury OF the
Vermont Central.
The lessees of the road will at any time
be only too happy and willing to transfer 1t
entire to the Vermont Central system.
The Montreal & Vermont Junction road
is not a leased road. That road in its incep-
ton was sought for by parties adverse to the
Vermont Central road. Whom it became
evident that it would be built, the managers
of the Vermont Central sought to place
themselves in relation to it that would Sc
cure its advantages to their road.
They therefore became somewhat active
in securing friendly relation To the par
ties in interest in the charter, and 81 became
prominently identified with 1t.
After the municipalities had made their
subscriptions to the stock and had secured
sufficient means to justify placing the work
under construction, a contract was let, after
public advertising, for "A specified sum, to be
paid in the stock and bonds of the road.
The work was commenced just a the civil
war in this country broke out. The cur
rency of this country was then undlsturbed,
and. like the currency of Canada, was at it,
gold value The contract being made in
Canada was payable in the currency of
Canada To induce the contractors to ac-
cept the stock and bonds in payment for this
work. two of the managers of the road who
Vermont junction road. gave personal As
surances that they would negotiate for the
contractors a certain amount of the bonds
and stock which they were To receive.
The currency Of this country. in conse-
quence of the war, soon became disturbed
and gold rose To an exorbitant premium.
The currency of Canada had become serious
" disturbed. and the contractor was
obliged to surrender his contract from III
ability to 90 on. Meantime the work on the
Vermont and Canada branch to the Canada
line had been commenced. and to prevent a
failure of the whole enterprise two of the
managers of the Vermont Central. having
pledged their faith 10 the parties in Canada
that they would in good faith aid in build
inc the road, undertook out of their own
means and ON their own personal credit to
carry the enterprise through, taking the
securities of the road The road was thus
completed. \ temporary arrangement was
made for operating it by the Vermont Cen
trial, and basis of fifty per cent. of the
gross receipts was, on consultation with the
other managers agreed upon for the time
being. While the road was new and IN high
condition. and it was an easy road 70
opante. this was considered not an unfair
division. especially as by the arrangement
the trustees and managers only assumed To
furnish the motive power and keep the track
in repair. all the other expenses of mainte-
nance and repairs, of bailding and road bed.
including bridges, being paid by the parties
ON the other side. The attention of the com
mittee of the L0ndholders and of the Yer
mont a Canada road has been frequently
called L. the matter since that time. and IL
has been strongly urged by the managers in
tere-tcd in the property that they should De
relieved of this position in some form, and
that some basis satisfactory u ali partle,
should De arrived at. They have at all
times been ready and extremely DESTROYS 90
having the matter disposed Of. either by as
Sumins the road at a price, or By permanent
lease of il. or by some agreement which
would be equitable To all parties. Thus far
no settlement has been arrived ut. They
have been exposed 10 unjust suspicion that
they were taking advantage Of the double pc
-itiou which they occupied. while they have
been anxious all the time % dispose Of the
question on any fair and just basis They
can only repeat here what they have SD often
said 10 the parties above referred II. that
thcy have but one desire and that Is that
basis should be agreed upon which Will De
satisfactory 10 the security holders of the
Vermont Central and Vermont & Canada,
preicrring even % do injustice to Themselves
rather than O. occupy any doubtful position.
The managers have thus eudeavored 10
meet fully all the questions which have been
raised against them, seeking no conceal
ment or evasion of any responsibilities rest
ing upon them. nor attempting any yindlca-
ton that i not warranted by the facts.
In the administration Of their trust they
have endeayored 10 di-ehrrge their duties
with fidelity. always inviting the closest
. e.
part fall information 10 all who were in
tere,ted 10 inquire and who had right to
know.
The accounts and vouchers Of the tru~-
te~, and managers have been always freely
open Ia the Inspection of the committee OF
the bondholder> elected annually. and who
by the provisions of the compromise decree
are constituted an advisory committee and
are the special auditors Of theaccount~.
This duty Of examination has been per
formed by that Committee periodically. at
least as often a. once in six months since the
date of the decree
Ia all important matters relating t. the
trust matters, ON all questions of policy.
they have been freely consulted and advised
with, and when matters Of gryer moment
have been before the Trustees affecting the
interests of Improperly. the advice and con-
!
has been sought in addition
The aim of all has been To bring the pro-
perty To its highest state Of efficiency and to
develop all it, elements Of strength in the
fullest and most judiciouS manner possible.
That the property it~eltis capable of meet
ing in a little while the full expectations of
it, warmest friends, none familiar with il
can entertain a serious doubt The question
of how soon it can reach this point and how
rapidly it shall develop is a question of easy
solution. II Is now in all its appointments
in high condition. Ii can be worked now
safely on low scale Of economy and hold its
present earnings. and be made to pay on all
the securities hitherto interest bearing but
under such policy the road cannot develop
as rapidly as with liberal policy it can be
made TO do. The present capital, adding to
the interest bearing securities the present
debt of the Trust. Is not large for the pro-
perty represented. The ratio of annual in !
crease of earnings for the past ten years has |
been little over an average of l3 per cent |
There Is no reason why the road cannot con-
tinue to increase annually in n steady ratio |
for Years to come.
The question Of disposng Of the present |
floating debt Is the one of pressing import |
ance in order to restore the credit of the /
road.
To provide for this. authority has been
granted to the trustees and managers to is
sue their notes for 81 SOC, 900, payable in
thirty years with s per cent interest, and
them special lien upon the
trust property and income of the road of |
this sum S70O,0O0 is to be deposited with
the New England Trust Company. for the
purpose of retiring the first equipment loan
for that amount, which natures in 1875
fhe balances SOC, OO0-is to be disposed
IF for the purpose of retiring the floating
leht of the Trust.
If these are taken by the holders Of the
present securities or sold at once. the Trust
would be relieved from their present embar-
-assments and the credit of the road would
De promptly restored.
When this is done, the question arises
what plan can be adopted for placing the
'oad on some permanent footing to relieve it
If Trust management.