Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1872-10-04

patent would cost $3.50, ,0GO without the
patent, 1921 cars would cost 81 ,l4 500, a
difference of only 1891, 500 between the
figures as given in the Advertiser and the
truth.
In regard t. the V. /. & c. cars not be-
ing made at the X. X. shops in St. Adams,
the Trareiler asks if the Advertiser will de
ny that some of them have been made there:
And in regard to the $500, 600 of special
equipment" bonds which the Advertiser says
the Vermont Court of Chancery has per
mitted the managers TO issue, the 1rGuelier
inquiries:
Does the writer of that article mean to
say that the managers propose to issue
special equipment bonds" and use the
funds thus obtained for the payment OF run
ming expenses or what amounts to the same
thing, Indebtedness incurred during the last
year by their mismana gement,-a thus
relieve themselves from personal response
bility? Their intention to do that would be
most conclusive evidence of their untitness
for the position they hold, and would
strengthen the suspicion that there has al
ready been such a peryersiOn of funds OBJ
talned by the sale of = special equipment
bonds" "
NEW CHARGE.
The Trarcller SAYS that the twenty-one
propellers on the great lakes, formerly own
ed BY the Northern transportation Co.,
were doing profitable business between
chicago and Ogdensburg until the change
able gauge ears began to run, and the car
company cut the freight down for the pur-
pose of driving the boat company into bank
ruptcy. Failing in this the r. R. managers
went INTO market and got control of $780,
600 OF the boat stock, thus getting posses
sion OF the line. Then. instead of running
ha f. Il. 81 a
charge their freight at Sarnia instead of Og-
densburg, thus Increasing the business of
the car company. Ii says if this had not
been done the boats would have earned
5000, 900 last year. while as il Is the bond
holders Of the Road are anxiously looking
for reimbursement for the original purchase.
WHAT a SUFFERER SAYS.
\ correspondent who signs himself "a
sufferer says Of the Vt 4 Canada:
This road Is leased TO the Vermont Cen
tral. and by the terms of the lease its divi
dends constitute a first lien on the earnings
For years the dividends have been regularly
paid, and it was supposed nothing could be
a more secure investment. Hardly a stock
Is more scattered, much Of It being held by
women. and in trust. The writer knows
one widow with three children. two in
valids, who has her all in this stock, and
Vermont Il Canadaf director recently as
sured him be could find no safer place for
trust funds. The annual meetings Of the
company have been held in a small room of
the It. Adams Hotel, in thceyeuing. and as
nothing was done but choose directors. with
no active duties. but merely To see that the
leaSe was preserved, no stockholders have
been in the habit Of assembling except the
directors. No Importance has been attached
to the elections. and as a result it now ap-
pears that the directors elected have been
creatures Of the trustees of the Vermont
Central. and carried ont their wishes TO the
ruin of their own road. The stock of the
Vermont * Canada was originally - 600
600, which has been increased t. S3 .OOO, 900,
10 give To the Central trustees the Use Of the
additional million. Nor l. this all The
directors have guaranteed on the part Of
their stockholders a million of bonds, and
allowed other leases to take precedence of
theirs in the earnings, - that what was
once as safe a. government bonds has become
50 questionable no one knows what its value
Is. If 1t has any. \ more mOnstrOus, un-
called for abuse Of trust has not been pre-
-ented in the whole history Of railroad man
agemcnt than that Of which the Vermont 4
Canada stockholders are the victims. by
men called men of standing and integrity.
WHAT Is To BE DONE ABOUT IT.
In concluding an editorial on the whole
aspect Of the case. the Trareller says:
If the trustees have made losses that have
br01ghJ the road 90 the verge of bankrupt
cy. there should be Investigations before
tribunals competent and willing to remove
them if found incompetent and 10 punish
them If il shall be found that the leases were
made for their personal advantage. at the
expense of those Whose interests they
were appointed TO guard And if they have
been swindlins the holders Of stock and
bonds through contracts with car companies
in which they are stockholders, We hope
they viii be 50 dealt with that No respect
able newspaper will attempt to whitewash
them. That the b1ndholders still have 4
valuable property after all the mismanage-
menr exposed is evident % all, and the queS-
tion with them must be. how to secure com
pe;ent and honest management in the future.
To this question we may give attention in
future article