The New York herald., 1872-09-21
THE VERMONT CENTRAL RAILROAD.
Trouble In the COrporation-A Prospect
Of Bankruptcy.
BOSTON, Sept. 20, 1872.

BOSTON, Sept. 20, 1872.
Trouble exists In the corporation controlling the
Vermont Central railroad. It has always been sup
posed that that great organization, controlling
ly every rail In the Green Mountain State, with out
let's to Long Island Sound and Lake Champan, could
never FAIL Everybody among outsiders presumed
with some show Of reason that the trailc OF such
thoroughfare would not only prove remunerativs
but very profitable, and the fact that the contrary s
the case win be q pit OF Information. to many of
this class. The statement Is made that the road
lost last year, on the Ogdensburg line sl75,OOo and
on the Rutland line $500, ,oO0 while the earnings OF
Its own main line Qs4 miles) are not sufficient to
pay the interest on Its $1l20 900 of bonds and
guaranteed stock. IL is reported that its balance
sheet is behind nearly two millions OF dollars, which
Is represented bya floating debt, and that 1t Is
proposed to meet this by q further issue OF mort
gage bonds to that amount. Such are said to be
lacts In the case as presented before a pr0tracted
meeting OF the officers OF the company, which
commenced some ten days ago in this city. The
made rubc stna" nve never ne ~een
agement nave been made against sundry persons In
ngh position among those who control the road.
Among other assertions II Is said that the road has
been run principally for private benefit, and not for
the public good, ana that favored few have
acquired wealth while the stockholders have
grown poor. Several leases OF connecting roads,
which were supposed to have been made by
the officers for the benefit Of the company. are
now stated to have been made personal for the
benefit OF the officers Alone one OF them, that
OF the New London Northern Railroad having been
made out In the name OF three individuals. The Sui
lvan Railroad Is also said to have been acquired by
apersona lease and there are rumOrs OF other trans
the truth OF these statements 1t Is, nevertheless,
TACT that they are freely circulated about the street
Another asserton-and serious one, hit be trueis
That the National Despatch Company, which should
have yielded revenue to the r0ad was and is
really . burden by existing contract. This COM
pany, by the way, was established to supply great
want The Western railroads have always been IN
suhcienty supplied with cars for freight and, con-
sEeqaenty II @ Loaded car was run through from an
and retain 1t in their possession for an indefinite
period. Consequently men We're kept in constant
employ, travelling through the Western States to
ind and return cars belonging to their respective
roads at the East. Hence the establishment of in
with existing railroads something like this: The
freight company agrees to establish agencies In all
built at their own expense, through to whatever
destination 1t may have, allowing the railroad COM
pany to collect and receive all the money received
ior conyeyance the railroad company return pays
the freight company specified sum for each mile
run by each car over their road. In this way the
their local freight cars over the tracks of other
roads, and the operation is generally profitable
% one all round; It Is, however, said not % to have
Company is said to be controlled by the officers Of
the Vermont Central Railroad, who composed
OF the second part in making the contract. The
specified rate to be paid by the railway people to
the freight company has averaged about one and
onicers Of the Vermont, Central Railroad voted
themselves two and 0ne-half cents per mile, one
cetnt per mile moro than would have been ae.
manded by i.s-easht companies controlled by parties
outside. Again, not satisfied with this movement.
transportation SO much that the road was
unable to make profit on its freight
ing business, although the freight company
largely Increased its stock Of cars and are com
f0rtably getting along with the steady drain which
was being made on the treasury. What was the
loss Of tho road was the gain Of the company. IT
mattered little to the freight company whether the
Vermont Central Railroad Company made money
on its freight or not so long as they were protected
with their two and One-haf Since reduced to two)
cents per mile. Hence that movement has been
drawback to the success OF the road. Other state
ments are In circulation respecting the affairs OF
the Vermont Central Railroad, but those given
above are sufficient to indicate their general Cha
racter. Briefly, 1t is charged that the road has
gone TO ruin because few men wished to enrich
themselves reckless OF the welfare Of the road or
Its stockholders. 1t is probable that the corpora
ton will either go into bankruptcy or, under diff.
ferent management cancel some OF its leases and
resume business with fair prospect OF success.