Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1872-10-16
A. Il. CAMP,
B. II. STEELE,
liENRY LANE,
X. j SAxg,
WILLIAM lIARRis, Jr.,

WILLIAM II,RRis, Jr,
NJ EsTy,SS Central aaa Vermont spl
Wy Canada Railroads.
Il An adt t1urusd meeting or the security holder
" the Nerm mt Central and Nerm mt and Canad
Railroads WAS held at horticultural Hall, b .stun
Wednesday October 9, 70 hear the report of III
Committee appointed at a meeting a week ago b
cpnicr with the Trustees and Managers in rel,
ton 70 placing the raid under corporate manage
ment. and tu take action in regard TO the mme
da,e liabilities
REPoRT or THE COMMITTEE.
The Committee, appointed Mt the meeting hel,
October 81, - confer with the Trustees and Man
ases lave met them and report their views a.
follows
IL spgears by the report of the Trustees thai
the lmting Debt. now in the form of short note,
OF tho Trustees unpaid bills. accounts, pay rnll-
et'.. nhpve al available us-et-, was, June / 1879
/ : 52S ,9liS5. OF this sum about : 800 00t
has been expended for additions tp the trust prop
erty, which a corporation would charge t1 con
strucnun account. the balance of the 4 ntiup
debt is attributable u the deficit which has ai-or
between their receipts and expenditures since
they have leased the Ogdenshurg and Rutland
rlads.
/ The trustees confidently express the opinion
that the OgdenSbutg Railroad will pay them u
profit IN the course Of the year 1874, and al-I
that the RutlHnd Railroad aud it, connection,
ea-i OF Lake Champhin will become ol direct
profit 10 the course Of the next two Years.
Your committee think that It is proper to CON
siJsr the deficit on the leased roads as a bonus
pail by the trustees iir obtaining property and
business facilities Of great value n the line If the
r,od managed by them, and fr removing com
pettlJn which has always been damaging, and
which wa on the point Of bccouing ruinuus
The trustees always anticipated that th- fiat-
ing debt, created AS we have seen, ! 800 00O Ion
construction proper and the balance tor what We
may consider AZ paid iOrOhtaining valuable rights
and property, and therefore also for construction
would I've funded. and they had hoped 10 carry il
along without interfering with the regular pay
menls OF rent and interest, till the Vermont
Legislature should meet and should in some
WAY enable the holders of the securities tn form a
corporation in which this floating debt should he
represented by capital. In this they have been
disappointed first hecause, by their contracts
they have been Obliged to buy much more proper
ty 0i the leased roads, and twJ years supply ul
wOnd, in one year, and second, because the con
dlt n Of the money market has rendered it very
difficult for any one 10 carry large floating debt
tins year. The result as we all know, has been
that the Trustees have been unable to carry the
load, and a pressing Necessity has arisen for im.
mediatey funding this debt. We do not see that
anything has occurred u imperii .r diminish the
vslue of tse property the rad and ruad bed, re-
pair i, 4, equipment and properly of the road-
innfIa DAis the Trustees, We arr assured, are 10
an sxces gnfly glod aud efficient condition AMI
eqnai u slat oi any railroad " Nov Envlsri
We are also assured that they are getting int
position 10 increase their income and dimirn, /
theirexpenses thar the contracts with the Nati nv
Despatch Company have not heen "A source OF los-
t the roads, and it Is anticipated by the Trustees
that the rates paid to the Despatch Company will
be reduced
II this floating debt is now funded the Trustees
estimate that the future earning. Of the combined
ruad~ Will soun be sufficient to pay the expense Of
running, the rent 10 all the leased roads, the in-
terest On all the classes Of bonds except PERHAPS
the second mortgage bonds. If, however, thcy
may not be able 10 pay promptly the rent anu
interest due December / they would issue scrip
which they would expect TO soon pay oil
The important and practical question is how
Is this debt to be funded!
The Trustees recommend that it should be
funded in bonds issued by the trustees having
thirty years e. ran, at 8 per cent interest These
b1nds are To be issued under decree OF the Court
Of Chancery of Vermont from which the rrus.
tees derive their appointment, which gives them
power ~ issue 50 500 900 thirty year bind-, at
per cent. interest, and provides that 500 600 of
them should be left with the New England Trust
Company, as security Tor that amount Of bond,
due in 1875, leaving 5 s00,0O Of them now to
lie placed, which IS the amount required ~ pay
the floating debit and thus it is which the stock
aud bond holders aud the creditors Of the c1npan,
are invited to subscribe for.
The decreeauthufizing this issue of bonds pri-
yides a. follows
"And it is further ordered and decreed that the
notes Issued under this decree shall Constitute
lien and charge upon the trust property and the
earnings thereof under the control OF sud rrus
tees anu Managers and in ease said Trustees
and Managers shall fail 10 pay said notes and in
terest thereon ns il becomes due and payable, the
holders OF said notes or any OF them may apply
u tie Court 10y petition for realization Of his OF
their securities, or for summary order for tie
payment ul the amOnnt due cut OF the property
or current earnings of the railroads under the
control and management Of said Trustees and
Managers
lt would he very desirable if the Cnmpahy
could receive the full pur value Of their bonds.
but in view OF the state of the money market,
and the necessity of making spme special in
ducement To subscribers, it has been determined
10 plier these bonds at ninety per cent 10 he
paid for in three installmenis, November, De-
cenber l. and January l. nnd su scriptiin pa
lerS have been prepared. This course, we are
assured by eminent lawyers In Vermont, is per.
ihltted by the laws Of that State.
Your Committee are impressed with the ad-
ygntages which would accrue 10 all concerned II
TINS property, managed by the Trustees could
on equitable terms be vested In corporation
which would have greater facilities for meeting
the growing wants Ot the cOmmu nity tLnn the
Tfh&ec. hss1gs1 llsey Informed that this sub
lect u under consideration by their counsel in
Vermont, who hive been requested 10 prepare
the bills to my before The Legislature, now sit
ting, which should grant the authority
Your Committee are not prepared 10 report on
any scheme, but one under which the capital Of
. -. l..
Trust debt should he represented by preferred
stock on new mortgage, and the other securities
should be lairly dealt with, they think would be
Tor the general advantage
When the plans are further matured they
will be submitted to the various persons inter
esied.
The committee unanimously recommend that
the holders of the various securities and the
creditors Of the company should promptly re-
lieve the company from its elnbarrassnents By
liberal subscription ~ the bonds.
LEMuEt SHAW,
WILLIAM PKRKINs,
II. q. BAILkY,
JosEPH H. CONVERSE,
lyERs PnILLiPs
The following was the flrm of subscription,
and the names added are those Of members Of
the committee and others who subscribed on the
spot for the bonds.
F0RA or SUBSCRIPTION.
The subscribers hereby agree n take the
amount of the Vermont Central Railroad Com
pany's Income andsExtension Bonds, specially
authorized by the Court of Chaneery, set against
their names respectively and u pay therefor 80
per cent. Of the par value thereof, and accrued
interest, to wit $500 November |, 1872 $500
December l, 1872, and $500 January |, 1873,
with interest from November /, 1872, ON each
3 900 bond
Interest at the rate Of & per cent. will be paid
upon all payments In advance.
This subscription is not 10 be binding unless
the amount of one million of dollars Of the loan