Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1872-02-01
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UeH. vacancy MAONtN t1&V tMU IL IJOAS
of the treasurer be accepted, which mo-
ton was duly seconded.
@. p. Judd, of Boston, thought tho
treasurers report ought to exhibit more
fully the financial situation Of the COM
pany. He should have given O. general
statement of the condition of the road,
with q trial balance from the ledger, so
that they might know the exact condi-
ton Of the road, giving report of the
credits the road should have and the ex-
penses incurred.
In reply to a question, Mr.. Haven
stated that the cash on hand 34,317. 12
was the balance after receiving the
rent for the past year from the
Vermont Central Railroad Company.
NJ. BurnAant, of Gloucester, said that
some time ago pamphlet appeared on
State street, Boston, copy OF which nc
held in his hapd, stating that the assets
of the road were amply sufficient to pay
all of its liabilities, and he would like
to know where this Indebtedness Of a
million and q half Of dollars came
from.
Mr.. S&izltng8 said be could not answer,
that be, himself, did not know OF the
Indebtedness until late in the season.
Mr.. Bu1nhaa asked if the pamphlet
was issued By the authority of the board
of directors.
1t appeared by the records Of the di-
rectors and O. statement by Mr.. George
B. Chase of Boston, that the directors
appointed Gov. Page and Mr.. Chase to
prepare and publish statement, that it
was written by Mr.. Chase, revised By
Gov. Page and then printed and dis
tributed.
Mr.. BurnhDm said, that so far as he
could see the report or pamphlet was
decided upon by the board of directors,
and that, at that time, neither Gov. Page
or Mr. Chase knew of any Indebtedness
not provided for, and they, in their
opinion, could pay all the company owed
with it's assets. The directors, also,
thought that dividends could be paid,
commencing with a small dividend on
the common stock, next year. Now the
directors tell us that the Indebtedness is
a million and half of dollars, ant that
Is all that we do owe. How do they
know, and how do we know and how do
they know but there is more to come.
George B. Chase, of Boston, regrets
that Gov. Page was not present in order
to hear what he had to say. IN order to
be exact he had reduced his remarks to
writing, He then proceeded to give
statement of his connection with the
road as director, transfer agent, and,
during Gov. Pages first absence in Eu-
rope, as acting President. When he
wrote the pamphlet he believed it to be
true, and it was only after he became
acting President that he learned Of the
large floating Indebtedness of the compa-
ny. 1t had always been represented to
him that the Indebtedness of the COmpa-
ny was small and the assets sufficient to
pay them. Since he learned of the in
debteness he had done all he could do to
sustain the credit of the company, by
personal eXertion and by personal en-
dorsement of the paper of the company.
Mr.. Chases remarks were quite lengthy
and completely exonerated him from all
knowledge of any large Indebtedness Of
the company unprOvided for,
Gen. Whitney, of Boston, said he was
the owner of twenty-five hundred shares
of the common stock. He did not think
there had been any fraudulent conceal
ment Of the Indebtedness, nor that there
was anything to impugn Gov. Pages in
tegrity or honesty, and that there was
nothing but what was 8Xplainable. The
road had been run by trustees for num-
Der of years, there had been a long and
expensive litigation, and the accounts
had to be passed and allowed by the Yer
mont Court of ChanCcry. The trustees,
he thought, had made mistake in not
having the accounts of the expenses in
the litigation rendered to them Oftenrr
He would suggest that Il committee be
appointed TO examine the accounts. but
to-day we must provide for the debt
What shall we do with the debt? He
had d resolution 10 offer, which, if adopt
ed, would pay off the entire debt in
about five years, and after chat the an
nual rental would not only pay interest
but also small and constantly increas-
ing dividend on the common stock.
On motion, the report Of the treasurer
was laid on the table,
Gen. Whitney then offered the follow
ing resolution:
Reso1ged, That the directors be auth
orizcd and are hereby instructed to pre-
pare and to issue to the holders of the
preferred stock, a scrip dividend of three
and one-half per cent, to date Feb. I,
1872, upon forty-threc thousand shares
Of preferred stock; and also that said
directors are hereby instructed to issue
as the necessities of the road in paw
mcnt of accruing dividends, and the
debt Of the corporation may require. a
seven per cent bond, not exceeding
twelve hundred thousand dollars in
amount, such bonds to bear date Feb. I,
1872, payable twenty years from date
with interest payable Scmi-annually, on
the first days of February and August
of each year, secured upon the property
of the corporation, to be disposed of in
liquidation Of the debt, at not less than
the par value: Provided that the scrip
dividend upon the preferred stock shall,
in sums of not less than one hundred
dollars, be at all times convertible into
such seven per cent. bond, dollar for dol |
lar of principal and interest, until such
time as the corporation shall resume div
idends payable in cash upon the pre-
ferred stock.
Gen. Whitney, in moving his resolu-
ton, said he came here full of wrath, |
hut he had investigated the matter as far
as he was able, and he thought the |
stockholders should exonerate the direc-
tors.
Mr. BurThn1n said that ne had heard |