Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1872-09-27
The Vermont Central.

How much of the talk in the papers concern
ing the affairs Of the Vermont Central Road, is
founded On fact, and how much is invented and
set 1ao. 10 the interest Of parties ineres ted TO
besr the securities and break down the cfedt CT
the Rosd, We do not know. Asspeeimens OF the
statements made, and as part Of the current
news Of the day, we copy two articles below
The first, from the Springfield Republican, is
quite positive in its terms, and the writer evil
IDENTIFY opposes be knows what he is talking
about. TIE ether, from the Traselier is
svowsdly a collection Of rnmors current on the
street, and mus; be taken simply for what it ia
worth That capitalists DO not believe that the
bottom is likely to drop cut Of the Central lie evi-
dent from the fact that Vermont & Canada stock
sold on Friday at 20, a. the Boston Stock Board.
From tho Springfield Republican.
TIE eII. 200, OOO of stock and bonds that the
consolidated ISL miles of Vermont Central and
Vermont and Canada roads repre.ent are, three
million Of Central Vermont mortgages, three
million Of Vermont and Canals guaranteed stock,
one million two hundred thousand OF Central
second mortgage, three million 1.-TWO lots) Of
Of the Chambly and Mitsi,quoi roads. The net
profits on the business Of the main line for the
Is months ending last November was less
than hslf r million dollars, while the yearly
interest charges on the above securities are be-
tween $500, 900 and S900.00O The discrepan-
CIV here added 10 the losses reported on the roads
leaGed by the Vermont Central, would Indicate
tina; the business Of the great combination ia
being conducted at yeSrly loss OF - least
| million dollars Of course this way OF doing
business os1no. long continue. The sooner It II
stopped the better for all concerned. IL is EVIL
dent that the mAnsgers Of the Vermont Central
have INDUCED too much in hope-too little IN
/ fact; that they have paid too much rental FOR
the roads they have leased, AID that they nave
either had too little business for their facilities,
| or done much Of it 8 loss rather than profit.
/ The general public will greatly sympsthize with
/ them, ard especially with Gov. Smith, the pTesi-
| dent il these unfortunate results Of their enter
/ prise that in many Tsys has proved Of much ad-
vantage to their customers; bat the lessons of
| experience are obvious, and should not 60 IN
harvested by ell parties.
From the Boston Traveller.
Trouble exists in the corporation controlling
/ the Vermont Central Railroad. It has siways
been supposed that the great organization, con-
I trolling nearly every rail il the Green Mountain
State With outlets 10 Long Island Sound and
4 Lake ChsmplAin, could never fail. Everybody
/ Among outsiers presumed with some ahow OF
reason that tie traffic Of such thoroughfsre
would not only prove remunerative, bat
very profitable. and the fact that the contrary
Is the case will he bit Of information to msny
Of this class The statement is made tkSt the
rosi Loot, last year, on the Ogiensburg line
s l75 900, and On the Rutland line S36O,00O
- = L..
miles) are not sufficient to psy the interest Oh It's
Sll zoe 900 Of bonds and guaranteed stock. Il
Is reported that its balance sheet IL behind ueAr-
ly $1,000. 600, which is represented BY fo't-
ing debt, and that it is proposed to meet this By
. fuTih5r Issue Of mortgage bonds to that
/ amount. Such ere sail 10 be fscts in the care
as presented before protracied meeting @. the
ofi,ers Of tae company, Wbich commenced
some tee iays sgo 10 this city. The causes Of
this state Of stisrs have never been made pub
lie although grave .chsrges Of Encouragement
have been maie against suniry persons in high
position among those who control tie road.
Among other assertions, il said thstthe ROAD has
been run principally for private benefit, ard not
for the public good, and thst favored few have
acquired wealth while the stockholders have
grown poor. Several leases OF connecting roads
which we're supposed 10 have been mais 1y the
stated TO have bern male personal fer The b.left
Of the otistis alone; oEe Of them, thai G.. the
New London Northern r. Z having beea nsie
olt 10 the name Of three Individuals The Sui
Ivan Railroad is Also said to have been acquired
by reuousl lease, ard there are rumo1s OF
other trausaciiors Of = similar nature. Without
v5uching for the truth Of theie statements, il IL,
nevertheless, a fact th-t they freely cireulst-
ell about the sireets. Another sfsertion,-s a
serious one. il it be true'-is that The Nstioaal
. Despatch Co which should have yielded reve-
hue 20 the road, vas AMI is really burden by
eri,ting contract The National Despatch Co.
is said TO be controlled by the Cfi,ers Of the
Vermont Cea;ral Railroad, Who oompo,sd, there
fore. both tie party Of the frat ami The
party Of the second part in making the coz
t.sct The specified rate TO he paid BY the
railway people 20 the freight company Las aver
aged about oae and oae half eeats per mile,
bot il th.s instance, lie cflsers Of the Vermont
Central Raiirosi voted themselves tEo aad one
hall cents per mile, one cent per mile more than
would hsve been demanded By freight companies
controlled ty parties outside Agsn, rot sAtis-
fed with this movement, it j. stated that they
reduced the rate Of transportation g. much that
the road wa unable 10 make profit OF IFS
freighting business, although the freight compa-
NJ largely increased its stock Of cars and sre
comfortably getting sloug with the steady drain
Wh.ch Nas being made On the tressuTy. What
wEr the loss Of the read was the gain Of the CON-
pany 1, maticsed little to the fregh; company
whether tie Vermont Central Railroad Company
made money on its freight or Lot, 60 l0ug Ss they
we're protected With tteir two and ore-half
(.ince reduced 10 twol cents per nile. Hence
that movement has been drawback 70 the sue
cess OF The road. Other statements are IN circu-
latioa respecting the Affairs OF the Vermont Cen
ral Railroad bat thote given above are su, ,ient
10 indicate thci7 general character. Briefly, il
is charged thst the road has gone 10 ruin becauie
fsE men wished 20 enrich themseiSef, reck-
lsrs Of the welfare Of the road CT iis stockholders
IJ is probable th.f the corporation will either 60
into bslkruptcy.or, under different management
cancel rome q It's lcstes AMI resume business With
a fair pro.pect q success.