Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1872-10-17

holders present to remain after the meet
ing adjourned, for consultation.
Mr.. Bailey's motion was then agreed
to. a#
Mr.. Philbrick inquired concerning the
contract of the Vermont Valley Railroad
effecting the New London and Northern
Railroad. w.. a..
General Whitney replied that the Rut-
land Railroad having leased the Valley
Road in making their lease to the Yer
mont Central transferred their lease of
the Valley road to the Central road and
they hold it through the Rutland rail
road. The Rutland railroad hold it
through five individuals. | was one of
those individuals who leased the Valley
road for 10 years, and it was released to
the Rutland railroad, and the Rutland
railroad transferred it to the Vermont
Central; and You will see, gentlemen,
the necessity of this to the Vermont
Central railroad. The Valley road when
it reaches Bellows Falls, with its con-
ncctiOns below, can send its traffic and
its passengers two ways, and have no
doubt the showing of the Vermont Val
ley road proper is largely increased by
having this lease for this reason.
The lease of the Rutland railroad, if |
understand it, was that they held their
collections for the time being until the
Scmi-annual settlement. Now the Yer
mont Central road losing the interest of
these receipts, some of them for five
months, of course they transferred over
their own road all the through traffic
they could take which makes the show
ing of the Rutland road much less than
it would have been if it had been a COM
prting road, and as the managers and
your committee have well said to you,
you avoid Il ruinoUs competition (which
cOmpctiOn was in danger OF becoming a
ruinOus competition"
As a large loser by holding bonds Of
the Rutland road he had been led to
study the matter, and was convinced
that the Vermont Central property was
a good one.
Mr. Phlbrick repeated his inquiry,
which was whether tine lease of the Yer
mont Valley railroad. had gone back to
the stockholders.
Gov Smith. Of Vermont, replied that
the first mortgage bonds of the Rutland
road had been fOrrclOsed and the second
thus cut off when the lease OF the Valley
road WAS taken from the Rutland rail
road. The original lease was assigned
to the Vermont Central, running for ten
years The managers of the Rutland
road. Gov Page and others, assured the
Vermont Central managers that they
had full power to make the lease. Other
than this he knew nothing more than
what any one else did who had read the
papers.
Mr.. Fish. of Maine, asked Il question
concerning the various securities of the
Nerniont Central road.
Gov. Smith replied by calling atten-
tion to the report made last week. The
Vermont and Canada bonds were the
first security. in manner, which he eX-
planned to the meeting.
In the course of his remarks, which
were very lengthy. Gov. Smith said that
the local business of the Vermont Cen
trail was treble to-day what the entire
business was when he came into the
management. He spoke of the poor
condition of the road at one time, when
they had to run the cars only eighteen
miles an hour for fear of accidents, and
when the road was a bywOrd and re-
proach. Speaking of himself, he said he
said he never spccuated in the bonds Of
the road dollars worth, although there
were times when he might have made a
fortune out of it. The trustees had car
ried the road along by personal guaran-
tee The remarks of Gov. Smith were
a history of the Vermont Central enter
prise. with which the public are familiar
He was several times applauded.
Mr.. Fish repeated his question as to
the numerical order of the value of the .
different securities.
Eovn,rDr Grlitl, rpu1ipl that all tho
trust debts stand on an equality. What /
are called the Equipment Bonds and .
these Bonds that are proposed to be is .
sued stand upon perfectly equal foot
ing with the exception Of the specific .
equipment which was appropriated by
tbs Chancellor into the number Of cars .
and engines. These have lien on that .
specific trust proper, but they all stand .
as trust debt. The latter will be paid .
first. then the Vermont and Canada first .
mortgage and then the second mort .
rage; and if there is anything left over
for the poor stockholders they get it.
Mr. Lcmuel Shaw laid before the .
meeting q statement Of the Treasurer
which had been furnished the commit .
tee. that the debt of the road by Dccem- /
Der I would be less than last June
Mr. ). L. SeWall suggested, as the /
meeting appeared satisfied with the re-
port of the committee, that gentlemen
step forward and subscribe for the bonds /.
the largest one first
Mr. O. \. Braincrl then stepped for
ward amid applause and subscribed $25,- /
600. y. G. Brainard, $4,000; Samuel /.
E. SeWall, $4,000; Daniel Shillaber,
$4,000; f. Stewart Stranahan, S., 900. /
Subscription papers were then circu-
lated through the hall, and the meeting /
adjourned.
THE VERMONT AND CANADA Road
Immediately after the adjournment of !
the Vermont Central Railroad meeting !
the stockholders of the Vermont and .
Canada road assembled and organized by /
the choice of Mr.. F. ~ Brooks for chair .
man. This gentleman gave brief ac-
count of the finances of the road, and |
urged that full attendance of the stock |
holders be insured at the annual meeting |
in St. Albans on the 18th inst, when a |
new board Of directors would be chosen. /
Some discussion cnsued as to the man T
ncr in which the affairs of the road was T
administered and motion was made /
that committee of five,be appointed to
receive and present the proxies Of those /.
stockholders who were unable to 90 to
St. Albans. Agreed to. The chair an .
nounced the committee to consist of .
Messrs. Lemuel Shaw, William Mixter,
s f. Scwall Geo. D. Noyes and Charles |
E. Billings On motion, this committee |
was instructed to report list of names
for directors at the annual meeting. An |
adjournment was then had. ..-e
GEP>1,x BATTIsTs. member of this /