Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1872-03-14
Rutland Rail Road Meeting.

February 18th, 1872, at o'clock in the
afternoon, Gov. Page, President of the
Company, presiding; B. B. Smalley
Clerk.
After reading the call of the meeting
and the record of the proceedings of thu
last meeting, Edward Blake, of Boston
from the advisory committee, presented
a report and recommended the adoption
of the following resolutions:
Resol0ed, That the Directors are here.
by instructed not to issue the bonds Oh
the Company, provided for at the annual
meeting in January 30th, 1872, and the
vote to issue the same is hereby re-
corded.
ReS0ZUed, That the Directors of the
Rutland Railroad Company are hereby
instructed to petition the General AS
sembly of the State of Vermont, at its
session in October next, for such amend
ment of their charter as will authorize
the Company to make and execute a
mortgage on it's franchise railroad
Depots, Machine Shops and property,
now under lease to the Trustees and
/ Managers of the Vermont Central and
Vermont and Canada Railroads, not in
Guiding the rolling stock already mort
gagged for the payment of five hundred
thousand seven per cent, and five hun
I dred thousand, eight per cent, equip
mcnt bonds not inclusive of the Steam
/ boat property as security for an issue of
Bonds to be known as the first mortgage
bonds, and not to exceed in amount the
/ sum OF one million five hundred thousand
dollars, redeemable within thirty years
and to bear interest at a rate not exceed
ing eight per cent, per annum, payable
qemi-annually,
In presenting the report Mr. Blake
said:
The financial report is prepared by
Mr.. Spencer His experience as a bank
err has been at your service. He says
the plan adopted at the annual meeting
is not good, but this is good. There was
a controversy in Vermont Central Rail
road. III which | was concerned, and
there learned that when stockholders out
of and in Vermont work together all
goes well. If you attempt now to Op-
pose Vermont stockholders and direct
ors, You will lose your road, also
your interests Unless you provide for
these debts, your stock can be attached
and sold. In the Central controversy, a
meeting was held i'll Boston. and Law
renee Brainard Joseph Clark and John
Gregory Smith were spoken of in worse
terms than your president has been
spoken Of. The president Gov Page
has been perfectly honest and sincere in
all he has done. The only way to man
age Vermont property is to work with
the NcrmOnters. The books of the com
pany have been examined by an expert
They are correct, and no attempt at Sc
CreCy, and were open to the directors
and no blame attaches to the president
or treasurer. Some part of the debt
could not be asCertained until last Au
gust, and it is al nonsense to talk about
seCrcsy. Our object is to remove bur
den that now rests on the preferred
stock | believe the Legislature Of Yer
mont will amend the charter or grant
authority to remove this burden.
A. W. Spencer, of Boston, | cannot
add much to report. Our first case was
to devise means to relieve our property
The mod" proposed at the annual meet
ing is not practicable The issue of
preferred stock only half meets the i'm
Emergency. We must externinate the
floating debt and until then our Situa-
ton Is precarOus The only objection
have heard is that it is hard on the
preferred stockholders 10 make them
subject to a mortgage, but floating debt
is superior to the prepared debt. Under
this plan your dividends next February
and thereafter will be paid in cash 1t
is said the interest Is too much, but You
must 90 into market with interest
enough TO compete with other securities.
Vermont is my native State, and | a.
should be sorry if we should find any
difficulty in the legislature when We
only ask justice, and ask to mortgage !
our property to pay our debts You /
must make your scheme broad and deep
enough to eXtirpate your floating debt.
Until then You do not know where You
are. We do not call this method per .
feet, but | can see no other method that !
will clear up your debt 50 absolutely
and leave a large dividend for common
stock The bonds mature at 30 years
and there is abundant property to meet
them. They are issued as all other
bonds of corporations are issued.
Nr. Bell, IF Exeter, n, H. - llole is
must be met. 1t Is necessary
that we should find bottom. 1t is re-
ported that there are other debts that
have not yet been announced.
Gou. Page says all the liabilities of the
road, so far as he has any knowledge OF
them are stated in the published report,
but there are some assets that may be
yet realized The Addison Railroad is
called assets because the Rutland road
own its stock and its a per cent stock.
NT. Judd, Of B0ston When pur-
chased preferred stock, | supposed that
nothing could be put on the road that
could come before it. but upon reading
he lease and charter, | am of opinion
hat the debt does take preference to the
preferred stock. and may be enforced
% the exclusion of it, How shall it he
net BY the issue of preferred stock!
How many of the shareholders will pay
800 for it when they can purchase it
n market for $40. We cant get the
money on our unsecured property.
This leaves us the plan proposed by the
committee, which | think is feasible.
shOnid prefer n less rate Of interest
han 8 per cent, but gentlemen familiar
With the market say that it cannot be
'laced less. If the Legislature give us
he authority to mOtgage | don't be ,
Give 4 court of equity could interfere,
s we have only done a just action, and
ave made the preferred stock better
Goy Page said he did not propose to I
pp0ae the committees plan, but, desir-
lg them to remember that he was one
f the largest stockholders, he thought ',
be best and only waytO relieve the road
ras to do it at once, and without wait
10 for the action of the Legislature. t
his must be done by assessing the r
themselves. His remarks
ere accompanied by financial state
tent, which we shall publish hereafter, c
nd proposing substantially the plan |
roposed in his report. :
Mr.. Burnhana, Of Gloucester, thought :
we could be assessed, it was the best .
ay to get ont of debt, and it appears :
nat an assessment of 125 per cent.
ould pay the debt. He moved to ac- n
ept the report.
Report accepted