Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1872-09-25
The Condition of the Vermont Cen
trail

vain anu Diuy rumOrS concerning the nnan-
cial embarrassments of the Vermont Central
railroad. In the absence of any public
authoritative statement fromthe managers of
the road respecting it's financial condition,
the newspaper articles and the street rumors
have free course. From these it appears
that the notes of the Vermont Central
managers, to a considerable amount, have
gone to protest, and that the indebtedness
already matured and maturing, is very
heavy. The Springfield Republican, says that
the road "lost last year, on the Ogdensburg
line Sl75 ,0C0, on the Rutland line $500 600;
while the earnings of its own main line Q84
miles) are not sufficient to pay the interest
on it's SIP, 900 900 of bonds aud guara nteed
stock 1t is reported that it's balance sheet
Is behind nearly 81 600, 900, which is repre-
scented by a fJating debt; and that it is
proposed to meet this by a further issue of
Of mortgage bonds to that amount, but there
is hesitation on the part of its friends and
the Boston capitalists, who are Interested in
its affiirs. to indorse this scheme, on the
obvious ground that it furnishes no perma-
nent relief from the difficulty, the
business OF the line and Its leases is plainly
unequal to the meeting OF their obligations,
aud that It is better TO confront at once the
necessity of a more radical solution of the
difficulty. There have been meetings of the
leading parties IN interest at Boston, this
week to consider the whole matter, but we
10 not learn that any satisfactory conclusion
has been reached, and tue danger of an early
suspension OF judgment is imm nent"
Tuis is probably the most unfavorable
road. On the other hand we hear it stated
that the assets Of the road are ample To meet
all its Obligations, aud that its affairs, al
though temporarily embarrassed, are in real
Ity IN solvent condition. IL is said that
large expenditures have been necessary dur
Ing the past year on the leased roads IN the
way OF depJts, road beds, ect., and" while this
expenditure appears now in the adverse
balance it ought not in fact to be so consId-
cred. 1t IS also claimed that other railroad in
terests that might receive advantage from
any permanent Gripping of the Vermont
Central are busy 10 New York and Boston,
circulating every damaging rumor, and doing
all that is possible to injure the credit of the
road: and stock spectators are also doing
what they can to dspress the value of the
securities OF the road. No doubt all these
hostile Influences are at work and such in
dleuces are capable of greatly aggrayatIng
the difficulty but the fact still remains that
the road is ia a critical condition, and the
managers may be obliged to surrender the
control Of the leased roads, if no graver re
suits come out Of the present compIi cation.
Also, in connection with this excitement.
attention is drawn to the fact that the
managers of the Vermont Central are, and
have been for years, receivers under an order
made by the Court Of Chancery, and all
contracts and leases made by them, and in
dcbteIness incurred, have had the sanction
d. that Court 10 short, that the Court OF
Chanccry in TINS State Is responsible for
the management. if not for the credit OF
the railroad Obligation should grow out
OF this financial crisis in the affairs Of the
road, some curious questions would doubtless
arse. interesting it not profitable to the
lawyers.
Every one VIII join with .us ia the wish
that the Central railroad may come through
It's present difficulties successfully. 1t is,
whether financially at fault IN the manage
meut OF not. after ALI "a Vermont interest.
AMI We should be -1rry t. see it fall into the
hands of persons who have no special pride
ia the welfare and prosperity Of our State
We have long looked upon the road as, in
part at least. -acrihciu. its own best sue
cess ~ vel. as the permanent prosperity Of
the people along it, line, Ia its Efforts to be-
come q great thJToughtaro from the East to
Jhe West but any foreign management
would only increase this tendency to seek
turouLh trlfh: rather than way business. II
cut ot ID, present trouble the management
-hall come to see that the amount 10
business which the road does, the number OF
rams which ia runs, are not necessarily any
sign of the prosperity OF the road itself and
may bring it 10 a adverse balance sheet at
The end OF tue year, the lesson may be val
utblc oae ificis c5>.iy. Every village that
grows up along It's lines will contribute to
tie dn ancial success of the road, but the
s-ow,h of Chicago or the building of the
Northern Pacific VIII not contr ibute to its
financial prosperity. 1t seems to US obvious
at the policy which builds up Vermont,
aud not the policy which builds up western
towns, Is therefore the true policy for Yer
mont railroads and We hope to see these
roads remain in he control of Yermonters.
t'at they may be managed as Vermont inter
eSc-, and not interests Of states and cities
in whose growth AMI prosperity we have
little or no share