The New York herald., 1872-10-03
THE VERMONT CENTRAL RAILROAD.
Meeting OF the stock and Bendb claers
in Boston Ycstcrday-Statemcnt by the
President OF the Road-Thc Floating
Debt To Bc Retired and the Company
Converted Into a Corporate OrSaniza-
ton.
BOSTON. Oct. 2, 1872


Converted Into Corporate Organixa-
tion.
Boston, Oct. ., 1872.
The recent criticisms upon the management and
condition OF the Vermont and Canada and Ver-
mont Central railroads resulted In large meeting
in this city to-day OF the stockholders and the first
and second mortgage bondholders. The purposes
OF the meeting were to meet the managers and
trustees TO hear what they had to say for them
selves and to take such action as might be re-
garded safest for the present and future welfare of
the parties interested. Probably not less than
three or four hundred Of the holders of the various
securities were present and among the number
were a few
FEMALE STOCKHOLDERS,
who, II should be observed, manifested as lively
interest In the proceedings as the sex more accus
toned to financial transactions. J. Gregory Smith,
as President and Chief Manager OF tho roads, made
in denial OF the charges which have been made that
he and others have managed the property Tor thcir
own benefit at loss for the stockholders. He also
gave
OF the road In Its relation TO the security holders,
and met and denied In regular order the various
reflections OF corruption which had been cast upon
the management concerning the statements that
the cars OF the National Despatch Company and OF
the Vermont Iron and Coal Company are owned by
the trustees and managers OF the road and by
them hired for the road at an extraor.
dinary rate, thus fieeclng stockholders anu
enriching managers. Mr.. smith claimed the road
was not in condition TO build these
cars when required, hence IL was necessary they
should be furnished by outside parties iIc also
asserted they only hired these cars when all their
own were employed and that Tue road lean, can pur-
tracts with the car companies, he further claimed,
had been source OF profit. and not loss 10 the
railroad company. The leasing OF the New Lon
don and sullivan road the Manager claimed was
Of vital Importance for the welfare of the vermont
Central but he made no mention or the leasing OF
ha oil
the Misslquoi roads, all OF which, according TO the
Treasurer's accounts have been operated at I'M
mense loss. The present floating debt OF the Cen.
trail and Canada roads Is nearly three millions OF
dollars and the disposition OF this debt Mr.. Smith
regarded as the great question to be met In order
NOTES FOR TWO MILLION FIVE HUNDRED THOUSAND
TO provide for this authority has been granted to
the trustees and managers to issue notes for
$2500,000, payable IN thirty years, with eight per
cent interest," and constituting them q special lien
upon the trust property and income OF the road.
or this sum 100000 Is to be deposited with the
New England M Trust COMPANY for the purpose Of
which natures In 1876. The balance Isl, 500, ,0c0)
Is to be disposed Of for the purpose OF retiring the
floating debt OF the trust with restoration OF ite
credit.
Mr.. SMITH CoNTINuEp:-
The question arises, what plan can he adopted for
placing the road on the same permanent footing TO
relieve 1t OF trust management, and the managers
would recommend some plan to place IL under q
corporate management, believing its property TO
he too large and too important 70 be continued in
Its present form OF control. in accordance with
suggestion Of Mr.. Smith and the other trustees o
COMMITTEE OF CONFERENCE
was appointed, representing the various sccuri-
ties who will confer with the managers Upon inc
q e o te and
be held in this city next week. The committee ap.
pointed consists OF william Perkins and Lcinuei
Shaw, OF the Vermont and Canada roads EaWin
G. Bailey OF the first mortgage pondho,uerss,
J. ii. Converse, OF the second mortgage pond-
holders and Irene Phillips, OF the equipment bonds
A report from the Treasurer OF the road was also
submitted which showed that its iloating debt
up to June J. 1872, was S2,s7s, l6i ~ The avaia-
bic assets TO same date were 81 3i9 .40 o., making
the balance OF debt above assets sl,53S,sl4 %.
The meeting al ouined with apparent confidence
In the management OF the road and a restoration
oil It's credit after the payment OF its debt anu It's
oIgaLizaton ae corporate bOoy.