Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1872-10-11

Addition 10 EuudlU ltcr-. --H-NN
Toward building Swauton Branch....----- 2Hlpp0
To re mhur-e trustees aud managers for eA-
pcul.tur,s on their account ---..------- @"""
s1"ooo
Original First Mortgage. .s2ooo""
Increase topaz back coupons. --. lnpl.ur
$ 5. and G. Bonds TO pa, coupons
or First and Second Mort
"A res.- OBSERVATION-DISCLOSURES lhi,th
Fuuipmeut bonds. .....-...-----. -uN.ot1
Vermont 4 Canada -u4rauteed-'s l,poor1 ..-..
sg.NouN
The interest ON this debt chargeable upon
the funds of the road. Is Is follows
Vermont and Canada stocks .ono,no ps s3iot1o
First Nort-a-e Bgud--.---- is'u" 2lu'tY
=. s. and G. Bond----...-.-. .i's" .3'nn
Equ 'pment loan.---.---..-. A''n.~" lto'n'
VI a Can--l..r' nt % $ pcr e. l,0"lu" " 'ipp
;s.5ooo s.l5oo
Ofthi- sum there is properly chargeable
To- the Trust. a~ funds for which they should
account. the following
0. Issue Vermont and Canada stock taward
constructing Swlutou Bunch..----. s-oINi
b Issue OF crmont and Canada stock 20
reimburse fund fir tuildu- Bur
Iiu-t0u Branch. and other eXpend-
lures. ....---.- ----------- aatli'-'
g. Vermont and Canada ,s--....--.-.----'l '"''''
The bond, known as the Stanstead. Shelf
ford and Clmmblv bonds. although perhaps
properly Trust debt. are nevertheless Sc
cured hv the bonds of the : :. and {. Rail
road. amounting to over six hundred thou
sand dollars. and ah1ut Eve hundred thou
-ond dollars of the stock of that road.
The bond, and stock IF the :. :. and &.
Railroad tha~held hy the trustees and mana
gers carry IN fact the title % that property,
and the note of the trustees and managers
issued ON the strength of the pledge Of
tbe.e are therefore substantially the First
Nortra o. Bonds Of the : : and {. Rail
road and having been issued for the specific
pur1os, of distribution - the bondhol1-
sr.. ought NOT in fairness, 10 bee reckoned a.
part of thc tru~- debt against the manage
ment
These bonds and stocks are. however. en-
tered properly as assets in the statement of
the Treasurer given below. and it l. be
lieyel that they are good and ample ,ecuri-
D., fer the notes or the trustees and mana
-ers
There -b.aId be- added 90 the above inter
est acca;,ut the interest on the MissiSquoi
Bond. 50 called. The principal Of these
IS n,ta trust liability. The bonds are issued
hv the Mi~-iStuoi Railroad and secured by
n first mortgage ON that road The road Is
about twcntv-eight miles In length. extend
in,. from 81. Adams to Richford. and runs
througb the rich and fertile valley of the
Nissisouoi river. the great dairy produc-
inc norton of Franklin county The trus-
tee. and managers have leased the road on q
durahle lease. agreeing 10 pay therefor a.
rental forty Der cent. Of the gross receipts Of
tbe road and have Guaranteed that the forty
Der cent shall he equivalent to the interest
on ibe 500 600 of the First Mortgage
Bonds.
If in any wear the forty per cent Of the
.ero,- receiptl shall he insufficient to pay this
interest. then the deficiency advanced by the
trustees and managers constitutes a debt
AGAINST the road To- be paid back ont of the
earnings
The road Is one,that can be economically
operatel The country through which it
masses +. thicklv pnpuiated and i an ex-
ceedineIy rich one. Besides the dairy prod
nets there are extensive timber districts.
composed principally of the finest spruce
and bemlock which will thus be opened to
market. There are also rich mineral depos-
its along the line. prominent among which
are IRON ore and yellow ochre. existing. it i
believed. in large quantities and of the
richest quality.
The towns ON the line of the road contrib
uted bv way of town bonds authorized 10y
act of the legislature. To the extent of two
hundred and twenty-four thousand dollars.
the proceed, of which were expended upon
the road and formed the basis of the first
mortgage bonds. 1t Is valuable feeder and
will SION be a reraunerative one.
The interest ON these bonds. therefore.
added To the above interest to be provided
for. makes the total sum annually charge
able upon the the earnings of the road at the
present time seven hundred and sixty thou
sand dollars.
1t will he noticed that in this calculation
the second mortea ee handsare omitted for the
season that in the compromise above referred
10 il was the underStandingthat these bonds
sbould not be considered until the develop
ment of the road fully Justified their being
taken on a. an interest bearing security.
Adding these. however. and the total cap
ital cbargeable TO the Vermont and Canada
and Vermont Central roads proper with their
extensive and valuable properties and bust
mo- relations. stands at SIi 500 900. From
Ibis de1nctino the :. :. and c. bonds. which
in fairness should not he reckoned as part
of tho Vermont Central c9pital. $500 900
and we have 81 600 600 From this de-
dnctine, aooin the second mortgage bonds.
and we have 4 capital chargeable at this
present time to theruad for interest and div
blends % 500 600.
On this latter basis the average per mile
of the two road--Nermout Central and
Vermont and Canada railroads. Isl miles
IS about sd 600: or. including the second
mortgage at its full face value. the average
per mile would be about SOS. 700.
The managers submit to any candid mind |
whether even on the latter and iairest |
basis differentiation the road in its high |
condition. with its equipment and its yalu- |
able real estate and wharf property, does |
not stand at very low average OF cost,
The injustice and untruthiulneSs OF the |
criticisms which have been 10 freely IN
iulged IN recently, j. made most siarlngiy |
apparent when II j. remembered now much
he road has had 10 contend against 70 at
am lts present position OF power ana pro-
iuetiye capacity
Forced by the requirements oil the char
er to build TWO expensive nranehes TO me
nam line, Obliged 10 naii9St almost the
'ntlre length OF the TRACK OF po'n r"du>' 70
'0Ii'S'i ~ ''lIi.'' .'t ~ 10 80
iiiu ~ ~ III H. IA -
nun ,',,' % I'D -
M os'i 'a nS" lid IN Tho IKE,
i'',''i'l me-, -. -.
NV At 'iie ., eint ~ i;r;io,'d a,'d 49,
anu IN io' ,a NJ ny Wv Will no MI
'.i an " " I IL -.
-, -, ~, a., "a aJ ~
- 'iie u tiio 't'D .'iu
ia, - -, o',alIaJ 80 - ~ al