Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1872-10-11
THE VERMONT CEvrR.sL.

The trustees and the managers of the YER
mont Central road held q special meeting
in Boston on Wednesday OF last week. The
trustees made a lengthy statement giving
thorough explanation of the affairs
of the road. 1t gives the floating
debt on the first of juno as S2,s7s, l64, and
the available assets as 81 ,349, 249. They pass
in hurried review the earlier history of the
road, and the angry litigation which result
ed in giving it over permanently to the
hands of the Court of Chanc cry. They
give in detail the expenditures which the
condition of the road rendered necessary at
the beginning of their administration. The
construction account having been closed on
their assuming the management of affairs,
all expenditures were charged to operating
expenses, the circumstances tending to
largely reduce the net of the earnings over
the operating expenses. In spite of all this,
the dividends and the interest have been,
they state, regularly paid, and every year
has shown steady improvement, growing
business and increased earnings. Concern
ing the operation of the Ogdensburgh and
Lake Champain, Addison and Rutland
roads, under lease, the trustees explain that
the apparent deficiencies are far from be-
ing actual losses, inaslnuch as they include
improvements in construction and equip
ment, the actual losses falling below the
amount estimated at the time of taking the
lease.
Proceeding to the specific charges OF mis-
management which have been brought
against them, the trustees consider first the
organization of the Nartional Car Compa-
ny. The formation of this company, in
1865, was due TO the encroachment on the
business of tho road made by the "coloed
lines' of freight cars run over competing
roads. The cars of the National Car Com
pany have not been allowed any undue
preference over others, the rates of service
have been reduced from three TO two and a
quarter cents per mile, and still farther re-
duction has been persistently pressed. Tho
organ ization of the Dispatch Line has been
of un doubted service TO the road a SER
vice which would be rendered still more
| profitable If the capital of the company was
such as to enable it to own the cars. The
Importance of this purchase the trustees
urge strongly, in the belief that if the road
| could be relieved of the awkwardness OF
| its present position, and run by a corpora
ton, through whom all necessary additions
and things requisite 10 its growth could be
capitalized, all EN- barrassmcnts and diff
culties would be removed. 10 accomplish
this there is needed, in their opinion, only
a just appreciation of the real value OF their
| property by the security holders. The Yer
mont Iron and Car Company was formed
in 1870, and the result of the contract with
them has been an actual profit to the road
The trustees pass to an explanation of the
| leases of the New London and Sullivan
| roads. The former is held by three of the
trustees, certain satisfactory reasons exist
| ing why the lease could not be taken d.
rectly to the trustees and managers. These
parties took it for the benefit of the line,
and have never received cent from il in
any form. The same is true Of the Sullivan
road, and the lessees of both are ready at
any time TO turn it over to tho road. The
Montreal and Vermont Junction road is
owned by two of the managers. Compiled
tons arising at the breaking out of the war
which occurred just as the road was com
|
the currency, rendered it necessary that
private capital should be advanced in order
TO carry out the contract. The parties own.
ing it are ready for settlement by any
agreement which shall be equitable to all
parties.
The managers represent that their adj
ministration has always been open to the
close inspection of stock and security hold
ers and that they have endeavored TO dis
charge their duties with fidelity. They be.
iieve the property is capable of meeting the
higher expectations of its friends. The in.
crease OF earnings, which for the last ten
years has been in an average ratio of thir-
teen per cent, may be made to continue
steadily. The disposal of the present float
ing debt they consider of pressing import
ance to the credit of the road. Should the
notes, designed to provide for this, for the
issuing of which 10 the amount of s., $780,
900 authority has been granted, be taken vi
at once, the credit of the road would be re-
stored and the trust relieved from embar
rassment. The recommendation of tn,
trustees to place the road under corporate
management was adopted.