Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1872-10-04
From the Boston Journal.
The Vermont Central Raiir0sd.

IL will be seen by reference to our ad'ef,
Using columns that the Trustees OF the roau !
have invited the stockholders OF the YER
mont and Canada Railroad, the bondhoiuers
of the first and second mortgage ana the
holders of other securities, to meet theih al
Horticultural Hall in this city on Tuesday
next. October |, at eleven O'Clock In the
forenoon. to hear their report, and consult
with them upon the liabilities OF the trust.
This certainly has the appearance OF meet
ing the parties in interest IN manly way,
and we doubt not that the idle reports Will
be silenced by the statements OF those VINO
hold the trust.
There is renewed evidence that the pub
lie have not lost confidence in the securi-
ties of this road. and that the holders do not
propose to sacrifice their property owing TO
exciting and sensational rumors, winch are
based upon Ignorance and dictated parity
bv malicious motives. The fact cannot, we
think, be denied, that greater economy
must hereafter be used in the management
while it Is also evident that the affairs OF
the road are sufficiently complicated to re-
/ quire the undivided attention OF the mana
/ gers. This corporation, now beng run, as
/ Is well known, under order of the Court OF
| Chancery of Vermont, has a trust debt, to
which the Vermont and Canada Railroad
and the LIST and ID bondholders of the Yer
mont Central Railroad are all the parties in
/ interest. This debt, with the yearly inter-
/ est, is as follows:
Yearly Int.
/ 100000 Equipment Bonds, s. sl6o'ooo
10000 Stanstead and Chambly 7s........ 5000
$4,000 MissisquOi 7s..-------.....-..---. '''ooo
$4,000
This is all the debt under the Trust. The
road can depend on earning $1,000, 900
gross at present, and an annual increase OF
6 to per cent. If ,ceH managed the net
earnings would be 30 per cent, or $780,
OGO.
If the new bonds, 81 SOC, 600, are issued I,
the annual trust interest will be increased
by s if1.NW'. making total OF Sl54 900;
The above by consent and application OF all
the party in interest are the first hen, sane
toned by the Court of Chancery of Yer
mont.
After this comes the Vermont q Canada
stock, $1,000 900, and the first mortgage
bonds of Vermont Central, $1,000 900, and
the second mortgage bonds, 81 500, 900.
If the nclC bonds should be issued, then
the floating debt of 81 ,0O0, 600 must be paid
from assets and earning before the Vermont
4 Canada and first and second Vermont
Central mortgage bonds can receive any
thing.
But in any case, with good management
it i obvious that the interest on the equip
ment bonds. the guaranteed bonds, the
Cbamblv bonds and the Nlissisquoi bonds /,
sufficient. for all that i required Is 1910,
OOO per annum on a road that properly man
aged will earn S6O0.0 to 500, 600 per an
nun. 1t should also be stated that thu
, equipment bonds are secured by specia
eGuipment-the guaranteed bonds by spe
cial guaranty Of the Vermont and Canad;
road. which has a stock of x, 900 600 only
with property richly worth 5000, 900
and that the Chambly and Missisquoi Bond
are secured by a first mortgage Of the re
spectiye roads The Chambly road alread,
earns its interest: the Missisquoi Ga new
! road) is earning already IT. expenses an'
, perhaps a quarter of its interest, and NJ
doubt i, entertained that in a short time
will more than earn it. small first mortgas
{ interest Of S35, 900.
p such in brief is an exhibit of the affairs O.
this road, and we fail to see, unless there !
gross mismanagement, why it should not b
able To meet its obligations and in the en-
r. place itself on a firm foundation
RrrRrNcHNENT oN tbs VERMONT CENTRAL
; The Il. Adams Messenger Of Friday eve
b. ming says
p The work Of cutting down expenseson IN
b the Vt Central has begun in earnest. Neal
H. " one-third of the train men are being dr
s. charged. while the remainder who have
assume their duties have their pay increa'
ed only by one-ffth. Upward Of forty sho
hands have been discharged, and the pay
the remainder cut down from ten to lift
{ cents each per day There Is very niue
. les activity in the shops than heretoior'
= Some Of the section men are also being IN
p charged. and if any officers or clerks can
+ spared they will doubtless have to 90. I
' course the men do not enjoy it. and on man
, of them it falls hard at this time of the Yea
\ bat the managers are left no alternati'
u bat 10 cut down every expense not abs
L lutely necessary to the safe running of Il
d