The New York herald., 1872-09-22

Full Statement Of the Present Trouble-Singular
Conduct of the Officers Of the Road-How the
Corporation Has Become Bankrupt
ROsTON. Sent. d. 1872.

BOSTON, sept. II, 1872.
The difficulties between the stockholders and the
management OF the Vermont Central Railroad seem
to be thickning. As matters look now there Is
likely to be an overturn in business there. such as
took place In the Erie Railroad Company recently,
and which will In this instance as In that put the
road on substantial basis, where 1t will be in
position some day to yield revenue to the unfor-
tunates who are now in possession Of Its bonds.
The Erenfng Traveller says Tonight
THE STATE OF THE CASE.
The annual obligations OF the Vermont Central
and Vermont and Canada roads for dividends, IN
terest and rents OF other roads are more than
$2,OOO,O00. The net incomes Of their own and the
leased roads for the year ending June l, 1871, as
appears by their report were $S5S, ,904 3s-showng
deficiency Of more than 81, 100000. In the Spring
OF 1871 they had floating debt Of $l,5ooooo. The
Vermont and Canada road guaranteed $l,O0o,O0O
bonds and issued $5oo,OO0 stock, and In that way
the debt was paid. Now at the end of another year
they come to the Vermont and Canada stockholders
and ask them to provide for another floating debt
OF $2,OOO0oO In 1854 the Vermont and Canada
stock and bonded Indebtedness on the Vermont
and Canada and Vermont Central amounted to
s4,75O,OOO Now, including the present floating
debt, 1t amounts to $12, 500 0O0 an increase OF
$7,750,O00, and the encumbrances on the property
are more than $4,000 per mile. Within the last
four five years they nave issued ST. 100000 equip
ment bonds. II the proceeds OF these bonds have
been invested In equipment, as they purport to be,
they should with their previously acquired
equipment and what their reports from
year to year say they have built
from their earnings, be the best equipped road In
the country, and there should be no necessity for
the organization of car companies to furnish cars
for their road. They ought TO own about four thou
htc1,i tho, JIa tho nnha
per mile Of the best roads In the United States.
WHERE THE MONEY HAS GONE TO.
| But in reality they don't own half the number,
and when the question Is raised as to the DISPOSE
tion of the moneys evidence accumulates that the
! trustees OF the road have acted in q very shabby
manner, to say the least. Not only have
| they used its material to further their own
| ends at the expense OF the stockholders but as
IT, in anticipation of such crisis as the present,
names OF roads connecting with and forming part
OF the great system of railroads in Vermont. 1t
was supposed tnat the Vermont Central Railroad
Company controlled all the railroads In their state
but now that the corporation Is insolvent 1t has
capacity who effected the leases which were pre-
road under the management OF Board OF Trus-
tees-Messrs. John Gregory Smith, OF st. Adams;
IGsps Assps Of w. pSston O. smith Of s
perintendent, Mr.. Giles Merrill, has re-
was was; alluded to in my telegram Of last evening,
has not Only bled It's road 0nehalt cent per mile
more than any of the Others demanded, but has
carried freight at such a low figure tnat the rail-
road company had actually to pay for the privilege
OF running the cars. Here Is
AN ILLUSTRATION.
From Boston to Chicago. via the Boston and Al
bany, New York Central, Great Western of Canada
and Central H nssS Is s Of
the National Despatch Company From Boston to
Chicago, via the Boston, Lowell and Nashua; Con;
Michigan ic o Central AL railroads, Is distance Of
Sstona and ssSss
Of i5e miles greater than that Of the other lines
they have been carrying freight three dollars per
ton less than the rate which the Boston and Albany
Railroad VIII make for its competitors. The addi
tiona distance which IS travelled makes an add.
| by the SIX roads over which the car travels In
ratio according to the number OF miles run by each
% of the scysa sad for win 1ss
fact chat the Michigan Central Railroad Company
has given notice that they must have the same d.
tom and ID Albany Raoad by Which L viii be- ssen
that the depreciation is thrown entirely the lines
east OF Detroit and the margin of profit may thus
be calculated Thus the Vermont Central Railroad
Company has been victimized by the National Des-
patch Company to large extent.
ANOTHER EXAMPLE.
Still another Illustration OF the way in which the
freight business has been carried on so as to pau
fact Of water transportation on the lakes Every
body knows that 1t costs less to transport goods by
| water than 1t does by land. The National Despatch
Company ignored this fact. and would bring goods
| from the West by water and land them at Sarnia
| instead Of carrying them to Ogdensburg by water
thus increasing the Car service and lining their
own pockets at the expense Of the road. Other in
stances were related where the company has swim
died the road and victimiZed the holders OF stock
therein. The affair Is the subject Of universal
ment about town. and has excited greater senSa
ton than any occurrence since the Jubilee.