Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-10-03

TaURsDAv. OCTOBER 3, 1879.
yeruon,C central Railroad.

Those interested in the stock and bonds of the
Vermont Central Railroad, held meeting in
Boston. Yesterday, to hear a statement of its
managers. The financial condition of the road
is greatly embarrassed. The Indebtedness has
been increased during the last two years, more
than a million and half dollars; the pay.
ments in excess of receipts have been 81, 52S s12-
Finally, the company was obliged to allow its
paper to go to protest. This brought the mat
ter to public attention, and led to the meeting
of which we speak. Meanwhile, charges of gross
acknowledgement have been brought against the
managers, which appeared TO be true. Their
statement which was read 10 the meeting, de
mics these charges and claims that the
trouble is due to other causes. The
greatly increased Indebtedness is admitted;
and it appears in the statement that consider
able portion of it is due to losses on leased rail-
roads Whether the existence of these unprofit-
able leases is evidence OF good management is a
question of some importance, relative to which
those interested in Vermont Central securities
will be likely to have opinions. We think it can
be said with safety that the managers of this
road have formed their plans on too large a
scale and invested too largely in hope. They
seem to have had rather too much faith in the
power of bold liberal policy" to "develope"
something wonderful. According to their state
ment, the troubles of the road are due chiefly to
the fact, that it is managed by trustees under
direction ofthe court of chancery. They say:
"If the road were relieved of its present re-
stricted and awkward position as regards the
management, and were placed in the hands of
a cOrpOrntlOO whore tho a1diripns Z
plant and the things necessary for its expansion
and growth could in its own legitimate and nat
ural way be capitalized, all the difficulties and
embarrassments which now hang over the en-
terprise would be relieved. 1t would add new
zest TO every department of the road, it would
give il a credit which trastee management can
never possess, it would bring development and
growth which would surprise even its most san
guine friends, and it would remove all the
causes for jealousy aud suspicion which must
ever attach to the managers of a road, however
faithful and honest whose term Of office is not
dependent on the will and choice of the true
constituents of the road, but is derived from an
other and independent power. 1t needs only a
fair and Just appreciation of the real value of
their own property by the security holders, and
proper knowledge of the fertility of the re-
sources of the road which only wait to be de-
yeloped, TO inspire the necessary confidence to
command the capital to accomplish all this"
The stock and bond holders were asked to
appoint a committee to consult with them in
regard TO means of transferring the manage
ment from trustees to a corporation; and such
committee was appointed, consisting of the
following gentlemen: Edwin C. Bailey, repre-
senting the first mortgage bondholders, VIM.
Perkins and Lemuel Shaw for the Vermont and
Canada road, j. II. Converse for the second
mortgage bondhoders, and Ivers Phillips for
the equipment bonds. The meeting was adj
journed to Wednesday, next week, when this
committee viii doubtless report progress. 1t is
plain enough that the affairs of the Vermont
Central road need change of management;
and it may be that the change should extend to
the managers themselves. The property is
worth more than its Indebtedness; but it mani
testify needs cooler-headed, more judicious, and
more thrifty management, to make its value
available to establish its credit and keep it from
such embarrassments.
Some people who invest money, have been
misledby the terms used TO describe the mortgage
bonds oithis road. Its so-caled "frst mortgage
bonds are practically second or third mortgage
bonds. In the matter of security, they stand
behind large amount of other Indebtedness
lover six million dollars, we believed and in
this respect, are not what many investors sup
posed them to be. Originally, they were first
mortgage bonds; but they have been crowded
our of this position, and are now very far from
it, as those who purchase them ought to under
stand