Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-10-10

vance of the annual meeting on the 10Th
inst. "Opens with recital of the familiar facts
of the lease of the road to the Central, the
default Of rent, the snit and decree of 1861,
appointing the first mortgage trustees re-
eeiyerS, to operate and take the receipts oil
both railroads, and to apply the net earn
ings to the payment of the rent and the
supplemental decree of 1861, permitting the
arrears of rent to be funded, and the capl-
tai stock of the Vermont and Canada Com
psny to be increased.
The Development policy" is next advert
ed to, and it Is stated that the leases OF the
the Missisquoi, Ogdensburg and Rutland
Roads. had been sources of loss. Mr..
Brooks, who signs the report, as President,
says The losses from those two leases
alone in less than two years, to une, loI2.
were $3.50 .s33. Not deeming the scope OF
the receivership in your suit against the
Vermont Central Railroad TO be limited to
transportation upon land, the receivers
reach ont also upon the water, and obtain
control OF twenty-one steamers plying on
the lakes, and owned by the Northern
Transportation Company, at purchase
cost of 81 900, 600 or more; and to raise the
means for this purchase they pledge the Ia
ture earnings Of all business coming to the
railroad from the boats. The ultimate pay
ment Of the purchase money Is secured by
sinking fund made up from semi-annual
payments by the railroads, though tins
payment Is shared between the Vermont
Central Railroad line and the lower roads,
yet the share Of the lower roads Is very
small (about one-fiith only. The boats
Inc or Of a equsIlprn bic
loss. and besides this loss there had been
paid into the sinking fund by the receivers,
prior to June 1872, $l9l ,337. This leak Is
supposed to be increasing.
Of the Montreal and Vermont Junction
road. the report says: The receipts IRON
through business being divided according
10 the mileage. the Montreal and Vermont
Junction Railroad, having an actual mile
ace or length of hueaty-threc and nay
pliles only. Is put into the line, as having n
length of thirty-iive miles.
1t will be seen that as owners OF this part oil
the line the two trustees and receivers have
cot for the use Of their own road about
Sevonty-fyc per cent OF Its gross receipts
for operating expenses, while the other
owners of the property have got Tor their
part OF the line only twenty-five per cent.
of the gross receipts as profits, and have
paid scyonty-iiye per cent. Tor operating eX-
ncnses We have no data for stating the
nrecise extent of the loss sustained by the
Vermont Central Railroad line on this ac-
connt. but believe it is measured by hun
drels of thousands of dollars.
The car companies are briefly alluded to.
In regard 10 them Mr.. Brooks says In
REGARD 70 the managers, however, We will
SAY that their course in this respect has
been rcportcd on As free from fraud or loss
10 the trust By the legislative committee OF
Investigation in Vermont. To Us We CON
fs.s thar these rolling stock companies have
very much the appearance Of parasites
Of the petition for au order to pay the
Nerusnt and Canada rent, and the hearing
and decision at St Adams. last spring, he
SAYS lnu lad got your rent down 10 June,
1872 and for the purpose of ascertalning
whether the Vermont and Canada Company
was entitled to it, rents for the last SIX
months or not. ont of the earnings OF the
last six months, il did not seem to Us de-
sirable 10 travel over complicated accounts
covering a period of upwards of six years
Dast As this ruling determined no issue
raised by our motion, and would enable the
receivers to withhold the rent already due
rs well a- all that should come due 50 long
rs the proposed taking of the six years ac-
count should continue (ior years perhaps),
we could see no advantage to you from 1t,
and withdrew the application, regarding 1t
as practically defeated, though not formally
passed upon AT all.
The concluding portion of the report IS as
follows:
CENTRAL VERMONT RAILROAD CHARTER.
In the meantime the charter of the Cen
tral Vermont Railroad Company, purport-
in- 10 be granted for the benefit of the bond
holders of the old Vermont Central Railroad
Company. has been taken advantage OF to
organize a sort OF - Credit-MOblller m
Vermont This organization was made up
mainly of the receivers in the old SUIT and
certain wealthy gentlemen of New York
Civ. who combined for that purpose, the
wealthy gentlemen furnishing for the most
part the capital stock OF $4,000, coo IN cash
subscriptions, and the receivers themselves
furnishing incumbcntS for the chlel cXecu-
five Offices. 1t was not apparent ut first
that this organization was not made IN the
interest Of the security holders of the Yer
mont Central Railroad line it Is now sui-
fciently obvious that nothing of that kind
was intended. As soon as the new company
had been thus formed, the old receivers.
acting in tie double capacity conferred on
them as officers of the court IN YOUR suit and
also as officers of this new corporation, Mt
once apply to the court to transfer the pro-
perty in their charge to the new company {;
and this was forthwith accomplished,
against the remonstrance Of the Vermont Il
Canada Company. the party chiefly in
terestel, and rs Such entitled las might
be Supposed to a. much considera
ton in the matter a the receiver
themselves. We have not o. Yet been abs
to learn what purposes are entertained
toward You By the Central Vermont Rail
road Company. We sought to open
negotiation with them on an amicable basis
Immediately after the organization. Our
ovcrturcs were met with the statement that
they would not be prepared to negotiate
with us until they had first acquired such
status as might be gained through the
reccivership which they exected TO obtain.
1t i for YOU to say whether you desire to
negotiate at all, unless You can do 50 upon
equal terms and without any undue ad-
vantage either sought or obtained before
hand by either party.
CONDITION OF THE RAILROAD.
The railroad belonging TO You in Yer
mont j., sixty miles or more in length, cx
tending from Burlington and Essex June
ton (whcrc it connects with the Vermont
Central road), onsthe south, to Canada line
and RouSes Point, \. Y, where it reaches
tie Ogdcnsburg road on the north. In
construction ii Is iirst-clasS in every respect;
its grades nowhere exceed forty feet 10 the
mile. 1t has two long and expensive
bridges, crossing Alis7isquoi Bay and Lake
Champaign. The stations, workshops,
building and grounds at st. Adams are of
the most commodiouS, extensive and oxpen-
sive kind, the value of which alone Is not less
than halt million dollars. The station at
Burlington is also large and fine structure
and you also own there very extensive and
valuable wharf property along the lake
Shore and we have no doubt that your
railroad is capable Of earning, and Is now
earning though you do not receive it,
handsome income upon its present capital,
and that it has a permanent value fully
equal to the aihount Of the capital stock;
and we k;sw Of NO reason why you need to
suiicrary Ultimate loss on your Investment,
fyaG shall firmly assert your legal rights,
and not be alarmed at the temporary denial
Of them thus far without the authority or
sanction of any court or chancellor. The
incidental expenses of the Vermont and
Canada Railroad Company for some time
past. payable to You according to the de
cree) from the net earnings of the Vermont
Central line, have not been paid by the re-
ceivcrs. The amount 80 in arrear at this
time is s, 30, and temporary provision has
been made therefor by giving the notes of