Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-05-07
TIE SULLIVAN LEASE.

A letter was read, dated ia 1861, signed
Lucius B. Peek and Andrew Tracy, in which
they advised that the Sullivan road he leased
not by the trustees, but by Individuals in
accord with the Central Gov. Smith gave
the following history of this lease:
:" We took the lease because the Vermont
Central was then IN the midst OF trials and
embarrassment, and could not take it; the
Sullivan road was then offered S25 900 more
than we offered, and they endeavored to
force us to accept the proposition TO charge
the Vermont Central Railroad the highest
local freight rate, and refused after we
got charter for an independent line. they
came to terms; they offered to let US
keep it, but refused to let it to us in our
trust capacity; they thought our individual
security bet,er than our trust security; we
take all the risk on the road of every Ces-
cription."
My co-lessees in Sullivan railroad were l..
BraInerd and Joseph Clark, Since expira-
ton of the lease 1t stands nominally in my
name lave no written lease for benefit OF
my associates MIR. Barnes came into the
trust late, and we have had no opportunity
for a talk with him about it: have no writ
ten agreement with w. q Smith about 1t.
On the whole, the lease has been profitable
to US have never paid B. P. Cheney any
thing myself for his SHARE; have sent him a
statement of the proportions ; whether he
hassdrawn his share or not, do not know
have no idea what the average has been
the first few years there was no profit; the
earnings Of the road were applied on a deb
that the road owed the Vermont Central
which was quite large; the treasurer g SEMI
annual report of the receipts, etc., do moi
show correctly the profits of the road, be-
cause the lessees have to pay out OF that all
the expenses OF operating the road, and al
damages to the road, as well as damage for al
ccidents to individuals on that road; up to
1868 the lesses received no profit from The
road the profits will not average $50 ,O0U
per annum for the whole term OF the lease
the profits of the road have not been In
ere ased by the Rutland lease, and have beer
dec -eased by the Ogdensburg lease.
Tie Sullivan road is great advantage to
this road, as it gives us choice of two lines
10 Boston; have not filed our accounts II
chancery lately, because the committee pie
ferred to examine the books and voucher
at the Office, and have done SO; we have erred
perhaps in not obeying the decree in form
but have IN spirit.
THE MONTREAL AND VERMONT JUNCTION ROAD
Gov. Smith testi6es:
joseph Clark and built in part Mon
treal & Vermont junction railroad; it i,
about twenty-four miles long; a majority
of the stock is owned by Mr.. Clark and my
self: the capital stock is about $500, 900
Mr.. Clark and own about 5000 900 each
there are several other stockholders-som,
in Canada and some 10 Boston; | have no
seen the books for some time; they are il
Canada, in the possession of the clerk an(
treasurer bought my $50 shares some tim
ago; Clark and l bought the township
shares some time ago; l now own the bond
issued by the road some $3.50 900; they
were negotiated in the market. and som
went to the contractor brought them after
wards. When the road was being built tn
Rutland road was to furnish $50 OOO, tn
Vermont Central S50,OO0. and SO on; tn
trustees and managers instructed Brainer'
to borrow $50 900 Of the Northern railroa,
and they have the notes wien the Rutlan,
went into other hands 1t failed to contrihut
the $50 900 and the building OF the Non
treai and Vermont Junction tell on CLAIR
and me, we felt it unjust for the Central t.
bear the debt, and we agreed to assume
and suppose it Was done; the trustees ant
managers hold our receipt for 500 ,OOO l
reads - for contribution - and on that re
ceipt we are able our receipt covers thi
Northern railroad transaction some OF tn
not were signed by Mr.. Clark and myee
a. s,me by Montreal and Vermont Junction
Railroad. and endorsed by US. The return