Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1874-11-13

Vermont Central Railroad.
MEETING OF FIRST MORTGAGE BoNDHoLDERs-
Ia response to notice issued some days
since for meeting Of tie first mortgage
boniholders Of the Vermont Central Rail
road. about fifty gentlemen assembled, FRI
day. Nov. G. at the American House. Mr..
F. \. Brooks called the meeting to order
and stated that it had been deemed advi>-
able by some Of the mortgage bondholders
that 4 conference should be held about this
time.
Charles H. Fisk, E-q, was chosen chair
man, and \. G. Slford, secretary.
Mr. Brooks SAID that the first mortgage
bondholders were in 4 most disastrous
situation. The default in payment OF bonds
and interest had continued since 1851. In
1867 the liabilities which had precedence
10 the first mortgage bonds was 50, 500 coo
Between 1867 and 1872 the receivers had IN
creased the liabilities which were regarded
by them a having prior claim to the first
mortgage bonds 10 the sum Of about 81
600 600 In June Of the latter year the
receivers stopped the payment OF interest
on the first mortgage bonds. In the fall oil
ls72 the receivers endeavored to raise loan
OF two and a half millions by issuing the
bonds of the receivers, which failed.
1t a later period the Central Vermont
Railroad was organized, 81 GOO, 600 in cash
having been paId BY parties in New York
who were Interested in railroads designed
TO connect Montreal with New York. Thus
far the first mortgage bondholders have
failed 10 derive airy benefit from this ar
rancement, and the Rutland Railroad lease
has swallowed up the money which should
have been used in the payment of the in
terest on these bonds.
The difficult matter now Is 20 obtain 4
/ foreclosure Of this mortgage, which can
| only be done by applying 10 the Legisla-
/ ture Of Vermont for an act ofincorporation,
and the bondholders, having obtained it, to
/ act before the foreclosure
/ With this end in view Mr.. Brooks offered
a resolution for the appointment OF a com
mittee of three to protect the interest OF the
| bondholders and to appear before the Legs
| lature Of Vermont and defend bill now
pending before that body
Mr. j NJ. PinkertOn, of Boston. said the
Canada railroad had been sold to the Cen
tral Vermont for 50 600 200. and he was in
favor of keeping quiet until the negoila-
tons were complete. and then to 70 in with
the Central Vermont The Vermont and
Canada wanted to retire out of insolvency
without bearing their portion OF the llabll
tiles. but he did not think the Chancellor o
Vermont would allow such procedure
lie thought the plan of the Central Yer
mont managers was to form one corpora
tioE of all the interests to turn the deb
into stock of the Central road, and ar etfOr
to fund the whole of the trust debt by
mortgage on the whole property. Ia TIN
!, way the entire property could be consoll
, dated and the roads run under one manage
ment. lie wanted to see all parties agreed
and the first and second mortgage bond
holders 20 into the new Central Vernon
: Company.
Mr.. Estes Howe, Of Cambridge, objecte
to the movement for charter, and state
; his grounds, reviewing the litigation OF tn
last twenty years. lie thought the rC
p, ceivers of the Vermont Central Kailroa
might have sometimes erred in judgment
: still he did not want to 90 INTO the court
again and wait twenty years longer beioi
be received any return.
A settlement of these difficulties coul
, not be reached through litigation, but
an amicable adjustment. The measure pr
: posed was not 10 renew an old suit, but
! open new snt. He wanted just as earl
n as possible, that the first and second nor
|, gage bondholders should come into the Cel
" trail Vermont corporation. He intimate
IT that parties in interest might have endea
# ored to depreciate the stock in order
- benefit themselves, and also that NJ
y, Brooks, as President of the Vermont al
Il Canada Railroad, had not told the who
10 story or how much he was interested in {
* proposed litigation.
MIR. Pinkerton said that the bill providil
Il for foreclosure placed the property OF
s. bondholders in a critical condition. u
ee tain b0ndholders IN the interest OF t
70 Central Vermont might come forward a
secure disposal Of the property by "a
H. when it might be disposed of for a son
d. lie deprecated the foreclosure. The VI
lis mont and Canada had got one if not t
be feet into the Central Vermont
Mr.. Brooks resented the insinuations Il
anv one had been labOring to 6epreciate ,
Is stock in order to get control of them.
CHI did not represent the Vermont and Cana
,se road. He argued that it the mortgage v
foreclosed the first mortgage bondhold
should be in position to buy, which COZ
IRE be done only by an organized effort. VIII
ite ever the sale takes place they would b.
for their bonds to pay with If they comb
and carry out the pfOpo>eu pan, ne "a"
NJ reason why they could not join with
,e; Vermont and Canada road IN saying
An wreck.
-. Mr.. Howe did not doubt that the obi
ia' of Mr.. Brooks was the same as his OF
Ike. but he believed that starting out on a 7
of departure was postponing to future
hv any return upon their investment. II t
~ went in and asked for discharge t
the would stand in position Of antagonist
ne. the Central Vermont, and before they CO
, of organize the matter would become sub
hv OF litigation.
DS John n. A. Griswold of Newport, RI. :,
TO holder of Vermont Central bonds, desi
the to know what interests were represented
DIR. Howe and others, and wanted to
III, if there were not other men in the coui
VII who could manage this property as we
OF the present trustees. 1t seemed to him
and the opposition to the proposed organiza
n came from the managers and receivers.
DR.. Howe replied that he was most lar
interested in the Vermont and Canada I
Dc road.
AVE Mr.. WIS. Slocomb, Of Boston. said he
II at loss to know who was representing
1.A interests Of the individual bondholC
IN The trustees were looking out for ads
parties, and the only way in which