Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1874-11-11
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WEDNESDAY NOVEMBER II. is7l
New RaIIrund CornorntIon..

Two years ago the manager and trustees
OF the Vermont Central railroad. acting 10y
and with the advice aud consent OF all the
interests concerned asked the legislature Of
the state for q new act of Incorporation, n-
der the name of the Central Vermont Rail-
road Company The object of the charter
was To- consolidate the various interests and
securities. tosccurc means TO pay the floating
debt, which rested mainly on the trust and
also 10 take the immense property of the
trust out of the hands Of the court. and place
il in the possession of the parties to which
it belonged according to their respective iu-
terests in 1t. The charter was granted 10y
the Legislature accepted 10y the parties in
terested in the trust, and the new company
was organized according to its provisions.
The Central Vermont Company was APP
pointed receiver 10y the court and immedi-
ately proceeded to its designated work It,
first step was to pay of obligations press
ing on the trust to the amount Of one
million of dollars. Il subsequently, leased
the Montreal and Vermont junction road
the sullivan, and the New London North
em roads, and thus turned the profits of
these companies into the treasury Of the cor
poration. 1t then entered into negotiation
with the Vermont x Canada road. and after
considerable difficulty, purchased that road.
and the bargain was ratified by vote OF
its stockholders. and the property came into
possession Of the Central Vermont. Thus.
in less than two years, these securities ia
interest have been equitahly and satisiac-
toriy brought under the new charter and
consolidated in thenew company. The next
object Of the corporation was to consolidate
the first and second bonds of the Vermont
Cntralwi the rest And tins is the work
in which it is now engaged and when it
shall have completed its work. under the
terms OF the charter, the various security
holder, will be brought into the new Central
Vermont cooperation on just and satisfactory
terms the trust win terminate, the property
will leave the care and direction of the
courts, and no longer be subject to the dis
abilities which have been a constant source
Of annoyance to the courts and TO the vac
rious interests now managed by the trustees.
The difficulties in the way of the progress
already made would have been insuperable
to any other men than those who have de
voted their energies and fortunes othe work.
In their anomalous and embarrassed position
at the outset, they were unable to gain the
cooperation of the old Boston friends OF
the road who unwisoy let the new corpora
ton fall largely into the hands Of New
York spectators, who were eager to GRASP
so rich prize as the new charter and
make the Central Vermont tributary To
their interests. But by an unexpected and
mastery movement, ia which they assumed
tremendous personal pecuuary responsible
tiles they cleared themselves from the hands
of the New York brokers, and held the cor.
poration true 70 its old Independent position
as a strong rival to the great western
thoroughfares from New York. There will
be very few chapters in the railroad history
of the United States that will be more in
teresting and profitable to read than that
which relates the triumphant progress of the
Central Vermont Company, in face Of vast
obstacles and difficulties, to even its present
position.
But just at this stage of proceediags the
parties who have always embarrassed aud
fought the managers of the trust, and the
managers of the new company appear, after
a series Of conflicts in which their grasping
selfshness has been invariably defeated, and
ask the Legislature to put into their hands
new weapons TO fight withand make it for
ever hopeless that the Central Vermont can
carry the load it has assumed.
Some Of the boud-holders Of the Vermont
Central road, against the protest OF the most
sensible portion, have asked to be incorpor-
ated into a new company, similar in most
respects to the Central Vermont, which the
Legislature chartered two years ago, If
the Legislature grants this request, it will be
the same as putting a new corporation into
the belly Of the old one, to feed upon its Vi
tails and eat ont its entrais. As Mr.. Pink
erton and DIR. Howe said in the meeting at
Boston last week, which was called in the
interest Of man who is engaged in speculat
ing upon the misfortunes Of his associate
stockholders, "such bill as that proposed
in the Vermont Legislature would lead tC
interninable lawsuits, should it become a
law" And this opinion is conceded in b,
large portion Of the bond-holders. For Tia,
granting of a charter, such as is now asked
would annihilate the work already done 10y
the Central Vermont, would be a bar to any
further proceedings at consolidation under
its charter, and would destroy the last YES
tige of hope that the various securities would
ever be worth the paper on which they are
written. It's object might possibly be ac
complished, that is TO give few foreign CAPT
talists standing place for negotiation,
and sharp implements with which to "nego
tate to their own enrichment, and to the in
jury and, perhaps, destruction Of the present
corporatoR of the Central Vermont.
And besides this the granting Of such a
charter would be an anomaly in legislation
1t would be to arm and invest one corpora
ton with power to prey upon another II
would be to charter one company, and give
it the power needful TO consolidate all the
interests concerned in it, at their request
and when it had been two years in operation
with great success, 10 charter another com.
pany, at the request Of mere fraction Of the
parties in interest, in order to suck the life
blood out Of the first company 1t would
be TO put two corporations on precisely the
same ground, arm them with the same pow
ers, and leave them to fight it out as best
they might OF course it would breed vast
and wre,ched litigation. 1t would consume
the last shred Of value in the connected rail
road securities. 1t would be serious det-
riment to all public interests, and make
Vermont a field of intricacies in railroad
warfare that would not end until hopeless
bankruptcy had come upon all the parties
TO it,
We only wish it were possible for the
Legislature TO lift our railroads out of their
embarTassments by some loan of the credit
Of the state to the companies who are CON
structing and maintaining these great iron