Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1875-06-18
TheIerns of Consolidation.

The terms on which it was proposed to
consolidate the Central, Vermont q Cana
da and Rutland roads, as stated in the con-
tract of consolidation entered into between
the boards of directors of the Rutland and
Central Vermont Railroad Companies
through their authorized representatives,
are as follows:
The contract provides that tine Central
Vermont Railroad Co, shall issue 50 ,Ooo.-
600 of common stock. SIS 000. 900 OF pre-
ferred stock and 81 600 600 of guaranteed
stock. That bonds to the amount OF So
600 coo at six per cent interest shall be Is
sued secured By a mortgage on the YER
mont Il Canada Railroad, and bonds to the
amount OF IS coo COO at seven per cent IN
terest. secured By o mortgage on the hut-
land and Vermont Central roads and equip
ments and on the Vermont d canada road
also. subject To the above mortgage OF
So GOO 600 to the Vermont & Canada Rail-
road Co These provisions make the stock
of the coGirenv Sll 600 900, and the whole
bonded debt of the company Sll 900 600
more.
la regard to the disposition oil these seeu-
rites among the several parties IN interest
the contract provides that the So 600 600 OF
bonds az SIX per cent. shall be Issued 10 the
Vermont 4 Canada railroad Co, as the
purchase price OF their road and property.
That the eaaranteed stock OF 81 Geo ,OoO
shall De Issued ~ the Stockholders oil the
Central Vermont Railroad Co. On account OF
their advances. That s. 600 900 oil the So
900 600 uf consolidated bonds the S9.uUV
600 of preferred stock and 50 OOO, 600 OF the
- 600 OOO OF the common stock shall ne d.
yided between the Rutland Railroad GO. and
the Vermont CeutiAl BaiirOad Co. IN the
nronortiun of 1923 to the Rutland, and
1923 to the Vernon; Central. and that ST.
O0o 600 of the Constituted bonds and -
O0O 600 of The common stock shall De
ulaced IN the treasury OF the Central Yer
mont Railroad Co. Tor their use
The contract cor ten ,-4tes tic convey ance
of the Vermont Central road to the Cehtral
Vermont abroad company with the assent
of a minority of the first ard second Yer
mont Central mortgage bondhOlders ana the
onnroval Of the court of chancery and pro-
yido. that when such conveyance shall De
made the Rutland railroad company shall
convey their road to the Central Vermont
railroad company. and that thereupon the
Central Vermont railroad company snail
t.ke the assets and assume the debts ana
liabilities VI the trust.
The contract also provides that sufficient
amount OF the securities allotted to each IN
rerest Shall be reserved and held in trust to
retire and oxtingui,h the membranes
Of such interest.
Under This disposition there Is transfer
red 10 the Vermont Central railroad compa-
nv. To- be used IN extinguishing lncum-
brance,. viz the first and second mort
CAGES and lis other membranes
Demonstrated bonds about ;lcooh,
Ofpreicrred stock .uN'a'
Ofc lnEIDu ii'"'0N'-
The Central Vermont railroad company
will have
OF cun-o.l lated bonds 'pVii"'
%. cDilHll- stock -Wu"u
Also ihc assets Of the trust, and the Rut-
land Vermont Central, and Vermont *
Cauaaa railroads and their equipment, sub
iect l., ;..eir assumed obligation of paying
the debts Il ,hc trust. and their bonded debt
OF ST. 900, co.
The assent Of holders Of Vermont Cen
trial mortgage bonds to the amount
of =. 200 coo, had been obtained to
this arrangement. The negotiations are
now. we suppose, a, a stand-,till, a. least
50 faras the Rutland road is concerned.