The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-07-29
s9s0,26I 81

s9s0,26I 81
OF the balance on rent accounts, sis.4so is due
to stockholders In the Addison railroad.
j. NJ HAVEN, Treasurer.
We, the undersigned auditors, have en-
amincd the books and accounts kept by
the treasurer of the Rutland railroad com
pany from January |. 1874, to July |, 1875,
and the foregoing trial balance and state
mcuts Of receipts and disbursements, ms
showing the condition OF the corporation
July |, 1875. have been verified by us and
found correct. We have also examined
and cancelled the vouchers in the hands of
the treasurer. There has been paid since
the last report $4,000 Of the then ouisinnd-
ing first mortgage bonds of the Rutland
and Burlington railroad company, which
we have cancelled. There now remains
outstanding of these bonds SO, 100.
j. il. WILLIAMS, Auditors
N. KELLOGG,
Rutland, VT, July 26, 1915.
The ledger balance sheet, with the ac-
count of the receipts and disbursements,
and the rent account for the eighteen
months ending July 1, 1915, show the pres
ent condition Of tie corporation. The
books and vouchers have been examined
by the auditors, rs appears by Their ccrti-
ficate appended.
Since date Of the last report, we have
come into the possession Of valuable real
| estate at Burlington, as the result of a law
sui that had been pending FOR some years.
| There is still pending a suit to recover a
balance due the road OF about So, 800.
Other than this, all litigation and disputed
claims known to us have been settled and
adjusted, except those arising under The
lease of your property TO the managers of
the Central Vermont. Thee questions re-
quire careful consideration, and it is our
duty TO give you the facts. The board have
thus far been guided by their legal adviser
with whom they have associated Senator
Edmunds. 1t is believed that beneficial
results will soon be reach he'd in tie pay
ment of the rent due you, and tie return
of the property.
The circumstances or condition Of afl.,irs
that led to the suggestion Of consolidating
the Rutland, Vermont Central and Yer
mont and Canada railroads, were called TO
your attention at our last adjourned annual
meeting.
A consolidation Of these roads upon fair
and equitable terms was contemplated.
This, for time, quoted contepdng in
terests, aud resulted in preliminary agree
ment herewith submitted) constituting a
basis Of consolidation, and promised sue
would have been the result, had the ru-
ject been Immediately pursued and the
exact condition of the receivershIp ascer-
tanned and determined, as from the outset
it was understood that it should he. :
Any other plan or method of getting at,
or of carrying it into effect, was for tha
security-holders of all the roads interested
move in the dark. Conflicting liens upon
the trust property, the assets and liabiltic.
of the trust (only known to be hrye), in
volving doubtful questions, were to be en-
countered andfrst disposed of and definitely
settled in the pursuit of any plan Of con
soldation; and this could he done only by
a settlement of the receivers account,
under the decree in the court in which
they aFea fbropghgvo Ff6aN r fdbfs
senled by them until they were discharged
or were released or Unidentified against al
liabilities existing against them and arising
in the administration Of their trust, anC
this settlement, the first essential step
your directors insisted should be taker
before they would commit this company t.
any scheme of consolidation, and submit i
to you for approval and ratification. Thil
obstacle Us yet has not been removed
Another difficulty existed, and that wal
outstanding contracts and leases resulting
in great loss, which could have been anC
should have been cancelled. The state
ments made up by the treasurer of the re
ccivers and managers showed the net los
upon all the roads operated in the trust TO
the year ending July LIST, 1874, to he NOR,
than half million dollars, and that up Il
the same date a funded and floating deb
|
seven millions of dollars--not including TIN
rent due and unpaid the Vermont and Can
ada road
The statement also showed that TIT
operation, by the trust, of the boats of tn,
Northern Transportation Company for tn,
season of 1874 had resulted in a loss o
more than two hundred thousand dollars
and that the loss in operating the Ogdens
burg and Lake Cbamplain railroad TO
eighteen1 months, to January 1st, 1875
was more than two hundred and thirteei
thousand dollars. These losses, and losse
arising from other sources, which it is no
necessary to allude to, If suffered TO con
tinue, only swelled the incumbrance already
too large upon the roads and property /
was proposed TO consolidate.
Your directors were unable TO see an,
good reason why this should be, but al
their efforts to stop these were futile, ant
80 losses from these sources still continu,
, to increase under a diminishing incom,
with no immediate prospect of relief
This policy could result, as your directors
DelleVcu. only III Hndnclal disaster, ant
they thought it wise to pause before com
hitting this company 10 a scheme so ruin
Gus.
At present the receivers and managers
are Withholding all rent from this corpora
ton. The amount withheld and now due
us is S2S1 ,G10.G3. OF this amount there il
held by the Connecticut River aud Chesh
ire roads about Sl40, 100000 which will il
due time in all probability be paid into
your treasury.
This violation OF contract has led, unde
ADVICE of counsel, to demand in writing
for the possession of Your property ant
leased roads, which was authorized by
vote of your directors. passed June 18th
and the taking of steps for the collection o