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

CoinlHny was kbCn mat TINS action led 10 |
an offer, made ly their board of directors,
TO determine The lease of their road, the |
rights of the parties thereto to be the same
as 1t the full tenn of such lease had ex-
PRED.
Thus far Except IN the failure to settle
the receivers accounts for several years
prior to the appointment of the Central
Vermont as receivers) the efforts to make
consolidation possible seemed harmonious.
But when action was necessary upon the
proposition of the OgdeDsburg and Lake
Champlain directors, it appeared that OBJ
jectlons to the acceptance of that PROPOSE
ton were made and persistenty urged by
the president and others, upon various pre-
texts, and this evinced change of policy
AND determination to hold on to this oner-
Gus contract The result was that the
proposition of the Ogdensburg road was
rejected by a vote of five of the Central
Vermont board, being a majority of the
members present This action was q sur
prise. II seemed unaccountable upon any
reasonable grounds, and, if persisted in,
ended all hope of consolidation.
The reason, however, for this action soon
became apparent 1t was secretly insinu-
aled then, and now publicly charged and
continually reiterated, that some of your
directors were acting in bad faith and in
collision with the Delaware and Hudson
Canal Company to make Ogdensburg and
the Rutland mere appendage to New
York railroads and interests, and to the
injury of the old Vermont Central and
Boston, and that we sought the release of
these roads from the Central control for
that reason, and to accomplish that object.
These charges, which have been freely made
and extensively circulated, and others from
the same source, are wholly without foun-
dalton, and utterly destitute of one particle
of TRUTH
No such motives ever actuated your
board or any of them. They had no such
understanding whatever, nor was anything
OF the kind contemplated with the Del
aware and Hudson canal company but we
were acting in perfect good faith and seek
ing to make consolidation possible on terms
reasonable and fair to all interests.
Are you surprised that in this state of af-
fairs II WAS determined by parties in inter-
est to change the management of the Cen
trail Vermont or to cease to have any fur
| thcr responsibility in connection herewith?
| This is the explanation of the action at the
annual meeting of the Central Vermont,
May 10. which we are sure future events
will fully justify, and in the successful is
sue Of thai action the interests of Boston
and Vermont will not suffer or be put in
jeopardy.
The conduct Of the lessces in the opera
ton Of your road has not escaped our at
tention. 1t appears that traffic legitimate
ly belonging To this route is diverted there
from-and IN some cases driven off by dis
| elimination in rates or accommodations
This will enitle lis to damages under the
covenant Of the contract, requiring that
the business OF the road shall remain uu-
impaired by any act Of the essees.
We consider it not only proper but due
to you as interested parties, that you
know what is ,ranspirug to affect the
value OF your property, while we are firm
in the conviction that the courts will sus-
tain our action. and protect the Rutland
in its rights. We should still consider it
advantageous to all parties if a course
could he pursued that would avoid litiga-
ton and at the same time bring II reason
allie prospect of income to the holders of
the securities OF Vermont roads.
Respectfully submitted, by order CT the
directors.
JOHN B. PAGE, president.
July 2S, 1875.
At the conclusion of the reading of the
presidents report, the clerk read the terms
of the proposed consolidation of the Rut
land, Central Vermont aud Vermont anc
ment of stock to each Tie action lion Of Ii,
directors Of the Rutland corporation wa.
read in reference to the demand for the an
nuling the lease Of the road to the Contra
Vermont. Messrs. Page, Whitney ant
Hickok, were appointed a committee tC
negotiate for the release Of the road. Or
the 18th of June the Central having failed
to pay the rent, and disregarded the term,
of the lease, the committee were instructed
to demand the release of the road. Thi.
demand was made on the Goth day of June
This demand was served on each of the di
reclors, stating that, having failed to pay
the rent on the Rutland, Vermont Vale,
and Vermont and Massachusetts roads, tho
} Rutland road, unless the demand was com
: Piled with, would hold the directors per
; sonally responsible, and the lease of sale
road was rescinded.
On motion OF Gen James S. Whitney
the report was adopted and placed on file
, and the usual number of copies published
in pamphlet form.
A stakeholder asked the president if the
, Rutland railroad company was stock
, holder in the Central Vermont. To which
) the president answered that it did not ap
pear so of record
A stakeholder asked if the per cent
bonds issued some four years ago had al
been disposed of or exchanged. The presi
dent said that they had all been used tc
pay the debts and in carrying the debts OF
the corporation, mainly, held by banks
and individually as collaterals for loans.
Hon. John A. Goodwin, Of Lowell, said
the bills payable appeared larger than last
year. 1t was replied that it occurred from
paying interest on bonds aud receiving nc
rents.
A stockholder-W is the condition of
the outstanding scrip. 1t was stated to be
in the hands of stockholders to be convert
ed into per cent. bonds.
Mr. Goodwin, Of Lowell, remarked the
prospect of having dividend was as far
OFF as ever, but would like to know when
the happy day might be expected.
Gov. Page said the assets and outstand-
ing bonds were nearly sufficient to pay the
debts of the corporation. The interest On
the Addison road had not been paid since
the suspension of the receivers and man
ayers of the Central Vermont railroad
The reason of this non-payment arose from