Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1875-07-30

| AGHtIdi d ~ ~ "a tt4G Att'-A Al't
gage and of the second mortg tge lie b.
been trustee Of the second lIurtgage for
good many years. lie was director IN IA
Vermont Il Canada since 1851 or there
about, and he held il antil the death Of NJ
L. b. Peck, and was thea president uu;i
ls12.
John W Newton was clerk Of the Yer
mont Il Canada for time prior t, le13 II
is my nephew have had no official rela
lion to the Vermont 4 Canada since Is.
and was then clerk and counsel
When was appointed receiver a~sumc,
control OF the Vermont X Canada ald Yer
mont Central, l67 miles.
Commenced to run and operate The Sui
liyan in to or 81 The Sullivan lease WI.
read By Mr.. Davenport. The llsssos Ec.,
Lawrence Brainerd. j. Gregory Smith al
Joseph Clark term Years from Septcu.
Der l, 81 ren; sis eco a year. \ iurta.i
term OF five years was lett rltl.1 NIt.
the leSseeS.
The Governor then gave a .u- i,I.'IIs o..
what was called the 90 Yeas CONTRA. said
i, was 50 disastrous ana IuyuiS : -u.l -1tn
plica;ions that the Vermont Central c.ull
not collect its balances Our e,urse'. Peek
and Tracy, advised Us that W. asi better
take 4 lease OF the Sullivan road. Wti-h
had been rendered, and by wisea $50
thought We could end that Gi-a>;ru-- ..a-
tract. We took it and the No.ti.rn '--
came 50 incensed that they stepped .l ana
purchased the road They demand q sur
render Of the road. which We lcalu.l .
they consented to let e, Lo.di five W. 4.i
Weld to ,h,m the benefit Of ihr cH4 ,lf-
tract We declined anu they ahTl.atcl te
old lease. ! went to our lcl is.Iturc ~.I. l
was in session, aud got charter :cr . uee
road from Windsor 20 Bellows Falls. AH.-
We had surveyed it. the Northern came 90
me and said they would continue lae lease
and the contract Finally they consented
| 10 make new lease 10 Us. which extends
/ Indefinitely, and We hold ltto-4ly. tAe only
I condition being that We will uu- G-.in-
! guish against them on business coming over
| the Passumpsic road. The new i.a~- WIS
| produced and read. This Is the only Wr...,a
lease there l. il las been continues T..
parol. but the rent has been increased o..
So, 600. About three years ago there Vas
an extension ct the term ami t4sk tle
lease myself the understanding a..n- hy
par0l. Ii was agreed that there >loelt Dr.
written lease; i and Mr. Masrl. base
tried hard to get It, but have nut >Cc.e--.l.
The rent has been paid quarterly 1y tuc
treasurer ct the receivers hrrc THE r.-
cciyers settle vita the less .-co il SIX
months.
One object wh,rh Er-t lad 3D. t4..u. o..
Sullivan lease VA To secure d.. 44e o.
the trust. amounting to sixty or seventy
thousand dollars: | scared an ai-lrwa-I
paid 1t out Of tleaccruiug rent. TIE olh.r
object was TO stop he ios from the SD
years contract, Don't know ,A4t We h.i
any other motive. When We ue1utiatei t.-t
lease we had grave doubts Watcher ;-
road would pay q profit ur nos. hI; W-
wanted 10 get the read luto The iu-. i4lr
was his primary motive. a-L joe cog .--l-l
that II there was any pIOIt !. wuui! ....Ig
to himself and associates
| wouldn't have taken the lc1-- @ t
not been for the collection ui Tie I'D.
After q certain period the lease has Yielded .
to me profit. cannot tell, save ty The
books, what the profits have been
Judge Poland promised to have IL i-u-., .
up and handed in.
Mr.. Merrill had the whole charge o. las-.
accounts. lie has been telegraphe1 .or F
have never accounted to the trus. for any oJ
the profits OF the Sullivan lease. IlcV hlgc
been taken by the lessees At tie en- oi
every SIX months. or soon alter. settlements
were made, and the money paid 10 Nr.
Clark, Mr.. Brlinerd and myself. VT else
the trust gave t. notes. Aite- the pee nc
board OF management came in there va,a
iiferent division. The profits have since
been divided between Mr. Cheney. Mr.
CLARK, Worrhingt0n and myself. Since
July /. %, the lease has been assigned g.
he Central Vermont thiaS th.t after
1r. Brainerd' death, my proportion ,sl-
bout $1,000
Adjourned til ) p N.
GOV. SMITHS TESTIMONY CONTINUE.
Gov. Smith resumed. For the ten wears
preceding 1873. the average profit ui the
'ullivan road ranged from SD coo u So
40 year a. my Impression now D.
My impression Is that The Sgi'igan li.- ,
aid no greater profit per mie than she
'ermont Central and Vermont and Canada.
When | came into the trust in lsjs. the
eating debt Of the Vermont Central wa-
bout Sl50000 The frst mortgage vas e
= 100000 and the second, : 500 600 and ,
be accumulated interest was some S7O0 eco
r 100000 The road had been bul., from
ouses Point 10 Windsor. The capital az r
ie Vermont and Canada was SI.3l- 500 -.
here was then due Cor rent pr cent oa
ms since 1854. These amounts Represent VI
lie outstanding liabilities Of the road l.. "
ust.
Aiterward We built the branch into Bur ,,
ngton, from the Wiaooski bridge through
Re tunnel-ab0ut two miles Also the 81
ganton branch, about ten miles, to Canada S..
ne, besides extensive sidings on the Ncr- n
ont central. " hen our receivership closed I,
1873, the Vermont Central first mortgage "a
Mounted TO g. coo 900 and one years IN -
rest. There had been no increase OF the 4
cond mortgage by capitalizing the inter b.
!, but the interest had ran since 1866 The ar
terest prior to 1850 was settled by the vi
king OF the ). 5. and c. bonds. The Yer
INT aud Canada stock was then 81 COO ,.t
D. Its interest is per cent. The two h.
lrtgages bear : per cent. The ialtug toi
BIZ cannot accurately state without ,o.- 'oi
nee to the books. In 1872 it was 81 Gao M.
}, bat a'terward we reduced II. taluk. ica
about 81 500 GOO su
he first long loan WAS roadc by tie. tru,, .SS
November ls65-$7o0 O0o, which wAsaii fs
llzed a, par. That Is the ,quIpmert BE
n. aud bore per cent / bad nothing o. , ga
With the sale OF It !; there uay he me MI
lrge for commissions. iut
he rext loan was .or $500 600 in jar atl
y. lc63. think none of the bonds sold --
less than par. This was the second equip- tha
NJ loan. Mr.. Cheney had the entire man gou
nenr Of selling these bonds rdiok he To-
most Of them, but some Of them went for
ough BANKERS Spencer, Via \ Co, and Ba1
Globe Bank lers
hInk the next loaa was ncrot.atsd ia sle
ril, 50; the decree was positive for roul
q, 600 and conditional for $500 O0g Won
C, according to necessity. We sold the nal
bali that year and the second the next. 9osf
ink We received par. less the broker arti
missieos. All these loans bore ucr was
:, .. says
be next was 81 900 900. guaranteed by soar
Vermont a Canada. IN ISL. They sold thur
1904 600 Of them, and the rest. SOC ~ r
are now 10 the hands of the Central cuur
mont as receiver EAir
ne next loan was in the spring of y. Toy s,r-,
100 600 of this amount 500 Geo are :ous
by the receivership, under order of gave
I, Tor retiring previous loan. ,Ss .
the 81 700 900 in round number, of
increase of Vermont 4 Canada stock. =
~ $50 no1 ~ C'uue en- w va,
Burlington branch $3.50 G00-or 4 Id
ion Of twas distributed to the bond
err under the compromise of 'G6. bat we ~
- 81 tbe accn"n,s on oVp 49, milk
nst thea, tor expenses already In slon
ID. s.-a.
freight was lost 0. ,hs Sullivan road -
bridge burned, the lessees had % hear
loss II We took any material isGm ieet
rust it WAS charged to US. II ws seEt sl:Yt
there 10 make repairs their services i,f,
charged by the trust 10 US II 4 peg
,ot hu-. there. the lessees had u gay ii''i''
. 4 mao wa killed at Chariesiown, road
hough We did not admit our liability, Mstt
ettled it ard paid s. 40. which was ian.
ed to the Iessees.
voucher for the s. 500 was p.odloat s.ig n
cad. 1t recited that the Trustees and and !
gers of the Vermont Central were then state
ting said Sullivan road. and though -.