Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1875-08-06
NUMBER 6.

l million Of dollars, and that up to the SAINT
4 date funded and floating debt had ac
crued against the trust of nearly seven mil
lions OF dollars-aot including the rent due
and unpaid the Vermont and Canada road
The statement also showed that the opera
,, ton, by the trust, of the boats of the
Northern Transportation Company for the
season of 1874 had resulted in loss of more
than two hundred thousand dollars. and that
the loss in operating the Ogdensburg and
Lake Champaign Railroad for eighteen
months, to January lst, 1875, was more
than two hundred and thirteen thousand
dollars.
These losses, and losses arising from other
sources, which it is not necessary to allude
to, if suffered to continue, only swelled the
incumbrance already too large upon the
roads and property it was proposed to con-
solidate.
Your directors were unable to see any
good reason why this should be, but all their
efforts tn stop these were futile. and 50
losses from these sources still continue to
increase under diminishing income with no
Immediate prospect of relief.
This policy could result, as your directors
believed, only in financial disaster, and they
thought it wise to pause before committing
this company to a scheme so ruinous.
At present the receivers and managers
are Withholding all rent from this corpora
tion.
The amount withheld and now due Us is
S2sl ,6l0.63. OF this amount there is held
by the Connecticut River and Cheshire roads
about $40, 10000, which will in due time.
IN all probability, be paid into your treas
ury.
! This violation Of contract has led, under
advice of counsel, TO demand, in writing.
for the posse l0n Of your property and leased
roads, which Was authorized by vote Of
your directors, passed June 18th, and the
taking of steps tor the collection of rents
due. Nothing will be LETT undOne to pro-
tect your interests in this respect.
1t has been remarked that the outstanding
contracts Of the receivers and managers, up
on whi,h these great losses were accruing,
could have been cancelled.
Your board by its votes (herewith sub
mitted) of December l3, 1874, and May Is,
1875, offered to accept the surrender OF the
Rutland road and its leased lines, and TO
cancel the contract under the terms thereof.
Tne offer was made SUBJECT To the approval
having been accepted You have not been
called together for definite action.
The policy of the Central Vermont mana
gers, prior to the consideration of the
proposition of the Ogdensburg board to can
Gel its lease, seemed TO be to determine and
cancel all contracts upon which losses TO the
trust were resulting. Negotiations had pro-
gressed SO far as to determine not TO continue
the operation of the boats of the Northern
Transportation company. The interest Of
the Ogdensburg and Champlain railroad
company in the Transportation company was
such that this action led to an offer, made
by their board of directors, to determine the
lease of their road, the rights OF the parties
thereto TO be the same as # the fall term OF
such lease had expired.
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 eOnsolida- |
tion possible seemed harmonious. But when !,
action was necessary upon the proposition of |
the Ogiensburg and Lake Champlain
directors, il appeared that objections to the .
acceptance of that proposition were made and
persistently urged by the president and
others. upon various pretexts, and this
eTinced change OF policy and a determine
tiOn to hold on 10 this onerOus contract. The
result was tina; the proposition Of the Ogdens-
burg road was rejected by a vote of five of
the Central Vermont board, being majority
Of the members present.
This action was surprise. Ii seemed
upon any reasonable grounds,
and if persisted in. ended all hope of con-
soidatiun
The real reason. however, for this action
soon became apparent 1t was secretly IL
-inuated then, and now publicly charged and
continually reiterated, that some OF your
directors were acting in eollGsion with the
Delaware and Hudson Canal Company to
make the Ogdensburg and the Rutland Il
mere appendage to New York railroads and
and to the injury Of the old Yer
mont Central and Boston, and that We
sought the release of these roads from the
Central control for that reason and TO accom-
pli>h that object.
These charges which have been freely
made and extensively circulated, and Others
from the same source, are wholly without
and utterly destitute Of one par
ticle of truth.
No such motives ever actuated your board
lr any Of them They had no such under
standing whatever, nor was anything Of the
kind contemplated with the Delaware and
Hudson Canal Company bat We were act
ing in perfect good faith and seeking to
make consolidation possible on terms reason
.ble and fair to all Interests
Are YOU surprised that in this state of az
airs it was determined by parties in inter
- to change the management OF the Central
,ermont or to cease % have any further re-
in connection herewith ? This
: the explanatioa 90 the action at the annu-
Il meeting of the ntral Vermont, May 10,