Vermont farmer. [volume] (Newport, Orleans County, Vt.) 1870-1877, 1875-07-16
The Central Vermont Railroad Company.


would seem unnecessary, may form as inter-
esting reading as we could lay before our
readers.
The Vermont Central railroad, from Bur-
lington to Windsor, was opened about 1S45.
In 1S49 the Vermont Central railroad com.
pany leased the Vermont & Canada railroad
for 80 years, agreeing to pay as rent an
amount equal to eight per cent per annum
on its capital, the capital thCn amounting to
100000. The capital of the Vermont
4 Canada has since been increased to 49,.
100000, so that the annual rent is $780,
600. The Vermont 4 Canada road extends
from Rouse's Point to Essex Junction, and,
with the exception Of about four miles Of
Vermont Central track which is used, from
there to Burlington. From Rouse's Point
to Ogdensburg, II 8 miles, is the Ogdensburg
road, which is leased and operated by the
Central Vermont company. From Swanton
Junction to the Canada line, about ten miles,
is line belonging almost entirely to J.
Gregory Smith, of st. Adams, and Joseph
Clark, of Milton. This, with the Montreal
X Vermont Junction, running from there to
the junction with the Stanstead, Shefford 4
Chambly road at st. Johns, p. O., about
26 miles, is leased by the company; as also
43 miles of road from St. Johns to Waterloo.
From st. Adams to Rlchford % miles, is
the Mississquoi road, controlled by them.
They also lease aud operate the Rutland &
Burlington road, from Darlington to Bel.
lows Falls, 127 miles the Addison, from
Leicester Junction on the Rutland &
Burlington road to Ticonderoga Is miles,
the Harlem Extension, from Rutland
to Chatham Four Corners, Mass,
1l3 miles, the Sullivan, from Windsor to
Bratteboro, 80 miles /; and the New London
Northern, Brattleboro to New London, Ct,
12l miles. Controlling and operating, as
they do, nearly 800 miles of railroad, as
well as an extensive water transportation
business, aud at the same time so many H.
dividuals and companies being interested, d.
rectly and indirectly, it is not surprising
that so great power land accompanying it
great responsibility, should form a most
conspicuous bone Of contention, and be the
cause of much legal warfare, especially since
some Of the lines are not profitable and there
are losses which must fall somewhere. In
1852, about three years after the lease Of the
Vermont & Canada road by the Vermont
Central, the latter, staggering under heavy
liabilities, defaulted the rent due on the YER
mont K Canada lease, and the Vermont K
Canada brought action and got judgment.
Thus the Vermont Central was bankrupt
company, and the court appointed receivers,
who were to carry out the terms Of the YER
mont 4 Canada lease, the claim of the lat
ter road to have the first lien on the earn
lngs Of the two roads. Until 1872 this rent
was regularly paid by the receivers. June
/, 1873, six months rent became due and
the receivers defaulted, and it appears they
were pretty deeply embarrassed. Most of
the leased lines we have mentioned above were
leased, during these twenty years of operation
of the road, by the receivers of the court.
The Rutland & Burlington road had been
leased not so much because of its probable
proftableness, as to prevent its competition
with the old Vermont Central line, as each of
them formed direct line from Burlington
to Bellows Falls. Strictly speaking, this
lease has been Improbable, though how m UGH
rivalry, cutting under, and consequent loss, it
has prevented there is no means Of knowing.
Since the breakdown of 1873, new COM
bination has been formed, the plan being to
consolidate the Vermont Central and the
Rutland & Burlington under the name Of
Central Vermont, and then purchase the
Vermont & Canada. The terms of the sale
Of the latter road TO the Central Vermont
have, as readers of the FARMER know, been
mutually agreed upon, but the transfer has
not been made, nor the money paid. 1t was
necessary in carrying out the terms Of the
sale that the Central Vermont company
should pay certain amount of the purchase
money down. How to raise the "needful"
was the question.
In the meantime the annual election of
directors Of the Central Vermont was APP
preaching, and ex-governor Page, Of Rut-
land, who had hitherto been one of the Smith
party, was not only found with the Opposi-
ton but actively at work to obtain control of
a majority of the stock within his party. He
went to New York to pick up Central stock.
An injunction which had been served on the
Central treasurer to prevent the payment Of
the purchase money for the Vermont Il Can
ada road was just then lifted, and some
100000 was wanted Immediately. Some.
time previously 1850 Of the original 10000
shares of Central Vermont stock, which had
been taken by ex.Gov. Smith, had been
bought back by the treasurer, under vote
of the directors. Now a meeting of the d.
rectors was hastily called at Bellows Falls,
to take action to raise the 100000 required
by the Vermont K Canada, A quorum not
being present the meeting was adjourned to
meet on the cars, between there and St.
Adams. When the train came along there
was on board another director, which made a
quorum, and, before reaching st. Adams, a
vote had been passed authorizing the sale of
assets of the company. These 1850 shares
Of stock were then bought, most of it by
james R. LangdOn, Of Montpelier. The
purchasers of this stock voted upon it at the