The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-07-30
FRIDAY, JULY 80, 1875.
RUTLAND RAILROAD COMPANY

SOiilC null VI thO NaPisbt btpNh bNibS iNPAN-
sented in the persons of the stockholders
or by their proxies, and the deliberations
thereat were harmonious. The financial
statement, as presented in the report of the
president, does not seem to bear out the
rose colored view presented two and half
years ago, that for the last eighteen years
of the lease-that is from 1873 to 1871
the common stock could be rated at three
per cent dividend paying stock, and that
the dividends thereon during that period
would average that rate per annum. 10
make a financial comparison, it is necessa-
ry to go back to January 1872, when the
stockholders, to their utter surprise, learn
ed, for the first time, that instead OF hav-
ing railroad free from debt except as re-
presented by million of dollars Of equip
" ment bonds" and with an income suili-
cient to pay the interest thereon and the
guaranteed dividends on the preferred
stock together with reasonable profit on the
common stock, they had one encountered
with floating debt of over million and a
half of dollars, and without the means to
pay the guaranteed dividend on the pre-
ferred stock, then Immediately 10 become
due, and with no prospect of ever paying
one on the common stock.
The "balance Sheet both debt and
credit. then footed at $9,6i0, 500. SO, while
the footipgs, this year, have been increased
and now stand at so, S32, 253. 63-showing
an increase of over two hundred thousand
dollars. To come to details. The floating
debt was then reported at S1,J6l ,OSS. 81,
while since that time it has been SO reduced
that '.bills payable" are now reported
SG4G, 015.45, but the other indebtedness Of
the company has been largely increased by
the issue of first mortgage, eight per cent.
bonds" to the amount of &l,1SS, 10000,
and there is something over two thousand
dollars Of coupons unpaid, and scrip has
been issued, and is now outstanding, as
dividends on the preferred stock, to The
gross sum of S3t7,5S4 GS against nothing
due in January, 1872, but against Sl33,-
06S 90 which was to become due in febiu
airy and which was taken into the account
in making up the financial statement OF
that year. Including a small item FOL
'rents due and unpaid,"' the liabilities OF
the Rutland railroad company, over ant
above equipment bonds, were reported al
S1,7OS 625,56. Now the same items, in.
Guiding first mortgage bonds not then is
sued, amount to $2,1S3, S53.63. We know
nothing of these figures save as we fine
them in the reports of the president ant
treasurer, but assume that, being so given
they are correct. We are unable to ex
plain this matter, we presume that Their
may be a reasonable explanation thereof
we only give the figures as we find them
Perhaps the result will be that there vii
he demand for this stock at enhance
f'siss,s--.~o wish
We do not hold the managers of the Rut
land rairoad-we mean those who hay
1S72-responsible for this untoward finan
cial condition. The fault lies back of that
aud had its origin in the unexpected in
debtedness reported in 1872. 1t was ne
cessary that this floating debt should b.
paid, before any dividends were declared
and whether it was paid or not, it remainet
on the wrong side of the account unless i
was extnguished by something beside
other promises TO pay. To meet this in
debtedness, the only resource of the roa
was its rents, to be paid by the trustee
and managers of the Vermont Central, an
when the rose colored theory that the com
mon stock was a good three per cent div
dend paying stock was put forth, thos
rents were certain definite, fixed amount
Since that time the rental, by mutuf
agreement, has been reduced, and eve
that is not, as the report informs us, pad
But even if that rent had been paid, tn
debt would now be some quarter Of mi
lion of dollars more than it was in Janv
airy 1872 The fact is, debts cannot /
paid without money, and road whose il
come will not meet its interest and otht
expenses, must expect to get deeper an
deeper in debt, and to see the day when i
stock will commence to be dividend pay
ing vanishing further and still further
the distant, ever-to-be-oyertaken futur,
This leads us to another consideration
Another great fault, perhaps the great faul
was the leasing of the Rutland railroad
the trustees and managers of the Vernon
Central railroad-an attempt to mix o
and water. IL w0s idle to expect ihi
these two railroads could be conducte
tremendously. Their interests are, an
must continue to be, diametricaly OF
posed there will be an ever continuir
warfare Of the Rutland against the o.
Vermont Central line and rice gersa. III
report of the president Of the Rutland raj
road shows this. and It is plain that
looks upon these warning Interests rs Il
Had Of all the Rutlands wees. He charg
that the Central interest insist on mainta
ing control of the Ogdensburg and Lal
Champlain road although it has been ~
ut a loss Of nearly q quarter of million
dollars in eighteen months, while the &c
trail interest charge that the Rutland IA
road has been and must continue to be Il
source of great loss. Both may be rig
or wrong, it only shows that there is al
must be an irrepressible conflict betwe,
competing railroads and opposing interes
% that oil cannot be made to mix wi
water. 1t was, as the report says, IL
conflict of interests that led to the disrepu
able scene at St. Adams during the annu
meeting of the Central Vermont railro
company 1t is this conflict which W
financially ruin one or both roads SO lo
as they attempt to unite that which natu
has decreed must be kept asunder. V
are gratified, therefore, that the stockhol
ers directed that proceedings should be