The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-01-05
MONTPELIER AND WELLS RIVER RAIL
ROAD,

and Wells River railroad company, al
Montpelier. noticed in our telegraphic
column, yesterday. is said to have been
made for the purpose OF controlling the
election Of directors OF that road The
stock belonging to Montpelier was bought
by j. W. Brock representing one interest,
and the same stock, including four hundred
additional shares, was subsequently sold at
sheriff's sale to L. d. Sortwel, of Cam
bridge, Massachusetts, representing q diff
ferent interest. 1t has long been known
that the town of Montpelie was sick Of its
Investment and that nearly, il not quite, a
majority of the tax payers were ANXIOUS TO
dispose OF the towns interests in the stock,
and rid themselves Of all connection with
the railroad. Ifthis sale was bona .fde, the
town is probably well rid OF the matter,
although it has sunk nearly one hundred
and fifty-six Thousand dollars in the trans
action. Whether the village of Montpelier
has gained commensurate amount in ma
terial prosperity and convenience to its
citizens is, perhaps, questionable, but pro-
badly the experience it has gained will
more than make up the deficiency. When
town steps outside Of the legitimate pur-
poses for which it was organized, and en-
cages In Building railroads, 1t most usually
gets its fingers bit but it learns in this
way, and IL would seem that the lesson can
only be learned from experience, that how
ever much of convenience railroads may
be, railroad stock in Vermont is poor in-
vestment for town TO make. If town
must dsbble in railroad building-and
there are sometimes cases where it seems
proper-let it aid in the form OF gift, and
not in the form of a so-called loan of
credit, or In subscription to stock, ex.
pecting that it will be returned in money.
The other phase Of this sale shows what
uncertain property railroad stock in Yer
mont is-like the Paddy's plea, you put
your finger on it and it isn't there. This
same stock which had been sold by the
town at two dollars and sixty cents share,
was, few hours thereafter on the same
day, sold at sbern's sale for seventy cents
u share--a rather rapid depreciation, but
perhaps seventy cents was all that il was
worth. What is stock worth in corpora
ton that ia unable TO meet its obligations {
Nothing, although it may ultimately
emerge from its embarrassments, and &C.
tually be worth more than its debts. BY
our laws, the capital stock of corporation
may be sold to satisfy the debt OF the cor.
poration and may, in fact, be sold over and
over again. The certificate OF stock, con.
sequenily, is no evidence of title, for the
same stock may have been sold dozen
times TO satisfy debts against the corpora
tion--and the last sale gives title to the
stock and supercedes the company's Ger.
tifcate and the sheriff's certificate of sale
or his return on the execution, is sufficient
evidence Of ownership to cn,itle the owner
to vote. In the old days OF the Rutland
and Washington railroad, sale Of the
entire capital stock by the sheriff came
annually In the morning as regularly "a the
election Of directors in the afternoon and
at the time jay Gould WAS endeavoring to
obtain possession and control OF tue road
sales were made hourly, both in Rutland
and Castleton, by officers in tue interests OF
rf one or the other OF the rival fa,iions --
with an uncertainty, in the end, as TO which
was the last sale, who was entitled to vote
and, az a result, two rival boards cacl
claiming to be the board of directors of 4
bankrupt corporation. The same kind OF
fight seems to have been inaugurated il
Montpelier, affording au opportunity TO,
more litigation, and the consequent, squan