Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1876-11-30
HE RUTLAND HERALD
RAILROAD MATTERS.

RAILROAD MATTERS.
The Joint railroad committee Of the
senate and House have now under con-
federation two important railroad bills.
gsTbe frat is an application of the Yer
Hmont and Canada Railroad Company
'::for additional corporate powers TO issue
stock, guaranteed bonds, etc, in order
10 enable the company to compete with
the Central Vermont corporation for
the purchase of the Central Vermont
railroad property in case it should be
sold, as threatened in the scheme of the
Central managers for q consolidation.
The second is an act to incorporate the
second mortgage bondholders of the
Vermont Central Railroad Company
under the name of the Central Railroad
Company of Vermont, This bill pro-
yides in substance that holders of the
bonds of the Vermont Central Railroad
Company, issued in the year 1859, and
such other persons as may hereafter be-
come stockholders, are hereby incorpo-
rated under the name of the Central
Railroad Company of Vermont, for the
purpose Of asserting, preserving and
maintaining any right, title or interest
which said holders of such bonds may
now or hereafter have in the property
and franchises of said Vermont Central
Railroad Company, or the Vermont and
Canada Railroad Company, for the
purpose of operating said Vermont
Central Railroad aud that after
acquiring q title to the Vermont Central
railroad the new corporation msy sell
the same to the Vermont and Canada
railroad, or purchase the Vermont and
Canada railroad.
The application of the Vermont and
Canada for an extension of corporate
lights was presented to the committee
Tuesday evening, November 81, by Col.
A. T. Walker, and opposed by Judge
Poland and B. +. Fifield, ESQ, The
second bill was considered the following
evening, Judge Dunton appearing with
Col. Walker for the bondholders, and
Judge Poland and Mr.. Fifeld for the
Central Vermont company which resists
the passage of both of these bills. Mr.
Fifield characterizes both of these bills as
acts to incorporate a law suit. Judge
Poland says the bill is an act to incorpo-
rate q fossil, while Col. Walker calls
both OF them enabling acts.
81
and Canada railroad company are limited
The company Was chartered to build q
railroad from Rouses point TO Bur1ing-
ton to carry passengers and freight, etc.
It's charter does not enable the company
TO issue new stock and guarantee bonds
for the purchase of any railroad. This
extension of corporate power is now
asked in accordance with resolution
adopted at the late meeting of the stock
holders at Bellows Fails in view of
contingency threatened by the Central
managers to sell the trust property If
the different interests do not come into
a consolidation scheme proposed by the
managers Aefore the 23d of November
this year. In case of such q sale the
Central Vermont corporation is the only
party interested that has the power TO
make the purchase All that the Can
ada asks is to be empowered by The Leg
isiature to incumber itself in the usual
way. 10y issue of bonds. stock. etc. in.
order to compete with the receivership
at the proposed sale OF the Central Yer
mont property. The bill to incorpor-
ate the second mortgage bondholders
has in view the same contingency. The
bondholders ask to be incorporated in
order to issue stock, bonds, etc, for the
purpose of competing the in sale before
mentioned. They ask for power ia: or
ganize for their OWE protection subject
TO all obligations of the recUivership
that are or may be decided to be para
mount TO .heir own. The ques lion in
volved in both of these Hills is whether
the debts incurred in the maua cement
called trust debts, equipment loans,
floating debt, etc, are paramount
lien --Fon the property. The man
ayers of course claim that 1t is.
which claim the bondholdeIs resist,
These debts amount TO seven or eight
millions of dollars. The Vermont
Central road is estimated to be
worth $6500,OC0. II the priority
of the trust debts is maintained, The
bonds are of course worthless, and the
Canada stock has but little value. The
history of the management is so long
and complicated thai brief statement
of it is next TO Impossible, These roads
have been in court, as it is called, about
twenty years, until debt has been in
CURED of sufficient magnitude to have
become, if not paramount lien, at least
the most important one in the manage
ment. The original property has appa-
rently passed out of view, and the court |
now sustains the somewhat anomalous
position of acting as guardian, not of |
the property entrusted to its protection |
as a ward, but as a guardian of the man
ayers. The hearing before the commit |
tee on these bills was concluded last |
evening. What disposition will be made |
of them remains to be seen.