Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1877-05-04

The meeting Of the stockholders of the
Vermont and Canada Railroad Company
at Bellows Falls, on Wednesday. was called
to order by DIR. Nichols, president of the
company, and the call was read by a. G.
Stafford, clerk. Tho president said that
prior to the last annual meeting, three pro
positions were submitted BY the Central
Vermont Company, only one of which was
acceptable as basis of negotiation. In in
terviews with Gov. Smith the understanding
was reached tina: the incidental expenses of
the Vermont and Canada would be paid by
the Central Vermont, and since that time
these expenses have been paid. The main
objection to the plan of adjustment had thus
been obviated. and we have met to consider
what action We will take in regard to this
plan of reorganization.
Mr.. Wells, Of Boston, offered resolutions
to the effect that the president of the Yer
mont and Canada Railroad Company be
authorized, with the approval of the direc-
tors, to make conveyance of the said rail-
road. and all the property, real and per
scnal. and sll claims and causes of action of
said Vermont and Canada Railroad Com
pany to the Central Vermont; that the
directors are hereby authorized in their
discretion to accept for the Vermont and
Canada railroads and other property, as
consideration not less than 81 500 900, in
bonds of the Central Vermont Railroad
Company, being part of 1000, 900, such
bonds to be secured BY first mortgage on the
Vermont and Canada and Vermont Central
railroads and their equipment, and also
$500 900 in preferred stock being part of
So 500 OOO sad preferred stock, which
preferred stock may however be sui
ordinate to Sl,0O0,0OO guaranteed six
per cent stock: and that until such
conveyance II any should be made and |
such consideration received, the directors |
are authorized and requested to take such |
action as they may deem best to protect the |
rights of this company.
Francis A Brooks. Esq. former President
OF the Vermont Il Canada, objected. He
SAID We can be no worse off BY waiting
until the question of the priority of these
hers is settled. Our prospects are bet
t'r now than they have been for long
time. The Central Vermont has st1pped
paying interest on the trust deb: The Os-
del sburg ard Valley roads have been taken
away FRI IN them, and for the first time In
i've years tie debt of the trust is not IL
crtHsing. We can afford to wait and should
keep our property distinct. The Central
Vermont company does not dare to get an
order from the Court establishing the pr
urItv ot the trust debt, and hence have
sought TO obtain our consent to this plan
pf consolidation, which virtually adopts
their theory OF the priority OF the trust debt.
MIR. Brooks also presented a written pro-
let, signed by himself and TWENTY-FIVE
,thers
Mr.. Geo. T. Noyes also objected To the
rttiemeit, saying that II the Vermont and
Janada Company as ented to the plan. il
sOUld stnitiiy itself by subsequently, gong
nto court ard arguing that the company
: not liable tor the trust debt
Hon Bra1lcy Barlow said that if this
question Is to he htigated no one will derive
ay Dentht except the lawyers We have
eth IN litigation twenty years, and the ]
uestioh has become so complicated that
here Is no way out of 1t except by a settle
leLt. Mr.. Bsrluw said IN reply to ques
I"n troIo Mr. Brooks that he had sold b,s
'entral Vermont stock, and was now acting
director IN the Central Vermont Com
d ~, IN or1er to protect his interests and =
: pay for his stock
President Nichols said that the directors
ere acting under the best legal counsel
Id that The directors would consent to no
ettlement until sufficient guarantee had
en- gwen to them. lie appointed Messrs
anord. Fisk ard Blake tellers to receive
ID count the votes The vote wa. then y
hnouneed by Mr. Stafford. as II .27s votes
taVor OF tie plan of consolidation and
<.le votes against it.
The meeting then adjourned