Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1879-03-28
The Vermont Central aud Vermont and Canada


SECURITIES.
The inquiry il frequently made as to why
the security holders Of the Vermont Central
ceiyed no payment upon their securities,
and as TO what disposition has been made Of
the earnings Of the road The matter is ere
in which there is such widely extended
interest that We have made some invostiga-
ton Of the matter, and as a result are able
to lay before our readers brief statement
Of the situation. Of course, VIC are unable
to go into details, FOR which, however, We
would refer security holders to the books
and accounts Of the road, which We are it,
formed are open to the full inspection of
any committee of the security holders which
may desire to obtain information. Much
| detailed Information can also be found IN
| the reports submitted to the Legislature
and filed with the Court. The answer to
the inquiry alluded TO is found in briet in
| the fact that the conflict between the claims
| of the different classes of security holders,
involving the question OF tho prior ri ,yht to
the income of the property, has precluded
| apy payments beyond those of the rents
of leased roads and OF the maturing float
| ing Indebtedness of the concern. Such
must continue to be its effect until Il Q
conflict il ended. either by judicial deci
sion as to the priority of liens or by a
compromise between the conflicting inter
ests. Suits to determine what claims
should have preference are now pending
| one brought by the Vermont and Canada
Company, which claims that the rents due
for its road should be paid before payment
is made OF any interest upon the trust bonds.
Some OF the holders Of the trust bonds also
have brought suit. alleging the priority Of
their claim. The latter suit has been
pressed to hearing as rapidly Us possible.
The testimony in support OF the claim is all
in. hearing before the Chancellor has
been had, a decision pro fOrnsd dismissing
the bill, has been made and the case has
been taken by appeal to the Supreme Court.
Ii was hoped that q hearing would have
been had at the last January term of
that court, but the magnitude and
importance of the issues involved
seemed to justify the sentiment very gener
ally expressed that the matter should be
heard by the full bench, and as only four of
the seven judges were sitting at the January
term, and the full bsnch could not be con-
vened at that time, it was thought advIs-
able to adjourn the case 10 the General Term
of the court, when. by the statute, the full
bench is required to sit. The case was
accordingly adjourned. and will probably
be heard at the next General Term, which
occurs in October next. 1t is expected that
the rights of all parties will then be fully
and judicially determined. and that the
receivers will bs instructed as to what
application to make of the income OF the
property.
Should the trust bonds be established as
the first lien upon the income. they will
doubtless be entitled first to payment ont
of the income Of their aecruipg interest,
and then to the interest overdue, with the
interest thereon. The same may be said of
the Vermont and Canada company. II its
right to the payment OF rent is paramount
to all Others, it will be entitled first to the
accruing rental, and then to tho overdue
rent and the interest thereon. Which ever
may be the successful party il is probable
that for some tim. to come the income
OF the property will be absorbed IN meet
ing the accruing semi-yearly obligations
and the payment OF the accumulated and
overdue claims for interest, with the cur
rent interest thereon. The question of q
compromise between tho conflicting inter
ests is, therefore. one that is worthy the
consideration Of all holders of the sccuri-
ties involved 10 view of the possible re-
suit indicated above, and OF the recognized
uncertainty of all litigation, it might be
wise thing for all parties by friendly con-
cessiOns to avoid the further expenses Of a
costly and protracted contention IN the
courts, and begin at once to receive such
benefits as may arise from an ca uitable dis
tribution of the income from the property.
Boston Journal