Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1882-11-24
A Promised Compromise OF the Central
VermOnt Litigation.

A Promised Compromise oftho Central
Vermont Litigation.
Ex-Gov. Smith tells a Boston journal re-
porter that the terms of a compromise of the
great suit with the Vermont and Canada COM
pany are substantially agreed upon and the
matter will probably be settled in a few days
The Central Vermont management propose
to purchase of President Brooks and mis- as-
sociates in the Vermont and Canada road
their entire interest in the stock of the corpo-
ration, as well as the amount held by them of
first and second mortgage bonds of the Yer
mont Central railroad. The amount of Yer
mont and Canada stock is So, 600, 600. The
first mortgage of the Vermont Central is S.
600, 900 and the second mortgage 81 ,OOO,-
600. The trust Indebtedness of the pres
ent managers, which the supreme court de-
cides is an equitable mortgage on the corpus
of the Vermont Central aud Vermont and
Canada roads, aggregates 50, 1000, 900, includ-
ing the Central Vermont claim, equipment
bonds and floating debt. 1t is proposed, af-
ter title to this railroad property is obtain
ed, to effect an organization under Vermont
laws and to issue first mortgage of 81, OOO,-
900 at per cent on the whole property OF
this mortgage the holders of Vermont and
Canada stock are to receive 81 900, 900 in ex-
change for the three millions of stock of that
company ull Nlhlul lOI DhCh Ebul u DC sur
rendered. To the owners Of the equipment
bonds, the holders of the floating debt and
all other creditors included in the decree of
the supreme court in the Langdon case, con-
stituting the trust debt of Sc, 900, 600, are
to be apportioned the balance of Sc, 900, 600
of these bonds. The holders of first and sec
ond mortgage bonds are to receive a second
airy security on basis of 20 cents on a dollar
for second mortgage bonds in preferred stock.
On the contamination Of the negotiations for
settlement the original suit, entitled Tho
Vermont and Canada versus the Vermont
Central railroad company" entered in the
docket of the Franklin county court in 1875,
and of which the great LangdQn railroad
case, instituted in 1873, is supplementary, will
be terminated, a final decree will be given in
the Langdon case and the suits now on the
docket of the United States court will be with
drawn. ExGov. Smith pronounces the state
ments of probable lease of the Central Yer
mont system to the Grand Trunk railway
without foundation.
Later. Central Vermont directors
met at Boston Wednesday to act on the prop
ositon above detailed. 1t was decided to ac-
cept the terms of the proposition in slightly
modified form. The $1,000, 600 first mort
gage bonds to be issued under the organiza-
ton will be placed with the American loan
and trust company, with whom the holders
of the old securities may exchange The Yer
mont and Canada is to receive of these 33 per
cent. on its S3,000,00O of stock. Their
bonds of all classes, amounting to 81, 3j7 600,
will be paid for at par. One million dollars
of the new first mortgage will be applied to
the cancellation of the floating debt, and SG43,-
900 to the liquidation of the debt of the Cen
trail Vermont. The Vermont Central first
and second mortgage bonds will be secured
on basis of 20 cents and 10 cents on q dol
lar respectively. This agreement has only
to be ratified by the Vermont and Canada
bondholders and, as a sufficient number of
individual holders have already expressed
themselves in favor of it, it is considered
practically consummated. The Central Yer
mont will then take charge of the Vermont
Central and the Vermont and Canada road
under lease.
The Boston Journal says of this comprom-
Use and its effects;
1.-THE above compromise is to be in full
settlement of all existing differences, and the
suits pending between two roads in both the
State and Federal courts are to be withdrawn.
The new bonds thus become clean first lien
on all the property of the two roads, and will
probably rank as a tirst.class security. The
property thus mortgaged is appraised at be-
tween S15, 900, 600 aud $50, 900, 600 total val.
ne. or course this pooling of interests
amounts to virtual purchase of the Vermont
Central and the Vermont and Canada by the
Central Vermont. Legislative sanction would
be necessary to a consolidation of charters
under one cooperative head, but to all intents
and purposes the result is the the same The
long pending litigation threatened the utter
ruin of all concerned. The Central Vermont
trust was unable to make binding contracts
with the Grand Trunk on the north or the
Boston, Lowell and Concord and the Fitch.
burg on the south. The danger was that the
Grand Trunk would secure another eastern
outlet, as it soon must do, and that soon all
share in through business would be lost
That would mean disaster to the whole sys.
tenn.
Concerning the relations of the Central
Vermont and the Grand Trunk, it is as has
been stated, untrue that lease of the former
to the latter is contemplated. But it is hoped |
and expected that the Grand Trunk will find |
its eastern outlet over these lines The mat |
ter could probably be arranged by means of a |
traffic contract. The Grand Trunk would |
obtain terminal facilities in this city over the |
Boston, Lowell and Concord or the Fitchburg, |
and it would reach New York via New Lon. |
don. Bot all arrangements with other roads |
are matters for the future. The Vermont |
railroad war is ended, and that fact no one |
but the lawyers will regret.