Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-11-22
Probable End Of q Famous Suit.

The following interview, which appeared In
Mondays Boston Journal, explains 10 detail the
proposed compromise between the directors Of
the Central Vermont and Vermont and Canads
Railroads:
1.-THE journal correspondent called on Pres
dent j Gregory Smith of the Central Vermont
Railroad to-day to ascertain what he had to say
regarding the report In circulation of the probable
lease OF the Central Vermont system Of roads to
the Grand Trunk Railway Company of Canada
In case all pending litigation over the Vernon,
Central and Vermont and Canada railroads prop
erty should be terminated and compromise e.
fected, as proposed In the negotiations now In
progress for settlement OF conflicting interests
between the principal ltigations in the Langdon
case, the orators and defendants In the several
railroad suits before the United States circuit
court Governor Smith was free to say that the
first i1timation he had received that the probable
outcome OF the compromise Of the railroad litiRa
ton would be lease Of the Central Vermont's
roads to the Grand Trunk was through newspa.
per rumors. The report doubtless originated,
said Governor Smith, from parties inimical TO the
interests of the Central Vermont and hostile to
the success OF the negotiations for a settlement
OF our law suits 1t may possibly have grown out
OF the fact that a temporary arrangement has re-
Gently been effected between the mansg gers OF
the Canada Atlantic railway and the Grand Trunk
Company whereby the latter are to provide motive
power and run the same until the road is completed
through to a connection with the line Of the
Central Vermont road at Alburgb, Vermont.
The report Is regarded by Governor Smith as
calculated to produce mischief. and he pro-
nounces 1t utterly without foundation. You
can say said President Smith, that the terms
OF the proposed compromise are substantially
agreed upon and that in all probability the n, mat,
statements Of the terms of the compromises are in
correct In some particulars, but the following de-
tails OF the plan for a settlement Of matters and
exchange OF the various classes Of stock, bonds
and trust Indebtedness OF the Vermont and Can.
ada and Vermont Central railroads has been
agreed upon. The Central Vermont railroad
management propose to purchase OF President
Francis A. Brooks and his associates In the Yer
mont and Canada road their entire interest in the
stock OF the corporation, as well as the amount
held by them OF first and second mortgage bonds
OF the Vermont Central railroad. The amount OF
Vermont and Canada stock is three million dol
lars. The first mortgage Of the Vermont Central
Is two million, and the second mortgage one mil
lion dollars. The trust Indebtedness OF the pres
ent managers, which the supreme court decides is
an equitable mortgage on the corpus OF the Yer
mont Central and the Vermont and Canada roads,
aggregates six million dollars, including the Cen
trail Vermont claim, equipment bonds and floating
debt. 1t is proposed after title to this railroad
property is obtained, to effect organization un-
der Vermont liens, and to issue first mortgage
OF $1,000 600 at five per cent on the whole prop
erty. OF this mortgage the holders Of Vermont
and Canada stock are TO receive one million dol
lars In exchange for the three millions OF stock of
that company, all claim for back rent to be sur
rendered, To the owners OF equipment bonds,
the holders Of the floating debt and all other cred
itors included In the decree OF the supreme court
In the Langdon case constituting the trust debt OF
So, 600 900, are to be apportioned the balance Of
49, 00O, 900 Of these bonds. The holders Of first
and second mortgage bonds are to receive a sec
ondary security on a basis OF twenty cents on a
dollar for first and ten cents on dollar for
ond mortgage bonds In preferred stock On the
contamination Of the negotiations for settlement
the original suit, entitled THE Vermont and
pany," entered in the docket OF the Franklin
county court in 1855, and Of which the great Lang
don railroad case, instituted in 1873 is supple
mentary will be terminated, final decree will
be given In the Langdon case and the suits now
on the docket Of the United States court will be
withdrawn"