Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-10-19

The Road In Possession OF Trustees
The Grip of the Canadian Pacific.


The Canadian Pacific railway company is
now virtually in possession of the Southeast.
ern railway. In accordance with a vote of
the directors of the hitter company, the
trustees of the bondholdlers, Hon. r. =.
Redfcld Of Montpelier, Mr.. William Far.
well OF Faruham and Mr.. Duncan Mcintyre,
director of the Canadian Pacific. The
Southeastern road was passed over to these
trustees and is being operated by them under
the provisions of deed of trust or mortgage
executed on the 18th day of August, and by
reason of default having been made for more
than ninety days in the payment of four
semi.anntlal interest coupons on the SO 900,
900 of first mortgage bonds of the company.
The Canadian Pacific company hold 81, 100,
600 of these bonds. The interest in arrears
amounts to S240, 900, and must he paid before
any other claims are liquidated. The greater
portion of the rolling stock of the South
Eastern is practically owned by the Cana.
dian Pacific aud the Passumpsic roads, the
claims Of the Wason car company on the
passenger coaches having been paid by the
Canadian Pacific company. The possession
by the parties named of the South Eastern,
In no wise Affects the status of the Montreal,
Portland and Boston railway, which is sep.
aratc corporation and is controlled by hold.
ers of stock and bonds in that company. A
majority Of both classes of securities are held
by Bradley Barlow and the Vermont Nation.
al bank Of ST. Adams, and Receiver IIcndee
says that the legal title of this road is In the
stock and bonds. For this reoson he be-
lieves the bonds held by the bank amounting
TO 1881 900 out of a total issue of 1901 600
are valuable security, and that they vii
bring at least 100000 for the benefit Of the
Vermont National Bank. 1t is necessary fol
the Canadian Pacific to own the Montreal
Portland and Boston railway, which Is the
import mt link in the South Eastern line be
tween Montreal and Newport, in order
to operate successfully and advantagcously
the South Eastern system. The road
is in possession of the present trustees of the
Southeastern only by the tact consent of tho
holders of the stock and bonds-Bradley Bar
low and Receiver Hendec-in whom the
right aud title of the property is vested. Fol-
prudential and wise reasons Receiver Hendet
does not assert his right on behalf of the
Vermont National bank for the possession Of
the Montreal, Portland and Boston railway
1t will be 10 the greater advantage of the de
postors in the bank If the bonds can be sold
az reasonable Inquire to the Canadian Pacific
In addition to the bonds In question Receiver
Icudce states that he has assets of the bank
in his possession amounting to $4,000
which can be converted into cash, and also
the Washington property of Bradley Barlow
which is valued above all membranes IA
nearly 1926 600 and which assets it is be
licved can no, be afft cted by any insolvency
proceedings in Vermont. If these assets cal
be realized on at the figures given above
$3.50, 000-there will be sufficient funds t.
pay dcpostols in full as well as all the debts
| OF the bank, the expenses of liquidation aut
leave a small margin for the Stockholders.