The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-10-12
RAILWAY NOTES.
The South Eastern Road.

The st. Albans correspondent of the Boston
Journal sends the following In reference to the
South Eastern road:
AS indicated in Montreal despatch 10 the
Journal nearly a month since, the Canadian
Pacific Railway Company is now virtually In
possession of the South Eastern Railway. In
accordance with vote of the directors of the
latter company, the South Eastern has been
transferred to the trustees of the bondholders,
Hon. 7. p Rsdfield of Montpelier, Mr.. Will
liam Farwell of Farnham and Mr. Duncan
Mcintyre, director of the Canadian Pacific
The South Eastern road was passed over to
these trustees and is being operated by them
under the provisions of deed of trust or mort
gage 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-annual interest coupons on the 81, 900, 600
of first mortgage bonds of the company The
Canadian Pacific Company hold S1,750,000 OF
these bonds. The interest in arrears amounts
to $240, 900, ana must be paid before any other
claims are liquidated. The greater portion of
the rolling stock of the South Eastern is prac-
tically owned by the Canadian Pacific and the
Passumpsic roads, the claims of the Wsson 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 separate corporation and is con-
trolled by holders Of stock and bonds in that
company A majority of both classes OF secur-
tiles are held by Bradley Barlow and the Yer
mont National Bank of St. Adams, and Re-
ceiver Hendee says that the legal title Of this
road is in the stock and bonds. FOR this reason
he believes the bonds held by the bank,
amounting to $751; 900 out of a total issue OF
S9Ol 600, are valuable security, and that they
will bring at least S300.000 for the benefit Of
the Vermont National Bank. 1t is necessary
for the Canadian Pacific to own the Montreal,
Portland and Boston railway, which is the inn
portant link in the Southeastern line between
Montreal and Newport, in order to operate
successfully and advantageously the South
Eastern system. The road is in possession OF
the present trustees of the South Eastern only
by the tacit consent of the holders Of the stock
and bonds-Bradley Barlow and Receiver
Hendee-in whom the right and title Of the
property is vested. For prudential and wise
reasons Receiver Hendee does not assert his
right on behalf of the Vermont National
Bank for the possession of the Montreal, Port
land and Boston railway. 1t will be to the
greater advantage of the deposltors in the
bank if the bonds can be sold at a reasonable
figure to the Canadian Pacific In addition to
the bonds in question Receiver Hendee states
that he has assets of the bank in his possession
amounting to 1925 600, which can be converted
into cash, and also the Washington property of
Bradley Barlow, which is valued above all
membranes at nearly $125, 900, and which
assets it is believed cannot be affected by any
insolvency proceedings in Vermont. II these
assets can be realized on at the figures given
abo-e-$550, ,000-there will be sufficient funds
to pay depositors in full as well as all the debts
of the bank, the expenses Of liquidation and
leave a small margin for the stockholders.