The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1890-08-14
TO END THE LITIGATION.


A Conference Committee Of the Troy and
Boston Railroad Company and the Fitch
burg Railroad Company Agrees on Terms
of Settlement.
An important meeting of the directors
of the Troy and Boston railroad company
was held Monday at the Union depot in
this city.
The meeting was called to take action
on the report of a committee of the di-
rectors of the Troy and Boston company,
appointed to confer with a committee of
the directors of the Fitchburg company
on terms of settlement of the controversy
and the prCe to be paid by the Fitchburg
company for the first-mortgage bonds
and stock of the old Troy and Boston
railroad.
Litigation followed the consolidation.
An action was brought by the holders of
some of the tirst-mOrtgage bonds of the
| Troy and Boston company to foreclose
| the mortgage, because the company de-
faulted on the payment Of interest. The
| holders of the bonds were offered GER
| tain amount in cash or new four per cent
twenty-year bonds of the Fitchburg rail
road, but the offer was not accepted by
the bondholders. Some of the bOndhold-
ers claimed that the old bonds were
worth more than the Fitchburg offered,
Us they were seven per cent bonds and
did not mature for many years. The
action went through the courts to the
court of appeals, which affirmed the gem
eral terms decision staying the fore
closure.
A committee of the directors of the
Fitchburg railroad was appointed to con-
fer with like committee of the old Troy
Inafnn tn fain
terms of settlement could not be reached
which would be acceptable to both COM
panies. The conference committee after
several meetings drew up and agreed
upon plan of settlement, fixing price
for the bonds and stock of the Troy and
Boston, at which they would be accepted
by the Ftchburg railroad company, and
thus end the controversy.
The Troy and Boston directors at Mon
days meeting ratified the agreement
made by the conference committee.
1t is believed that the agreement will
be ratified by the Fitchburg railroad with
out delay, as it is understood the confer
ence committee representing that cor
pOratiOn was aware of the terms upon
which the FitchbuTg would accept a set
tlement. 1t will be good news to the
Troy and Boston people, and the agree
in railroad matters that has been made
in many years in this section.
The stock of the Troy and Boston ag-
gregated about 81 100000, and the first
mortgage bonds amounted to 81 100000.
The meeting of the Fitchburg railroad
directors to ratify the agreement between
that corporation and the Troy and Bos-
ton railroad will not be held until Aug.
13, as President Marcy, Superintendent
Adams and other officials of the Fitch
burg railroad were in Troy Tuesday, and
did not reach Boston in time for meet
ing Tuesday morning. President Marcy
is familiar with the details of the agree
ment, and Superintendent Adams was
one of the conference committee that
drew up the plan of settlement. There
is no doubt that the agreement will be
ratified by the Fitchburg company.
1t is stated that few shares of the
Troy and Boston stock were purchased
not long ago at fifteen cents on the dol
lar. When asked Tuesday if the settle
ment was effected at that figure, gen.
tleman familiar with the terms of settle
ment said: 'I'm told that the Fitchburg
people declared that the Troy and Boston
stock was not worth anything, but they
would give a certain figure for it rather
IMAM 10 90 on WlUn une NUMEROUS eApen-
sive lawsuits that have been begun.
The Fitchburg company, at the time of
the consolidation in 1887, issued 81, ,333,-
800 of stock to exchange for Troy and
Boston, but reserved S333, 800 to cover
any excess in the indebtedness of the
Troy and Boston 1t has been figured
out that in 1920, when the consolidated
bonds of the Troy and Boston railroad
will become due, that corporation would
be indebted to the Fitchburg Sl,214, 900
if the Fitchburg paid dividends on the
exchangedble stock, as had been ar
ranged If the Troy and Boston stock
holders receive fifteen cents on dollar
for their stock it is a good way out of a
costly controversy for them. Troy
Times, Aug I.