Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1896-03-26
Central Vermont Railroad Receiver.
ship.

The placing Of the Central Vermont road
in the hands Of receivers is another stage
in long series of embarrassments, lti-
cations and receiverships which have
marked It's history for forty years. The
Burlington railroads were rival enter
prises. Both were completed in 1s49 I'M
der intense rivalry, and gave to Burlington
competing lines to Boston. The Vermont
Central was built upon stock subscrip-
lions. The first issue of stock proving in
sufficient. second issue, and then a third
were made, reducing tho par of the stock
from 500 to $3S. Eventually the stock
of both roads became absolutely WORTH
less. The Vermont and Canada road,
from Essex Junction north, was built
chiefly upon bonds guaranteed by the Ver-
mont Central, and secured by first and
second mortgages, and was leased to tho
Central at a rental of per cent of the
cost of the road, with provision that In
the event Of a failure to pay the rent,
the Vermont and Canada might take pos
session OF both roads. A first mort
gage Of the Central for two million dollars
was made, and later a second mort
q
but the money thus borrowed brought
only temporary relief. In 1854 the engines
cars and other property Of the Central
were attached by it's creditors and the
directors surrendered the road to-, the
trustees of the first mortgage bonds, who
undertook to pay the debts and relieve
the attachments. which they did not do
The Central corporation then endeavored
to recover its property from the trustees
by bill In chancery. The trustees of the
second mortgage also tried to obtain DOS
session of the road, and food of law
suits followed, some In the State courts
and some in the United States courts.
There was for time a bitter quarrel be-
tween the Boston wing" and the ''Ver-
mont wing" OF the creditors and security
holders.
Meantime the rent of the Vermont and
Canada was not paid, and that company
stepped in and took possession of both
roads, as receiver, under decree of court.
More suits and applications to the courts
for the removal of trustees and receivers
followed. and there was no end of trouble.
For q time the Vermont parties kept con-
troll. Then for time the Boston interest
were on top. and a Mr.. Parrot was presi-
dent of the Vermont and Canada: and
there were times when 1t was hard to tell
under which thimble the pea was. SUISSE
Quently a compromise was effected by which
the overdue notes of the Vermont and
Canada were capitalized and the capital
OF that company Increased to 5000 900; q
million OF dollars of overdue coupons on
the first mortgage bonds were funded .
and the road was placed In tho hands of
the court OF Chancery, Judge Luke p. Po-
land being chancellor. which undertook to
distribute the net earnings above rum
ming expenses, among the holders Of the
several classes Of securities Tho renew
al of rolling stock building OF branches
and purchase OF feeding roads compelled
additional Issues of equipment consoli-
dated and other bonds; and always more
interest was due than the road could pay.
Not to multiply such details and emitting
some episodes to which we may ailudo an
other day. the road was under receiver
ships of one kind ana another for over
twenty years. Under the Vermont and
Canada possession the two roads wero
managed by John Smith. Joseph Clark and
Lawrence Rsainsrd AZ trustees OF the first
mortgage Of that road.
During subsequent periods Gov. John
Gregory Smith was at the helm az man.
ager and president and carried the road
through some serious emharassments. FL