The Windham County reformer. (Battleboro, Vt.) 1876-1897, 1896-03-27
REFoRMER BRATTLEBoRo VT. FRIDAY. MARCH e. 1885,
THE CENTRAL VERMONT GOES INTO
RECEIVERS HANDS.
a, ton Taken In Three Statcs-!rhe
Grand Trunk Forces the FalI-A Long
History OF Financial MisadveMturc.

a, ton Taken In Three Statcs-rh
Grand Trunk Forces the FalI-A Lon
History OF Financial Misadventurc.
The Central Vermont Railroad Co was throw
into the hands of the receivers Saturday nigh
by action simultaneously brought in the U
Circuit courts NJ New York, Boston and TN
state. Judge Wheeler named Charles NJ Have
genera! manager of the Grand Trunk, and Pre-
i c Smith of the Vermont Central as receiver
for the Vermont district, and In the auNilar
proceedings at New York and Boston the sam
receivers were named, $4,000 bonds being II
quired. The roceivcrship Is the result of n sui
in equity brought by the Grand Trunk agains
the Central Vermont for S4l5,7l2.4j, traffic ba
| ances ACQUIRING since July, '4 and the Gram
Trunk alleges that while it has had at ali time
! since July. 1891, sufficient money, the Contra
| Vermont railroad has refused to pay the same
and has wrongfully appropriated the money TO
other uses against the protest OF the GRAM
Trunk railway. The Grand Trunk also aliegc
that through Encouragement the Central Yer
mont has incurred an unsecured debt, amount
ing to more than s2,00O,00O, Oh account Of thu
| Hartford bridge accident, the double trackin!
! of portions of the road, the building of man,
iron bridges, etc, which the Central Vermont il
unable to pay rs 1t natures and comes due. An
| Other allegation is that the interest on bonds o
$780, O0 held by the Grand Trunk railway, be
comes due July |. 1876, and the orator caim
that the defendant will not be able to meet tn,
same, owing to the depreciation of marke: val
ues. The Central Vermont has also contracted
with the National car company for the use o.
nearly 1000 ears, raying mileage compensation
monthly, and in default thereof, the Nationa
car company may withdraw the cars, thereby
depriving the Central Vermont company of q
large part OF Its source of revenue. The Cen
trail Vermont company has also similar con
tract with the Wagner car company. All leases
contain clauses for re entry for non-paymcnt
whereby forfeiture would be occasiOned II pay
ment is not made according to lease. large
part of the traillc over the road consists Of the
transfer of grain from Chicago To Boston, the
freight money Is collected In Boston; that large
sums accumulate in the hands of the Boston and
Maine and the Fitchburg railroad; that 1t is
liable to attachment, and that such action would
paralyze the business of the dcfendent, and rem
der II wholly unable to carry ON the same.
The rccclvcrship while not a surprise to men
who follow such things closely, was to the gen.
crIl public, for 1t had been supposed up to a
short time ago, that the conso isation of inter.
est and re organization had placed the property
on a hardpa basis, so that II might be able to
meet Its obligations Its reported earnings for
last year of sj,i7i,i9S O2, divided as follows:
Passenger, al 501,323 81, freight, $3,2l2,3l9 49,;
mail and express, Sl13,at1 81; lake and sound
steamers, s59l,H29 30; miscellaneons, SW9l3 i6;
The total expenses were S3,as5607 81. divided
as follows: Transportation, 81, 4+0, 80 u; equip
ment, Si55, l6l 30; maintenance s4G3,ss3 As; lake
and sound steamers s49O,132 10: general, sl35,;
the surplus was SlG,26l 80. But the gross
showed "A decrease Of SIaj,j2S ard the net Of
SiS,s3G from the year before and its liked
charges had increased so that after charges a
balance was reported Tor the year 1898 OF only
S51l3, against balance for lsal-2 of Sl3i,9i0
1t appears since then To have lost further
ground, added to its floating debt, and finally
found itself In q hole.
Its Lugubrious History.
The entire history of the Central Vermont
railroad, from the day Of lis construction TO the
present moment has been one continuous story
Of loss and litigation. The man lnc-tormerly
known ~ the Vermont Central Was completed
In lsjO. 1t was built by Burlington and Boston
pllif nj and if= iIinpl the Hurllur.
tOuians engaged in IL and there were immense
losses at the Boston end. The first Issue of
stock proving insufficient, y second issue, and
then a third We're made, reducing the par OF the
stock from ; 100 To S33 Eventually the stock of
both roads became absolutely worthless. The
Vermont AMI Canada road, from Essex June
lion north, WAS but chiefly upon bonds guar.
antecd by the Vermont Central, and sccm cd by
lii st and second mortgages, and was leased 10
the Central at q rental OTIS per ceat Of the cost
of the road, with provision that in the event of
a failure TO pay the rent, the Vermont and Can.
ada might take possession OF both roads. \
first mortgage of the Central fo- two million
dollars WAS made, and latter second mortgage
of a million and Il half but the money thus Dor.
rOwcd brought only temporary relief. In lH,i
the engines ears and other property of the Cen
trail were attached by its creditors and the d
reciors 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
rndeavored to recover lis property from the
trustees by bill IN chanccry. The trustees oil
Of the second mortgage also tried to OBTAIN pos
session of the road, and flood of law suits fol
lowed. some In the State courts and some In the
'pitcd States courts. Meantime the rent of the
Vermont and Canada was not paid, ana that
company stepped in and took possession of both
roads, rs receiver, under n decree of court
More suits and applications to the courts for the
removal of trustees and receivers followed, ana
there was no end OF trouble. For u time the
Vermont parties kept control. Then for a time
The Boston interests were on top, and 4 Mr. far.
rot was president of the Vermont and Canlda
and there were times when 1t was hard to ten
under which thimbe the pea was. Subsequent
" compromise was affected by which the over.
iue notes of the Vermont and Canada were
capitalized and the capital of that company in.
'reased to s2o00,o@o; million of dollars OF
lverdue coupons on the first mortgage bonds
we're funded; and the road was placed in the
hands of the court of Chancery, Judge Luxe l.
Poland being chancellor, who undertook TO
distribute the net earnings above running eN' |
lenses, among the holders of the several classes
II securities. The renewal of rolling stock. |
luiiding of branches and purchase of feeding |
'oads compelled additional issues OF equipment
consolidated and other bonds; AMI always more |
interest was due than the road could pay, and
he old securities, mortgages and I'll were wiped |
nut and even the leased line, the Vermont ami
canada was swallowed up 10 pay the new debts
reated under the rccciyership, until finally
Of the various interests and claims /
we're made and new paper issued on it,
Charles Hanoy, the seventeen oil son of /
lanes lIancy of Proctor. while NJ pay Ncuncs /
Law afternoon about J O'Clock on the iron |
ridge near st D1mnick church, slipped and |
ell to the tracks below, distance OF about 80 /
Get No bones we're broken by the fall, hut he |
vas badly shaken M and received Il long cut |
ndcr the chin.
II { Melvin of Bridgeport, fell down stairs in |
is stable the other day and broke his right leS /
n two places.
\ Hall. OF Island Pond, was thrown from /
lis sleigh one day last week, falling under the |
orscs' feet. and was stepped upon and injured |
" the animal as ii floundered in the deep snow !
Candidates COR appointment 10 a cadetship at
Vest Point military academy have been noii. |
ed that 4 competitive examination will be held |
I the Van Ness, in Burlington, May H. which /
riii he under tine direction of State snptrintend. |
MT NJ Stone, Hon II Burt AMI Dr I
thompson. hlcaniidatcs must be residents OF
he fret Congressional district and must be not |
,ss than II nor more than - years OF age.
4 wild deer running through some of the vii |
age streets in Bennington sunday morning at
ractcd much attention.
The whereabouts of Charles Winters. the |
ov who has been missing from Rutland near
u week, is still a mystery. Chief OF Police
,lsworth has written to several of the surrounds
1C cities but has found no trace of the boy.