Middlebury register. (Middlebury, Vt.) 1886-1937, 1896-03-27
THE CENTRA VERMONT
lN1HE HANDS oF RECEIVERS.

IN1HE HANDS OF RECEIVERS.
Receivers were appointed for the Cen
/ tral Vermont Railroad company in a
suit brought by the Grand Trunk Rail
way company last Friday by Judge
Wheeler of the United States circuit
court for the district of Vermont. Tho
receivers are Charles NJ. Hays, general
manager of the Grand Trunk railway,
and E. c. Smith, president of the Cen
trail Vermont road The same men have
been made receivers in Connecticut,
/ Massachusetts and other States where
the company has property. The re-
ceivers were asked for suit in equity,
which is brought by the Grand Trunk
to obtain the sum of S4l5,7l2 - in
traffic balances, which tine Grand Trunk
claims is due from the Central Vermont.
This sum, it Is alleged, has accrued dur
ing the last four months.
President f. c. Smith of the Central
Vermont says:
1.-The receivers were appointed upon
the petition of the Grand Trunk Rail
way company to the United States cir
cult court for the district of Vermont.
That company is a large holder of the
securities of the Central Vermont COM
pany and also a creditor. The appica-
ton was made entirely without the
knowledge of the Central Vermont and
was complete surprise to its officers.
The motive of the Grand Trunk COM
pany in this move is not entirely well
defined. but from the fact that f. G.
Smith, president of the Central Yer
mont. was at its request associated
with Charles NJ. Hays, general manager
of the Grand Trunk company, in the re.
ownership it may be safely assumed that
it had only the best interests of the
property IN view and that there will be
no interruption In the operation of the
property so far as concerns the person
mel of the staff or in its arrangements
with its railroad connections or in the
friendly relations between the Central
Vermont and Grand Trunk roads. The
floating indebtedness consists of bills
payable and notes. The latter are
largely secured by collateral, and the
former, mostly protected by the order of
the courts, provides for the payment of
all outstanding Indebtedness tor labor
and supplies accrued within the past six
months"
The Rutland division of the Central
Vermont is owned by the Delaware and
! Hudson Canal company. p. w. Glenn
ent of Rutland, president of the Rut-
land railroad, says in answer to ques-
tions as to the effect of the recevership
upon the Rutland road:
"The gross receipts of the Rutland
road, as they accrue from day to day at
the different stations on its line, are
paid to a trustee and do not go into the
Central Vermont treasury, nor are they
under its control, At the end of each
month, after paying to the Rutland road
its rental due, the trustee pays to the
Central Vermont the balance, so that
there is at all times a large amount of
money due the Central Vermont from
this source. The rental amounts to
| $3.50, 900 year, and the gross receipts
of the road are from 100000 to 81 ,000,-
600 year. The receivershiD does not
affect the Rutland road; but the re-
ceivers may continue to run trains over
it provided they first get the consent of
the Rutland Railroad company as pro-
vided in the lease"
The roads constituting the Central
Vermont system are as follows:
Central Vermont, from Burlington to
Windsor, 1873 miles.
New London road, Brattleboro to New
London, Ct, III miles, with connecting
line of steamers running to New York.
Rutland road, from Bellows Falls to
Burlington, 100 miles.
Vermont and Canada, from Burlington
to Alburgh, SO miles.
Ogdensburg and Lake Champlain,
Rouses Point to Ogdensburg. rs miles,
with steamers running from Ogdens-
burg to Chicago.
Missisquoi Valley, st. Adams to Rich
ford, 2s miles.
Burlington & Lamoille, Burlington to
Cambridge Jc., "a miles.
Northern New York, Upper Lake to
Meira, "a miles.
st. Johns and Waterloo, Waterloo to
Montreal, 20 miles.