The Windham County reformer. (Battleboro, Vt.) 1876-1897, 1896-03-27

n
normal condition, such as it has beer
in for about 81 of it's As years OF exist
encc.
II would seem with business yield
ing net revenue of Il million and ;
half a year about operating expenses
, that il ought to be able to keep its heat
above water, and probably it would bu
the past accumulation of debt which
represents no present value, but or
which fixed charges have to be paid.
But its position has also been in
hercnt!y weak, because of the extent
to which it has had to depend on
through traffic." all done in compe-
tition with shorter, more direct and bet
ter equipped lines, and it's margin of
solvency has been so small, with Il
surplus i'll the past two years Of only
80, 600 above fixed charges, that only
Il short period Of poor business was
necessary to upset il. IT the energy
and ability that has gone TO the cstab
through system, had been devoted
to the building of Il local traffic along
| the line, there might be very diff
ferent story 10 tell to day. Ii is tho
local business that means permanent
prosperity for a railroad that will abide
whom through traffic proves most
elusive and unsatisfactory, especially
if handled under unnatural conditions
as the Ccntral's has been.
One feature of this receiverahip that
is unusual is the presence of 4 repre-.
sentative of the creditor interest. Gen
cral Manager Hays of the Grand Trunk. |
rs one of the receivers. Usually the |
men who have brought the property |
to bankruptcy get themselves appoint /
ed receivers to continue the very same |
policies and deals that have caused |
disaster In this case il might he in
teresting to- know how much the
National Gar Co., has made by renting
its cars to the Central while this
process of bankruptcy was in progress
and what if any other of the inside
deals, so familiar in American rail
have enriched the managers
while contributing to the wreck Of the
This is what Il receiver
ship is usually manipulated to cover
up, and it is the reason why a railroad
investment almost az good as a gov ;
,rnment bond IN other counties has
come to be regarded in America as :
-ery much like gambling against
oaded dice. And il is bigger fac {
or than any other one in our hard |
ines. Even where there is nothing !
'ut innocent mismanagement that has .
brought railroad to receivcrship, q
{ would seem TO be only business !
ommon sense to discontinue that
I
Probably We are safe from anything 4
ike a repetition of the scandal and /
hamc of the previous Central Vermont +
aceivership, which formed the most {
isgraceful chapter of Vermont his S
)ry, and one of the worst in all the J.
.cords Of human jurisprudence A b
'ceiver is appointed TO receive aud d
lie law and the courts should hold 81
i'm strictly TO that line. But instead
that. Under the prctense OF bone -,
ting the property aud with the te
rm of consent by parties in interest, b,
lc old receiyership went into ii big -
regulation and policy of eXpan gs
on, leasing lines, operating steam 70
oats, buying politicians and legisla- pc
on, controlling the politics of Yer
ont. issuing new debt in receivers Tt
rtiticatcs' and like forms to do it
|, until tho now debt swallowed up Al
bstantially the whole property. and
c result was realized IN effect that No
ortgagc was rendered worthless by
c very process of foreclosing it. 1t WI
came from tho attempt. under
urt authority, e. makr bankrupt lila
rpo-ation the basis of - great speech
i've interstate system. be
The lesson was learned pretty effect IN
lily. 1t was "a costly one IN the dis ~
,dit it threw ON the state and not r.
IN tho judges who felt compelled 70 C.
stain the thing tp the end failed Re
realize that il was all wrong and liir
developing from the wrong step ser
ny FROM the trur principles Of re- G.
vcrship. Go