Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1896-03-26

trustees and to put the road in bank
ruptcy were begun, but all combinations
to break down the management failed.
Enemies of the road coused base libels to
be circulated In the newspapers and pre-
ferred grave charges against the trustees
and managers before the Legislature.
BROUGHT BEFORE THE LEGIsLA-
TURE.
These allegations resulted in the appoint
ment Of a special committee consisting of
six senators and representatives to in
vestigate the charges. After a searching
and protracted investigation of the trust
management. in which counsel OF pro-
nounced hostility to the trustees, acted as
prosecuting attorneys. the committee OF
investigation made a unanimous report to
the Legislature which wholly disproved
the charges and vindicated the manage
ment.
THE CENTRAL VERMONT.
In 1872 the Central Vermont Railroad
company was incorporated by the Legis-
lature, and the corporation organized in
the spring OF 1873 with capital stock of
81, 900, 900.
on petition the chancellor appointed the
new corporation receiver Of the Vermont
Central and the Vermont and Canada
railroads, TO succeed the old trustees.
Gov. Smith was elected president OF the
Central Vermont and continued as such
up to the time Of his death, Nov. G. 1891.
CONSOLIDATION.
In 1884, the scheme for the reorganization
and consolidation of the various railroads
as proposed by Gov. Smith, was carried
out, and the Consolidated Railroad % Ver-
mont was organized, $4,000 OF preferred
stock being issued to retire the first and
second mortgage bonds. The new COM
M toA to 0fA N a,,x
80 year bonds in exchange for the various
classes of claims and securities. These
bonds are secured by mortgage on both
roads and were exchanged as follows:
100000 of Vermont and Canada railroad
stock for 100000 new bonds; $4.357, 900
trust bonds for A357.e00 new bonds; ST.
643,000 OF floating debt and Central Yer
mont claims for like amount OF new
bonds.
FREE FROM RECEIVERS.
The most important day ~ the trust
roads since the receivership OF -so5 began
was the 18th of January, 1884. The hear
Ing before Chancellor Royce on that day
resulted in the approval and settlement
OF the accounts OF the receivers as re-
ported by special masters. the discharge
OF the receivership and the transfer OF the
Vermont Central and Canada railroads
with all their equipment and other prop
pany OF Vermont.
DEVELOPMENT OF THE ROAD.
Despite the fact that the Vermont Cen
trail and Vermont and Canada roads were
burdened with debt and hampered in their
operation for many years, the develop
ment has been constant and continuous.
In 1858 tho line extended only from Wind
sor to Alburg, a distance OF 1853 miles.
to-day the Central Vermont railroad sys-
tenn embraces over $50 miles of main track.
reaching from Osdensburs, N. Y, and
Ottawa and St Johns, Que, to Long Island
Sound, including four States In It's run.
A LARGE TRAFFIC.
The Central Vermont is one OF the lead
ing trunk lines in the country, with
freight traff1c annually exceeding that VI
any single track road In the United Statss.
The New London Northern railroad ex-
tending from South Vernon. VT, to New
London. Conn, was leased by the Central
Vermont In 1871; In 1856 the Central YER
mont acquired the controlling interest in
the Ogdensburg and Lake Champlain, and
In 1881 the Rutland railroad was leased for
999 years.
COL. SMITH AS PRESIDENT.
Col. +. c. Smith was made president of
the Central Vermont In December, 1891.
and the company has been doing a con-
stantly increasing business ever since; the
earnings for 1896 being the largest for sew
eral years, while the earnings for the first
six months OF the present fiscal year,
greatly exceed those of last. The board
OF directors OF the Central Vermont is
composed Of e. C. Smith, F. Stewart
Stranahan and d. d. Ranett of St. AL
bans. c. NJ Hays. John Bell and Charles
Percy of Montreal Robert Colt of New
London, b. Il. Smalley OF Burlington and
w. Seward Webb Of Sheburne.
THE RECEIVERS.
President e. C. Smith of the Central
Vermont is too we'll known among Ver-
monters to need any comment. Sound
business men consider him one OF the best
executive and practical men the road has
ever had at Its head. The inability to
raise tho bonded debt is in no way dis
creditnble to him. This immense debt was
on the rond before he assumed its control.
c. M. Hays. the general manager of tho
Grand Trunk system, was formerly prom
inently connected In the management of
the Wabash system. but in December. ,95.
succeeded Lewis j. Sergeant In the man
nsement OF the Grand Trunk system, He
Is a man of shrewd business sagaclty and
VIII doubtless make the best settlement
possible for the road.