Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1897-11-19
THE CENTRAL VERMONT.
Will the Grand Trunk Get the
Road?

Obstacles, Thrown In the Way---the
Cheney, LRngdOn and smith Estates
Withdraw---B. r. FIAelds View Of
the situation.
1t appears to be definitely settled that
there is To be determined opposition to the
Central Vermont reorganization plan, uL-
der which the road was to fall into the
hands of the Grand Trunk company Of
Canada The first positive sign of this
opposition was seen in the withdra wal by
Is. p. Cheney of the bonds held by his
fathers estate, and of his approval OF the
plan which he himself had helped to form
ulate. This involved also Mr.. Cheney's
resignation from the Reorganization COM
Inittee. Ezra II. Baker of Lee, HiggIu-
son q Co., Boston, was elected chairman
in his place, and TO fill the vacancy in the
committee caused by Mr.. Cheney's retire
ment Edward f. Disco, president of the
Worcester Safe Deposit and Trust com.
pauy, Was cho,er. The friends of the re-
organization plan were greatly puzz-d
over Mr. Chrney's Withdrawal, and there
were many speculatiUns as to what further
steps the opposition would take. Promi-
nent among these was the idea that IL
courts. A chef ground of the opposition
is that 1t is very questionable piece of
business policy to turn an American rail-
road over to foreign corporation, itself
with troubles of its own in plenty.
Last Saturday Mr.. Cheney himself ex-
planned his position. AS a member of the
bondholders' committee he thought it his
duty to assist in devising the plan which
would be best for Central Vermont bond
holders, and the plan adopted was in his
opinion the best that coull then be had
But he was only one of the three trustees
for his fathers estate, aud that estate had
large interest in the securities OF the
Burlington and Lanoille Valley and the
MlssisquOi Valley railroads and in the
National Car company, which interests
were harmed by the plan adopted After
the plan had been adopted it became the
obvious duty Of the trustees of the Cheney
estate to take such steps as would protect
its interest in the subsidiary companies
named, as well as in the Central Vermont
proper. A majority Of the trustees Of the
estate decided TO withdraw Central Yer
mant bonds on deposit, and Mr.. Cheney
therefore rendered his resignation as a
member Of the committee. The Langdon
estate was situated similarly to the Cheney
estate, and naturally took a similar course
One of the guesses at the plans of the
opposition is that, instead of seeking to
restrain the foreclosure sale of the proper
ty by injunction, they may become a bid
der at the sale and offer a figure in excess
OF that which the reorganization commit
tee is willing to pay, taking possession of
the property and running it themselves
This would be one effective way of solving
the problem.
Another View.
The Boston News Bureau, in an inter
esting Central Vermont story, says that the
course to be taken by the interests Cd.
posed to the reorganization committee,
will be through the Vermont courts.
The prin ipal opposers to the plan are
the LangdOn estate, the largest interest
in the road; the Smith estate, the second
largest interest, and the Cheney estate,
the third largest interest. The represen-
tatives of these estates feel confident that
they will be able to prevent the foreclos-
ure of the mortgage along the line laid out
by the committee, and the turning Of the
property over to the Grand Trunk
President f &. Smith and counsel, b. +.
Fihrld Of the Central Vermont have been
in Boston for several day. Mr.. Fifeld. who
evidently knows what he is talking about,
has this to say in an interview: "In the
proposed guarantee by the Grand Trunk
I OF the Central Vermont new mortgage, the
Grand Trunk agrees To make such interest
good out OF the gross earnings of the
Grand Trunk drrivable from business lin.
terchanged' between the two companies "a
the extent Of 30 per cent of such gross
. rfni1 "a.
changed then of course the Grand Trunk
is not responsible"
Mr.. Ftield then goes on to show that
the Grand Trunk has several Western
connections, and at best two Eastern out.
lets by the use of which it can avoid any
| interchange Of traffic with the Contra
Vermont if 1t sees it.
"While it may be true the Central Yer
mont could not he successfully rp0rgapized
on an independent basis" Mr.. Fifield
continues, lit does not become necessary
! that the road should tie up with the Crane
Trunk. The Ogdensburg and Lake Cham
plain road is the natural alliance of thu
Central Vermont and a Reorganization
along such lines could be made very sue
cessful.
"lhe Central Vermont is in splendiC
| physical condition, Notwithstanding re
ports TO the contrary. Considerable none,
has been put into the property. WlhiI
the last three years new rs. pound stee
rails have been put into the road for it.
entire length, with the exception OF abou
20 miles. Wooden bridges are now bein,
replaced with iron ones. Its passenger
equipment is one of the best in New Eng
| land.
"The Central Vermont road cannot b,
reorganized along the present lines unless
all interests are brought in, and the poin
is, can they bring them in? The great in
dividual interests in the road have no
been provided for in the plan, and the re
organization committee will have difficult,
in getting a decree"
The situation grows interesting and tn,
developments will be eagerly watched.
The stock of G. H. Sibley, a prominen
clothing merchant at Bennington the pas
30 years. has been attached by Boston anC
New York creditors The schedule of liza
bilities will be announced in a few days.
George E. Scribner, an electric railroa,
employe, disappeared from Montpelie
Monday leaving many mourning or ditors
Scribner has had quite a checkered matri
monial career. He was divorced from hi
first wife, married a second and a divorc
suit between Scribner and wife No. 2 wa
instituted some time since He has beer
living of late with one Carrie Hill an,