The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-14
TRUNK EXPANSION.
BosToN NOW ES AN EASTERN
TERMINAL OF THE ROAD.

1t is Hoped by Absorption OF the chicago ana
ernnd Trunk and the Vermont Central TO
Put the Canadian Road on u Paying Basls
-Unremunerative Leased Lines Given Up.
MONTREAL. Oct. 13.-Tho securing by tho
GRAND Trunk Railroad of tho sole and undivid-
cd col troll Of tho Central Vermont Railroad rs
a result Of yesterdays meeting of bondholdors
Mt washington is generally regarded as most
Important. Tho result will DO TO give tho
Grand Trunk practically a through trunk limo
under ono management at Montreal between
chicago and Boston, making the latter nm East
ern terminal OF the system as well as Portland,
Nc. 1t Is a sequel to the consolidation OF the
Chicago and Grand Trunk with the Grand
Trunk proper, and viii complete the union, I'M
der one direction, Of what a year ago were in
many respects distinct roads.
When the now management of the Grand
Trunk, with Mr.. Charles NJ. Hays as general
manager, took control OF the affairs of tho road
a Httlo over q year ago: they found that sys-
tenn In u peculiar condition. Running through
tho most pupulous and richest portion of the Do
minion, and having good American connections,
the road had, nevertheless, not been II paying
property and tho English shareholders de.
SPARED Of ever receiving any return for their
money invested.
a glance at tho several sections of the road
and the relative showing which these made In tho
yearly traffic returns indicated the reasons why
tho ~GrandTrunk was being operated at a loss, and
Mr.. Hays lost no time in getting to work to
stop the leaks. In the West the Chicago and
Grand Trunk showed a uniform yearly deficit.
and in tho East tho Central Vermont, which,
though not an integral portion OF the Grand
Trunk system, had traffic interchange with the
latter, and in which the Grand Trunk held q
large interest, was also a non-payGr, and tho
Grand Trunk consequently received no return
from its interest in tho road. Mr.. Hays turned
his attention to both roads from the very out.
sot, but in the case OF the Central Vermont
there were n number OF interests concerned,
which. were not friendly to Grand Trunk owner
ship OF the road.
The Chicago and Grand Trunk wero moro
easily, consolidated in management with tho
Grand Trunk system. and tho entire executive
and operating staff, with tho exception OF the
treasurer and his assistants, whose retention
was necessary in ordcS TO comply with the
laws OF tho State of Michigan. were either dis.
missed or made subordinate to the general
management of the road at Montreal. In this
way a considerable sconomy was effected. aud
tho road passed into the hands of officials
who operated It In the interests Of the system
as a'whole and not as an Independent line.
Hays's task was moro dificult. In the case
OF the Chicago and Grand Trunk the bond.
tical, but in the case OF the Central Vermont a
receivership was necessary. A receiver was
applied for and granted, Mr., Hays himself
and NJ: =; g. smith, tho President OF the Cen
The first move. under the receivcrship was
the giving IN Of two unremunerative leased
lines: Then Mr.. Hays turned his attention to
where It would be OF more value to the Grand
trunk, and nt the same time give more returns
for, the capital which tho Grand Trunk. had
locked up in the non.paying interests held in
the former road. The absolute control OF the
road Is the contamination OF this move.