The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1897-10-20

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first mortgage, the rest Of the principal In |
the second mortgage bonds known as Be- |
ries A, and their accrued interest to the |
date OF the new mortgage In the bonds
known as Series b.
The Crank Trunk Railway Company will
make traffic contract with the new corp,-
ration, and agree that II the net income OF
the new company is not sufficient to pay
the interest on the first mortgage bonds and
the bonds OF Series A 1t will make good the
deficiency and see that the interest is paid,
provided It is not required to pay more than
a sum equal to thirty per cent of the gross
receipts from traffic interchanged with the
new company. Judged by any past figures
this agreement secures the payment Of the
interest on the first mortgage bonds and on
the bonds known as Series A.
or the first mortgage bonds at least
81 900 900 are to remain in the treasury OF
the new corporation and be applied to i'm
proving the property.
This plan, in brief, is for the Grand
Trunk Railroad to issue, $4,000, 1000
new four per cent gold bonds to take
up the old bonds and interest, the in
terest on the new bonds to be guaran-
teed by the Grand Trunk Railway Com
pany for twenty-one years. If the net
income of the new company is not
sufficient to pay the interest on the
first mortgage bonds and Series A
bonds, the deficiency will be made
good, provided the Grand Trunk road
is not required to pay more than sum
equal to thirty per cent of the gross re-
ceipts from lis interchangeable traffic
with the new company. The effect of
the scheme, if carried out, will be to
place the Central Vermont in the abso-
lutte control of the Crank Trunk for
twenty-one years. AT the meeting held
in Boston. this plan was adopted by the
necessary vote. In this action the
Grand Trunk Railway has shown its
hand. But the action of the first mort
gage bond-holders at this meeting is by
no means decisive. The second mort
gage bond-holders and the Central Yer.
mont, or Smith interests, must be sat-
isfied and agree to this proposition.
Some of the leading newspapers of
Vermont have surprised their readers
by jumping at conclusions. accepting
the whole thing as settled, taking it for
granted that the Grand Trunk has
gobbled the Central Vermont "bag and
baggage" and that the general Offices
and shops of the Central Vermont Rail.
road will, before long, be moved from
st. Adams to Montreal. While such q
thing is remote possibility, the state.
ment made by General Manager Hayes
of the Grand Trunk Railroad, would
indicate that it is not probability. To
reporter of the Montreal Star, Mr.
Hayes said, last Friday, that while it is
yet too early to foreshadow just wha,
changes may take place in the manage
ment, providing the plan goes through
the autonomy of the Central Vermont
as railroad system is contemplated
If this means anything it means tha
the road will still maintain separate
existence and will not be amalgamatet
or consolidated in it's management witt
that of the Grand Trunk itself, as wal
the Chicago and Grand Trunk at thu
western terminus. 1t means that thu
road will still be known as the Contra
Vermont, and will have, to certain
extent, its own distinctive management
The matter is yet in too unsettled
and embryo a state to prophes.
with any degree of certainty what tn
final outcome will be. While the PEG
pie of Vermont have no reason to hav
antagonistic feelings toward the Gran'
Trunk railway, there are few citizen
, of the State who would not regret t.
: see the Central Vermont pass com
= pletely from the home management
, that has guarded its interests 30 faith
? fully during two generations, into tn
: hands of foreign corporation cor
l trolled from London. Should a wa
r be found out of the difficulty and tn
ultimate management be still in it's prei
! ent hands, hardly citizen in the Gree
= Mountain Estate but would rejoice 6
Q such final outcome of the matter.
' In fairness to the present manage
ment it ought to be said that the occs
!, sion of the present receivership of tn
), road originated in extravaganza lease
: made by the old management of tn
3 Central Vermont some ten or twelv
years ago, at time when the countr
: was prosperous and everything looke
t favorable for the taking of these leases
Q The hard times that have existed /
q railroad matters. since the panic {
n 1893 have brought nearly half the raj
roads of the United States into tn
n hands of receivers, for exactly the sam
= reasons that the Central Vermont
y now in that position. The road was il
a solvent in 1893, and Colonel E.
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