The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1898-05-18

Grand Trunk would be unwilling to
give any guarantee of any value to
stockholders of these lines. They
would, therefore, suffer materially il
the proposed plan is carried out and
they will make the best fight that they
can, and secure If possible the adop-
ton of some other plan.
DETAILS OF THE PLAN.
Under the proposed reorganization
the Grand Trunk will own all the ste ok
in the new corporation. The plan pro.
vides that the holders of the old IS re-
ceive 80 per cent. of the new frst As
and 10 per cent. in second mortgage
AS, and for interest to February, 1898,
second mortgage BIS a. par. The
Grand Trunk agrees undtr ID traffic
contract to make good any deficiency
in earnings TO meet interest on the
new firsts and s,rIes A boz d, up to
30 per cent of Gand Trunk receipts
from traflic intefchanged. In accord
ance with subsequent arrangements
the Grand Trunk railway agreed TO
pay for one year to the holders of GER
tificates of deposit of the American
Loan and Trust company on the quar-
terly interest days beginning May l,
1898, the interest which would be due
on the new first mortgage 4 per cent.
and series A bonds, provided for by
the plan OF reorganization, and under
that agreement, at the beginning of
this month the interest was paid by
the Grand Trunk. 1t is reported that
four ifths Of the first mortgage bonds.
as well as two-lhirds of the second
mortgage bonds of the Central Yer
mont, have assented TO this plan of re-
organization.
The chief obstacle TO the successful
carrying out of the plan, however, lies
in the relation of the Central Vermont
TO the New London Northern railroad,
The latter properly is what makes the
Central Vermont valuable system,
Through this railroad the Central Yer
mont system reaches to Long Island
Sound TO the only port on that Sound
which is not within the control of the
New York, New Haven and Hartford.
The lease of the New London North
elm to the Central Vermont provides
that the former shall not be transferred
TO any other lessee without the assent
OF the lessor, and the consent of the
State OF Massachusetts. The attempt
is now being made 10 secure such as
sent, before the foreclosure. through
the passage of bill by the Mlssachu-
sets Legislature, providing that the
lease be transferred to the American
l pan and Trust Company. This bill
passed the House with an amendment
to the effect that such transfer must be
made with the consent of the Massa-
chuset' railload commissioners. Even
if the consent of the State is obtained,
however, it is necessary to secure the
consent of the New London Northern,
which is understood to be in sympathy
with the scheme.
REAL KEY TO THE SITUATION.
II will thus be seen from the forego-
ing that even if the decree of foreclo-
sure is granted, this does not help the
Grand Trunk reorganization committee
unless they can secure the transference
of the lease of the New London North
ern to the new company. The New
London Northern, in short, is the real
key to the situation.
The latest interesting development
In connection with this mater is the
passage of bill by the Vermont Legis-
lature, which was signed on Thursday
by Governor Grout, to checkmate the
Grand Trunk plan to secure control of
the Central Vermont railroad.
The contest promises to be very in
teresting and significant one, and on
its outcome may depend various de-
velopments, which may materially af.
feet the railroad situation in New Eng
land. On both sides are arrayed emf
nent legal talent, who will make the
best legal fight doubtless which can be
made.