Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1898-10-28
Plan of Reorganization

or the Central Vermont Railroad at the
Meeting OF the BondhOlders I'm Boston
Wednesday.
Very different from last years turbulent
gathering was Wednesdays special meet
ing at Boston of the holders of certificates
of deposit of Consolidated railroad of Yer
mont five per cent bonds, called for the
purpose of ratifying modification of the
Central Vermont Reorganization plan
agreed upon during the interim by com
mittees representing the different conflict
ing interests The amended plan was
agreed to by vote of $780, 700 bonds,
AZ certificate holders voting. There was
no opposition and the only cloud upon the
horizon was the fear that the Vermont
legislature, at its present session, might
enact some legislation detrimental to the
proposed Reorganization, despite the efforts
of Gov. +. G. Smith and his friends to
carry out their part of the agreement.
After the election of Mr.. Hills as chair
man Mr. Storey briefly expla ned the rea-
sons for the calling of the special meeting.
The modified plan OF reorganization, he
said, is not materially different from the
over the same property, only in the new
scheme the amount of first mortgage four
per cent bonds will be $12 ZOO, 900 instead
of $4,000 900, as at first proposed. and
there will be no second mortgage. The
bonds will be 21-year gold bonds. The in
terest on these bonds will be guaranteed
by the Grand Trunk railway company by
traffic contract, under which any deficit
in earnings in any year will be provided
for by the Grand Trunk railway up to 80
per cent of the gross business nterchanged
by the Grand Trunk railway company
and the Central Vermont railway COM
pany.
Holders of the American Loan and Trust
company certificates and of first mortgage
Consolidated railroad of Vermont bonds
not deposited are TO receive par for their
present bonds in the new first mortgage
bonds and interest in cash at the rate of
four per cent per annum from Feb l, 1898,
to the date of the new bonds. The hold
ers of bonds and certificates will receive
also eight per cent Of the face of their
bonds in the capital stock of the new COM
pany, representing interest overdue Feb.
l, 1898. Of the balance of the $4,000
600 first mortgage bonds for 100000,
81, 100000 will remain in the treasury of
the company, to be issued for improve
ments and additions only under proper re-
strictions. The balance of the bonds and
stock will be used in acquiring branch
roads and in settlement of preferred claims,
reorganization expenses and other obliga-
ito S; in the retiring of the equipment
bonds and in'settement with the holders
of the general mortgage four per cent
bonds.
The new mortgage is to cover all the
property of the new company, including
branches, equipment, lease of the New
London Northern railroad company and
other property not now covered by the first
mortgage. The reason for increasing the
amount of payment was that it was found
necessary TO pay more than at first intended
for the Missisquoi Valley, Montreal and
Vermont Junction, and Burlington and
Lamoile Valley branch lines. Mr.. Storey
did not state just how much additional
was paid for these lines.
After the meeting one of the members
of the committee, in commenting upon the
unanimity of the proceedings, remarked,
with tinge of sarcasm, that guarantee
that was last year thought not good
enough for S1O,OO0,OO0 was now unani-
mously considered ample for Sl2, 100000.