Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1898-11-03
Central Vermont Railroad Situation

Cases and bills involving Central Yer
mont railroad interests arc appearing In
different places to an extent that is en-
shrouding the present status of that line
in considerable mystery for many people,
and il may be of assistance TO members
of the Legislature 4, : well as to people in
general to give Il brief history of recent
ltisation and summarize the present sit
uation. When the reorganized Central
Vermont Railroad company owned by diff
ferent interests according to their claims
took possession NJ the different lines
which constituted the system in the late
seventies, the Grand Trunk became a
heavy owner OF Central Vermont stock
and bonds, and its interest has since been
Increased by leans and traffic balances.
ON March "A. 1895. the Grand Trunk Rail-
way company brought action against the
Central Vermont in the United States
Circuit Court and in March 20. following.
Judge IL. X. Wheeler appointed Charles
NJ Hays and F. c. Smith receivers of the
Central Vermont. On February 8, 1897. the
American Loan and Trust company
brought 4 bill in foreclosure against the
Central Vermont Railroad company, the
Consolidated Railroad company of Yer
mont and the Vermont X Canada COM
pany, the various companies represented
IN the system in ncrent ways, and
/ against G. NJ. Hays and f., G, Smith, Re-
ccivcrs. On November 20, 1897, 4 second
hill was brought by the American Loan
and Trust company to forecloSe the Sec
ond mortgage and on March Il, 1898, an
order was entered consolidating the three
causes.
4 compromise was At last entered int
by the Grand Trunk and other bond hold
ers. the mai steps having been taken al
n meeting of the hondholders in Boston OF
October - !lst. According 10 this agree
ment the bondholiers were to get pos
session of the Central and turn it over Il
m organization to be dominated by th'
Grand Trunk and il return the Gran,
Trunk was to issue 81. 10000 in per cent
bonds with which TO settle with the othe
hondholders and pay for branch roads. Tn
first mortgage per cent, bonds aggregate
81 10000 and the interest thereon is 500.
coo, while tho second mortgage per cent
bonds amount to about $Uoo,0o and tn
interest to sSpo.O0O DIR. W. 5. Webb's mort
gage on personal property is for abou
; $4,000, so that ;he total mortgage in
/ debtedncss OF the Central road and inter
: est aggregate sl.Sjoooo. 1t is evident
: therefore, that the Gains OF some OF tn
bondholders must have been scaled dow
pretty well in the compromise in order
allow $l,ODO,J00 or so for tho purchase {
= the Vermont & Canada Junction railwa.
9 the Missisquoi Valley railroad, and III
e Burlington * I.amoille railroad, which n
c Grand Trunk interests We're to take.
= addition to the two roads constituting III
I main line. the Vermont and Canada an
= the Central Vermont. assuming that II
: bonds can be sold at par.
I II all parties holding claims against n
!. road had acquiesced. this compromi:
o would undoubtedly have been followed /
S an early decree By Judge Wheeler, but |
the hearing at Brattleboro. October q. II
: National Bank of Redemption and othe
q representing claims aggregating N.lcoO
asked leave to be made defendants in Il
}, proceedings to foreclose the mortgages {
the Central, in order to get into the cal
and protect their interests. This is Il
matter regarding which Judge Wheeler
likely to make a decision when the CT