Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1898-10-06
Terms of Agreement Issued by
the Bond Holders Reorgan-
ization Committee.
GRAND TRUNK GUARANTEE.
sI2, 100000 First Mortgage, 4 Per Cent,
21 Ncar Gold Bonds to bo Issued
Grand Trunk Will Make Good Any
Annual DE 6cit up to 80 Fer Cont
of All Business ntercb auEed.

Boston. Oct. 5-The following circular
stating the terms of the recent Central
Vermont agreement was Issued to-day by
he DundholderS reorganization committee
Ezra ii. Baker, chairman, representing
the holders of the Consolidated railroad
OF Vermont j per cent bonds and Amer
lean Loan and Trust company's certih-
Gates of deposit.
In order TO avoid further litigation
and to bring about an immediate reor-
ganization or the Central Vermont Rail-
road company. an agreement has been
made by the committee representing tho
holders of the above described certificates.
by which the plan OF reorganization
adopted at their meeting held october i.
1897, will be carried out, with the follow
ing notifications:
Instead of the securities provided by
the above plan, the new company Will ts-
sue s5,OOo,C0o capital stock and sle,@otJ
first mortgage per cent, u year, gold
bonds: to bc dated Aug. l. 1895; or as near
the date as possible. The interest on
these bonds will be guaranteed by thu
Grand Trunk Railway company By L
traffic contract under which any deficit
in the earnings in any year Will be pro-
vidcd for by the Grand Trunk company
up to 80 per cent OF the gross business m
terchansod by the Grand Trunk Railway
company and the Central Vermont Rail-
road company CThe gross business has
avera sed in the past from A2CV,oOJ to 81
10000 yearly and doubtless Will be no less
in the future)"
Holders OF the American Loan and
, Trust company certificates and of first
mortgage consolidated railroad of Ner-
mont bonds not deposited are to receive
par for their present bonds in the new
iii st mortgage bonds and interest on each
at the rate of per cent. per annum from
February i. 1855 to the date of the new
bonds. This interest has already been
! advanced on May and Aug l to a ma
jority OF the certificate holders by the
Grand Trunk Railway company and will
not lie paid a second time.
The holders of bonds and certificates
will receive also per cent. of the face
OF their bonds in the capital stock of the
rev company representing interest over
due February ], 1875. OF the balance OF
the 10000 first mortgage bonds sl.6o,-
90 will remain in the treasury of the COM
pany. to be used for improvements and
additions only under proper restrictions.
The balance OF the bonds and stock will
be used in acquiring branch roads and in
settlement of preferred claims. reorgani-
zation expenses and other obligations, in
the retiring of the equipment bonds ard
: in settlement with the holders OF the gen.
: cral mortgage per cent bonds. The en-
pense of reorganization will not call for
: any assessment Of the certificate holders.
: The new mortgage is TO cover all the
1 property of the new company, including
l branches. equipments, lease of the New
I London Northern Railroad company and
+, also other property not now covered by
4 the first mortgage.
V "As required by article of the agree
ment for the deposit of bonds. notice is
hereby given that a meeting Of the hold
l. erS of the American Loan and Trust COM
c pany's certificates of deposit of CONSOLE
: dated railroad of Vermont ) per cent.
bonds will be held at Chapman Hall, Tre-
:. mont Temple. No IS fremont street. Bos-
ton. Mass. oct, 25 1895. at 10 o'clock a. m.
5 To vote for the acceptance or rejection Of
= this modification.
=" The committee believe that IL Is for
I tho benefit OF all interests in the property
e that the plan, as modified, should be adop-
q ted.
Holders of certificates are reminded
I that in order To vote at this meeting they
II must either bring the certificates to the
= meeting or Rave them registered If it is
u desired to vote by proxy"
i MICHAEL II. CARDOZA.
IT MOORFIELD STOREY,
l. Counsel.
EZRA II. BAKER,
HENRY r. DAY,
5 S. +. KILNER,
L. +. DISCO,
r Committee.