Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1899-01-19
The RAILROAD SITUATION
THE oGDENsBURG ROAD TO BE Op-
GRATED FROM RUTLAND.
What tho Rutland Deal Means for Other
Important Interests-Tho Outlook
for Vanderbilt Control Of
the Fitchburg.

Champlain railroad, which was recently
bought by the Rutland road, is to be OPP
Grated in the future from that city. The
Rutland road has rented the second floor
of the Herald building to accommodate
the office force of the Ogdensburg and
Lake Champlain road. The Ogdcrshurg
connection will materially increase the
business of the Rutland road and will
tcnd to help business at all places along
the line.
The Rutland Canadian railroad has ad-
Ncrtised for scaled proposals for grading
masonry and track-aying on about 80
miles OF railroad, main and sidings. The
proposed line will run from Burlington
TO RouseS Point. The exact route has not
yet been decided upon Mr. Clement said
that he was inclined to favor the island
route, This would make the distance
from Rouses Point to Boston about 16
miles shorter than over the Central YER
mont line. Moreover the Rutland-Cana-
dan track will be on water level thus
avoiding the various stiff grades between
Swanton and Essex Junction. If the di-
rectors of the Rutland road vote TO build
the road-the matter not having yet como
BEFORE them for action-it is proposed to
have the Rutland-Canadian railroad in
operation by September next
The Boston News Bureau prints the fol-
We understand that the New York Gem
trail road is now in position to dictate the
future policy of the Fitchburg Railroad
company and that the requirement by the
New York Central OF the F1tchburg, Rut-
land Ogdensburg and Lake Champlain
roads will work to the advantage of Bos-
ton.
1t is proposed to extend the Rutland
railroad to connection with the Cana
dian Pacific, above Rouses Point, which
make a trunk line from Boston to Mon
treal is miles shorter than any other road.
rms route would possess many advantage
cs in the way of grades over any other
Montreal line.
The purchase of the Ogdensburg is also
important in connection with a control of
the railroad field in northwestern New
England.
1t Is said in railroad circles that the
New York Central became convinced that
the Boston and Albany would be absorbed
by the New Haven railroad and that such
a move would work to it's disadvantage
unless il secured the Fitchb burg.
/ we understand that a large part Of the
1900 shares of Fitchburg preferred stock
sold time ago went to the Vanderbilt in
terests.
We understand also that the State of
Massachusetts, contemplates an exchange
of its S5,0OoGO of common stock for 1000
NO of preferred and that the matter will
soon come before the governors council
for ratification.
! IMPORTANT RAILROAD CHANGES.
In speaking of the purchase Of the o. &
L. c., by the Rutland, the United States
Investor says
1t Is understood that the Rutland road
will Immediately build from Burlington to
connection with the Ogdensburg & Lake
Champlain railway at Rouses Point, a dis
m n yttNaI to 4 no
Investor" some months ago, and that it
Will also very shortly purchase the bust
ness OF the Ogdensburg Transit Company,
which includes six boats plying between
Ogdensburg, Duluth and other lake points,
1t may not be generally known that pre-
vious to the sale Of the Ogdensburg and
Lake ChamDlain to the Rutland Mr.
Charles Parsons had nearly perfected an
arrangement for the purchase of the Og-
denshnrg Transit company, but such are
the facts. Early last summer there SEEM
ed to be danger of the Transit Company
being purchased by the Canada Atlantic
but MIR. Parsons was finally able to head
off the DEAL and negotiate for the proper
~ himself.
The price paid by the Rutland for Og-
denshurg and Lake Champlain is that au-
thorized by the reorganization agreement
namely one hundred and five for the old
bonds and accrued interest to February l.
VI, MI
10 total for each one thousand dollars old
bonds. The bondholders have the privi-
lege any time before Jan. q to decide
whether they will take this amount in
cash or in Ogdensburg & Lake Champlain
Railway Company per cent new bonds
guaranteed by the Rutland Railway Co.,
at one hundred and two and a half and
y difference Of one hundred and forty dol
lars in cash.
When the Central Vermont railroad de-
faulted on the Ogdensburg & Lake Cham
plain railroad bonds, April l, 1896. the
bonds declined to rs. The business of the
road fell off largely. and there was every
proba bility of large loss to the bondholders
Mr. Charles Parsons undertook IN their
interest the reorganization of the road
and its sale. as above reported, Is a most
satisfactory conclusion of his labors Be-
sides the benefit to the bondholders, it
nsures the completion of a new and valu-
able system connecting through the Og-
densburg Transit Company's line OF
steamers with the Great Lakes. The dam
ger of the Ogdensburg road falling into
the hands OF the Grand Trunk railroad of
Canada which 1t is understood controls
the Central Vermont system. is also avoid
ed, and severe blow is dealt the Central
VT, which Is now more closely than ever
dependent on the Grand Trunk for its ex-
istence. 1t Is also n move detrimental to
the Delaware and Hudson Canal company.
which Is now hemmed in on all sides in
the State Of New York by the New York
Central properties. 1t Furthermore means
that New York Central interests will
hereafter be almost supreme in northern
New York. The credit of the Rutland
railroad now stands high. It's Az per cent
bonds bringing l13, and the new fours OF
the Ogdensburg and Lake Champlain
Railway company, with the endorsement
of the Rutland railway. should rank high
as first class investment
1t Is understood that a number of Fitch
burg railroad directors, whose road Is now
IN close connection with New York Cen
trail railroad interests are also interest |
ed In the new line which will now be
formed. via the Ogdensburg and Lake
Champlain railway from northern New
York and the West to Boston. This line
will be II miles shorter from Boston to
Ogdensburg or Oswego than any other line
and 1t is likely to secure a considerable |
share of through East and West business. |
MI Parsons reorganization of this road
in "A way resembles his previous feat in
the Rome. WATERFOWL and Ogdensburg
railway, while the bondholders have been
saved from loss Of 40 per cent upon their
Investment. Within a few days "A rcor~
ganization OF the management will occur
a meeting win be called, and board of
directors will be elected representing the
purchasing syndicate. To carry out the
deal-provided Ogdensburg and Lake
Champlain bondholders accepted cash for
their bonds-it will require over a. 900 600
in cash, which IL understood to he on de-
This ready money to finance the under
taking shows clearly the strong backing
which the syndicate has.
We get II from the very best authority