Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1899-03-23

adversely TO inc contentious OF MI.
Houng's clients. The other grounds of OBJ
lection were to tho sale of various par
cells of land acquired since the mortgages
were executed and which were claim d
not to be covered by the mortgage. These
parcels of real estate are of small value"
What will be the next development in
the course of reorganization?" asked the
newspaper man.
ut is expected that the confirmation Of
the sale will promptly follow" replied Mr.
Wilds, " and that upon the return about
the middle of April of Mr.. Hays. general
manager of the Grand Trunk, who is now
! abroad, and who is one of the corpurdto,s
of the Central Vermont Railway company,
the new company, chartered at the last
session of the Vermont Legislature, will
be organized, and that the receivers Will
turn over the property to the new Colpor-
alton about May /.
THE Grand Trunk Railway company is
to guarantee the payment of interest On
the new bonds, which will be issued to the
amount OF 100000, and it will own some
thing more than two-thirds of the entire
capital stock of the new company. which
will be s3,00o000. 1t will, therefore, he
able to name the directors of the new
company, although three Of the board are
to be chosen on the nomination of the
bondholders.
THE close relations which have hither-
! to existed for many years between the
Central Vermont and the Grand Trunk
will be perpetuate1. The Interchange of
traffic between the two roads will be pro-
vded for by traffic agreement. What
change there will be in the management
is not at present disclosed. All conflict
between the security holders has been ad-
Justcd and the litigation over the Central
vermont road is practically concluded"
In reply to d question regarding tho poll
cy of the new management regarding i'm
provements and The quality of service TO
be expected by the people Of Vermont. Mr..
Wilds said
Some weeks since the court authorize d
! the receivers to purchase 900 tons of steel
rails, which when laid will complete the
relaying Of the main line with 75-por ni
rails. Most of the wooden bridges have
been replaced with iron structures. and
1t is expected that the remainder will soon
give place 10 new bridges.
| The somewhat radical improvements in
management inaugurated on the Grand
Trunk railway since the advent OF the
new general manager, Mr.. Hays. war
rants the prediction that the future man
agement of the Central Vermont under
the controlling influence of the Grand
Trunk will not be lacking as to efficiency
and satisfaction to the public. 1t will be
operated under its new charter as a YER
mont institution"
Turning to the subject of the action OF
the bondholderS Mr.. WildS said that less
than one-half of one per cent of thc en-
tire issue of bonds of both classes had
failed to come into the reorganization,
the entire balance of the bonds being rep
resented by Mr.. Baker the succe ssful
bidder at the sale. The first mortgage
bondholders will receive new per cent
bonds in exchange for their holdings of
the old bonds and interest at the rate of
per cent per annusn since Feb. |, 1898.
This interest has already been advanc, d
by the Grand Trunk railway. They also
receive per cent on the face of their
bonds in the stock of the new company
for defauted interest. These old bonds,
by the way, are now selling in Boston 1t
81. The second mortgage bonds were gen
orally held as collateral security and their
holderS Will receive new bonds for the
face Of their loans.
TIE sale of a railroad at auction Is un-
usual il our State, but the mortgag q
having provided for n sale in the event
of default, Judge Wheeler thought that the
foreclosure proceedings should be COM
pcted by such sale of the property. 1t
WAS sold as a single parcel, ana the con
veyance by the master will be direct to
the new company.
Mr. Baker of the purchasing committee
made a number of interesting statements
with reference to the bondholders. He
said the bondholders were over 1900 in
number, and it seemed that nearly all OF
them had called upon him at his office.
The bondholders were widely scattered
being located in various parts OF the
country All of the bonds except about
$4,000 were represented in the purchase
of the Central Vermont railroad.