Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1899-04-03
THE -CENTRAL'S FUI URE.

would be. A preventative OF the
Free Press anticipated this question on
the part OF its readers and asked
President E. C.Smith for statement.
Gov. Smith did not care 60 speak in
detail of the roads future, but he eX-
pressed the opinion that the road was
now placed Oh basis which would be
ed. He said General Manager Hayes
of the Grand Trunk was brilliant
railroad man, and that Vermont in
terests would be we'll looked after
under the re organized management.
Attorney Charles NJ. Wilds, who
has practically had charge Of the re-
organization, was asked what effect
the. protest made by the New York
Central interests would have upon
the situation and he replied as fol-
lows:
EMr. Young, who presented the
objection to the sale, represents bond
holders holding about 1916, 900 bonds,
made by the Ogdensburg and Lake
Champlain Railroad company and
guaranteed by the Central Vermont
Railroad company, which are in de-
fault. These bondholders have con-
tested their rights in court and their
principal grounds Of objection as we'll
as the protest that the New London
Northern lease is not subject to the
mortgage and that the second mort
gage is not valid, have already been
passed upon in court adversely to the
contentious OF Mr.. Young's clients.
The other grounds of objection were
to the sale Of various parcels Of land
acquired since the mortgages were
executed and which were claimed not
to be covered by the mortgage.
These parcels Of real estate are Of
small value"
"What will be the next develop
ment in the course Of re0rganiza-
tion?" asked the newspaper man.
sit is expected that the conirma-
ton Of the sale will promptly follow"
replied Mr.. Wiids, ''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 corporaCors Of the
Central Vermont Railway company,
the new company chartered At the
last session the Vermont legislature
will be organized, and that the re
ceivers will turn over the property to
the new corporation about Nay 1.
1.-The Grand Trunk Railway com
pany is to guarantee the payment OF
interest on the new bonds, which viii
be issued to the amount Of So, 00O,
600, and it Will own something more
than two thirds Of the entire capital
stock Of the new company, which will
be So, 900, 900. It will, therefore. be
able to name the directors Of the new
company, although three OF the board
arc to be chosen on the nomination OF
the bondholders.
s'The close relations which have
hitherto existed for many years be-
tween the Central Vermont and the
Grand Trunk will be perpetuated.
The interchange of traffic between the
two roads will be provided for by
traffic agreement What change there
will be in the management is not at
present disclosed. All conflict be-
tween the security holders has been
adjusted and the litigation over the
Central Vermont road is practically
concluded"
In reply to question regarding the
policy of the new management re-
garding improvements and the quail
ty Of service to be expected by the
people OF Vermont, Mr.. Wilds said:
"Some weeks since the court
authorized the receivers to purchase
5000 tons of steel rails, which when
laid will complete the relaying of the
main line with 75-pound rails. Most
OF the wooden bridges have been re-
placed with iron structures, and it is
expected that tn remainder will soon
give place to new bridges.
''The somewhat radical improve
ments in management inaugura5ed on
the Grand Trunk Railway since the
advent Of the new general manager,
Mr. Hayes, warrants the prediction
that the future management of the
Central Vermont under the control
ling influence of the Grand Trunk
will not be lacking as to efficiency and
satisfaction to the public. It will be
operated under it's new charter as
Vermont institution
Turning to the subject of the action
Of the bondholders, Mr.. Wilds said
that less than one half per cent Of