Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1904-01-01

After six propositions had been re-
jected Tuesday the Brattleboro e White
hall Railroad company and the New Lon
don Northern Railroad company decided
that the only way in which they could
settle the differences between them would
be to fight ii out in court. Early i'm the
forenoon the stockholders of tho Brattle-
boro & Whitehall road assembled in the
office of Waterman Il Martin to talk over
the situation before inviting in the New
London officials, and it was > o'clock be-
fore it became certain that litigation was
not at an end, but at the beginning. The
history Of the movements which led up to
the conference is well known, so only a
brief review Of them is necessary.
In June. 1903, the stockholders of the
Brattleboro d Whitehall railroad brought
a bill in chancery in the state court
against the New London railroad, pray
ing to have the lease of the narrow-gauge
road to the New London company abro-
gated and to have a receiver appointed to
take charge of the road and operate it.
They were prompted to take that step by
the deplorable condition into which the
road had been allowed to get and they
considered that such a state of things
was in direct violation of the lease. Very
soon afterwards the New London ompany
filed a petition in the United States Cir
cult court asking leave to foreclose their
mortgage on the Brattleboro & Whitehall
GOdu. InOS set IOIln nat lney owned
$3.50, 900 worth of mortgage bonds of the
Brattleboro * Whitehall road and stated
that the bonds had become due, but had
not been paid.
When the road was built the towns of
Brattleboro, Newfane, Townshend, ia
maica and Londonderry subscribed for
stock to the amount of $16S, 900 and indi-
viduals took certificates sufficient to bring
the total up to a little over 5000, 600. TIar-
rs Brothers,, who had contract to build
the road, failed to carry out the con-
tract and the New London company COM
pleted the road, putting in $50, 600, on
which they took first mortgage bonds, due
in 20 years, and $50, 900 additional which
was a floating debt. The New London
company leased the road in 1881 for 80
years. a clause in the lease reads as
follows:
"And to enable the party of the sec
ond part 0he New London company ben
officially to enjoy and improve said prop
erty, rights and privileges, the said party
of the first part Gthe Brattleboro & White
han company hereby dominates, con-
~stitutes and appoints the party of the
second part, their Successors and assigns,
their attorneys, irrevocably, with full
power and authority to issue renewal
bonds and secure the same by a first
mortgage on said railroad to pay the
aforesaid mortgage bonds when they shall
mature or to secure other bonds to such
an amount as the party of the second part
shall think it proper to be issued in or
der to raise money to improve said prop
erty and for that purpose may use the
name of the party of the first part in the
premises"
The counsel for the Brattleboro &
Whitehall company hold that under that
clause the New London compar: was
bound to refund the bonds hen they be-
came due and that 10y are not entitled
to a decree Of FJreclosure.
1t being apparent that the towns hold
ms stnctr in,the road did not hope to get
their money back. but were determined to
get good railroad service, the New Lon
don Northern Railroad company had APP
p~arently devised a scheme which they
thought would appease the stockholders
and notified them that they had a propo-
sition to make. Tuesday was the day set
for a conference on the matter and all in
terested persons were notified. President
Robert Colt Of New London, president of
The New London road, Judge w. N.
Moves of New London and eX-Congress-
man II. II. Powers of Morrisville, rep
resenting the New London road, and Cen
eral Manager f. H.. FitZhugh of St. AL
bans and General Counsel c. w. Writer'S
Of st. Adams, representing the Central
Vermont road, sub-lessees, came to Brat
tleboro and put up at the Brooks House.
The Brattleboro & Whitehall stockholders
met with their counsel, c. c. Fits and j.
l. Martin, and after the matter was talk
ed over the New London officials were sent
for.
Judge Powers acted as spokesman. He
said the people of the West River valley
would have held up both hands if they
could have had a broad-gauge railroad,
but they did not have the money with
which to satisfy their desires and so had
to content themselves with a narrow
gauge road. IF you haven't money
enough to enable you to carry out the
original desire of the people of that val
ley" said Judge Powers, someone else
has, and what we offer to do is to change
tho gauge Of the road to STANDARD gauge
during the coming year and to have 1t
ready by Jan. l, 1905. No greater blessing
could be given to the West River valley.
In order to do it a large sum of money,
at least SIS, 900, must be raised. If the
New London people do it, with already
$15O,000 of bonds, we can afford to do 1t
unless we have a clean title to the prop
eGt "" Judge Powers said the New Lon
don company had had the scheme of con-
verting the road into a broad gauge in
contemplation several years, and when
ever my OBSERVATION-DISCLOSURES had been
made, like putting in new bridges, etc,
they had been made with that end in view.
No man ever heard of n receivership of
a road banefit.ing anyone but the re-
c%eiNer," he said.
During the discussion which followed
President Colt made the statement that the
New l-onuon company ndu expended 9ZoO,-
900 in completing the road and making
permanent improvements. It~was a rather
astounding statement, and President c. f.
Thompson of the Brattleboro & White
han road asked President Colt if it was
not true that the New London company
had charged them year after year $12, 900
for interest, representing interest at 6 per
cent. on a 5000 600 investment. President
Colt was very emphatic in his reply that
they had not done so, but it was evident
that President Thompson and his coun-
sci were not fully convinced.
III reply to a question Judge Powers eX-
planned that the New London company
wanted the Brattleboro & Whitehall stock
holdeI $ to surrender all their interest in
the road, individual or corporate, and to
consent to n decree of foreclosure. 1t
was suggested that an annual stipend be
ven the BrattlebOro q Whitehall COM
as a present, and that the decree
Corporate the terms of the present lease,
lA ~