Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-04-18
WILL BOND FOR 100000
Traction Company Also Votes to
Buy Vergennes Power Plant.
Majority stockhoidcrs' Opposit,ou to
Purchase was Ended by Purchase
Of Their Holdings nj st2o
per Share.

A resolution authorizing the issue OF
bonds to the amount of $5U,ooo for the
purpose Of purchasing the Verrennes
Power company's holdings at Vergennes
and for the further purpose of meeting
bonds when due and extending the hold
ings of the company was adopted yester-
day at a meeting of the stockholders Of
the Burlington Traction company. The
price to be PAID FOR the Vergennes hold
ings is 500 900 and the remainder is to be
placed in the treasury to meet bonds as
they fall due and to extend the lines Of
the Traction company and make other
Improvements.
In order 10 close the transaction the
owners of the Vergennes Power company
bought up 223 shares of Traction company
stock owned by minority stockholders
who had objected to the proposed pur-
chase of the Vergennes plant by the
Traction company The price paid for
these 213 shares was $40 per share. one
hundred and seventy three shares out of
the c23 were purchased from Henry L.
Ward and comprised the shares held b.
Mr. Ward himself and those he held for
other minority stockholders The remain
!
Burlington stockholder The owners Of the
Vergennes Power company are John j.
Flynn. Elias Lyman, ". f. Hcndee and
| G.. w. Brownell. who are also the ma
jority stockholders of the Burlington
Traction company. The purchase by these
men of the stock owned by the minority
st stockholders Of the Traction company
was made necessary before the deal could
be closed as the minority stockholders
opposed the proposition from the start
and were ready to carry the matter into
the courts if necessary to prevent the
purchase of the Nergennes plant. 1t Is
understood that The owners of the Yer
gennes Power company offered the min
GRITTY stockholders $40 per share which
was refused The minority stockholders,
it is understood, asked sl35 per share ana
at a meeting yesterday it was agreed to
practically split the difference and the
owners Of the Vergennes Power COM
pany paid $50 per share for the stock.
The proposition to purchase the YER
gennes Power companys plant was made
to the stockholders Of the Burlington
Traction company some months ago. IL
met with opposition At once one OF the
principal directors being Mr.. Ward, who
held a number of shares of stock for
various estates as we'll as stock of his
own. There were also a number of other
burlington mon who raised objections to
the proposition.
These stockholders claimed that the
property at Norgennes had not yet been
developed to such an extent that 1t was
mos IN tpl ~.
secured there and it was further claimed
that II would cost nearly $1,000 per year
to generate power at Vergennes TO
operate the street cars here AS compared
to about Sl5,I0 y year, for which last
amount, 1t is claimed, "A local power com
pany had offered to furnish power. There
were number Of other questions which
the minority stockholders wanted settled
before they were willing 70 vote to issue
bonds to the amount Of 500 60 and at the
meeting called to consider the matter It
Was decided to delay tho matter until a
later date. The cost Of the NorCennes
plant, it Is claimed, has been about $40 coo
and tho Traction company purchases il
for 10000 according to a statement made
yesterday by John J. Flynn Mr.. Flynn
said he did not know whether power
would be supplied from the Vergennes
plant to operate the street cars. The
matter had not been decided he said
Several adjourned meetings were held
FOR the purpose Of taking up the PROPOSE
ton to purchase the Nergennes plant hut
II was not until the shares of the opposing
stockholders were bought that the trans
action was completed The resolution
authorizing the bond issue OF s5OO an
passed at the meeting Yesterday did not
contain the amount of me purchase price
of the Vergennes Power COMPANY but Mr.
Flynn stated that the price is seoo.UO