Year: 1872

in any sense whatever to the injury of the
Vermont Central.


The Iessees of the road will at any time


be only too happy and willing to transfer it


entire to the Vermont Central system.
| Th9 Montreal & Vermont junction road


is not leased road That road in its ineep-
| ton was sought for by parties adverse TO the
| Vermont Central road. When it became


evident that it would be built, the managers
of the Vermont Central sought to place
| themselves in relation to it that would Sc


cure its advantages to their rOld.
| They therefore became somewhat active


in securing a friendly relation to the par


ties in interest in the charter, and so became
prominently identified with it.


After the municipalities had made their
| subscriptions to the stock and had secured


sufficient means to justify placing the work
under construction, a contract was let, after
public advertising, for specified sum, TO be
! paid in the stock and bonds of the road
| The work was commenced just as the civil


war in this country broke out. The cur


rency of this country was then undisturbed,


and, like the currency Of Canada, was at its
| gold value. The contract being made IN
| Canada was payable in the currency of
| Canada. To induce the contractors to ac-
cept the stock and bonds in payment for this
work, two of the managers of the road who
were then directors in the Montreal and





surances that they would negotiate for the
contractors a certain amount Of the bonds
and stock which they were to receive.
The currency of this country, in conse-
quence of the war, soon became disturbed
and gold rose to an exOrbitant premium.
The currency Of Canada had become serious
| " disturbed, and the contractor was
obliged to surrender his contract from in
ability 10 go on. Meantime the work on the
| Vermont and Canada branch to the Canada
! line had been commenced, and to prevent
failure of the whole enterprise two Of the
mana gers Of the Vermont Central, having
pledged their faith to the parties in Canada
| that they would in good faith aid in build
| ing the road, undertook out Of their own
means and on their own personal credit to
carry the enterprise through, taking the
| securities Of the road The road was thus
completed. \ temporary arrangement was
made for operating it by the Vermont Cen
| tral, and n basis of fifty per cent Of the
| gross receipts was, ON consultation with the
other mana gers, agreed upon for the time
| being. While the road was new and in high
condition, and it was an easy road 70
Oparate. this was considered not an unfair
| division, especially as by the arrangement


the trustees and managers only assumed to
| furnish the motive power and keep the track
in repair, all the other expenses Of mainte-
nance and repairs, Of building and road bed
I


on the other side. The attention Of the com


mittee Of the bondholders and of the Yer


mont & Canada road has been frequently
called to the matter since that time, and at
| has been strongly urgedby the managers in
/ terested in the property that they should BE-
/ relieved OF this position in some form, and
! that some basis satisfactory to all parties
! should be arrived at. They have at all
times been ready and extremely desirous OF
/ having the matter disposed Of, either By as
/ Suming he road a a price, or by permanent
! lease Of il, or by some agreement which


would be equitable 10 all parties. Thus far


no settlement has been arrived at. They
! have been exposed to unjust suspicion that
they We're taking advantage Of the double po-
sition which they occupied, while they have
! been anxious all the time 70 dispose of the
question on any fair and just basis. They


can only repeat here what they have so often


said to the parties above referred to, that
| they have but one desire and that Is that
! basis should be agreed upon which will be


satisfactory 10 the security holders of the
| Vermont Central and Vermont Canada,
| preterring even 10 do injustice to themselves


rather than to occupy any doubtful position.
| The managers have thus endeayored TO


meet fully all the questions which have been


raised against them, seeking no conceal
ment or evasion of any responsibilities rest
! ing upon them, nor attempting any yindica-
| tion that is not warranted by the facts.
| In the administration Of their trust they
| have endeayored to dischrrge their duties
with fidelity, always inviting the closest
| scrutiny Of their affairs and willing to i'm
part full information to all who were in
| terested 10 inquire and who had right To
| know.


! The accounts and vouchers of the frus-
| tess and managers have been always freely


open to the inspection of the committee Of
| the bOndhOlders, elected annually, and who
/ by the provisions of the compromise decree


are constituted an advisory committee and
! are the special auditors of the accounts.
/ This duty OF examination has been per
/ formed by that Committee periodically, at
/ least as often a once in six months since the
| date of the decree.


In all important matters relating To the


trust matters, on all questions of policy,


they have been freely consulted and advised


with. and when matters Of grayer moment
| have been before the Trustees affecting the


interests of heproperty. the advice and con-
cent OF the Vermont and Canada Directors
| has been sought in addition.


! The aim of all has been to bring tha pro
perty to its highest state Of efficiency and 70
! develop all its elements of strength in the
fullest and most judicious manner possible
| That the property itSelfiS capable of meet
ing in little while the full expectations Of


its warmest friends, none familiar with il
can entertain a serious doubt The question


of how soon it can reach this point and how


rapidly it shall develop is question of easy
solution. 1t is now in all its appointments
in high condition Ii can be worked now
safely on low scale of economy and hold It's
present earnings. and be made TO paw on all
the securities hitherto interest bearing: but
under such policy the road cannot develop


as rapidly aS with liberal policy it can b.
made TO do. The present capital adding t.
the interest bearing securities the present
debt of the Trust, l. not large for the pro-
perty represented. The ratio of annual in
crease OF earnings for the past ten wears has
been little over an average Of l3 per cent g
There Is no reason why the road cannot con
tinue to increase annually in n steady ratio
for years to come.


The question of disposing OF the present
floating debt is the one of pressing import


ance in order 20 restore the credit Of the
road.


To provide for this, authority has been
granted to the trustees and managers to Is,
sue their notes for <, SOC. 900, PAYABLE in


thirty years with 5 per cent. interest, and


constituting them a special lien upon the
trust property and income Of the road OF
this sum 800 900 i to be deposited with


the New England Trust Company, for the