Year: 1872

was thus completed. A temporary ar
rangement was made for operating it by
the Vermont Central, and a biasis of so
per cent of the gross receipts was, on
consultation with the other managers,
agreed upon for the time being. While
the road was new and in high condition
and as 1t was an easy road to operate,
this was considered not an unfair divis
ion, 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 expens-
es of maintenance and repairs, of build
ing and road-bed, including bridges, be-
ing paid by the parties on the other side.
The managers interested in the property
have often urged to be relieved from
this position in some form. They have
been exposed to unjust suspicion that
they were taking advantage of the
double position which they occupied,
while they have been anxious all the
time to dispose of the question on any
fair and just basis. They can only re-
peat 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 to the security holders of
the Vermont Central and Vermont and
Canada, preferring even to do injustice
to themselves rather than to occupy any
doubtful position.


The managers have thus endeavOrcd
to meet fully all the questions which
have been raised against them, seeking
no COnCealment or evasion of any re-
sponsibilities resting upon them, nor at
tempting any vindicatiOn that is not war
ranted by the facts.


That the property itself is capable Of
meeting in little while the full expeC'
tatiOns of its warmest friends none ia
ili8r with it can entertain serious doubt.
The question of how soon it can reach
this point and how rapidly it shall de-
YelOp is question of easy solution. 1t
is now in all its appointments in high
condition. 1t can be worked now safely
on a low scale of economy and hold its
present earnings, and be made to pay on
all the securities hitherto interest bear
ing, but under such a policy the road
cannOt'develOp as rapidly as with a lib
eral policy it can be made to do. The
present capital, adding to the interest
bearing securities the present debt of the
trust, is not large for the property rep
resented. The ratio of annual increase
of earnings for the past ten years has
been little over the average of thirteen
per cent. There is no reason why the
road cannot continue to increase annual
ly in steady ratio for years to come.


The question of dispOsing of the pres
ent floating debt is the one of pressing
Importance in order to restore the credit
of the road.


To provide for this, authority has been
granted to the trustees and managers to
issue their notes for 50, 500, 900, payable
in thirty years with eight per cent inter
est, and constituting them a special lien
upon the trust property and income of
the road. OF this sum 100000 is to be
deposited with the New England Trust
Company for the purpose of retiring the
first equipment loan for that amount,
which natures in 1875. The balance,
~, 500, 900, is to be disposed of for the
purpose of retiring the floating debt of
the trust.


If these are taken by the holders of
the present securities or sold at once, the
trust would be relieved from their pres
ent embarrassments and the credit of
the road would be promptly restored


When this is done, the question arises
what plan can be adopted for placing the
road on some permanent footing to re-
lieve 1t of trust management The
managers cannot to strongly urge upon
the security holders the necessity for
devising some plan to place the road un-
der corporate management. 1t is a
subject which the managers have more
than once before urged upon the atten-
ton of the parties in interest. The prop
ertY is too large and involves too impOr-
tant interests to be continued in its pres
9nt form of management. The manag-
7rs would, therefore, suggest the appoint
nent Of Committee of Conference from
-he various classes of securities, to meet |
with them at an early day, to take this
subject into consideration.


TREAsURERs REPORT.


BOSTON, Oct. l, 1872.
10 the Trustees dy,d Managers Of the Yer
mort Central and Vermont and Canada |
GENTLEMEN, i hand you herewith sun
Try statements made up from your books |
liter closing them to June l, last, by which
-ou may see the results of your business
or two years ending that day, and your
financial condition ut that time.


These statements show the results of |
our business for the two years ending
une l, 1872 as follows:


'he gross earnings of the Yer


mont Central and Vermont


and Canada, including the S.


5. n C.. r. r. S4,395.3S4 II
he expenses. 1904, $50 81
Net, Sl,39O493 33
!,