Year: 1872

trustees and managers is the amount paid
for the wood. shop stock and materials on
hand on the Rutland road at the date OF
their taking possession OF the same rms
was largely in excess Of what was estimated
by the parties. 1t was taken at an apprals-
ed value and was worth what 1t was valued
at. This amounted to S418,000.


The question of attempting to retain these
leases or of abandoning them in one of too
much Importance to be lightly passed upon.
They We're assumed not by the trustees and
managers alone, but as the deliberate sense
of the stockholders and bOndholders as un-
der all tle circumstances the wisest and
best thi : to be done.


Now after proper and careful examina-
ton of all the facts, it may be the most de-
sirable thing to negotiate with the parties
for a surrender of them. But the question
| is of too grave Importance to be disposed OF
rashly. Even if thought advisable under
| all the circumstances to seek a release, it
should be done as a matter of negotiation
with the parties in interest in these roads.
To seek to accomplish it by rash forfeiture
under mOmentary excitement would only
be to expose the trust property and the Yer
mont & Canada Company to excessive de-
mands for damages and seriousy impair and
retard their claims for reimbursement for
/ the moneys expended in the improvements
made upon both roads.


The trustees and managers have at this
time no opinion to express in reference to
the question of what action is wisest.


They simply acted in concert with the
other parties in interest in the property
which they manage in making the leases,
and therefore can only signify their readi-
ness and willingness to confer, if desired,
with the same interest, in carefully con
sidering the question of release.


Having thus briefly and yet as fully as the
limited time at their command and the press
ingnature Oftheir engag gements would permit
alluded to the immediate causes which have
produced the present state of affairs on the
road, the Trustees and Managers come to
the specific charges brought against them in
the public prints of miSmanagement.


The first and indeed the most prominent
is the existence of the car companies, known
"a the National Despatch and Vermont Iron
and Car Company, whose cars run upon
and over the Vermont Central Road


The history of these is very brief and sim
pie.


First-lhe National Car Company. This
| company was organized in 1868 Up to this
date the Vermont Central line. as it was de-
nOmina ted, was composed of the Boston and
Lowell Concord Northern New Hampshire
Vermont Central and Vermont and Canada,
and Ogdensburg roads The connection for





Of Ogdensburg was by means of the prOpel-
lers on the upper lakes, and formed during
the season of navigation n good and efficient
line


The business accommodated BY the line
was what is known and termed the interior
of New England business, consisting of the
supply of Western products to the great
manufacturing districts and other points
in New England.


TIL ,,,.,..4 ri,
business Of the line. In addition to this
during the season Of navigation, through
treightS to and from Boston and the West
found n convenient and natural route by this
line. The Propeller line at that time con-
sisted Of thirteen boats, making a semi
weekly line between Chicago and Boston.
Thus during the season Of navigation, this
line did fair business, but on the closing
of navigation it could only be operated as a
line for local business between Ogdensburg
and Boston


The organization of the car companies
known as the "colOred lines, ," under various
names of Red, Blue, White, Merchants
Despatch and the like. was admitted upon
the competing roads leading from Boston
to Western points, and being ena bled to
transport freights by rail to all points West
without breaking bulk and on time contracts
and having the advantage of continuous
lines all the year round, offered great induce
mentS to the patrons of the Vermont Cen
tral line to withdraw from it and send their
business over those lines. offering as addi-
tional inducement contracts for the entire
year at uniform rates.


Many strong patrons of the Vermont
Central line were thus induced to withdraw
and the business of the line was seriously
threatened. The ''colored cars" from other
lines were reaching far into the interior
points of New England, and were drawing
away business which fairly belonged to
this line, and which it could, properly
equipped, better and more naturally supply
than any other A conference with the
other roads now forming the line over which
the National Car Company run their cars
was had, and it was agreed that an effort
should be made to hold this buiness. The
change i'll gauge, however, constituted a
serious drawback. The patent which had
been obtained for adjusting the wheels and
axle to a difference in gauge was an expert
ment and so uncertain in its results that the
several companies constituting the line did
not feel justified in investing in the enter
prise as corporations. 1t was therefore
agreed that if outside capital could be in
duced to take the risk that liberal con-
tract would be given by the roads in the
way of car service to test the experiment.
The parties owning the patent, therefore
with confidence in the success of their in
, ventiOn, undertook to organize a company
and a contract was entered into
with that company, signed by
all the roads composing the line,
permitting the Despatch Company to build
, and place upon the road two hundred cars to
E test the experiment, and agreed to allow for
that number three cents per mile run for car
service That company was, however, re-
, stricted TO the original number, and could
not add more without the written consent
Of all the roads in the line The contract
also contained provision authorizing any
road in the line to terminate the contract by
: purchasing the cars at cost. With a con-
tract thus guarded the company was organ
lied. Being entirely an experiment, and in
the judgment of many railroad men some
, what doubtful of success, it was not easy to
: enlist sufficient capital at first to give it a
f trial To encourage it, therefore, many
gentlemen connected with the different roads
, in the line came forward and subscribed for
portion of the capital stock The number
! Of cars limited in the contract were built
? and were put into the line, and the expert
; ment proved success. After a years work
ing or thereabouts the managers of the
} several roads in the line became satisfied
| that although the cost of these cars was some
what in excess of ordinary cars, yet they
t coulA not feel justified in paying the high
: rate Of service called for by the contract
: and declined to admit any more cars unless
) the rate was reduced.