| December 17, 1927 | Railway Age | Vol. 83 No. 25 |
Central Vermont.—Receivership.—George A. Gaston of New York and John W. Redmond of St. Albans, Vt., general counsel of the railroad, were appointed receives of this property on December 12 by Judge Harlan B. Howe of the United States District Court. The application for receivership entered by the Canadian National, which owns $2,184,600 of the company's $3,000,000 outstanding stock and which has advanced large amounts to meet the company's fixed charges. The reason given for the receivership was the losses in the recent floods. The new receivers announced that it was planned to issue receivers' certificates to supply funds to restore the company's lines.
The Central Vermont operates 493 miles of line. Its capitalization includes $3,000,000 captial stock, and $33,480,724 of long term debt. Included in the latter are $12,838,300 refunding mortgage bonds, guaranteed by the Canadian National, about $800,000 of equipment trust certificates, while most of the remainder represents indebtedness to the parent company. In 1926, the company earned only 82 per cent of its fixed charges.
Promptly following the appointment of the receivers the Canadian National announced its willingness to redeem at par and interest any guaranteed refunding mortgage bonds. The announcement also explained that the application for the receivership was made with the concurrence of the Central Vermont in ortder to enable the latter to obtain advances (and give security therefor) to provide the funds required to restore to working condition the lines which were severely damaged by the recent floods.