Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1857-12-03

session OF any railroad under mortgage TO call
a meeting Of the bondholders, or creditors for
the security Of whose claims they hold such
property in trust, at some convenient place on
or near the line Of such road, in the month of
December in each year, By giving notice Of
such meeting NJ least twenty days previous
thereto, in two or more daily papers, published
in each Of the cities Of Boston and New York,
and in at least one paper published in each
county through which the said road is located,
If any such there be, and at such meeting tho
said trustees shall submit report of their bus
mess and proceedings, according to the usual
custom Of railroad directors, to the stock
holders
4 Sea. 2. II such trustees snail 0diir 10 ca1i'a
meeting as in the first section provided, it ma y
be called by any five or more bendholders, or
creditors, holding claims under said mortgage
to the amount. in the aggregate, of not less
than fifty thousand dollars, any time in the
month Of January or February following such
omission, by giving notice in manner aforesaid.
Sec. g. AT such animal meeting the bond
holders or creditors under such mortgage may
proceed to nominate not less than three nor
more than five trustees. under said mortgage
Tor the year ensuing, to hold their efiice until
Others shall be legally appointed in their stead;
and ON such nomination each bondholder or
creditor under such mortgage, by himself or
proxy, shall be entitled to ona vote for every
hundred dollars owing to him and secured by
said mortgage, and majority Of the trustees
so nominated shall be residents of this State
Sec 4. The proceedings Of such meeting may
In summary manner, be presented by any par
y In interest to any chancellor within whose
district said road is located, either in court or
at chambers, whose duty it shall be forthwith
to appoint day for II hearing, and order such
notice to Interested parties as lie may deem
proper, and at such hearing he shall have pow
er to rai,fy and confirm such nomination. and
make such order and decree for tho purpose OF
transferring the property to sach nsw trustees
as he may deem necessary and just, and such
order and decree shall be filed in the Office of the
clerk of said court.
Sec. D. The trustees SO designated and con-
trmed a. aforesaid, and their successors, shall
be corporation under the name and style OF
the trustees Of the railroad company under
whose mortgage such trust may have been ere
ated, by lis corporate name, in which name
they shall hold all the trust property, and sue
and bc sued, and, as such corporation. shall
! nave the right to run, manage and operate the
said railroad duling the continuance Of said
: trust The members Of the said corporation
president, or make such organization as they
; deem necessary and proper not inconsistent
with the trust, and may fiji any vacancies that
, occur in their number during the terra for
: which they are appointed.
.. Sec. q, Every chancellor within this State
: shall have jurisdiction of all cases arising un-
(, dor this act. according to the usages and rrac
tlces or courts of chanccry and of all ques
. lions arising out Of railroad mortgages, In,
5 shall have power in n summary manner, to re
e move any trustee under any railroad mortgage
!. whether such trustee be in possession of sucl
y. railroad Or not, and to appoint n new trustee
:. in his stead, whether such trustee be nominated
: by the bundholders or creditors, as in this &C
provided, or not, and may fill any vacancie
g that may arise in any such trust The SAT-
e chancellor, on application Of any person ster
g esled, shall have power, al any time and in
n summary manner, to summon said trustees Il
n appear before him, and may examine then
IT orally or otherwise, touching the business o
o their trust. and may taks such farther actio,
Y in the premises, and make such orders and de
l. crees therein. as in his opinien justice ant
n equity require.
/. Sec. 7. This act shall take eff.cs from it
% passage.
IS Approved, November 10, 1857.
l. Ne. l7.-An Act to expedite proceedings il
t, Chancery in regard to the trustees Of Rail
~ road Mortgages.
C. IL rs hereby enacfed, &c:
X Sec. |. Whenever the owners or holders o
ID notes, bonds, or obligations secured by rail
10 road mortgage, to an amount Of not less thai
ie fifty thousand dollars, and in number five o
ty more shall deem any trustee Of such mortgag
to to bean unsuitable person TO administer suc
8, trust, they may apply BY petition to any chan
e. ecllor Tor the removal OF such trustee and shal
d; set forth in general manner the grounds an,
vi reasons for such removal The court sha
er thereupon appoint some short day for hearin
id such petition, and shall give due nutice thsroo
to the trustees OF such nortg age and to all 9th
ct er persons interested The court shall take es
er pecal care to give notice Of such application
ge and of the time and place Of hearing. to al
ch persons interested who reside out of this State
ed by publication in one or more daily newspaper
of published in Boston and New York.
he Sec 2. Upon the hearing, the petitioners an
,s, trustees and all other witnesses shall be exam
W. ined orally before the chancellor The coui
re shall examine rs to all alleged breaches O
nd trust, ur neg gleets. or omissions Of duty; as t
Ite the fitness and competency Of the trustees a
)e- interests either of public or private natur
on Inconsistent III any way with the true interest
,es Of the eestuiaqe trusts or interfering in an
les way with the prompt, fair, and impartial di.
ra- charge Of the duties Of such trusts; and genet
ally rs to all the crculnsta tances or con luct q
ct, the trustees, which render it inexpedient to
the interests of the trust to continue them
all office. If upon such hearing the chansellt
or hnds that such trustee ought to be removed, b
Ill shall decree his removal, shall appoint a ne
the trustee in his place, and shall make such orde
or and DEGREES as to tho transfer and conveyant
ain oil the trust property from the old to the ne
as trustees as to ascertaining the debts and liao
les ol the old trustees and she payment OF Il
of same, as to the future management of the tru
Of and the accounting thereon, and generally
of TO all other matters and things connected wi
BAD such trust, US the exigenoies Of the case, Il
ade protection OF the old trustees, and the securi
or and welfare Of the trust fund shall require.
der Sec. g. If the trustees 30 reaoyed by tt
ext order of the chancellor shall see fit, they ma
cry within twenty days appeal to the supreme coul
Of in which case the application and proceedin
cry therein, and the minutes of the chancellor
To- to the testimony taken before him, shall /
,le, pass 10 the supreme court to this end :
rice chancellor shall take full minntes Of the tes
mt. mony taken before him. Upon an examinati
hot Of the papers and the testimony, the suprsl
ach court may, upen application and notice theirs
|ebt order the taking OF luther testimony il they
pt fit or may affirm or reverse the chancellor. a
and may proceed therein as equity and justice sh
in require. The appeal to the supreme Court sh
ions not operate to remove the trustees, or eontiD
Of the old ones in off CO, but the new traste
an!' shall administer the trust till otherwise ord
to cd.
the Sec. 4. Whenever proceedings shall h,
been or shall be instituted in chancory, whett
by trustees vr cestuigue trusts, under this act
otherwise, in good faith and for the benefit
IS of the tras. fund, the chancellor before whom 8,
proceedings are pendiug may, il in his ju
ment he shall deem it just and equitable, or