The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1857-12-09

| , Deslgned by the Secretary OF the State for pub
licaton in the Newspapers.
No. 16.-An act in relation to Truss
tees of Railroads.
| n is hereby enacted de-
Sec. /. 1t shall be the duty Of trustees In pos
session Of any railroad under a mortgage to call
meeting of the bond-holders or creditors for the
security of whose claims they hold such property
in trust, at some convenient place on or near tho
line of such road, in the month Of December in
each year by giving notice Of such meeting at
least twenty days previous thereto, ia two or
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 the said trustees shall submit report #
their business and proceedings, according to the
usual custom Of railroad directors, to the stock
| holders
Sec O. If such trustees shall omit to call
meeting ns in the first section provided II may be
-"lhd by any five or more bond-holders, or credi-
mount, ling claims under said mortgage to the a.
thousand dollars, a1Sgate, Of not les. than, fifty
4 nry or February following s2> the month OF janu-
ing notice in manner aforesaid. -'ssion, by CIV
| Sec 3. At such annual meeting the bonu-.
ers or creditors under snch mortgage may proceef
to nominate not less than three nor more than
five trustees under said mortgage, for the year
ensuing TO hold their Office, Until others shall be
| legally appointed in their stead and on such
| nomination each bond.holder or creditor under
such morgage, by himself or proxy shall be en-
| 10 him and secured by said mortgage. and ma
jority of the trustees so nominated shsl be resi-
Tents Of this state
! Sec 4. The proceedings Of such meeting may
in a summary manner, be presented by any party
| in interest to any chancellor within whose dis
trct said road is located, either in court or at
chambers, whose duty it shall be forthwith to mp
| point day for hearing, and order such notice
10 interested parties as he may deem proper, and
at such hearing he shall have power to ratify and
confirm such nomination, and make such order
and decree for the purpose OF Transferring the
! property TO such new trustees as he may deem
| necessary and lust, and such order and decree
shall be filed in the office of the clerk of said
| court. -t..
Sec. s. The trustees so designated and con.
firmed as aforesaid, and their successors shall be
a corporation, under the name and style OF the
trustees of the railroad company under whose
mortgage such trust may have been created. BY
it's corporate name, in which name they shall
| hold all the trust property, and sue and be sued.
and, as such corporation, shall have the right to
run, manage and operate the said railroad during
the continuance Of the sail trust. The members
of the said corporation, so organized, may elect
one of their number president or mako such or
ganizaton as they deem necessary and proper
not inconsistent with the trust, and may fill any
vacancies that occur in their number during the
term for which they are appointed
Sec. 0. Every chancellor within this state
shall have jurisdiction Of all cases arising under
this act according TO the usages and practices CT
courts of chancery and Of all questions arising
ont of railroad mortgage and shall have power,
In a summary manner, to remove any trustee
under any railroad mortgage, whether such trus-
tee be in possession Of snch railroad or not, and
to appoint new trustee in his stead whether
such trustee be nominated by the bond holders or
creditors as in this act provided, or not, and may
fill any vacancies that may arise in any such
trust. The said chancellor, on application of aAy
person interested, shall have power at any time
and in Il summary manner, TO summon said trus-
tees To appear before him. and may examine them
orally, or otherwise, touching the business of
rhair n nst and take such further action N
the premises and make such orders and DEGREES
therein, as in his opinion jnstiee and equity re-
I quire.
Sec. :. This act shall take effect from its pas.
sage.
Approved, November 10, 1857.
No. 17.-An act to expedite pro-
ceedings in chancery in regard to
the Trustees Of Railroad Mortgages.
his hereby enacted, &c.
Sec. l. Whenever the owners or holders Of
notes, bonds, or obligations secured by railroad
mortgage, to an amount Of not less than fifty thou
sand dollars, and in number five or more, shall
deem any trustee of such mortgage to be all un-
suitable person to administer such trust, they may
apply by petition to any chancellor for the re-
moval Of such trustee, and shall set forth in
general manner the grounds and reasons for such
removal. The court shall thereupon appoint
short day Tor hearing such petition, and shall
give due noice thereof to the trustees of such
mortgage and 10 all persons interested. The
conrt shall take especial care to give notice of
such application, and of the time and place Of
hearing, TO all persons interested who reside out
Of this State, by publication in one or more daily
newspapers published in Boston and New York.
Sec. g. Upon the hearing, the petitioners and
trustees and all other witnesses shall be examined
orally before the chancellor. The court shall ex-
anime as to all alleged breaches of trust, OF neg
lects or omissions of duty; as to the fitness and
competency oil the trustees as to their holding
any other Offices or having any interests either OF
nlli atu atpco orsi sfaut "a, ~
with the true interests of the cestuque trusts, or
interfering in sny way W, With 56t TIE prompt fair ana
and generally as to all the circumstances or con-
duct of the trustees, which render II inexpedient
for he interests of the trust TO continue them in
office. Ii VI on such hearing the chancellor find,
that such trustee ought 10 be removed, he shall
decree his removal, shall appoint new trustee
in his place, and shall make such orders and de
crees as TO the transfer and conveyance Of the
4 I trust property from the old TO the new trustees
as TO ascertaining the debts and liabilities of the
old trustees and the payment OF tile same, as TO
! the future management OF the trust and the &C
counting thereon, and generally as 10 all other
matters and things connected with such trust, az
the exigencies Of the case, the protection of the
old trustees and the security and welfare OF the
, trust fund shall require.
: Sec g. 1.-THE trustees so removed by the order
of the chancellor shall see fit they may within
twenty davs appeal to the tupreme court Ia
which case the application and proceedings there
in and the minutes Of the chancellor as TO the
testimony taken before him, shall all pass 10 the
supreme court ito this end the chancellor shall
; take full minutes of the testimony taken befors
him. Upon an examination Of the papers and
0 the testimony, the supreme court may, upon ap.
, plcation and notice thereof, order the taking o.
= hlrther testimony II they see ft or may affirm oi
reverse the order of the chancellor, and may pro
: ceed therein as equity and justice shall require
g The appeal to the supreme court shall not operate
TO remove the new trustees. or continue the ok
: ones in Office, but the new trustees shall admins
4 ter the trust till otherwise ordered.
. Sec. 4. Whenever proceedings shall have beer
Il OF shall be instituted in chancery, whether b,
trustees or cesuque trusts, under this act or 9th
, erwise in good faith and fer the benedt Of tn
4 trust fund the chancellor before whom such pro
ceedings are pending may, il in his Judgment h
4 shall deem IL just and equitable order the cost
and other expenses ofsueh proceedings to be tax
ed before him and TO be made, in whole or in PSI
: a charge upon and be paid for out of the trui
: fund so that each person intended 10 be benefit
q ted by such proceedings shall bear and pay hi
/. lair and Just share of such costa and expenses
Z Approved November 10, 1857
a No. 1S.-An act in addition to chap
h ter three of the Compiled StatutsI