Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1868-12-03
The Great Railroad Case.

1t will be seen by reference TO another
column that the hearing in the case Of
Chsever and Hart a. Birchard and Page,
and others, which has been on trial in this
place for several days past, before Chan
cellor Pierpoint, has resulted in a pro
forma decree that the bill be dismissed,
and that from this, decisions the Orators
have appealed. Though the case was not
fully argued numerous points were Incl
dentally raised during the progress Of the
hearing, by the counsel for the defendants,
which, it was insisted, would go to defeat
entirely the relief prayed for by the Ora
tors Among tho most important Of these
were
l. That Us the first mortgage or
deed of trust of the Rutland ( Burling-
ton railroad company was executedin the
State Of Massachusetts,, TO trustees who
are, by the terms of the deed, required to
reside in the, State Of Massachusetts. and
removal from that State would vacate
their trusteeship, snch conveyance was
void
First, As an attempt to exercise corpor-
ate power beyond the limits Of its eorpor-
Ate jurisdiction and
'ecoAd, Tha, such conveyance, and
"''e''nt 10 PIT the control and manage
'heh' OF '."ailroad in this State, into the
ha"u' 0. P''s,'s required to reside with
out the Inrisdlcho"7f the legislature and
courts df this State. W, .o,,,r,ry ;, =, =,
settled policy Of all the rm-,oa Io,;.,,.
ti"a Of The State. and therefore " IA nos.
be enforced by our courts. And 80
views were claimed hy counsel to be fully
su~tiinrd hN authorities.
The dcfenlants also insisted that a.
the bonds secured 10y thc first deed %
trust, were executed and delivered il
Massachusetts, Dnd payable in that -tata
they were governed by the Law, nt Mass.
ehnsetts ~ Ia interest And, a. thos,
laws q, the date If th,-e hund>, onl,
allowed SIX r"r cont interest H. be
hr reserved, only ~i> per cent could now
be allowed upon them, and no interest up
ou The coupons after they fcll dine.
Another important feature of ath,
es.s", brought ont in thc hearing, was
tht' since this lit,pnt,on commenced. an,
IN the year 1861, ilc legislature of tn
State Of Vermont. with the view OF pro
vidng some mol, bl which the partie
could hiring II II IN nmirable close. AN,
pu' An eui t. tn enormous expense
wLlie securing the just rlght. of all in
torpor,t"d tho RuiIlnd Railroad Com
pany ath ali the powers. rights ant
privileges enjoyed by the atland 4 Bur
lington Railroad Company and its trus
tees. and provided therein that the cor
Peration .may ISSUE preferred or guar
ranfeed stool; in payment of prior claim,
ana ineumbrnee- upon The Rutland and
burilnR'on railroad ana property, upon
snch terms ~ night l.. agreed upon
Tins proposition sc.v,s 10 have becr
looked upon with very gr,,. favor II,
both classes Of bondholders, ana !, an
peared that abont one million in amo,g,
OF the first mortgage bondholders, consti
fnting considerable majority of tn.
whole, and including one Of the originaI
orators in this cause have converted thei,
bonds into the preferred seven per, cent.
stock OF the Rutiind Railroad Company.
ana have appeged by counsel in this
hearing to object, 50 far as they are con-
oerned, to the further prosecution of the
suit. Two seni-annuAl dividends have
already been paid on this stock. BY this
s0urss they escape the delay and ex-