Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1872-12-18
A New suit b. The Central.


J Ga the frsi Of December the feni-s1-
nual ia,srea-sl20.COO-Os the Yer
mont aud Canada stock became due from
the Vermont Central Trustees. but owing
10 their embarrassment Of eOuss il was
not paid. Mr.. Francis A. Brooks Of Boz
too. the Bes president Of The Vemoa, and
Canada. then brought = petition IN chan
Gerry. before hrs honor, Homer +. Royce,
for an order 10 compel the payment, and
added a prayer for IN injunction to re-
strain the Trustees from paying cut any
funds for other purposes until this interest
is paid. A hearing was appointed for
Dee 9th but that morning the counsel for
both parties appeared aud agreed upon an
adjournment until January Oath. Mr..
Morrison Of Boston (who is a partner Of
president Brcok's)I4on Heman $. Royce
Of this tow and Hon. T. X. Hard of
burlington arc counsel for the Vermont
aud Canada, aud b. +. Edeld. Esq. OF
Montpelier, aud Hon. Levi Underwood Of
Burlington appeared for the Trustees.
This petition seems 20 involve the ques-
ton of the value Of the lious on the Ner-
mont Central property aud earnings. 1t
will be recollected that the long aud dis
asterous litigation formerly waged between
the VI. Central and the Vermont Il Cana
da, was settled some years ago aud the
terms eff the settlement embraced in what
was called a "compromise decree" made
by the Supreme Court Of Chaucery at the
request Of both parties aud recorded at
length in the 34th volume of Vermont
Reports. Ry this compromise the YER
mont Il Canada was leased TO the Central
aud the latter became obligated 10 pay a
rental equivalent to eight per cent. on the
Vermont & Canada stock. The stock is
three millions and the semi-annual divi-
dend or rental one 'hnndrcd and twenty
thousand. to secure this payment, all the
property aud earnings of the VI. Central
we're pledged and this obligation constitu-
ted the first lien or mortgage on the Cen
trail road, thus making its own first mort
gage bonds the second security and its
second mortgage bonds the third.
Since then the Trustees have always
paid this rental until now, and they would
pay it now if they had the money to spare
IRON their trust funds. But the floating
debt Of from one to two millions. incurred
by them in running the read and paying
the rent on the Ogdensbnrg and Rutland
leases, stands in the nature of IA trust OBJ.
legation, for which the Trustees are per-
sonally liable, and which they claim con-
s%titu,es really the first lien on all the in-
come and property of the road. For they
assume that unless Trustees can be pro-
tected oy the court in mourning aud pay
ing the operating expenses, no person can
ever be induced to take such an appoint.
meut.
On the contrary, the Vt. & Canada
stockholders contend that # their security,
which was not only agreed upon but ha |
The sanction of a ohancery decree, can
BOW be undermined or pushed into a back
seat BY the actlbn of the Trustees, albeit
the acts leading to such a state of things
were opposed by nobody and were sane.
toned by a chancellor after notice to all
papties in interest, then there is no secur.
ity in u mortgage aud no value in the pri.
GRITTY Of liens. The question is one of tic
most important ever submitted TO the Yer
mont Courts and unless the difficulty i.
compromised, W. fear it will greatly pro
tract the present unfortunate state Of af
fairs.
The Montpelier Journal, which seldom
speaks without authority, says that thu
railroad bridge across Lake Champlain u
Ticonderoga and lease of the railroad II
Port Henry. held BY the Vermont Contra
Railroad Company, has been sold to thu
Hudson and De aware Canal Cnmpauy
and the construction Of u railroad alonl
side of that road has been discontinued
The exchange is enc upon which, W
tbiuk, both parties are to be congratulated
The Ogdensburg Journal is authorit
for the statement that the Vermont Gen
, trail Railroad Company commenced o
) Tuesday last, to pay % per cent. on a
old outstanding vouchers. In twenty day
the second installment of 20 per cent
viii II be paid, and SO on till all outstaud
0 ing claims aae liqu.dated. Vouchers &C
t cruing since September LIST will be paid i
: full.
DaI l,1I, =. .,,,1- o,oo ,v,th L.