The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-12-15

Governor Smith was called as witness
in behalf of the petitioners, and testified rs
follows:
JOHN GREGORY SMITHS TESTIMONY.
have not been personally served with
any copy of the trustee writ, in behalf Of
the Vermont and Canada against myself,
w. G. Smith and Joseph Clark, by which
the funds in the hands of the lower roads
were trusted. | only know from the no.
tees that | have received from connecting
roads informing me that they have been
served, and Geo. Stark of the b. J.. and n.
II. r. gave me this copy Of the writ served
on him. The connecting roads who have
notified me are the Boston and Lowell
Cheshire, Fitchburg, Boston and Maine
and Northern. At the time when the writ
was served funds arising from the earnings
of the roads under the management of the
Central Vermont railroad company. as re-
celvers and managers were, ~ appears
from the trcasurcrs books. in the hands of
the Boston and Io"cll railroad company.
ssi26 SOS.OO
Cheshire ailrOad.............. 262, 600. %
Northern railroad (about).... S5.217.00
Boston and Manc............ .200. 90
Making an aggregate of....". $40, 2S5.00
Notice was received from connecting
roads that they had been trustccd. and they
declined to pay. received the following
telegram from Gen, Stark:
Hos. j. g. sMIrH-Trustcc writ was served on
rs on saturday against funds by the Vermont
q Canada road. THIS prevents the payment "
funds Tor the rent OF the Ogdchsburg road to-
day. What snail be- done? GEO. STACK.
This was the first notice received of the
trustee process. On my arrival at Boston
he told me that he was advised by his
counsel that he could not pay it. BY tenn
porary arrangement, however, he paid the
Ogdenshurg railroad rent. On account of
this process he has not paid anything since.
OF the funds trustecd by the writ in favor
of the Vermont Il Canada road, only a por-
ton belongs to the Central Vermont. The
balance belongs to the connecting roads
west Of our line, and under the arrange
ments usual between the railroads was col
lectcd at the terminal points.
TO explain the method of settling be-
tween the different roads: On freight
starting from Chicago. for instance. the
Grand Trunk are charged by the Michigan
Central with the amount due for transpor-
taton to Detroit, and the amount due for
transportation to st. Johns both over their
road and the Michigan Central the Grand
Trunk charge to rs. This amount. and the
amount belonging to the road from st.
| Johns to White River Junction we charge
/ to the lower roads. In the same manner
/ the Northern road charge to the Concord
I road. and so on until the whole amount is
collected Mt the point OF destination. BY
/ the arrangements which exist between Us
and the Line via Concord. settlements are
made direct with the Boston & Lowell. not
affecting the balances due the Northern
/ and Concord roads The balance due
from the Northern include the Concord
roads share for which the Northern railroad
settles with lis and also the proportions foi
points as far rs Nashua. The same is true
with respect TO the Rensselaer, s. Saratoga
railroad and the balances due from them tC
their connections west. Instead. however
of settling with the Fitchburg railroad
direct, we settle with the Cheshire road
The funds due from the Fltchburg railroad
are included in the funds stated hy me n,
due from the Cheshire
The balance due Delaware * Hudson
about which ! have been in correspondence
with the President and Treasurer this week
we cannot pay because our funds are lockct
up. | explained this to the President Of
that company, but of course it cmbarrasse,
him exceedingly. In the same manner vt
owe to the Grand Trunk very large balan
ccs, and they ae urging their paymen
very strenuously. but the funds are locked
| up. They have no one to look to but us
The accounts are against us. oar OWL
balances are locked up in the same manner
which is very embarrassing to Us, because
the local earnings of our roads from point,
on our line to points on the lower roads ar,
involved in those accounts. All that We
can depend on for earnings is the freight
shipped from one local station on our rOat
to another-as from Bethel to Randolph
or from Waterbury TO Montpelier, etc
Hence the receipts from local business are
comparatively small. The bulk of on
funds is locked up in these collections 4
the lower end of the line, and upon these
earnings we rely to meet our running cX
penscs and the interest due on our trust OBJ
legations. etc. Our settlements with IN,
lower roads arc made monthly.
q. BY Mr.. Fifield If this thing can b,
done, and these funds locked up in thi,
way, what will be the practical effect upon
the roads under your management?
a. If this state of things Is to continue
the effect will he to drive off the through
business from our line or else compel The
connecting roads to pay on delivery, whicl
would practically break up our through
business.
Question by Mr.. Fiicld What Is ihi
money required for:
A. To pay operating expenses. ont
standing supply bills, notes payable, sc
We have no other resource with which {,
meet the obligations of the road Th,
Central Vermont has paid in about Il mil
lion dollars, which has been applied to Tn,
reduction of the debt, as have also all til,
moneys of the road after the payment o
the operating expenses. We have matur
ing on the LIST of January about $1,000
interest on the bonds of the trust Whicl
have been issued under authority of TIN
court
Question by the Court-IIow much a
the balance in the hands of the lower road
belongs properly to the receivers and man
ayers.
A. think something over S400,000
TREVOR W. PARKS TESTIMONY.
Il. w. Park testified as follows-I am
director of the Central Vermont Railroal
Go. and am Il member Of their executive
committee
Mr.. Fitcld-Statc in your own way The
practical operation of the locking up Of tn
funds of this rcceivcrship.
Mr.. Park-The effect OF it will be, il tn,
Chancellor does not relieve rs, to stop TN
operation of the roads in our possession u
receivers, so far as the through bushes
over the roads is concerned. After GU
companyItooll possession of the roads undc
the order Of the court, we advanced iron
time to time funds to pay the liabilities o
the old receivers to the amount of about
million dollars in cash. We were require,
by order of the court to pay the iloain.
debt against the old receivers Whicl