Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-03-26
The Vermont Central.

trustees of the Vermont Central began before
Chancellor Royce, with whom sat Chancellor
Redfeld, on Tuesday of last week The sub
stance of the petitions for rent and removal
we have given before The first days o.
ceedings resulted in decision by the Chan
cellOr that he was not sitting as an account
ant, and this apparently disarranged the
plans of the petitioners.
The following day they attempted to show
that out of the proceeds of the sleeping Car
traffic secret service fund was formed, but
failed to trace it's formation clearly and
wholly failed to follow it after it had assum-
&c shape as any such fund. They also made
a raid on the National Car Com pany, and Cd
the sale of cars to the Grand Trunk, but
their witnesses on cross examination showed
well for the managers of the road.
Alr. Davenport, for the petitioners, under
took to examine into the profits made indi-
vidualIy by some of the trustees from the
Sullivan road and elsewhere, for the pdrpose
of laying the basis of the course which he
and his associates proposed to pursue. They
hoped to prove that Governor Smith and Mr.
Clark had made an average of $50 600 per
annum out of the Sullivan road, and that t
the other end of the line they had another
road out of which they made another $4,000,
while these roads had not yi,ldcd any profits
to the trust property.
Mr.. Fifeld contended that the lease of the
Sullivan road was necessary for the protec-
ton of the trust property, and that Gov.
Smith had as much right to lease that road
or the New York Central as he had to make
money from his farm.
Judge Redfeld stated that whether the dc
endants made $4,000 or $4,000 a year
had nothing to do with the case as it was
presented to the Court, aud he ruled against
the admissibility of the evidence.
Thursday the National Car Company 5
transactions were still further inquired into,
and Mr. Hard proposed to show that there
was in st. Adams foundry owned by two
of the trustees, who have been charging
more than the market price for car wheels
furnished the road, and that they have ben
dealing with themselves to the detriment Of
the trust fund.
The Chancellor stated that the question in
vOlved an accounting that no accounts Of
the trustees had been settled since 1866 and
that this whole matter complained o. shoulC
be embraced in the settlement of the recciv
ers.
Mr.. Royce, for petitioners, argued tha
when it was shown that trustee was usiD.
trust funds for his private profit he should be
removed, and if there was anything whict
the petitioners had right to have investig3-
ted it was this matter of purchasing cal
wheels There was no necessity for account
ing. and the testimony would not occupy
twenty-five minutes.
Mr.. Fifeld said, ''your twenty-five min
utes means twenty-five days" lie argued
in opposition to admitting tie testimony.
Judge Redfeld said that while coincidiu.
with Mr.. Royce in the opinion that the cas-
called for the most rigid examination, !
must be obvious to any mind that proceeding
in this irregular manner would lead to end
less opening ofnew matters, and he adhere
to the ruling of the Chancellor.
At this Mr.. Davenport concluded the peti
TONERS had made mistake as to the eours
to pursue, and asked for a recess, which wa
granted.
On Friday the arguments of counsel wer
heard. and Chancellor Royce gave his decs
ion, which our readers will find below. TIL
result of the hearing is the withdrawal q
the petitions, and victory for the trustees G
the Central road, though the case so turned
that they had no chance to enter into (ul
vIndication of themselves. Street rumor ar
gossip did not sufficiently condense itself int
fact, when called into Court, to demand th
full history of the transactions of the Yer
mont Central management for the past fer
years.
CHANCELLOR ROYCE-S DECISION.
Gentlemen, we have had no time, sine
this case was submitted, to prepare any for
NAL opinion, nor in fact to write out any
have had no embarrassment in relation t
the disposition that should be made of tn
case. And ipasmuch as we have agreed wit
reference to its disposition, it is probably 70
the interest of parties that the case shoul
be disposed of, as far as the hearing is con
eerned, at this time.
This petition is for an order upon thes
receivers and managers to pay to the Yer
mont and Canada road or for their benefit
the rent, amounting to S120 900, which wa
due to that road on the first day of last De
cember. And the petitioner, in order t
make out bis case "a prima facie case-ha
introduced proof to show that the net earn
ipgs of the roads were sufficient to pay thi
rent of $4,000 and the interest, and Their
rests his case
The petitioners, as an excuse for non pay
ment of this rent, claim they have no none
in their hands that applicable to thu
purpose, and that whatever money had com
into their hands as receivers and manager
they had paid out as trustees, receivers an
managers In the discharge of obligation
which had accrued and were accruing gains
them as such receivers and managers. Well
now, il is claimed upon the part of the pet
TONERS that inasmucb as the net earnings c
the road were sufficient to pay this rent, tt a
it is a matter of indifference to them whethe
these receivers and managers have paid TIL
money out If they have paid it out, tn
claim is that they have paid it for purpose
that were unauthorized.
Well, it seems to us, gentlemen, that W
are not in position to decide that question
that before we can decide-make any orde
upon the receivers and managers for the pay
ment of the money-that their account shout
be settled, so that the Court can act INTEL
gently: ascertain in the first place whethe
there is any furd out of which to pay thi
rent how that fund was earned, and sscer
tain from that account what sums these re
ceivers and managers have expended and TO
what purpose they have expended the sums
whether they were legitimate and proper ex
pendtures. 1t would be novel to make a
order that receivers and managers should pa