The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-09-10

road company receivers of the vast trust
estate of the security holders Of the YER
mont Central and Vermont and Canada
railroads. He considers the appointment
improper in the first place because the Cen
trail Vermont should have taken possession
of the property in its corporate capacity
under the charter In support of this posi-
ton he quotes q part of the language of
the act which refers to that subject He
then inquiries how, if unable thus to take
possession, it could in its corporate capa-
city take leases Of the New London. Suli-
van and other railroads
Sec | /. of the act provides that:
'Thc Central Vermont Railroad COM
pany may assume and perform all the con-
tracts Of the trustees or receivers and man
ayers of the Vermont Central and Vermont
and Canada Railroads, and may modify,
enlarge or renew the same, and may make
any contract by way of purchase or other
wise, of any railroad, or of, or in respect
to the stock, bonds, contracts or property
Of any railroad or transportation company
within or without this state, for the pur-
pose Of facilitating connections or incrcas.
ing their business"
As this section is not in any way
qualified or explained, il must
be construed as applying to the
Central Vermont from the very moment of
its corporate organization, and gives that
company undoubtcd power to take the
leases already made to it, as a corporation,
and as many more as it sees fit. Besides,
the company couldn't very well have taken
the leases of the Montreal and Vermont
Sullivan Railroads in its capacity of re-
ccycrs, because although the Vermont and
Canada Railroad Company and certain of
the bondholdcrs felt themselves bitterly
aggricvcd for that GOV. Smith and his as
socatcs had taken these profitable leases"
in their individual, instead of their trust
capacity, yet, when Gov. Smith and his
associates offered to transfer them into the
receivership, the Vermont and Canada
Railroad Company, and certain of the
bondholdcrs aforesaid, gave notice that
they should most decidedly oppose such
proceeding. Consistency is jewel.
Sec. 5, a portion Of which is quoted by
your correspondent. really and distinctly
provides at its commencement that;
"When said corporation shall have been
organized as aforesaid the directors shall
open books for subscriptions to the stock
of the company to be taken in exchange
4 l. r
the Vermont Central Railroad, or both
classes of said bonds, and upon such con-
ditions and terms as they may think will
best secure such exchange, and when stool;
shall have been subscribed sufficient, ac-
cordng to the terms proposed, to retire a
majority in amount of said first mortgage
bonds, the company shall become vested
with the same franchises, privileges and
| immunities which were conferred upon the
| Vermont Central Railroad Company by
| their charter, and shall be subject to the
| like duties and liabilities therein imposed
and may take possession of, and operate
| and maintain the Vermont Central and
| Vermont and Canada Railroads" etc.
These are condtions which have not a;
yet been compiled with. At the end OF
this same section comes the paragraph
quoted:
"And provided further, that until stocl
shall have been subscribed sufficient to re
tire majority of said first mortgage bonds
as aforesaid, the company shall have powe
temporarily, to operate said roads. subjec
to the order of court in the case Vernon
| Il Canada railroad company, and ais, vs.
Vermont Central railroad company ant
ais, pending in Franklin county in chan
Gerry
The italics are my own, and upon con
sideration of the whole matter as thus pre-
sented, does it not seem at least probabl
that Anti-Monopoly and his able associate
would have found some objection to tax
ing of the property by the Central Yer
mont, in its corporate capacity so in fla
grant violation of the letter and spirit o
the law as above set forth. This receiver
ship | concedc to be an evil, but at tn
same time fail to see any present way o
escape from it as n necessary evil, or an
other course which could properly hav
been taken by the court.
Your correspondent further says that
corporation ought not to be receiver. |
is little singular that no one thought O
that in 1866, when the Vermont & Cana
da railroad company was acting as receive
OF this very property, and that too, sorel
against the wishes of a majority of the pai
ties interested in it. Do you deny that tn
Vermont x Canada company acted in tina
capacity? Now we assert that the prop
erty as it was situated then and as it is sit
uated now, could not be held and manage
in equity except by receiver, and tina
the Vermont & Canada sustained such rela
ton, was recognized by Judge Poland il
an order dated December s, 1856, wherei
it was ordered on motion of Mr.. Wood
bury, of counsel for the opposition, tina
John Smith, John S. Eldrdgc and Law
renee Brainerd, Receivers and Managers @
the Vermont Central and Vermont & Car
ada railroads and property under an orde
OF court made on the 9th of the previou
May, I" file with the clerk of this court
just and true inventory of all the propert
ana e1fects received by them from the Vel
mont e Canada railroad company tie 70,
mer Receieers and Managers"
A corporation ought not to be receiver
because its directors are liable at any tim
to be changed and good men ousted to Civ
place to sharpers and thieves. Then ce
tainly man ought not to be receiver
because he is liable to yield to temptatio
and steal all the property. Why, my dea
friend, all the fun of having receiver
that you can turn him out if he become
wicked. All things human are more {
less uncertain, and perhaps this compan
may at some time become corrupt, but j
such event is it not just as easy to get
corporation turned out of the receiyershi
as to eXpel man or number of men i?