The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-06-17
The vermont Central HaiIrond

a hearing took place at st. Adams on
Friday, before Chancellor Royce, on the
petition OF the Directors of the Central
Vermont railroad and of the trustees and
managers of the Vermont Central and Yer
mont and Canada, to have the former ap-
pointed receivers in place of the trustees.
and that possession of the roads be given
them at once, as contemplated by the
charter. Mr.. Park and the trustees were
present, with +. j. Phelps, ESQ, counsel
for Mr. Park, and b. +. Fifield, Esq, and
Hon. Levi Underwood counsel for the
Managers.
MA. G.. Stafford, Esq, filed motion in be
half of certain Vermont Central bond
holders, for a delay in releasing the present
receivers from their trust obligations until
they had settled their accounts.
Hon. Il. II. Hard, of Burlington ap-
peared for Mr.. Brooks, President of the
Vermont ~ Canada. and moved for DELAY.
on the ground that they had not sufficient
notice of the pcndency of this petition to
make such preparations as they desired to
meet it. lie had advised Mr..
Brooks that the Chancellor would
probably grant an adjournment, and
Mr.. Brooks was consequently not
present lie thought they could moi safely
go on now to discuss the grave questions
which the contemplated action involves
and trusted the court would grant reason
able delay.
Mr.. Fifield said that Mr.. Brooks and Mr..
Hard received notice in ample time to
make all preparation Mr.. Brooks ought
to have known what he wanted to do lie
had notice of the pcndency of the charter
in the Legislature, was consulted about it
and freely assentcd to it. He knows as
much about it as we do hence he needs no
time for preparation, If the management
is changed, IT does not affect the rights of
the VT and Canada. They will have the
same remedies against the SUCCESSORS of
these receivers that they have against the
receivers themselves, and besides the matter
remains in the hands of the Court, who can
remove his appointccs at will. The
Vt. Il Canada and the bond
holders have not raised dollar to
help them, and ON the other hand
their factious opposition has embarrassed
the Managers. This motion is of Il piece
with all their conduct. Nobody's rights
will be prejudiccd by the change, but on
the contrary the interests of all classes of
the creditors will be enhanced. and he
thought they had suffered long enough. In
conclusion, he called on Gov Smith to
state some of the business reasons why
there should be no delay.
Gov Smith said that since the Trustees
and Managers found themselves embarrass-
cd, they had been doing all they could to
sell their bonds, bnt the bonds have been
decried in Boston until there is no sale for
them, and the managers were reduced to
the necessity of relying on the income of
the road. The winter was severe. and the
margin above running expenses small
With some of the creditors they made an
arrangement for an extension and with
Others they arranged to make payments in
installments, while the expenses were cut
down to the minimum. Under this new
charter we have found II way of relieving
the embarrassment. The President of the
Vermont d Canada, to my surprise. but
greatly to my qualification, became sub
scriber to the stock, and came to me
and expressed his delight with the arrange
ment and gave me the assurance that we
should have his hearty cooperation. If
the petition is granted the relief to the
creditors comes at once, and in fact the
new company have already advanced to the
Trustees $500, 900 to meet pressing liabiIi-
ties While the property is in this transit
ton state we find it impossible to adopt any
plan for the future. At a meeting of the
directors in New York last week we found
ourselves confronted with the necessity of
putting down new iron, putting on more
cars and purchasing our coal-which is
daily growing higher-but were unable to
decide anything Till after this hearing and so
had to adjourn over until next week.
Meanwhile business is waiting. Only yes
terday Mr.. Hobart had an application for
300 cars, but we were unable to furnish
them. In the Governors opinion tie Uun-
| af o1 cha of mt
make no difference with the rights of the
Vermont Il Canada. 1t changes nothing
but the simple personel of the management
and all the funded obligations will be as
well protected and all the floating debt bet
ter provided for than is possible under the
present Trust.
| Mr.. Phelps said that nothing is proposed
here to-day but simply to change one set of
officers of this court for another. No right
of any creditor can be prejudiced thereby
if the new managers are just as competent
and just as responsible. The new. with
one exception, comprehends the old and
has desirable reinforcement. Now, why
should there be any delay? He did not In
derstand that the Vermont and Canada
were going to oppose the change, but simp-
ly they want more time in which to deter
mine what they will do. This ought not
to be allowed because it is not question
solely between them and these managers
all the creditors of whatever class, are in
vOlvcd. The enterprise is paralyzed for
the time being. The trustees are in, to be
sure, but they expect to be out, and so they
don't feel like making provisions for the
future and with impaired credit they can
not do it. There is nothing new in the
petition. 1t is perfectly well understood,
| hnxr hna Ia, IL.
prints and otherwise and expected as mat
ter of course.
Mr.. Hard, in answer to Mr. Phelps,
would say that the Vermont and Canada
do expect to oppose the change. There
are grave questions under the charter
which have not been settled by the
Legislature We need time to con-
slider them. Possibly the proposed
new management may be unobjcction-
able, and possibly change may not pre-
judce our rights but these assumptions in
volve some of the questions which we de-
sire more time to discuss All the affairs
of this Trust are in bad state. A prac-
ticc has grown up here which is wholly
without precedent, for the Courts of Chan
Gerry to run railroads. 1t is desirable that
the management should be taken out of
the hands of the court as soon as possible.
and he had not supposed and neither had
Mr. Brooks, when he subscribed for stock
and gave the assurances to Gov. Smith
which the governor had related, that this
new company was going to apply to run
the road as receivers. That there was no.
thing in the charter to suggest that COM
pany like this, with stock subscribed and
Books closed would do any such thing, and
if there had been, it wouldn't have amount
ed to anything for the Legislature cannot
appoint receivers.
The Chancellor obivated the necessity
for further argument, by announcing that
he would grant the motion for delay He
suggested that the desirability OF their
agreeing upon an early day, and after con-
sulation, the hearing was appointed for
Thursday, the 10th inst, at o a. NJ.
BY agreement, also, the petition of the
Vermont and Canada for leave to bring Il
slIiI nrninst the TulSInng To rncnNnr fhn