Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-08-22

Win the trust. lt would appear, therefore
that the interest of the first mortgage wa.
: given at least reasonable voice in the con
: duct and management of the property.
| There was made provision for the othel
three existing interests, namely: the Yer
mont Il Canada and the Second Mortgage
with intent to provide against precisely
, such contingencies as those which have
: lately arisen. The receivers and mana ger.
, were to file their accounts in the court semi
annually, and any man holding one share o.
Vermont & CANADA stock or one seconC
, mortgage bond could 90 in or send in tc
examine those accounts, could file his obiec.
tions to any item or items which he saw fl
to object to, and the court was open to hin
without formality or delay. The objection.
able items of account would be sent out to a
master to examine and report upon, and
such relief given the complainant as to
equity might appertain. 1t is scarcely pos.
sible for any one familiar with the practice,
of courts of equity to conceive of any way
IN which more simple or more complete rep
resentation could have been given to the va
rious interests in this cause.
BY this decree also the cause was ordered
to be continued upon the docket of the
court and to remain open to all parties at
all times.
From the date OF this decree up to the
time of hearing on the petitions of the Yer
mont ~ Canada for payment of their rent.
filed December 9th, 1872, numerous peti-
tions were preferred in the cause, generally
by the receivers and managers for orders
and instructions on the administration OF
the trust. 1t is, perhaps, unnecessary for
our present purpose TO refer to these in de-
tail, and we would only remark that in no
case docs there appear t. have been any neg
aQf or forI rIrrs. M
parties interested, and in no case were any
objections made. Many slur has been
cast upon the Court of Chancery of late.
for granting the prayers Of these petitions,
assented to,as they were, by all parties hay-
ing the right to a voice on their hearing
10 the unprejudiced legal mind these
things are simply ridiculous Was it the
duty Of the Court of Chancery, to saw :
"Gentlemen, you authoritativeiy represent
all the interests in this trust which we. as a
court, are called upon to administer and
your assent may be entitled to some weight
but we Will get down from the bench and
90 out and investigate this matter for our
selves, outside Of the evidence You offer be-
fore Us, and then We will decide IS seems
proper to us?'
As well in a jury trial when a suit has
been settled during its progress and the
/
verdict and judgment in accordance with
the terms of their agreement, for the pre-
siding judge and the jury to 20 out and ex-
anime the property in litigation and then
accept or ignore the agreement offered at
their pleasure or according TO their iudg-
ment as individuals.
| Up to the year 1866, and including a part
oil that year, the accounts of the receivers
| with their trust were regularly fled in ODE
dienee to the order of the court. These ac-
/ counts remain on file and ,as they have never
been formally passed and allowed by the
court, they are open to-day. for any party
| having right, to examine and object to il
| he sees tit, according 10 the provisions of
the decree of 1864.
Since that time the receivers have neg
| lected to file their accounts in the cause. .aS-
| signing as reason for their neglect that
the auditing committee preferred to exam
Inc them as they were kept in minute detail
upon the books Of the management. This
l. evidently a Noncompliance with the
/ order OF the court, but 1t Is equally evident
| that the parties IN interest knew or could
have known OF this neglect, and there i no
reason Whatever to doubt that on petition
/ from any one Of them there would have Is
sued from the court to its officers a summa-
/ ~ order for compliance with their instruc-
tiOns 10 the very letter. No such petition
was ever preferred. Would it be consider
cd the duty of the Court of Chaneery. no
word OF complaint having been heard from
any party to the cause, 10 20 and examine
the files and records in the Office of its clerk.
and on discovering the absence of these ac-
counts to spout up authority as an
arteslan well might spout water, and
summon its officers 10 answer for
/ this delinquency which the parties 20
/ be Injured thereby might. and a. n matter
/ OF duty, should have discovered and COM
| planned Of, ii reason ior complaint they
saw just about as reasonable would have
been an oyerhauling Of the advisory COM
/ mlttee Tor neglectlng 10 compel the filing of
| these accounts.
Alter tins long reign Of peace and quiet
1 ness. hOstllltieS were again opened in the
/ court on the 9th Of December last by the
/ Vermont and Canada Railroad Company,
/ which. through its President. filed on that
/ day petition setting forth in substance that
/ their rent was SIX days overdue and un-
| paid, although the receivers and managers
had IN their possession sufficient funds for
/ Its payment. or would have had if the
same had not been improperly expended.
ana praying Tor summary order for pay
| ment OF the rent with interest from the
time of its becoming due. During the pen
[ deney OF that petition two others were
/ HE'D one by the Canada company and the
other by certain bondholders, both praying
Tor the removal of the receivers and man
ayers on account of alleged frauds and pc
culatlons, mlsmanagcmenr and misappro-
/ prlation OF the funds and property of the
trust Alter some delays, by request of
/ parties, these three petitions came on for
hearing. all together, on the 18th day OF
March, 1873, before Chancellors Royce and
Redheld, at the court house in St. Albans.
IN answer to the petition Of the Canada
company for their rent was flea by the re-
ceiyers. denying that they had money in
| their possession, and applicable to that pur-
pose, sufficient to pay the rent prayed for,
or any part thereof, or that they had i'm
| properly expended any of the funds OF the
trust. Thus the issue was made up and the
whole matter resolved into a question of
what moneys had come into the hands of
| the receivers, and what, if anything, had
been done with them; which question could
/ only be received through an accounting be-
tween the receivers and the trust estate.
That accounting the court promptly and in
our humble judgment rightly. refused TO sit
rs court and take, and 50 the case ran
| aground almost at the very moment of its
clumsy launching
1t is unnecessary for us to attempt the sup
| port Of ruling so manifestly proper that
to tyro in the science of equity and iuris-
| prudence, its prOpriety Is seli-evident.
Courts OF equity never take accounts save
IN the form of masters reports. and that
this Is n wise and necessary rule cannot for
a moment be doubted The Court in this
case said to its petitioners 1--WE cannot
in guilty require our officers to pay over to
1 III ko,-
and there is but one way to decide whether
they have or not, but although YOU do not
IN terms ask it, we will, if you desire, order
these receivers and managers to file their
accounts. Ii they have money it will then
appear and You can demand its application
to the payment of yOar claim. | they have
had the money but have improperly ex-
pended 1t, you have the undoubted right to
object to the items of improper expenditure.
be they few or many, and the Court will
adjudicate them according to its course"
And the Vermont and Canada Railroad
Company, by its President, replied: "We
don't want their accounts; we want our
rent, and since we are refused that, we
will take nothing, but will withdraw our
petition
The Vermont and Canada Railroad Com
pany and certain of the mortgage bond
holders had filed their several petitions for
the removal of the receivers and managers,
or some of them, for the reason, and for no
other reason substantially. than that they
had misappropriated the funds and property
| of the trust.
Then it was again simple matter Of ac-
counting between the receivers and their
trust. Again was the attempt made to in
troduce this accounting in form of evidence
before the chancellors, and as before, it was
promptly ruled out. One of the counsel
for the bondholders then moved the Court
to appoint master to take the accounts of
the receivers. To this the Court replied /:
"Our course is clearly marked out for US
by the decree of 1864. We will not ap-
point master to the endless and useless
task of taking all the accounts of these re-
ceiyers. but if you desire it we will order