The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-12-13
BY TELEGRAPH.
The Central Vermont Railroad Hearing

Special to the Globe.
The Central Vermont Railroad Hearing
ST.. ALBASs, Dec l2
The hearing on petition &C the Contra
| Vermont railroad company, receivers ant
managers, for an Injunction to restrain III,
Vermont and Canada railroad company
from any longer holding the large sums be
longing to the Central Vermont as receiver
which have been trusted by the Canad,
company in the hands of the Boston anc
Lowell, Boston and Maine, Fitchburgh
Cheshire and Northern railroad companie.
and George Stark, was opened before
Chancellor Royce Mt his chambers here AT
eleven o'clock this forenoon. The Central
Vermont company appeared by their coun.
sci. f. J. Phelps and b. f. Fineld, and the
Vernon, and Canada company by +. r.
Hard and 4. G.. Stafford. Hon. j. Greg.
ory Smith, Hon. W. C.. smith and Hon.
r. W. Park were also in attendance.
After the reading OF the petition by Mr.
rifeld, on request of MIR. Hard, recess
was taken until two o'clock p. IN.
Ate o'clock p. IN. the Vermont and Can.
ada company filed their answer to the pc
ttion, denying the legal organization OF
the Central Vermont, and denying that il
is party to the suit asserting that they
have attached only property belonging Ia
J Gregory Smith, W. c. Smith ndJoseph
Clark as trustees of the first mortgage, and
that they have the right to prosecute their
suit against these defendants in the state
where the property is found. And further
asserting that if the property attached does
belong to the Central Vermont, then the
Vermont and Canada, under the lease, is
entitled to So much thereof as will pay
the rent row due, amounting to more than
three hundred and sixty thousand dollars and
praying that said funds may be ordered to
he paid into the court for distribution.
Gov. Smith and Mr.. Park testified that
the funds locked up were the current funds
of the rcccivership and that their contnu-
ed detention by trustee proceedings would
bring the entire business of the
whole line to an abrupt termination.
That the trustee process would tie up all
the funds accruing in the hands OF these
lower roads, which collect all through
frcights and fares, and would not only de-
prye the trust of its own earnings, but
render it impossible for the receivers
to pay over to roads east and north the pro-
portionate amounts due them and almost
Immediately cripple the whole line. That the
amount lOChcu up ny thiS lipS'o'Nh6 10
now about S175, ssl and is constantly in
creased by the amount of accrung income
About S40O. 900 of this sum belongs to the
roads under the management of the Central
Vermont and the balance to roads north
and east on the through line.
After able arguments by Messrs, Fiield,
Hard and Phelps the case was submitted
ut 1870 u. IN.
The petition is not for an injunction to
restrain the Vermont and Canada from
proceeding with their suits against
the defendants thereto, namely,
GOV. smith, W. G. Smith and Joseph
Clark. or from trusteeing any of their prop
erty, but Ia prevent them from holding ON
trustee process the funds of the Central
Vermont as receivers of the Court of Chan
GER; which funds, it is alleged, the roads
trusteed in consequence Of doubt and I'M
certainty raised by the process served on
them, refuse To pay over.
\ decision will he rendered by the Chan
ccllor at p, IN. tomorrow, and will be
Immediately telegraphed to the GLOBE.