Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-07-25
u,.,,u, in the vermont Valley Railroad Case

motion to dissolve the injunction,
granted on the application of John b.
Page and others VS.. 5. NJ. Waite and other
stockholders of the Vermont Valley Rail-
road Company to restrain them from holding
the annual election for directors of said
company, was heard by Judge Ii. H.
Wheeler, Chancellor, at Rutland on We'd
nesday. John Prout of Rutland, Daniel
Roberts of Burlington, and Charles n.
Davenport of Brattleboro, appeared Tor the
orators, and Edward J. Phelps of Burning
ton for the defendants.
The facts of the case are that the present
board of Directors of the Vermont valley
Road, voted to postpone the annual Stock
holders meeting (the time fixed for which,
in the bylaws, is in the month OF June,
unless otherwise ordered) to December next.
Mr.. Morris, the president Of the company
nevertheless called meeting for the cleo
ton of directors at Bellows Falls on the
9th of June. Previous to the meeting, on
the petition of John b. Page and other di-
rectors. Chancellor Wheeler issued an IN
junction restraining the stockholders IRON
an election. The stockholders met, now
eyer on the 9th. Hon. Frederick Billings
was elected chairman in the absence OF the
president. who was unable to be present on
account of illness. Col. Waite of Brattle-
boro. was appointed committee TO make
an answer to the bill in Chancery, and the
meeting adjourned to July 2lst. motion
IN dissolve the injunction was next made,
and the hearing on it set for Wednesday.
The counsel for the orators moved to post
pone the hearing. on the ground of the
absence of Governor Page party largely
in interest. and the fact that the counsel
had not sufficient time TO examine the
answer on the part of the defendants, and
that no one could suffer by delay. Mr.
Phelps opposed postponement,o on theground
that majority of the stockholders had ap-
piled to President Morris to call the meeting
for an election. and that the directors had no
right to defeat the election of a new board,
by postponing the day for the annual
meeting. He saw no reason for awaiting
the return Of Governor Page, and thought
the bylaw of the corporation should have
its reasonable construction and force.
Judge Wheeler said that the orators
should have fair opportunity to examine
the bill and answer He did not think it
necessary to await the return Of Coy. Page
from Europe, for this hearing, and would
hear the motion to dissolve the injunction
on Thursday.
OF course these proceedings have reference
to the effort to break the extension of the
lease of the Vermont Valley Road to the
Rutland Road Control Of a majority OF
the Vermont Valley stock ~, 900 out OF
10000 shares) have recently been secured
by parties in the interest of the Connecticut
River Road, whose chances for future con-
nections with the north depend, to some ex-
tent, probably, on its defeating in some way
the twenty years extension of the existing
lease Of the Vermont Valley. The Rutland
r. K. Company holds that the lease having
been legally extended by the directors Of
the Vermont Valley; and the new holders
Of the majority of the Vermont Valley stock
having purchased the stock with full
knowledge that such an extension OF the
lease had been made, they cannot now IN
terfere with the lease, by means OF new
board Of direc tors or otherwise The Con-
nectieut River people probably think that
that remains to be seen.
We mott ce. by the way, that an impress
sion seem to prevail in some quarters that
the iniuI iction in this case was obtained 10y
the Central. That, if we understand the
matter, Is net the case. The Rutland Rail
road Company transferred it. lease OF the
Nerm ont Valley and the extensions OF the
same, to the Central, and will, of course, be
held by the Central to make good it, part
of the bargain The Central looks only to
tne Rutland for it, security, and, az we are
Informed, Is not even party TO the present
suit