Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-02-28
The Vermont Ceutral and Vermont and canada
III

RAILROADS.
nn,Rr>NT PROCEEDINGS IN CHANCERY.-
rIrt,N TOR TIE REMOVAL OF THE RE-
CrIyERs ur TIE VERMONT CENTRAL.
The adjourned hearing before Chancellor
Royee On IL motion Of Mr. Brooks, presi-
dent Of the Vermont and Canada Railroad,
for an order to compel the Trustees and Re
eeivers Of the Vermont Central to pay the
installment Of rent SEC, 0OO) which became
due the Vermont & Canada last December,
came of at St Adams on Wednesday. Mr..
Brooks wa, present and with Hon. ileman
:. Rovce and Hon. f. r. Hard, a counsel.
Hon. b. +. Fifeld. Hon. Levi Underwood,
Hon. John " Stewart, Hon. Jasper Rand,
Messrs. Noble a Smith, Davis & Adams and
Col. r. c. Benton, appeared a. counsel Tor
the Vermont Central.
Governor Smith fled an answer 30 the
motion wherein be set forth that the
Trustees had expended upward Of Slao,-
600 more on the construction of the Bur
lingtou Branch Through the tunnel) than
additional Vt and Canada Stock had been
issued for. therefore they ought not to be
compelled to pay dividends until this Ssm is
met.
Before the hearing began, another pro-
ceeding was commenced by the filing Of a
petition By NJ. b. Carpenter, Of ST. Adams.
a. counsel for the First Mortgage Bond
holders Of the Vermont Central, praying
ior the removal Of all the present Trustees
and Managers. on the ground Of mis-
management and fraud The petition is
signed BY bondholders owning SlS3, 900 of
bonds, most Ct whom live in Massachusetts,.
This action stands over for hearing, and
meanwhile the VI and Canada suit Is pro-
ceeding.
Messrs. F. A. Brooks, f. r. Hard and II.
$ Royce, as counsel for the Vermont &
Canada Railroad Company. then filed
another petition. The petition recites that
one hundred and twenty thousand dollars
were due the Vermont Il Canada stock
holders for rent December LIST, that five
thousand was due for incidental expenses,
and that neither had been paid, that the
trustees and managers have not reported
their accounts to the court. As directed in
the decree appointing them; that they have
made contracts with the Northern TranSpor-
tation Company without authority, and
contrary to the terms of the order OF court :
that in consequence of reckless misInana ge-
ment the trustees were unable 70 meet
their liabilities last summer, and disposed
OF half a million eight per cent new notes
al nominal rate of ninety cents on a dol
lar through the agency of the National
Car Company. having, however, 10 pay
Grand Trunk Railroad Company large
proportion of their receipts therefor that
the effect Of this Is to increase debt of com
pany in this direction two-iold that
money realized by this sale was used
by the managers to furnish short ex-
tension of their own overdue notes, by
paying twenty per cent; that the managers
do not possess the confidence of the public
as prudent and safe men. and could not
dispose Of said loan, except by barter 10 the
National Car Company; that they them
selves took a quantity of loan a discount
of ten per cent, contrary to order of court;
that Brothers Smith, as Presidents Of the
Vermont Central and the Vermont Il Canada
corporations, improperly attempted to rep
resent the stockholders.
In consideration of all this. the petition
ers pray that all the managers except Barnes
and Cheney, be removed summarly, as if
by writ OF ejeetment.
All the above petitions stand for hearing
before Judge Royce, on the 18th of March.
rrnviiu,