Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-12-18
The Railroad Hearing.


ing many points of interest not COM
prised in our special telegram of that
issue. The result of the hearing viii be
found in our telegraph columns of this
morning
The hearing on behalf of the Central
Vermont railroad company as receivers
and managers of the Vermont Central
and Vermont and Canada railroads, upon
petition for an injunction to restrain the
Vermont and Canada railroad company
from prosecuting suits in the Massachu-
sets courts trusteeing funds belonging
to the Central Vermont railroad, held
by the lower roads in the Vermont Cen
trial line, was held to-day before Chan
ceIlOr Royce at Chambers.
B. F. Fifield and E. ]. Phelps APP
peared for the Central Vermont, and Z.
r.. Hard for the Vermont and Canada.
The petition was brought in consequence
of the new board of directors of the
Vermont and Canada railroad "a major
ity of whom reside without the State of
Vermont having brought suit, claim
ing to recover their arrears of rent
against J. Gregory Smith, w. c. Smith
and Joseph Clark as trustees of the first
mortgage bonds, of the Vermont Central
railroads, and trusteeing all the balances
held by the Boston and Lowell railroad
company, the Fitchburg railroad com
pany, Cheshire railroad, Northern New
Hampshire railroad, and Boston and
Maine railroad These balances were
due from those roads to the Central Yer
mont railroad company, as receivers OF
the Vermont Central aud Vermont and
Canada railroads and included Gas will
be seen by the testimony of Gov. Smith,
printed below the balances also due
from the Central Vermont to the Della
ware and Hudson canal company, and
the Grand Trunk railway company. 1t
will also be noticed that the funds were
thus locked up on the Saturday before
the rent of the Ogdensburg and Lake
Champlain railroad became due which
was on the Monday following, and as
the funds thus trusted, amounting 10
about three-quarters of million of dol
lars. belonged in great part to the Cen
trail Vermont railroad company as re-
ceivers and managers, and included also
the balances for which they were liable
to other connecting roads west, and as
the suits were brought against the gen.
tlemen above named, and not against
the Central Vermont, the latter company
prayed for an Injunction from the Chan
cellor to prevent the Vermont and Can
ada from interfering with the funds
which were necessary for carrying on
the business of the road.
Gov. Smith was called as a witness in
behalf of the petitioners, and testified as
follows:
| have not been personally served with
any copy of the trustee writ, in behalf
of the Vermont and Canada against my
self, w. G.. Smith and Jos. Clark, by
which the funds of the lower roads were
trusted. | only know from the notices
that l have received from connecting
roads informing me that they have been
served, and Gen. Stark of the Boston,
Lowell and Nashua railroad gave me
this copy of the writ served on him:
The connecting roads who have notified
me are the Boston and Lowell, Cheshire,
Fitchburg, Boston and Maine and North
ern. At the time when the writ was
served funds arising from the earnings
of the roads under the management OF
the Central Vermont railroad company, as
receivers and managers, were, as appears
from the treasurer's books, in the hands
of the Boston and Lowell railroad CON-
pany, about 1926, sos. 90
Cheshire railroad. 262. 600 90
Northern railroad, (aboub S5,277.00
Boston and Maine, 100000
Making an aggregate of S775, 2S5. 90
Notice was received from connecting
roads that they had been trusteed, and
they declined to pay. L received tho
following telegram from Gen. Stark:
DECEMBER ].
Hon. j. G.. Smith Trustee writ was
served OH us Saturday against your
funds by the Vermont and Canada rail-
road This prevents the payment of
funds for the rent of the Ogdensburg
road to-day. What shall be done (?
GEO. STARK.
This was the first notice l received of
the trustee process. On my arrival at
Boston he told me that he was advised
by his counsel that he could not pay it..
By temporary arrangement, however,
he paid the rent of the Ogdensburg rail
road. On account of this process
he has not paid anything since. OF the
funds trusted by the writ in favor of
the Vermont and Canada road. only a
portion belongs to the Central Vermont.
road. The balance belongs to the con-
Meeting roads west of our line, and I'M
der the arrangements usual between the
railroads was collected at the terminal
points.
To explain the methods of settling
between the different railroads: On
freight starting from Chicago, for in
stance, the Grand Trunk are charged by
the Michigan Central with the amount
due for Transportation to Detroit and
the amount due for transportation TO St.
Johns, both over their road and the
Michigan Central, the Grand Trunk
charge to u.s. This amount and the
belonging to the road from St.
Johns 10 White River Junction we
charge to the lower roads. In the same
manner the Northern road charge to the
Concord road, and so on until the whole
amount is collected at the point of des-
tination. By the arrangements which
exist between us and the Line via Con-
cord, settlements are made direct with
the Boston and Lowell, not affecting
the balances due the Northern and Con-
cord roads. The balance due from the
Northern includes freight going to their
local stations, and also the Concord
roads share for which the Northern rail-
road settles with us, and also the pro-
portions for points as far as Nashua.
The same is true with respect TO the
Rensselaer, and Saratoga railroad and
the balances due from them to their con-
nections west. Instead, however, of
settling with the Fitchburgh railroad d.
rect, we settle with the Cheshire road.
The funds due from the Fitchburgh rail-
road are included in the funds stated by
me as due from the Cheshire
The balance due the Delaware and
Hudson about which / have been in cor
respondence with the president and
treasurer this week, we cannot pay be-
cause our funds are locked up. / ex-
planned it to the president of that compa-
ny, but of course it embarrassed him
exceedingly. In the same manner we
owe to the Grand Trunk very large bal
ances and they arc urging their payment
very strenuously. but the funds are lock-
ed US. They have DO one to look to but
us Our own balances are looked III, in