Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-06-26
The Railroad Hearing.

The ADJOURNED nearing on the pellIlOH
of the trustees and managers of the Yer
mont Central and the directors of the
new Central Vermont, to have the latter
made receivers in place of the former,
commenced, at St Adams, before Chan
cellor Royce, at Gov. Smiths office, in
the depot, Thursday morning. The de-
cision of the Court upon the petition
was given Saturday forenoon. The
Chancellor then took up the objections
and gave his reasons for the order sub
stantially as follows, as given by the
Messenger
With reference to the organization of
the Central Vermont Company objection
is made that it was not properly organ
lied. We are of the opinion that the
requirement of the statute for the COM
missioners to fix the price of bonds was
not mandatory, but was for the benefit
of the security holders who might ask
it. No one seems to have asked it, but
one bondholder subscribed, and he with
full knowledge that the price was fixed
by two of the commissioners conse-
quently he is not in position to object.
Whether the fixing the price of bonds
was a ministerial or judicial act is not
material under that view. The price
fixed by the commissioners is not an ar
bitrary one upon the directors they are
at liberty to fix any price. The objec-
tisn to the organization is not well taken.
The objection that the Central Yer
mont Company is a stranger to the cause
might be good one were the petition
signed by the company alone, but this
petition has also the signatures of the
receivers and managers, who are not
strangers to the cause, and hence
we are not inclined to dismiss the petit
ton.
We think the objection that the Cen
trail Vermont Company ought not to be
appointed because it is corporation, is
as a general rule valid objection. There
are no presidents. but this is an excep-
tional case. All the proceedings in this
cause ought not to be taken as prece-
dents. The exigencies of the case re-
quire that we make an exception, and as
the Legislature have intimated who the
Chancellor may appoint in particular
case, the doubt which | might otherwise
have is removed.
AS to the propriety of this change we
consider it unnecessary to detail a his
tory of the cause everybody has ex-
pressed desire to get this property out
of the rut. This corporation now come
| forward and propose to take it out, and
pay all debts and demands. Now it
seems that if this can be done, it is pro-
per to be done.
A great deal of complaint has been
made of the present management, but
ho Ind 1or
other. Petitions have been brought for
removal of receivers, but no one has
ever nominated or named their success
ors until now. This is the first instance
that any one with pecuniary ability has
manage it. We therefore decide that
granted and make the following order.
The order was quite lengthy. 1t passes
the property over to the Central Yer
mont Company, providing that the re-
ceivers and managers shall settle and
pass their accounts making Hon. d. A.
Smalley, of Burlington, q Special Mas
ter to hear and report upon all claims and
demands against the present receivers,
and appoints the Central Company as
managers, requiring them to pay all
debts and liabilities and to manage and
operate the railways subject to the or
ders of the Court.
The amount of the bonds to be given
by the new company was not fixed in
the order. After discussion by counsel
the Chancellor fixed the amount at 81
100000, conditioned for faithful per-
Torrance of duties as receivers and
managers.
The order was not signed, but was left
for counsel to make suggestions upon the
minor points.
The order does not give the new re-
ceiyers power to take lease of the Sulli-
van, New London Northern and Mon
treai and Vermont Junction railroads;
that part of the prayer of the petition
was denied.