The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-21
THE VERMONT CENTRAL.
Developments Touching Railroad Management
from President Harris-Probable Failure Of
the Complaint Against the Trustees
and Directors Of the Y. c. andV.
and c. Railroads-Rulings
ofChancellor Redfeld.

ST. ALBANs, w. March 90 1873.
In the matter OF the people OF Vermont vs.. The
Trustees and Managers OF the Vermont Central and
Vermont and Canada Railroad the testimony was
taken to day OF Mr.. ID. l.. Harris President OF the
Connecticut River Railroad. He said that the
ordinary expenses of a railroad in general terms,
sh ould embrace. from year to year. an account Of
the depreciation OF the stock. If they fail to do
this and finally get large number OF new cars to
make up the depreciation the purchase money
should not be classed as extraordinary expenses.
The constructing and regular ballasting OF tho
track should be classed as ordinary expenses; 80,
also, should the rebuilding OF portion Of the
track. The same rule applies to seepers and
bridges, and this rule Is general on railroads.
II new station is established or q new branch Of
track laid this would be the extraordinary governs
ment expense of road, but part OF the dispose
ton Of the income, the same interest and divk
dends would be.
The Court-Suppose a bridge should he swept
away piece OF track washed out, what account
should the expense OF replacing 1t be charged to {
Mr.. Harris-As 1t is as liable to occur one year as
In another we always place it to the ordinary ex.
pense account.
THE RUTLAND LEASE.
The question was here asked of the witness II
the Rutland lease was IN his opinion, judcious for
the contrOl9
Objected to and ruled out by the Court.
Mr. Hard asked to be heard on that, and he con.
tended that it was relative, because the bad mans
agement of the receivers was point directly INF
volved in the hearing, and the testimony of those
acquainted with that kind Of property was neces.
sary to enable the Court to determine whether they
are safe to be Continued in the control OF tho
property
Chancellor Redneld replied that the opinion was
altogether too general, and would open the door to
the production OF mass Of testimony from other
witnesses, whose opinion might and might not
accord with his, but would be entitled to just as
much weight.
The witness said that freghts at less than 81 I'd
Car load could not pay any profit to any line be,
tween here and Chicago; all the freight rates be-
tween Boston and Chicago return the smallest
possible profit II they do not result in loss; the
Boston and Albany get about one dollar and thirty
cents car OF ten tons; the railroad companies
have to pay for the cars, whether full or empty;
never heard until Mr.. Mills testified that It was
hotter for the road to haul car partially loaded
than one that is empty; no one can believe it but
eight hundred dollars, and has been Tor two or
three years past; was absolutely certain that
Blue line, running west, via Boston and Albany,
was cent and a half miles temporary
repairs are made on the road when the car Is dis
abed, but permanent repairs, such as replacing
parts, painting, &c., are made by the car com.
panies; our road pays for car service by inter-
sumpsic two and half cents, but other roads have
refused to pay it for my part pay to these roads
because cannot help myself; with other roads in
terchanging with us the rate is two cents about i,
the time Governor Smith took the Rutland lease
times; he remarked that he haG .old his associates
that they must be prepared t. meet with some
losses for while, and must not be surprised II for
the first year the loss was S175,000
STATEMENT OF A GENERAL SUPERINTENDENT.
ID. W. G. Brown testiAed that he was General
superintendent OF the Ogdensburg and Lake Cham
plain Railroad Tor four or five years before its lease;
was invited to attend meeting at st. Adams be-
lore the stock in the National Car Company was
taken; In reference to getting up such company
Governor Smith urged Mr.. Pratt. our President,
and myself to go into it, and it was proposed to US
that II we would take a certain proportion one
half the business should go over our road instead
ea m Mr. Mr. nv 1 ns Grana
| ernor Smith that he was net authorized by his
company to take stock. and that he could do it In
dividualy; he and / had talked about the mprO-
priety OF doing 1t individually.
THE PRICE OF CAR wHEELs-A DIFFICULT QUESTION.
The counsel here inquired what the price of car
wheels was at certain time [ODected to The
Court ruled that the receivers were under bonds,
and that this matter OF car wheels and all Othef
supplies should properly come up In the settlement
go into an accounting; also that the trustees, with
the possible exception OF Mr. Clark, are not under
nyng for be 'ne ve oeen con,
expense Of the road it Is unreasonable to compel
them to pa, back IN an action for ac-
counting. We have right to prove that
THEY ARE VIOLATING THEIR DUTY,
and this was to have them stopped right here and
to take the account afterward The original order
for this receivership provides that they shall
der their account annually. They have neglected
TO do It since 1866. The facts proper TO be proved
in this hearing are whether not they have dealt
with themselves TO the prejudice of this trust.
This may involve few figures; so does all the tes-
tlMOny In the case but 1t does not 60 into an acS
counting at ALL and is one OF the most vital Points
whereon the continuance or removal OF the res
ceivers should properly turn.
GROUND FOR REMOVING TRUSTEES.
Mr.. II. $. Royce said that when receiver makes
removal. We now offer to prove this, and are not
allowed simply because OF a fear that 1t may n-
vove an account. IL settled by this Court that
suit cannot be sent to master for an account
ing until all the questions on the bill and answers
are disposed Of THIS is one OF our vital questions.
and the whole testimony on our side Will not take
Mr. fairfield replied that the court had virtually
decided that the trustees have the responsibility
for running the road, and that the Court will not
sit continually on their affairs. The trustees DON'T
claim the righi to trade with themselves, and, on
accounting, n there is anything wrong, the Court
will reduce it in minute. Here Mr.. Fairfield
claimed that the compliments had not furnished
specifications soon as they agreed to, and tuat
the specifications were not sufficiently definite.
c, THE TRUSTEES d MAY BIZ CALLED TO ACCOUNT.
CURED with Mr. Royce that the complainants had a
right TO call the trustees 10 tue most rigid ac-
countablity, but the Court will hold them to IL in
an action FOR an accounting. II you can 90 INTO
the matter OF car wheels you inquire as to all
other supplies, and this would involve q thousand
Inquiries as 10 the quality and prices which the
chancellor cannot spend the time to inquire into.
BaNenpoft mONeu LOT u recess at half-yaS6
eleven until the afternoon. In view OF what had
Just fallen nom the lips OF the Court his present
opinion was that ne should advise such OF hla
clients as are here that they had mistaken their
remedy, and that IL would save time to abandon
this proceeding aud
PROCEED IN SOME OTTER FORM.
The Court granted the motion for a recess until
the afternoon.
The counsel for the petitioners made formal
motion for the placing OF their petitions on
nle, 80 that the matter OF account might be settled
before masters to be appointed by the Court. This
Is understood to be virtual abandonment OF the