Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-12-19
The Cealral Vermont aud the Vernon, aad
Canada.

The Central Vermont aud the SerHoRi aai
Canada.
HEARING on PETITION FOR ISJUN,rioN-
At the hearing before Chancellor Royce
at 81. Adams on Friday, on petition
brought by the Central Vermont Railroad
Company, as Receivers, to restrain the ' er-
mont and Canada Railroad Company from
holding by trustee process, brought in
the Massachusetts, courts. the funds due the
Central from the lower roads, the Central
was represented by Mr. Fiield and Mr.
Phelps and the Vermont and Canada by Mr..
Hard and Mr.. Stafford.
Governor Smith testified that at the time
the trustee writs were served funds ari>lng
from the earnings of the roads under the
management of the Central Vermont Rail
road Company a. Receivers and Managers
were in the hands OF the Boston and Lowell
Railroad Company to the amount of $780,
sos; Cheshire Railroad, 1892 600; North
ern Railroad about S55 ,277; Boston and
Maine, 81 200. making an aggregate Of
S775. 255. These are sums collected on
through freights at the point of destination.
OF the funds trusted by the Vermont and
Canada, only portion belonged to the
Central Vermont, the balance belonging TO
the connecting roads west Of the Cen
trial line. The effect Of the trustee
process had been to prevent the Receivers
from paying the balances due to the Grand
Trunk Railroad Company and Delaware
and Hudson Canal Company, and the rent
of the Ogdensburg road The latter had
been paid by special temporary arrangement;
but the Grand Trunk and Delaware and
Hudson were embarrassed for want Of the
funds due them and were pressing for pay
ment. Coy. Smith said: - Our own
balances are locked up in the same manner,
which is very embarrassing to US, because
the local earnings Of our roads from points
on our line 10 points on The lower roads are
involved in those accounts. All that we
can depend On for earnings is the freight
shipped from one local station on our road
to another-as from Bethel to Randolph. or
from Waterbury to Montpelier, etc. These
receipts from local business are compare
lively small The bulk of our funds is
locked up in these collections at the lower
end of the line, and upon these earnings We
rely to meet our running expenses and the
interest due on our trust obligations, etc.
Our settlements with the lower roads are
made monthly Ii this state of things is to
continue. the effect viii be to drive off the
through business from our line, or else
compel the connecting roads to pay on
delivery, which would practically break up
our through business. In answer to ques-
tions Of the counsel, Gov. Smith said
The Central Vermont has paid in about a
million dollars, which has been applied to
the reduction of the debt, as have also all
the moneys OF the road after the payment
of the operating expenses. We have matur-
ing on January LIST about SIS 900 interest
on the bonds OF the trust which have
been issued under the authority of the court;
OF the balance in the hands of the lower
roads something over 800, 900 belongs
properly to the receivers and managers.
Mr.. PARK TESTIMONY.
r. ". Park testified as follows-I am a
director Of the Central Vermont Railroad
Company and am a member Of the executive
committee
Mr.. Fiheld- State in Your own way the
practical operation of the locking up of the
funds of this receivership.
Mr. Park-rhe effect of it will be, if the
Chancellor does not relieve us, to stop the
operations of the roads in our possession as
Receivers. - far a. the through business
over the roads is concerned. After our
company took possession of the roads under
the order of the Court. we advanced from
time TO time funds. To pay the Liabilities OF
the old receivers 10 the amount of about
million dollars in cash. We were required
by order of the court to pay the floating
debt against the old receivers which amount
ted to about 81 200, 900. This debt is now
reduced by the use of money loaned by
Central Vermont Railroad Company as re-
ceiyers and with the earnings of the roads,
considerably over million dollars. and be-
sides that we have paid interest on the Re-
ceiyers' bonds, authorized by the Chancel-
lor. over $500, 900. Ii the earnings of the
road can be tied up by attachment in a
foreign State we shall be left without funds
with which to pay current expenses, to pay
the Receivers debts, TO pay the interest on
the Receivers bonds, and to pay connect
ing roads back charges on freights deliver
ed to US and if We cannot rely upon re-
ceiving the earnings of the roads in our
charge, the Central Vermont Railroad Com
pany will not be likely to make further ad
yanees TO the Receivers, and think that the
results would be that We should be com
PEELED to apply to the Chancellor for leave
TO sell the trust property to pay advances
already made by Us, and other trust debts,
and We would be asked to be relieved of the
trust. The Receivers have no resources ex-
cept the earnings of the road, and such sums
as the Central Vermont Company may loan
them. There is interest due January LIST on
Receivers bonds SIS 600, and ifthis attach
ment holds the funds belonging to us, we
have no means with which to pay that in
terest. and the credit of the trust would be
seriously impaired. tA
Cross-examined by Mr.. Safford-You say
that you are one Of the executive committee
Who are the others?
A.-Gov. Smith, 5. L. NJ Barlow Worth
ington c. Smith, George II. Brown, and
Nm. Butler Duncan.
Q.-iiow did the Central Vermont lend
this money?
Al advanced 500, 900 about the time
of the organization of our company, to en-
able the old Receivers to pay off some press
ing liabilities. The balance was advanced
from time to time as it was called in from
our stakeholder, or as required to meet the
necessities off the trust, and during the late
panic borrowed for the Receivers, on my
endorsement, SEC, 900, in addition to the
sums advanced by our company.
Q.--What security does the Central Yer