Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1873-02-26


The Vermont Central Difficulties.
The preliminary skirmishing by which
the opposition to the present management
Of the Vermont Central Railroad seek to
acquire the control Of the road for their
own benefit, commenced before Judge
Royce, as chancellor, at St. Adams, last
week This hearing lasted two days, and
was then adjourned to the 18th Of March
for full hearing
The proceedings opened with petition
for an order to compel the trustees and
receivers of the Vermont Central railroad
to pay over the installment of rent, $780,
000) which became due to the Vermont
and Canada road last November, and both
sides in the controversy were represented
by the ablest counsel procurablo.
In answer to this petition Governor
Smith filed an answer wherein he set forth
that the trustees had expended upwards of
Sl2O, 600 more on the construction of the
Burlington Branch Through the tunnel)
than additional Vermont and Canada stock
had been issued for, therefore they ought
not to be compelled to pay dividends I'M
til this sum is met
Before the hearing began another pro-
ceeding, far more radical and sweeping in
its scope and purpose, was commenced by
the filing Of a petition by NJ. b. Carpenter,
Esq, Of counsel for the first mortgage
bondhoders Of the Vermont Central, pray
ing for the removal Of the present receivers.
on the ground Of mismanagemont and fraud.
The petition is signed by bondholders own.
ing slS3,000 Of bonds, among whom are
several people of distinction in Massachu-
sets.
Another petition similar in scope was
presented, asking that all the managers
with the exception Of Messrs. Bornes aud
Cheney, be removed summarily, as if by
writ Of ejectment from the positions which
they hold as trustees and managers of the
road
In reply to this, Governor Smith said {:
This is the first time since the matter
has been before the public, that the trus-
tees and managers have had an opportunity
to meet the charges that have been brought
against them. They have been made be-
fore in such manner as to preclude a re-
ply. Newspapers have made bitter charges,
very bitter charges, against the personal
character Of the managers; and these
charges continue. The petition does not
take me by surprise. was advised some
weeks ago by gentlemen who presented it
that if would not submit to terms which
| thought to be unjust, this petition would
be presented in the most obnoxious man.
ner,-but do not desire to discuss this mat.
ter here. SO far as the trustees AID mana
gers are concerned we desire this hearing
now. Our accounts have always been open
for inspection by the officers appointed by
this court, at all times, and are supported
by the proper vouchers, They have also
been open to inspection by the Vermont &
Canada stockholders, and other security
holders, at any time. Every important
transaction entered into by the trustees and
managers, has been with the approval of an
advisory board appointed by the court, and
they have been sanctioned by the Vermont
Canada directors themselves. 1t is due
to US that we have a full hearing on all
these charges which have been made against
us, and for our part we shall prefer that it
take place to-day"
1t is not our purpose to publish in full
the papers in this case, nor to enter into
the details by which the legal counsel on
either side seek to muddle up the matter.
The issue is made up, and all parties may
be sure Of full, fair and searching inquiry
into the matters involved. The principal
interest in the case will center in the ques.
tion whether the present managers Of the
road have been guilty of illegal and corrupt
practices, which will render them unfit for
it's further control.
1t will be observed that the statement Of
Gov. Smith is extremely manly and straight.
forward, and we can easily see how he is
pleased with the idea of having hearing
before responsible and impartial tribunal.
The delay in the hearing is none of the
work of the managers of the road. In.
deed they were anxious to proceed at once
with the investigation, but the other side
not being ready, they cheerfully gave them
time to further prepare their case.