Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-03-21
rermo,t Central Railroad.

order to compel the trustees oil the Vermont
Central either to pay the back rental or sur
render the road, and one for the absolute
| removal of the trustees, on the ground OF
misnanagenent, opened at St. Adams on
Tuesday. The Chancellor, Hon. Homer Il.
Royce. invited Hon. Timothy P. Redfeld OF
the Supreme Court, to sit with him as an
| adviser. For the stockholders there appear
ed Hon. F. A. Brooks of Boston, Heman ,.
Royce of St. Adams, E. R. Hard Of Burling-
ton. and A. G. Stafford of St. Adams; for
the first mortgage bondholders, Hon. Chas.
n. Davenport of Brattleboro', Mason Il.
CARPENTER and Alfred G. Stafford of St. Al
bans. The trustees and managers, were rep
resented by Hon. Levi Underwood, B. F.
Fifeld. ESD, Hon. John W. Stewart, Hon.
JASPER Rand and R. c. Benton, Noble and
Smith. and DAVIS and Adams of St. Adams
| A large number of the officers and bond
and stock holders of the two roads were pres
ent. including President Smith, b. P. Che
new. Trustee, l.. Mills, General Agent of
the Vermont Central, DR.. james r. Nichols
q director of the Vermont and Canada, e.
"Carleton" Coffin, Otis Drury Of Boston,
Auditor of the Vermont Central; Samuel
Williams of Castleton, formerly treasurer
of that company, and others.
The hearing was opened by Nj. Hard,
who proposed that the arguments should be
continued upon the petition to compel the
payment Of rent.
Mr.. Underwood argued in favor Of hear
ing the arguments upon all the petitions at
the same time, and suggested that the EVIL
dence be heard in all the cases, after which
the court could listen to the arguments.
The Chancellor said that inasmuch as
Judge Redfeld was unacquainted with the
case, he desired to have read the petitions
which were filed in February and the an
swer of the respondents. The first petition
from the stockholders of the Vermont and
Canada was then read by Mr.. Hard. The
petition for the removal of the trustees was
read by Mr. Carpenter. Mr.. Stafford Of the
counsel for the stockholders of the Vermont
and Canada, read certain additional speciii-
cations.
The specifications are that the lease Of the
Sullivan road by Lawrence Brainerd, de-
ceased, and J. Gregory Smith, had been
detrimental to the Central road and benef-
cial to the lessees pecuniarily to the amount
of $500, 900; that Gov. Smith had indiyid-
ually realized 100000 by the lease that
the Trustees had established a secret service
fund drawn from the revenue Of the road,
to corrupt the Vermont Legislature OF
1871, the amount 50 expended being 600;
that $50 900 had been used Tor corrupt
purposes at Washington in aid ofthe North
ern Pacific Railroad that the receivers
have paid their private debts with free rall,
road passes and Communication tickets, and
employed unnecessarily n large number OF
attorneys and paid them large sums Of
money that j. q. Smith purchased for
| nominal sum large debts against the Yer
mont Central Railroad Company, and
| thereon caused the entire capital stock OF
the same to be unawiully attached and sold
to himself; that J. Gregory Smith and VIC.
| Smith have appropriated to their own use,
| large amounts of brick, furniture, and other
materials, the property of the trust estate;
| that they have issued an unwarrantable
number of passes and free tickets for the
sake of advancing their own personal and
| political ends: that large amounts of freight
have been transported for the receivers with
out charge; that the receivers have made
contracts with themselves for the furnishing
of equipment and supplies at rates largely
in excess of the market value that j. q.
Smith and Joseph Clark, cOrruptly expend
ed the funds of the trust for the purpose of
assisting in the construction of the Mon
treal Il Vermont junction Railroad, and in
properly diverted business 10 that line; that
the receivers have been large stockholders
in certain car companies, and have not
only made favorable contracts ont of which
the said receivers have received about
forty-eight per centum per annum on the
money invested by them therein, but also
in order to increase the same they have
directed the employees to load said cars in
preference to the rolling stock owned By the
road that; the receivers, without the authori-
ty of court, expended the sum Of SIS, GOO
in building tram-road to mines in Canada,
in which j. Gregory Smith was interested,
with other minor allegations.
The defence had not been Furnished with
4 copy Of the additional specifications. At
this point the court took a recess till ,
O'Clock
AFTERNOON.
The Court came in when the Chancellor
announced his readiness to hear the reply OF
the Trustees.
Ex-Gov. Stewart proceeded to read the
answer Of the defendants The Trustees
generally deny all theallegations of corrupt
intent on their part in the management of
the trust property. They recapitulate the
history of the several roads, and the circum-
stances under which they came under their
control. They claim that BY the assent of
the parties the roads constitute but one line.
and the Vermont and Canada. by its own
action, has given up its Original status
They assert that in all the contracts and
leases of other roads, the Vermont and
Canada, and the committee of the bond
holders of the Vermont Central were con-
suited, and were party to the transactions, !
and that all their transactions were done |
with their approval and the sanction and /
direction of the court They claim that /
they have paid since September 81, 1872, |
over eleven hundred thousand dollars of the |
debt, at the same time maintaining the road |
IN efficient condition, and that the earnings |
for the past SIX months show an increase /
over those Of the corresponding months of |
last year not withstanding alNhe obstacles |
thrown in their way by the President of the |
Vermont and Canada road, they show that
the earnings of the read have tripled since
1861, while the capital has less than doubl-
ed, and that the permanent Improvements
and equipments are more than equal in
value to the Increase of capital.
After the reading of this statement, which
occupied an hour and half, an attempt
was made by the counsel of the Vermont
and Canada stockholders, to have the argu-
ments in the Oldest suit made first and the
case settled at once, but this was opposed
by the counsel for the defendants, who
wanted the whole case taken up and settled
personality was INDUCED in,
the prosecuting lawyers ironically stating
Governor Smiths defence to be admirable
and artistic, and the others retaliat-
ing as to the bombast and clamor of
the opposition. The Court intimated that
a decision on this petition would not be
made until the other branches of the case
had been heard, and directed that they pro-
ceed with the testimony. The rest of the
afternoon was taken up by the reading of
former orders and DEGREES in this railroad
litigation.
The Louisiana Middle.
The continued discussions on louisiana
matters seem only to make palmer the abso-
ute contrariety of the conclusions reached
~ intelligent students of the case The
Albany Journal, after an extended review
# the affair, considers the following things |,