Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1873-03-26
Decision OF Judge Royce.

I This petition is for an oui.r upon 'hess
receivers aud managers TO puy the Va. a
Canada road or Cor their bsBe6i. the rcni,
amounting to sl2O,CCO. which was due
to that road on the ls' day OfIaa Decem-
Der. And the petitioner. in order TO make
ont his case, Prt5ia taois case, has Intro
dueed proer here to show that the net
earnings o. the raads were sufficient to
pay this rent Of $40. 900 aud the inter.
est. aud there rests his ease
The defendants. as an excusc for non.
payment ofihe rent. claim hat they had
tao money in their hands that was applica-
bl' to this purpose. aud that whatever
money had come into their hands as re.
esivers aud managers, they bad paid out
as trustees. ia the discharge'of obi gaiions
which had accrued aud we're accruirg
against them as such receivers and msu-
ayers. Well. now. il is claimed on the
part of the petitioners, that inasmueh as
this rent-the next earnings Of the road
were sufficient to pay the reut-ihat il is
a matter Of Indifference to them whether
these receivers aud managers have paid
this money out. If they have paid it out
the claim is that they have raid it for
purposes that were unaui horned.
Ii seems to US, gentlemen, that we are
not IN position to deci%e that question !.
that before we can decide-make any or.
der upon the receivers aud managers for
the payment Of this money--ihai this ac-
count should be settled. so that the court
can act inielligcntly; ascertain in the first
place whether there is any fund out Of
which to pay this rent how that fund was
earned aud ascertain from that aorouIt
what sums the receivers and managers
have expended, and for what purpose they
have expended those sums; whether they
were Legitimate aud proper expenditures.
1t would be novel 10 make au order that
the receivers and managers should pay out
of a trust found to the benefciaries oil the
ceStnique trust until 1t was FIRST ascer-
tanned whether there was any fund out of
which to pay.
That Is the prominent question that is
presented in the case, a. II is made out.
Ii seems 10 us VIC can make no such order
until we are pu, into possession Of the
facts, and the whole facts, connected with
these accounts. aad h, nee we believe that
the trustees and managers should settle
their accounts. BY the decree Of 1861
aud it is conceded on the part Of the Pc
tilioncr that this dec zee Is one that is Of
binding obligation upon the parties to it
these receivers aud managers were re.
qured annually to report to the Court of
Chanecry; and their accounts were II BE-
settled. 1t appears that these accounts
have not been settled by the Court Of
hancery since 1867; no accounts have
been settled, in fact, since 1866 And
We do not think that there has been any
reasonable excuse given for this neglect
upon the part Of the receivers and man
gers in not settling this iccount.
Ii is true, tits claimed, that these au.
ditors, however constituted by thus decree
this advisory committee who were con.
sti'uted audltors--tad had access to those
accounts, and had passed upon them, and
that they supposed that answered all
that was required of them under
this decree. But in the decree { on
the l6lst page it is provided that
"The trustees of the second mortgage
bondhol'crs, of SAID Vermont Central
Railroad Company shall have the right,
at all times, to object to any part of the
accounts Of said trustees and receivers,
before the same shall have been passed
upon by the court" Now. until these
accounts were fled in the Court of Chan
Gerry, there was no opportunity for these
parties to object to any portion Of them
because they were not supposed to know
how the receivers and managers claimed
that tho account Stood We think il was
plain duty upon the part of these re-
ceivers and managers to have followed the
de cree in this particular and to have set
tied these accounts annually, and that
they should be settled now, and the cues.
tion comes whether we have the power
under this petition TO order that these ne
counts shall be settled. There is 20 prayer
in the petition that they shall be settled
but as the case is made up and comes
here, we have no doubt but that we have
the power to make such an orler ut this
time upon these petitions, and We shall
make such an order--that these receivers
and managers settle their account with the
Court of Chancery.
y n
When these accounts are settled they
are filed in the Court of Chancory and the
Chancellor is put in possession of all the