The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-07-23
From the st. Adams Messenger Of July 2ist.l
RAILROAD ACCOUNTING.
Hearing Before Special Masters in Chancery
Discussion as to the Method of Procedure.

Hearing Before Special Masters in Chancery |
Discussion as to the Method Of Procedure.
This forenoon at the office of the receiv- |
ers and managers in the depot, the hear
ing on the settlement of their accounts for
the management of the road for the last
seven or eight years prior to its passing in
to the hands of the Central Vermont was
commenced before ex-Gov. Paul Dilling-
ham of Waterbury, Hon. John L. Edwards
of Newport and Hon. ID. G. Dennison of
Royalton, as special masters, appointed by
Chancellor Royce. The receivers were
REPRESENTED by Hon. Luke p. Poland,
Hon. b. +. Fifcld and Hon. Levi Under
wood. The contesting security holders
were represented as follows the Vermont
and Canada railroad company, by Hon. c.
w. Willard. A. G. Stafford and E. A.
Sowles VIM. Sohier, a holder of the list
aud I'd mortgage bonds by Col. A. f.
Walker Of Rutland Charles N. Daven-
port, esq, of Bratlleboro, appeared for
Col. Rush & Hawkins of New York, and
Mr.. Austin Burchard of Newfaue, Vt, as
holders of the LIST and 81 mortgage bonds,
anu LOT OluCTS NntnI nc uitl nOl CnOOSc 10
name at present Mr.. Stafford also repre-
sented some eighteen to twenty holders of
bonds, to the amount of about 5000 000
The entire forenoon session was occu
pied by discussion between counsel as to
the method of proceeding with the hearing,
report of which would hardly be of pub
lie interest. 1t was claimed on The part of
the receivers that the cash account should
be taken up and read, item by item, and if
not objected to, passed and accepted. On
the other side 1t was contended that this
would be an almost interminable method,
ard would not then really shed much light
The counsel did not doubt but that in the
man the books had been correctly kept,
and probably-a voucher could be produced
for most or all Of the items, but they
needed time and the services of an expert
to enable them to 90 through all the books
and find out precisely what items they de-
sired to put in issue.
1t was decided by the masters that they
could not themselves appoint an expert, or
make any order allowing the counsel to
have one, but certainly the books were
subject to their examination, without re-
railroad officials and employees and reason
able time should be afforded for it.
Gov. Smith stated that he was quite will
ling they should have full access to the
booksand had never objected to it, but he
did object to experts, because there are
| different cystems of book eeping, experts
would have their own theories and it would
require additional experts to explain their
findings and reconcile them with the books.
Mr.. Davenport said that he had no doubt
that if the counsel wanted any assistance
outside of the book-keepers and clerks in
the offices, 1t would be entirely agreeable
to the receivers that they bring in some re-
putable person to help them. Meanwhile
the hearing could go on before the masters
on certain points not involving items of
account, such as the private leases, the car
companies and the foundry contracts, and
at the same time part of the counsel
would be looking up the books.
On motion of Col. Walker and with the
assent af Gov, Smith, the masters appoint
ed stenographer and ordered that his re-
port be written out daily and printed for
their use by the next morning. A recess
was then taken until afternoon.
1t should be stated that during the dis.
cussion it was claimed on tie part of the
receivers that their accounts had been reg
ularly examined and passed, two or three
times year by the auditing committee of
the bondholders according to the decree of
1864, and this was really settlement of
the accounts. Col. Walker replied that
the decree had not been complied with so
far as filling the accounts in court was con-
cerned, and besides, the auditing commit
tee had not been annually elected, but had
held over; and furthermore that commit
tee had conspired with the managers againt
the trust. Mr.. Willard stated that it was
provided in the decree, too, that the Ver-
mont and Canada had the right to object
to the accounts, regardless of the bondhold-
ers committee.