Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1875-10-15
me Central Vermont Suits,
SYNOPSIS OF TUE ANSWERS OF TIE CORPORA
rIoS AND RscEIvERs TO Tx CHARGES OF
rHY RUTLAND RAILROAp

The following are the principal poin
is Of the answers Of ]. G. and W. q. Smi
OF and the Central Vermont Railroad Comp
us ny to the petition of the Rutland Railros
20 Company, rs filed with the Chancello
80 The points omitted are for the most pa
,g formal declarations of well known facts r
n lating to various matters concerning whic
~ there Is no dispute:
- Fifth-Dsclares the existence preyiou,
e date Ut lease of injurious competition be
u tween tho roads operated by the orator an
=, those under control of said receivers.
" SIxth-Denies the making OF overture
J. for lease on the part of the receivers, an
4 states that application wa. made by tw
p Directors of the Rutland Railroad. to th
n receivers for that purpose, deprecating tn
IS alternative OF allowing the control OF tn
r Rutland road to pass into hostile hands.
il Seventh States that a proposition Il
y lease was submitted to J.. Gregory Smith
n and several meetings Of the parties held fo
t, the purpose OF considering the same, at on,
= OF which the President of the Rutland Rail
' road Company submitted a statement of tn,
u earnings and expenses of sail road, anC
: stated that 1t was in a highly prusperoa
5 condition that its earnings in 1859 *
: ceeded 81 900 900. and were constantly in
t creasing that the operating expenses die
E, not exceed sixtv-ive per cent of its earn
incs that its floating deb; did not exceed
$500, 600, which was more than fully rep.
, resented oy materials on hand, and that the
road had fully earned net and paid the in.
terest on lis bonded debt that no loss had
, occurred under the contract with the Cham
plain transportation Company. and none
wOnld accrue
Elghth-Thst defendants at the time b.
lieved said statements to be true but, after
the execution vi the lease. ascertained them
to be false
. Ninth-States that defendants afterwards
learned BY the Presidents report in 1871
which is referred tn, that for the year end
ing December 81, 1870. and Tor some Years
before. the operating expenses of said road
were largely In excess of its earnings, and
that Page knew that fact when he made
said false statements
Tenth-States that the orator represented
that the roads IN the State of New York
would De especially valuable to the receiv.
ers. which representations they believed and
on account thereof entered into the coptrac.
of lease.
Eleventh-Alleges that said representa-
tons and the statement that no loss would
accrue under the contract with the North
ern Transportation Company, were wholly
false and fraudulent. and that the losses
under said contract and in the operation of
said New York roads were greater than the
earnings ot the same, and that the said
roads were on the l2.h of February, 1873,
released to ,ae orator without pref Idice to
| the defendants
T1elfth-Avers the right Of defendants,
IN consequence Of said false and fraudulent
4 rpn IN ffNn .nNa a L
amount Of the damages 50 sustained.
amounting to more than 800, 900.
Fourteenth-S,ates that in pursuance of
said lndenture OF December 80, 1871, the
defendants took possession OF said roads
and other property. except the AiilsOn
! RaiIrcad. which they never accepted, be-
cause the orator has never complied with a
contract existing between the orator and
tue Addison Railroad Company, dated De
cenbsr !, 1870. providing for its compile
ton BY the orator. IN conseq uence whereof
the Defendants have lost the use Of said Ad-
olson Railroad. and that said receivers, at
the request of the orator and said Addison
Railroad Company. expended about $780,
OOO IN putting said road into a condition IN
which 1t could be operated. wnica sum the
orator promised. bu, has since refused to
pay.
solver, aai the receivers will lose said sum
uulssS the same be applied upon rents due |
or 70 become iue the orator under said in |
dsnture OF December 80, 1870, and prays |
that an account may be taken of the sum |
so expended and of the amount of damages |
so sustained.
Sixrssnth-Alleges thst said receivers. at I
the rtques; OF the orator and Of the Addi- |
son Railroad Company without accepting |
said road. Tor the accommodation of the |
public, have operated the same, bat insist /
that they are not liable TO pay zen. there !
for.
Observation-Disclosures the surrender by |
the receivers and acceptance by the orator
OF said New York roads and steamer 0akes
Ames, February l2, 1873
Nineteenth-Avers that while they were
such receivers and manager-. the defend
ants and their associates operated said roads
TO the best Of their knowledge. skill and
ability. and greatly improved the same,
and enhanced the value of the roads so
leased 10 the amour. of S250. 900, which by
the terms of said inden:ure should DO equal
lied upon surrender of said property.
Taentieth-Avers loss of about 5000
600 year in the operation of said roads on
account Of the business being less than was
represented By the orator, and no. by reason
OF any diversion OF business or increase of
expense Of operating.
Twenty-frst-Avers that before the dis
covery OF the fslsity 0. such representa-
tons defendants in good faith had expend-
ed several hundred thousand dollars upon
said roads, and the orator being insolvent
they could not safely renouncs said lease as
they had right to do. but a; once inform
ed the orator that said rent was too high,
mn G -, ~
same under protest until the roads were
turned over TO the said CenIral Vermont
Railroad Company, and insist that any
claim tor rent by the orator shall be re-
dCced 10 the extent of the whole amount of
SAID losses and that said Central Vermont
Railroad Company. tor the benefit Of said
receivership, may hold said property till
they can De reimbursed for such losses out
OF the earnings or BY sale OF the rolling
stock. and in like manner for damages sus-
tanned by the said receivership by reason of
the non-completion Of the Addison Rail
road.
Twenty ty-second-T the subject of re-
duction of rent has been much discussed
but never settled ; refers to contract Of
consolidation. January 80. 1875.
Twenty-thIrd-DenIes any breach by the
receivers OF any covenant or stipulation of
Twenty-tourth-Alleges tho denial by the
Vermont Valley Railroad Company OF 1871,
OF the twenty years lease from June |.
1875, and that the defendants are advised
that there great danger Of losing the use
of said Vermont Valley Road, by resson ,
whereof and of said notice, and demand .
they cannot safely pay rent for said Valley |
even 1t any were due, which they |
deny.
ntv-sighti--Admits service Of de-
mand of said road and property. bat later
than July 2i, 1875, and denies taai any one
ever appeared to receive possession thereof
or that an offer was made to appraise said
as provided in said indenture.
Thirty y-frst-Denies any division of the
business of said Rutland Railroad by said
receivers. but alleges that they have done 4
their best TO increase and build up the ,
same.
Thirty-$econd-Avers that upon lair
accounting, the orator will be Justly in
debted ~ said receivership in the sum of =
Dot less than Que million dollars, at the
time OF fling the orators bill Of complaint,
and offer. ii upon such accounting any
thing shall be justly found due the orator, q
to pay the same to said orator as the court $
may direct. {
Sworn to ard filed Ssp.em5e. "a, 1875.
THE CENTRAL VERMONT coNPASY's AsswER.
Synopsis of answer of Central Vermont 6
Railroad Compsny to bill OF complaint of !.
Rutland RaiIrsad Company
Fourth-Adopts the answer of j. Greg :
ory, and Worthington C., Smith.
Seventh-Insists that the orators claim If
any there be. should be by application to a
the court 10 the cause wherein defendant 7
was appointed receiver.
Tenth-A1ers faithful management Of J
said Rutland Railroad denies any dis
criminAtion against it in business, I
or that said road has been allowed to be- a
come out Of repair, brt alleges that the ,
same is in m Ich better condition than at !
Lhe dass Hf the execution of said lease.
Elevenrh-Avers that with every possible =
Effort 10 make the same profitable defendant
has not been able to MAKE it pay the rent .
into abou. $500 coo per annum. ~
rs af 4 ID