Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1875-06-29
(From the ST. AIbans Messenger, July q
RAILROAD ACCOUNTING
The Long Agony at Last Conn
menced--The Hearing Before
Special Masters in Chancery
discussion as 10 the Method
of Procedure.

OF Pro cedure.
This forenoon, at the Office of the re-
ceiVers and managers, in the depot, the
hearing on the settlement of their ac-
counts for management of the road for
the last seven or eight years prior to its
passing into the hands of the Central
Vermont, WAS commenced before ex-
Gov. Paul Dillingham; of Waterbury,
Hon John l.. Edwards of Newport and
Hon. d. c. DennisOn of Royalton, as
special masters, appointed by Chancel-
lOr Royce. The receivers were repre-
senled by Hon. Luke =. Poland, Hon.
B. F. Flfeld and Hon. Levi Underwood.
The cOntesting security holders were re-
presented as follows: The Vermont e
Canada II. r. Co, by Hon. @. w. Will
lard, A G Stafford, asd E. A. SOwles
VIM. Sohier, a holder of 1st and I'd
mortgage bonds by Col. a. Z. Walker
of Rutland; Charles n. Davenport,
Esq F. of Brattleboro, appeared for Col.
Rush G. Hawkins of New York, and
Mr.. Austin BnrchsTd Of Newfane, Vt,
as bpiders of ihe 1st and 2l mortgage
bond, and for others whom he did not
choose To name at present; NJ Stafford
also represented some Is to 90 holders
of bonds, t. the amount of about $780,
900
The entire forenoon session was Oc-
cupied hy a discussion between counsel
as to the method Of proceeding with the
hearing. a report of which would hardly
be of public interest. 1t was claimed on
the part of the receivers that the cash
account should be taken up and read
item by item, ard. if not objected 10,
passed and accepted On the other side
il was contended that this would be an
almost interminahle method, and would
not then really shed much light. The
counsel did not doubt but that ia the
and probably voucher could be pro-
duced for most or all of the items. but
they seeded time and the services of an
expert TO enable them to go through all
the books and find out precisely what
items they desired 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 10 have one, bat certainly the
hooks were subject 10 their examination
without removing them from the posses
sion Of the railroad officials and EN-
ployres. and reasonable time should be
afforded for it.
Gov. Smith stated that he was quite
willing they should have full access to
the books and never had objected 10 il,
bui he dill oljrct Ia experts because
there are different systems of book
keeping experts would have their own
theories, and it would require additional
experts To explain their findings and rec
0ncile them with the books.
MIR Davenport said that be had no
doubt that if the counsel wanted any as
sistance outside the book keepers and
clerks i'm the offices, it would be entirely
agreeable To the receivers that they
bring in some reputable person 10 help
them. Meanwhile the hearing could go
on hrfor. the masters on certain points
NOT involving items of account, such as
private leases, the car companies and
the foundry contracts, and at the same
time a part of the counsel would be
looking up the books.
Ga motion of Colonel Walker, and
with the assent of Governor Smith, the
masters appointed a stenograpber, and
ordered that his report be written out
daily and printed for their use by the
next morning. A recess was then taken
until afternoon.
IL snOulu Dc slaleu lnhL dui ibS thS
discussion it was claimed on the part OF
the receivers that their accounts had
been regularly examined and passed two
or three times year by the auditing
committee of the bondholders, accord
ing to the decree of 1864, and this was
really settlement of the accounts
Colonel Walker replied that the decree
had not been complied with so far as
filing the accounts in court was con
cerned; and besides, the auditing com
mittce had not been annually elected
but had held over; and furthermore
that committee had cOnspired with the
managers against the trust. Mr.. Willard
stated that it was provided in the decree
too, that the Vermont and Canada hac
| The right TO object to the accounts re
gardless of the bOBdholders' committee