The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-03-17
THE RAILROAD LITIGATION,
Approval by the Chancellor Of the Rutland
Central Compromise.


Central Compromise.
The adjourned hearing on the applica-
tlon of the Central Vermont for the Chan.
cellor's approval of the compromise be-
tween the Rutland and Central roads &C.
CURED at the St. Adams, Monday even
ing, before Chancellor Royce. The Rut-
land road was not represented. Messrs.
Fifeld and Poland appeared for the Cen.
trail and Hon. c. w. Willard for the Yer
mont and Canada. We condense from the
Messenger the following report of the pro-
ceedings Judge Poland read the papers
and briefly explained the reasons which
had led the Central to make the new ar
rangement.
Mr. Willard filed some written objections
against the proposed approval, the sub
stance of which is as follows:
THE VERMONT oANADA's OBJECTIONS.
The eceiver has no authority to come
into court for advice and directions on
matter which is original and independent
Of the suit under which the recelvership
exists.
2. That the Rutland lease was rescinded
last year by the Rutland company. and ].
G. and w. C. Smith made sworn answer
to the Rutland's petition for rent in which
they averred that the lease was voidable
for fraud and misrepresentation and that
j. W. Emery and other bondholders filed a
similar answer, in which they avesred that
the receivers had no authority TO make the
lease and so il was void therefore neither
the receiver nor the court is bound to con-
slider the lease binding, for it was ended by
The parties to it, and any recognition of it
now is wholly voluntary.
I'd, that the receiver, in his new trade,
agrees 10 release TO the Rutland the claim
of nearly or quite million dollars which
the said Smiths had sworn to as being due
from the Rutland as damage for fraud etc.
and that, too, without getting any equiva-
lent.
4th, that the trade will be injurious to
the Vermont and Canada and others inter-
ested in the earnings of the trust roads, be-
ciuse the rent agreed upon Is largely in ex-
cess of the past and probable earnings of
the Rutland ard appended roads. For the
year ending June 30, 1874, these earnings
were $241 2S2 81 the rent now agreed
upon foots up $37S, 900 showing a loss
Of $l36, 7l7.70. For the fifteen years that
this lease has to run, such an annual loss
would amount TO more than two millions,
which, added to the surrender of the claim
sworn to as above, would amount TO about
three millions.
9th, that the agreement to purchase the
stuck of j. Is. Page and others is without
warrant in the scope of the recelvership.
This purchase will increase the trust debt
nearly $500, 900 and the court has no pow
TO authorize "a debt for any such purpose
9th, that this purchase will be claimed
as authority for taking the income of the
trust roads to pay for it, thus defeating the
first lien upon said earnings, to which the
Vermont and Canada is entitled by the
final decree.
7th, that said stock is not worth what is
TO be paid Tor it and has no quotable value.
Slh, that there is now due the Vermont
and Canada, as arrears of rent, nearly one
million dollars, which the receiver claims
not to have the means TO pay, and yet by
this agreement the earnings are to DO d.
verted TO another and foreign purpose.
The Vermont and Canada has petition
pending, to be heard at the April term, for
an order to pay according to the final
decree and to restrain the receiver from
paying otherwise.
DISCUSSION.
Mr.. Wizards statement of the probable
losses to accrue under this new arrange
ment called out denial CT the correctness
of his figures by Gov. Smith.
Mr.. Flfeld proceeded to show the court
that even it there is an apparent loss, the
saving as compared with the old lease is
now some $500, 900 a year and will by and
by amount to $3.50, 900, and, besides, the
prevention of competition will more than
countcrbalance the loss. Mr.. Fiheld, In
closing, urged the expediency of the expe-
diency of the present trade, as being for
the interest of all, and consented to by all
except MFR. Willard and part of the Ver-