New-York tribune., 1876-01-26
TIE VERMONT VALLEY RAILROAD.

RIGHT or THE DIRECTORS 10 EXTEND A LEASE
AGAINST THE PROTEST OF The sTOCKHOLDERs-
HISTORY OF THE CASE
TIE Vermont Valley Railroad. which extends
from Brattlcboro Bellows Pals VI, was, prior 10
1873 subj ct 70 two mort m ,s-tc first FOR 500 900.
and the second for 100000. The first mortgage had
been forcc.Oscd title 10 the property had been
vested IN the trustees Of the mortgage. On May IL,
1860. Alexander Hamilton. GOuyerneur Morris. and
ugh Henry the trustees leased tho road for 10 years
to John h. Page AMI Twin A. Burchard. who were mort
gage trustees possession Of tho I;utland and Burlins
ton Railroad which connected viii, the Vermont Valley
Railroad ut Bellows Fails. Under thi' lease tho road
was operated until jan 2J 1871, when an assignment
was made 10 the Rutland Railroad Company, wheh YES
organized by the mortgage b0ndhOdcrs 81 le Rutland
ANA Burlington Railroad Compa-p lile Rutland Rail
road aud the of the vermont Valley road
signed recyiSps OF the Vermont Central and Yer
mont and canada RAILROAD. The lease OF the Vermont
Vs.fcy Railroad meanwhile had beon renewed for 20
years from the tino OF its expiration.
Aisut for foreclosure OF the second mortgage was
brought October lS7l and the road passed into the
hands Of the OF this mortgage who in the FOL
lowing yea. orsanlhod Ito vermont V,loy Railroad
Company Norris. John b. Page, Peter But.
ler George g. Cnasc james n. Williams, John Prout.
nnd George sa'e bclg elected directors. AT the first
meeting ~ the drectors-wthout the consent OF the
sockhOhlcrs nlcScd-the President and Secretary
were authorized Ia lease tie road 70 the Rutland Rail
road Company Tor 20 Yc1S, rom June l. lo'- IN pass
ing tbs vOo u stated. tne directors had heir own IN
,rests in yicH they held much Of tne 81, OK VI Tie
i,auu Railroad. Al citing OF the stockholders on
sept g. l,72 70 decided TO issue 100000 81 aii-
uOn stock pay the balance dde under the hst mort
,lge II wa, also decided frat The road should nos o'
leased without COI,tnt Ot the ,tocAhudrF- On N-N
= lsT. tr directors again autnoI.1tA the President and
secretary 10 execute tc lease FOR - ar'jo t"e khiud
E4lruid Company. An lnluC n asin'b the execution
uf the lease .s obtained by some u the at1c cNAjidti
II Is also claimed tlat secret lease vas made ly VIZ
nf.e - receiver Of tho vermont valley RiIrI1d Com
utu,. and s,se as resident o the kutLEd Company
ia tur a..iu- Cd; l-1 the Stoc LlOdIs elected - now
Board of Directors, VITA the exception of 9lr N'irS
Woo Ia Op.o-lsl thr lease, III. oil bOirC however.
,.eny jho ynudiy at tae Aew election IN jane, 1873,
t.e C,nu. Vermont Railroad Company being appointed
receiver " tne Vernon. Central ..iOad. s"co, edd t0
rIc l..s, % tho Valley kuirOJd. ~ tae expiration 0i
e lease 90 the latter Jane l, 1879, the drecioTs tie
uauic. possession 0i thor road lHr central mgdh}
claim, ~ aaVr been deffaudcd D. tie Rutani Company
The argument The right Of ne directors. without
the consent and the dccllO OF the stockholders.
To r.r. " nj extend the lease Of the vermont valley
H iroad, begun yesterday before judge Johnson IN
tne Iruit.d ,, ars Circuit Court equity SIDE T. ".
StOutO and l.. j. Phelps appeared FOR tue orators, and
Jude Johu PrOut and senator George r. EdmGhds iJf
the defendants.