Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1877-08-03

cession, and compelling the men to quit
work. This is the nature of the strike on
tie Cincinnati, Hamilton and Dayton road.
| The company's employees say that if they had
been permitted they would themselves have
driven back the mob and started trains.
After these successes the mob met with
little opposition. Trains were stopped on
| the Marietta and Cincinnati road, and it is
believed that within a few hours the city
will be cut of from communication with
the Ouside world by rail. Loud condemn
nation is heard on all hands of the inactivity
OF the police, who have, so far, stood by
and watched the progress of the rioters
without lifting hand.
The Vermont Central and yerment and Canada.
In the hearing at st. Albans, on Wednes-
day, B. F. Fifeld, ESQ.,, of counsel for the
petitioners said, as reported by the NcSsen-
ger
The object Of this petition is to make title
to these railroads. 1t is impossible that all
the security holders should he got to agree
upon any scheme but when majority has
been secured, as in this case, the court should
afford remedy. Complaint is made that
the owners of the property cannot control
it, and they want to get it out. The public
of Vermont will welcome an order to that
effect and thus stop the scandal. But of
course 1t must be done legally. For year
past the managers and their counsel have
been considering the subject, They first
came to the conclusion that they could not
make title by foreclosing the lst mortgage,
because the compromise decree of lSGl was
in the way, that having made the Central
and Canada one indivisiblc piece of property,
and it has since been assented TO by all
parties. They soon found the same difficult
ties in the way of a foreclosure of the ID
mortgage. independent of this there was
the insurmountable obstacle that the Canada
road was under no mortgage, so no title
could be secured to it unless by voluntary
conveyance, and not by that because it was
subec. to the lien of the trust debt. They
finally concluded that tie only way was to
come to the court and frankly state the
whole situation, and ask the court TO solve
the problem. All the different classes Of
secrity holders wanted TO be ahead, but
after long negotiation the present scheme
was united in by representatives of all
classes. In this connection Mr.. Fifield
discussed the character of the petition
claiming that the property, real and per,
sonal, is an entirety and cannot he sold in
separate parcels. All parties have been no.
titled, and the case fully heard before the
chancellor. lie dismissed the petition pro
f0rmd, so as to make an appeal sure, but
gave his opinion that the prayer ought t. be
granted.
The first question which presents itself is,
does the trust debt constitute valid charge
on either or both of the two roads? MIR.
Fitield contended that the lease of the Yer
mont and Canada to the Vermont Central in
1919 was in terms and intent perpetual, and
50 practically sale of the road. After
wards, when the Central neglected to Jay
rent, the Canada asked to have receiver
appointed. These two acts we're Joint and
tended to cement the union. The Canada
are actors In starting this machine-the re-
ceivership- The receivers are therefore
theirs Afterwards the case took n different
shape 1t is more or less anomalous. lie
cited the ease Of the L. and 5. L. L. Co. vs..
Mills and Knapp 9th VIZ to show
that the expenses of the rcceiyership or trust
constituted an implied lien on the property,
and the court would follow the property tu
enforce this lien, no matter who has it. The
receivers expenses are the orators, If the
orator prevails in the litigation. In this
Vermont and Canada case the roads were
put into the charge of the Canada. to run
under the order of the court, which
practically made them receivers. This
continued year, and then the
trustees of the Central first mort
gage were appointed receivers. The
order says. take possession of both roadS, |
run them, pay the expenses, and brin, the |
net income into court. There was no order |
for separate accounts. Nobody ever could |
see any separation or distinction. The |
owners of the property were disposscssed |
and their rights were i'll the charge of the |
court. The expenses, therefore, bound the |
who'll property. When bridge went of |
ON one of the roads, did the managers stop |
to see whether any OF the money in their
common drawer belonged to the one or the
other? Not at all They did their duty,
leaving their accounts to the court. Origi-
nally in the contest of rights that afterwards
arose, the Canada said. "l,iye us our rent or
give Us our road, and it at first seemed
very reasonable proposition; hut that idea
has since been abandoned, even by the Cana
da ITSELF for trust creditors have come in
and demanded to be paid, and then, ii there
is anythiag left, the Central and Canada can
have an accounting between themselves. Ii
is of 70 consequence to the trust creditors on
which road or in what manner the money
they have loaned the trust has been expend-
ed. Their right is to be satisfied out of the
Ieceiyership property, and the Canada hay-
ing been prime mover in that, Is estOppcd
from saying, "Giye us our rent Or give Us our
road" But the latest notion OF the Canada
counsel is that the receiyership expenses are
a charge, not upon the property, but upon
the income of the two roads. This puzzle,
however, was OF very easy solution.
These receivers did not get their
title of. possession from the Vermont and
Canada, but from the court. They became
the officers of the court When trust
creditor comes and demands his pay, he
does not ask the Vermont and Canada for
il, or the receivers as their agents, but he
asks the courts officers for it, in whose pos
session is the property. The receivers, there
lore, had nothing to do with the companies,
Dut when they needed money. or directions.
hey went 10 the court for it. The thing
hat the receivers were placed in possession
If was the roads, not merely the income. Ii
would he Il cool performance for the YER 5
mont and Canada to come and take the ,
plendid road, with all its improvements and
cave out in the cold all the parties whose
money made the improvements.
Suppose the compromise decree were only
. much waste paper, yet the decree OF '6l, |
rcating the rccelvcrship. has never been
hanged. save in the personnel They have i