Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-01-04

CRITICAL REVIEW OF JUDGE BARRETT REPORT
RIGHTS OF THE CREDITORs-A SUMMARY
OF THE LITIGATION, WITH THE CHANCES


-hlbhlS bf Ihk bhkbilOh--h slAhNh
OF THE LITIGATION. WITH THE CHANCES
FOR The FUTURE
To the Editor Of the Globe
SIR: have been for a number of years
interested in various Of the securities of the
Vermont Central system OF railroads, and
for this reason, and also thrOuah my prOtes-
siOnal interest in an unusual and important
case, | have watched the litigation in which
these roads have been involved, and the va
rious steps in law or policy taken by the
managers aad their friends and opponents.
with a good deal of fttentiOn. At times
have felt dissatisfied with the course of the
managers. and at times disposed to find
mrch fault with the rulings and orders of
the Franklin County Court of Chaneery !;
but upon niaturer reflection | have usually
concluded that the maragers were trying to
do she best in their power tor the property
of the security holders, under all the clrcum-
atances by which they were surrounded at
the time. and upon careful review OF the
Chancellor'S rulings and orders. | have 80
uniformly found them sustained by the prin-
ciples and precedents in law and equity that
have become convinced he is a man of uu
usual legal attainments and unimpeachabc
probity. The Supreme Court OF Vermont.
on the Both of October last, announced its
decision in the matter of the petition of the
managers for An order OF sale Oi the Central
and Canada railroads and property to pay
the floating debt of the rtceivershIp. or. as
it is called. the trust i,bt'; This peti-
ti1n came before tho full bench, sitting IN
special session, last July. upon appeal from
pro IDrmd ruling OF. Chancellor Royce.
made for the purpose OF carrying the mat
ter up The Court reserved it, decision.
deiegating to Judge Barrett the drawing of
the opinion. which was read n ubOve stat
ed The decision, d>mi>sing the petition
on the general ground that no such state of
affairs was shown a. would Justify, under
th- petition, a judicial order OF sale oi the
reality for the purpose OF Hquidatlng an IL
q, d,htcdncS- of this kind. was by no means
unexpected to me, and could scarcely be Il
matter OF surprise to any member ut the pro-
ieS>ion acquainted with the history and
status uf thus case. The proceeding ~ |
have heard, was devised by Mr.. Fitieli,
cCuIssl for the Central Vermont company.
who. though uUquestionably an able practI-
TONER is also sumew hat inclined to be opln-
IOCattd and hasty, lacking, As yet. that ripe
dis cretiOn and lmpartiilly critical habit re-
garding Il proposed form OF procedure which
years and experience will give him. At the
time, | was informed the older counsel in
the case. and the managers themselves. did
not share his conviction that his plan would
surely succeed, but ssSentcd To it for the
reason that 1t was
AN EXTREMELY DIFFICULT AND DELICATE
MATTER
to decide what was the right form of proce-
dare to bring about the desired cunsolid,-
ton OF interests under Judicial sanction and
L,,E IL, -. III
to commence with this, by means of which.
perhaps. some light might be thrown upon
the matter by the court in their opinion.
OF course n ne ioresiw that the interests OF
the property or OF any OF the sccurity hold
crs might be prcIudiced or jcnpari.zei by
tins course. \ final dismissal Ot the pctI-
ton would. they naturally expected. leave
the main question IN Stdtu quo ante beiiuDi.
while the court, IN its opinion, would per-
haps throw some light upon the question.
which would be of assistance
tn them IN deciding upon some proper inrm
OF procedure which would result IN taxing
the property out OF court and placing 1t IN
direct posses ion and manasemeutO OF ITS real
owners, each class OF security hcIng
represented and coming IN Tor Its proper
share of the earnings IN due ratio. accord
ing to the priOritIeS and proportions 10 be
iudicialiy established in accordance with
the rules of law and equity. This cunsum-
m,tiun IL undoubtedly desired by all the
srcurity- holdcI-. ex,rpt. IL NAV be. som,
few u hn are int, rested IN them by way o.
and there is undoubtedly some
way in which it may be brought about, If
the ,apacIty of counsel can only hit unon
it. The first of these ehdS-she removal Of
the property from the care and custody of
the Can't of Chanccry Councillor Fiiield
confidently expected To accomplish by means
of hrs pctitrnn Tor an order of sale. The
l,st-thc adjustment Of prinritieS of lian--I
conclude he expected would follow, prnha-