Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1879-02-07
ST. JouSsBuRY Vt. Jan. 30, 1879.

The hearing in the P. K o. Railroad case
commenced at p NJ. to-day. j. 7. Drew
presented efidayits Of bondholders pro-
testing against the grating OF power by
the court Tor Receivers certificates. Guy
c. Noble entered protest against the actin g
of Chancellor Ross, aS he had formerly been
an officer Of the corporation.
A general discussion here arose. in which
Phelps, Noble. Fifeld, Burt. Hyde and
| Drew took part.
Mr. Fitzgerald, of New York, was put on
the stand to prove tho protest to tbs action
OF Receivers.
Closing testimony for defendants; the
case for the Receivers was argued by
MIR. Burt. followed by Mr.. Dicky. of st.
Johnsbury. MIR. Dicky claimed that the
Receivers should hay- the right to issue
certificates and raise $500. 900 because the
people along the line of the road have ex-
pended large sums in building the road
the bandholiers should nos be permitted to
take possession by foreclosure, because Of
the hardship it would work to the public.
Mr. Edson, of 81, Albans, appeared for
the Receivers, next, taking the ground that
the Receivers certificates were necessary to
the protection of the property, and that the
assent or non assent Of bondholders made no
difference
Henry D. Hyde followed on behalf of the
Receivers. taking the ground that the in-
herent powers of the court constituted it
the absolute curator of the property and
may repair the road under its servant the
Receiver. or may keep 1t an tdtu qRO.
The road must, he sait. be stopped. or
repaired and tina. the court, not the bond
holders. must decide wha. should be done
as to those repairs.
In the evening the proceedings COM
menced by Mr.. Russell. OF Boston, for nom
asscntn. binds Mr. Russell made a clear,
able argument, ,aklng tho ground that
the court could only maintain the siatu quo
and had no rish: to increase the indebted
ness OF the road. lie WAS followed by Mr..
Noble, of ST. Adams. who argued against
tho validity of the proceedings, and by Mr..
BeldeB on behalf Of creditors along the line
Of the road.
Tomorrow the hearing will begin by the
argument of Mr.. Phelps ard closed on the
part of the bondhoders b. Mr.. Drew. and for
the Receivers by Mr.. Ffeld.
ST. JOnNsBURY, Jan. 81.
At Q a, m, Hon L. j. Phelps began his
argument IN opposing the issue of Receivers
certificates upon the z. 4 D. Railroad. Like
all his efforts, it was 4 brilliant one.
ST. JoHNsHuRY, Jan. 81 The hearing
before Judge Ross closed at > p. m. to day.
A large and influential audience attended
the proceedings. The case has ably argued
on both sides. Messrs. Iiydc. Waterman,
Burt and Dickey presented strong case
for the receivers which was met by Messrs.
Phelps, Noble. Nichols and Drew
for the security holders. The r-ceiv-
ers' counsel demanded S500,OOO as aD
sOlutCly necessary. The counsel for
bOndholders, while admitting the poor
condition OF the road, urged the delay of this
expenditure until tho foreclosure can per-
init the lien creditors to make the improve
ments themselves and under their own
supervision. Mr.. Noble. who appeared for
the committee on foreclosure ably presented
his case, backed with numerous authorities.
Mr. Drew submitted an elaborate brief.
printed. with long array OF legal decisions
sustaining tho position OF the first mort
gage bondholders and followed with COM
ments on the exaggerated statements as to
the road. declaring that there was 70
especial need for use of more funds on the
road now. These comments wero some
what severe but so mixed with humorous
hits that the audience and court were con-
vulsed with laughter upon several Occa-
siOns.
The closing arguments of MIR. Phelps was
based upon the principle OF law that
positive and bona ids contract lien
cannot be made subservient to any
subsequent lien ny an individual or
corporation or court without first payment
or assent. Mr.. Fifeld closed for the re
ceiycrs with his usual ability ami success
as an advocate The judge took the papers
and will give his decision at an early day.