Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-05-10
The Great Railroad Hearing.

The hearing Of the case Of James R. Langdon and
others against the Vermont Il Canada Railroad
and others, the beginning OF which was |
noticed In last weeks ISSUE came to an end on Fri
day afternoon and the case is In the hands OF the
court for decision Thegreat feature OF the hearing,
Of course was the argument on behalf OF the orators
made by Senator Edmunds on Friday, which was |
listened to by crowded audience Of ladies' and gem
tlemen II was able and exhaustive presentation |
Of the orators case and in the opinion OF old friends
OF our distinguished senator, who have known him
ever since his admission to the bar, was the
ablest argument he ever made lie began by re-
buking the persistent attempts which had been
made by the defendants to belittle the decision OF
1880 and exalt that OF 1871 Both were decisions
OF the court and both were entitled to respect,
and II was very unbecoming for member OF the
bar to asperse either. He should not do so, but
should endeavor TO ascertain what the decision
OF 1877 meant. 1t was very ambiguous and in
volved and therefore difficult to understand, but
no one could mistake the meaning OF the decision
Of 1880. That had settled forever that the holders
OF the trust Indebtedness, Governor Smith and
his co-orators, were entitled to their pay before
any one else and that their claims were first
lien upon the roads OF their income. Judge Bar
rett In the decision Of 1877, had also been explicit
about one thing: that the quality OF the office OF
the receivers was left for future decision. So the
opinion for 1877 left that question open. Mr.. Ed
munds then discussed the effect OF the famous
compromise agreement Of 1864, on the construc-
ton Of which the whole case hangs. lie claimed
that that did not take the case out OF the hands OF
the court Either that was binding compact,
IL was not II IL was not, then the receivership
OF 1861 was continued In force, and the case had
remained under judicial administration ever since.
The original decree of 1861 contained a clause Tor
continuing the personnel Of the recevership, and
by virtue Of the clause the Central Vermont was
created receiver in 1873. Mr.. Edmunds vindi-
Gated the court and the managers from the asper-
sions which had been cast upon them by the de-
PENDANTS. He said that there was no question
Of the good faith and integrity OF Governor
Smith and his associates In the management OF
the property. Not pretense had been made
that dollar had been stolen. Their honesty was
unimpeachabe and defied attack The history
Of the roads had been one OF misfortune finan-
cally, but the enterprises which caused the mis-
fortune had been prompted and participated in
by the Vermont g. Canada, and all parties at
the time Of their initiation expected that the en-
terprises would be profitable and result In the
development and prosperity Of the trust property.
And of those trust loans to whose payment before
Its rent the Canada now objected, a large part
more than two millions-had gone into the Car
ada's pockets for rent previous TO 1873 II WAS
idle to talk about those bonds being lien on the
income and not upon the corpus of the Canada.
What was income? 1t came from the corpus; 1t
was part of it. There could be no income with
out the corpus and corpus without income vas
of no value The distinction was too fine for 1u-
man minds to appreciate. Mr.. Edmunds gave
graphic review Of the history OF the road, the
varied fortunes which 1t had experienced, and the
conditions under which the trust debt had been
| incurred He argued that the roads could not
exist to-day had 1t not been for the money raised
by these loans, and that it was justice as well as
law that the necessary expense OF running rail-
road should be paid before rents His very slo-
quent peroraton was rs follows:
SENATOR EDMUNDs' PERoRArIoN
So far as | remember, II it please your horrors,
| have now gone over hurriedly the leading points
| upon the other side, which may have bearing
upon the final disposition OF this case, although
| regard them "a having already been decided in
the opinion of 1880 1t is only to effectuate that
decision in accordance with the forms OF equity
that we are here now. hope tina. this is the last
| time shall ever have to address your homes in
this long litigation Not because 1t is scandal to
Jurisprudence, for 1t is not. The principles which
| govern 1t, the practice under which 1t has been
tried, have existed from the beginning OF courts.
And had this case involved nothing more than a
mountain farm or a saw-m 1t would have been
| disposed in a half-hours discussion long ago II
| is only the magnitude OF the interests not the
| difficulty of applying the principles that makes
this case important. 1t Is the struggles OF con
| tending forces, where great sums of money and
vast enterprises depend upon success or defeat,
which give this case any real Importance. | re-
peat that the principles enunciated by your honors
in 1871 and 1880 so far as understand them, are
! principles as well known to the simple and ordin-
| airy course Of equity Jurisprudence any that
can be stated. 1t is only because railroad cor
poration has either TO pay its debts or lose its
pTOptIly, IL IL only DeCAusb sOITB JACK hDDlnSDH
who may happen to be the president of the Yer
mont a. Canada, has made a great speculation
in stocks and bonds, which by the loss OF this case
would result in great failure, that 1t has made
| so much noise and trouble It il, therefore, that
these people who have loaned their money to the
managers upon the credit of the trust property
must be defeated, and the courts and customs OF
the state vilifed In the newspapers outside OF and
| in the state. But there Is no scandal, for the
mendacious malice of few Jack Robinsons and
| their associate spectators and makers of stock
and bond combinations cannot make scandal
everywhere There has been nothing wrong in
the administration OF this case anywhere, in court
or out OF court, nothing that does not invite the
fullest investigation and the most searching crit
cism The administration Of justice is always
beneficent; 1t ends contention, 1t brings peace; il
silences clamor by its own calm silence, and the
temples OF justice are built everywhere that civil
| zation spreads and softens the rugged value o.
| mankind trust andbelieve that her temples will
| always be pure, and know that on account
will they be purer than in this ancient common
wealth, whose judiciary is justly celebrated for its
ability and virtue.
| THE DKprSon.
| The leading argument In behalf OF the defend
ant was, of course, made by Mr.. Phelps. Mr..
Phelps is one Of the greatest forensic orators in
| the land, and few states in the Union are happy
| in the possession of two gentlemen so able, and
| yet so unlike, as Senator Edmunds and Mr.
Phelps. In fact, it is not inordnate sei-praise ia
say that our little state possesses far more than
| its share OF able men, as compared with her sis
| ter states. In the bar and on the bench, during
the hearing, sat Homer L. Royce, Timothy p
| Redheld, Jonathan Ross, ii, Henry Powers
Wheelock G. Veazey, Russell $. Taft, John W
| Rowell, Governor Farnham, Senator Edmunds
Judge Poland, f. j. Phelps, B. +. Fifeld, ex
Governor Smith, Ex-Governor Dillingham;, W. II
| ii. Bingham, Aldace +. Walker, James C. Bar
| rett, Clarence III. Pitkin, s. c. Shurteff, Hiram
A. Huse, James X. Langdon, f. P. Walton, whom
it would be hard for any state in the Union Il
| match in collection of equal number Mr.
Phelps devoted the greater part Of his argument
to the demonstration of the proposition that th'
rent OF the Vermont & Canada was a paramount
lien upon the property and that that must bt
paid before any other claim can be considered
lie claimed that the opinion OF 1877 had decided
that the property had not been under a ju
dcial receivership since 1864, and that therefore
| none of this trust debt was Of binding force II
any true respect except as far as his clients haC
consented that 1t might be. He argued that tina
consent had never been given, except as to thu
special pledge OF the rolling stock security fol
the equipment loans. He attacked the idea o
granting decree of foreclosure to the orators
with all his power Of ridicule, and, while not a,
witty as usual, made great deal of fun and laugh
ter. Colonel Aldace f. Walker made yer,
thorough argument in behalf of the Canada, go
ing more into details than Mr.. Phelps, who
, merely laid down the general scope of the propo
sitions as claimed by his side. Mr. Edward
made a strong argument In behalf OF the claim o
| the Grand Trunk Railway Company, and Mr.
James c. Barrett ably presented the claims of hi
client, the Worcester Safe Deposit and Trus
| Property, who are large holders OF equipmen
bonds. Judge Poland, to the great regret o
\ everybody, was unable on account of a bad cold
to argue in behalf Of the orators. 1t is believed
that the court will render an early decision, AND
that this great case will then be settled forever
That 1t will be In favor OF the orators TO create
| or less extent, nobody seems 10 doubt.