Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-07-21
Ghe Stree press.
THE RAILROAD LITIGATION.


ing, the mandate of the Supreme court in the
Central Vermont railroad case was handed 10
the clerk to put on file. Whiethe mandate,
in keeping with the last decision, makes the
trust Indebtedness first lien on the property
it does not settle the prioritics OF the several
creditors as among themselves; nor can this
be settled until II full accounting has been
had. The accounting of 1875 before special
Masters Paul Dillingham;, ID. c, Denison and
j. l.. Edwards, settled the accounts of the
trustees and managers down to 1873. A re-
port was filed by those masters but no act on
was taken on the report. 1t will, be seen that
the mandate directs the court to adjudicate
the exceptions on this report. This also
will have To be accomplished before the total
amount of the Indebtedness as declared to
he n first lien. is ascertained The full text
of the mandate is as follows,
H. u. LanglOH Ct al rs. Vermont anil Cana
ia Fdi(rOdd company 81 al
The decree of the Court of Chancery is re-
vcrsed and remanded to that court, with di-
rections to cause the accounts of the managers
of the trust property, from the time the trust
was created by decree of the court in 1861
until the present time TO be settled and all
equitable offsets asccrtained and applied !;
also that the managers in possession of the
property be required to file and settle their
accounts at frequent stated times, so that the
condition of the trust may be readily ascer-
tanned ut any given time.
1t is adjudged that all debts and liabilities
of the Receivers and Managers that accrued
in the legitimate administration of said trust
and Indebtedness of the Managers that ac-
crued in transactions that were requested,
sanctioned or agreed to by the primary par
ties, us the proper debt or duty of said man
agement, are lien and should be made
charge in the nature of an equitable mortgage
upon the whole property which is the subject
OF the trust, including the Vermont Central
railroad and the Vermont and Canada rail.
road, their privileges and appurtenanccs, also
including the franchise TO operate said rail-
roads, and all property, claims and assets
pertaining thereto, in the hands or possession
OF SAID managers, superior TO the claims of
the Vermont Central railroad company, its
mortgage bondholdcrs and the Vermont and
Canada railroad company, and in considera-
ton of the fact that in case the defendants
redeem the said property by the payment of
the aforesaid Indebtedness, constituting a
lien or equitable charge thereon, as in this
decree is established, there may then exist no
occasion or necessity for the enforcement of
the rights, liens and priorities as between
themselves, OF the holders of said indebted
ness. II is deemed unnecessary to ascertain
such rights and priorities Mt the present stage
OF the cause but the same are reserved
without prejudice for future ascertainment
and enforcement in this cause in case there
should be occasion therefor by Il failure of
defendants to redeem or otherwise; and this
cause Is Ia be retained and continued on the
docket of the court for that purpose, and
any person Interested IN said rights, liens and
priorties, also the Rutland railroad COMPANY.
shall be at liberty at any time thereafter 10
move the court for the ascertainmcnt and en- |
forcement thereof in this cause
ihe court will at once adjudicate the ex-
cep'ioLs to the masters report upon the re-
ceivers' aud managers account prior to the |
appointment of the Central Vermont railroad |
company manager in 1873 and cause the ac-
counts Of the Central Vermont railroad COM
pany, as manager TO be settled at an early |
day, and cause all sums that are, or in equity
should be- in the hands or possession of said |
manager, TO be first applied in exlingush.
rnent OF the Indebtedness of said receiver
ship. and as this cause has been long in |
court, the court is required by stringent or
ders to exact The utmost diligence of The par
ties in settling and bringing to final deter.
animation all disputed claims, and all eqllta-
Ole Offsets growing out of the administration
and management of said property. And
when said accounts are settled and all cquit.
able Offsets, il any, are ascerlaincd and ap-
piled, The court will pass decree for the
orators for the residue OF the Indebtedness
OF said receivers and managers, declaring the
bonded debt. as enumerated in the decree of
the Court Of Chancery in this cause, and the
Floating debt, So called, and the Central
Vermont claim and the Grand Trunk claim
as found by the masters, and any and all
debts that are found to have accrued in the
legitimate administration of the property,
by the receivers and managers to be an eqllit.
able lien, or charge in the nature of an equii-
able mortgage, upon the Central Vermont
railroad and the Vermont and Canada rail
road, their privileges and appurtenances, in.
Guiding the franchises to operate said roads,
and all the equipment, property, claims
and assets appcrtaining thereto, and to the
receivership and management thereof, super
ior 10 the claims Of the Vermont and Canada
railroad company, the Vermont Central rail-
road company, and lis first and second mort
gage bondholders. In settling the accounts of
the managers the court will follow the rule
that obtains in equity in regard to receivers
and managers OF such property. The ex
pehdltuft oil funds for reading room,
though proper charity, is not Il legal ac-
counting for trust funds also expenditures
for the 'tramway' road in Canada, and, per.
haps, the Missisquoi railroad and Northern
transportation company If allowed as n
charge against the property, must find war
rant Tor It in the consent and agreement of
the primary parties, and is purposely left
open until all the facts shall be made 10 ap.
pear IN the masters report. And the court
Will further decree that the said several sums
so ascerialncd by the courts shall be paid by
the defendants TO the clerk of this court, for
the benefit of the respective parties who are
creditors, with interest, on day fixed by the
court as reasonable time and that upon
failure OF said defendants TO make payment
OF said several sums, above ordered to be
paid or any OF them, at the time fixed, then
the Vermont Central railroad company and
the bondholders under the first and second
mortgages of the Vermont Central railroad
and OF the Vermont and Canada railroad
company, and all the defendants, shall be
decreed TO he forever foreclosed and barred
OF all rights and title, interest and estate
in the Vermont Central railroad and the
vermont and Canada railroad, the privileges
anu appurtenances pertaining thereto and to
each Of them including the franchises to op-
crate said roads, and in all the equipment
claims, assets and property appertan.
ing or belonging to said roads, or either of
them, as well as the receivership and man
agement thereof; and on such failure the
court will order all the defendants to release
all interest which they may have in
said property to some suitable trustee, to be
appointed by the court, to hold the same In
trust for such trust creditors The court
will In It's decree give additional time for re-
dempton to the mortgage bondholders and the
Vermont and Canada railroad company, re-
spectiyely, in the order named, SO that each
party In interest may have opportunity to
redeem in case of failure of the preceding
party to do 80. And as the Court sees no
good reason why final decree in the prem
ises may not be made at or before the next
regular session of the Supreme Court in this
county, TO assure that end the Court will
make orders AS to the times of taking and
filing testimony and making report and the
taking as confessed" matters of fact as
against parties at fault as to the court NAV