Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1882-07-21
A Decision In the Famous Vermont
Central Case.


Central Case.
The Supreme Court through the First As
sociate Justice Hon. T. p Redfeld, has fled
its mandate in the great railroad case of
James II. Langdon ct al " the Vermont Il
Canada Railroad ct al, in the clerks office Of
the Franklin County Court of Chancery. The
case, as our readers know, was brought to
determine the question of the priority of the
trust debt as against the Vermont & Canada
rent claim and the mortgage bondholders of
the Vermont Central railroads and also to
prove the nature and amount of the trust in
debtedness and the order in which it should
be paid. The orators asked for foreclosure on
the entire property of the Vermont Central
and Vermont & Canada railroads, and prayed
that the whole estate be put in the hands of a
trustee for the benefit of tho trust creditors,
with the equity of redemption granted to the
defendants for a specified time, and in case
Of their failure to redeem the property they
were to be forever foreolosed of the equity
of redemption. The pro forma decree Of
Chancellor Royce in the case granted the
prayer of the orators as set forth above, and
the cause was taken by appeal to the Supreme
Court, which occupied the week of May 9th
in hearing arguments in the case. The full
bench of the Supreme Court concur in the
decision embodied in the mandate drawn by
Judge Redfeld. The decision fully sustains
the various DEGREES and orders of Chancellor
Homer E. Royce relative to the Vermont Gem
trail railroad management, and establishes the
fact of the existence of judicial receiver
ship of the roads. The pro forma decree of
the Chancellor is substantially affirmed, the
case being remanded to the Court of Chan
Gerry for the purpose of having the accounts
of the Central Vermont Railroad Company
as receivers and managers since 1873 adjudi-
Gated, and a final settlement of the accounts
of the receivers and managers prior to 1873,
which were passed upon by special masters
in 1877.
The main points of the decision, as sum-
married. by the Montpelier Watchman, IRE
that all the debts and liabilities of the re-
ceivers and managers that accrued in the le-
| climate administration of the trust and the
Indebtedness of the managers that accrued in
transactions which were sanctioned by the
primary parties, as the proper debt or duty
made a charge in the nature of all equitable
mortgage upon the whole property of the
trust, including the Vermont Central and
| Vermont d Canada roads, their privileges
and appurtenances, franchises and the prop
erty of various kinds belonging to these cor
| porations and in the hands of the managers.
The accounts of the managers, from the time
the trust was created in 1861 down to the
present time, are ordered to be settled, with
view to ascertaining the amount of the
debts and liabilities of all kinds, which by
this decision are adjudged a lien upon the
defendant railroads, who are required within
a reasonable time to pay the claims of the
managers thus ascertained on the pain OF
foreclosure of all right and title in the prop.
erty in dispute. The mandate of the court
is a substantial vindication of Gov. Smiths
| management.