Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1882-07-19
The LangdOn Railroad Case.

The following is the text OF the mandate
of the Supreme court of Vermont in the
celebrated case Of Langdon against thu
: Vermont &c Canada railroad company anC
others, heard at Montpelier In May last
It was filed in the franklin county clerks
Office Saturday.
, The decree of the court of chaneery is
reversed and remanded to that court with
directions 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
ascertained 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 condi-
ton of the trust may be readily ascertain.
ed at any given time.
1t is adjudged that all debts and liabl-
tiles of the receivers and managers that
accrued in the legitimate administration
Of said trust. and Indebtedness of the man.
ayers that accrued in transactions that
were requested, sanctioned, or agreed 10
by primary parties, as the proper debt or
, duty of said management, 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
land the Vermont and Canada railroad,
their privileges and appurtenances, also
including the franchise to operate said
railroad; 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 bondholders, and
the Vermont g. Canada railroad company,
and in consideration of the fact that In
case the defendants redeem the said pro.
perty by the payment of the afore said in
debtedness constituting lien or equit-
able charge thereon, as in this decree is
established, there may then exist no occa-
sion or necessity for the enforcement of
the rights, liens and priorities, as between
themselves, of the holders of said indebt.
edness, it is deemed unnecessary to ascer.
tain such rights and priorities at the pres.
ent 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 a failure of defendants to
redeem or otherwise and this cause is to
be retained and continued ON the docket
Of the court for that purpose, and any
person interested in said rights, liens, and
priorities, also the Rutland railroad com.
pany, shall be at liberty at any time there
after to move the court for the ascertain
ment and enforcement thereof in this
cause.
The court will at once adudicate the
exceptions to the masters report upon the
receivers and managers account prior to
the appointment Of the Central vermont
railroad company manager, in 1873, and
cause the accounts ofthe Central Vermont
railroad company as managers to BIO
| settled at an early date, and cause all sums
that are, or in equity should be, in the
hands or possession of said manager to be
| first applied in extinguishment of the
| Indebtedness of said receivership; and as
this cause has been long in court, the
court is required by stringent order to
exact the utmost diligence of the parties
in settling and bringing to final detormin-
alton all disputed claims; and all eauit.
able offsets growing out of the admins.
tration and management of said property.
And when said accounts are settled and
all equitable offsets, if any, are ascertain
ed and applied, the court will pass decree
for the orators for the residue of the in
debtedness of said receivers and managers
declaring the bonded debt, rs 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 legiti- |
mate administration of the property, by |
the receivers and managers, to be an equit-
able lien or charge in the nature of an
equitable mortgage upon the Vermont
Central and the Vermont and Canada
railroad, theirs privileges and appurte-
nances, including the franchises to oper-
ate said roads, and all the equipment,
property, claims and assets appertaining
thereto, and to the receivership and man
agement thereof, superior to the claims of
the Vermont and Canada railroad compa-
ny. and its first and second mortgage
bondholders. In settling the accounts of
the managers the court will follow the
rule that obtains in equity in regard to
and managers of such property.
The expenditures of funds for a reading
room, though q proper charity, is not a
eSal accounting for trust funds; also ex- {
penditures for the "Tramway'' road in {
Canada, and, perhaps, the Misssquoi
'ailroad and the Northern Transportation
company, if allowed as charge against '
he property, must find warrant for it in |
he consent and agreement of the primary i
parties, and it is purposely left open until t
I'll the facts shall be made to appear in ,
be masters report. IT
And tho court will further decree that C
he said several sums so ascertained by the s
curt, shall be paid by the defendants TO n
he clerk OF this court, for the benefit of
The respective parties who are creditors,
With Interest, on a day fixed by the court
s a reasonable time and that upon fall
Ire OF said defendants to make payment OF
aid several sums above ordered to be
aid, or any of them, at the time fixed, s
hen the Vermont Central railroad COM
ANY and the bond holders under the first
nd second mortgages of the Vermont 3
CENTRAL railroad, and the Vermont e Can a
da railroad company, and all the defend Ii
nts' shall be decreed to be forever fore G
losed and barred of all right and title, in- "
crest and estate in the Vermont Central v
abroad and the Vermont & Canada rail. l
DAD, the privileges and appurtenances Ii
ertaining thereto and to each of them, W
1cluding the franchises to operate said p
Dads, and in all the equipment, claims, ft
ssets and property appertaining or be- o
'nging to said roads, or either of them, a
s well as the reccivership and manage h
lent thereof; andon such failure the court h
MI order all tho defendants to release all Ii
1tnfnCf hny A.,,, i,.- |