The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1883-09-12

The italics are our own. The liberality with
which taffy is fed out in the last Argus also
shows that the proprietor is in charge again
and doing his best to salve over the wounds in
fcted by his enterprising assistant. While we
are sincerely grieved at this evidence that the
argus and Patriot no longer stands among the
reputable papers )" who back up their assist
ants, we are constrained to say that the editor
in-chief shows better judgment than his guile
less substitute.
A HEARING was commenced in Rutland in
the United States circuit court last Wednesday
in the case of Rowland G. Hazard of Peacedale,
Rhode Island, large stockholder of the Yer
mont & Canada railroad company against the
Consolidated railroad company of Vermont,
the Vermont & Canada railroad company and
the American Loan and Trust company of Bos-
ton. The hearing, says the Rutland Herald,
was on motion for preliminary injunction re-
strainng the defendant from carrying out the
compromise agreement for the settling of the
old Vermont Central litigation, and the issuing
of the bonds in pursuance OF that agreement
1t is the same as the suit that Hazard brought
in June last in Boston, against the American
Loan and Trust company OF Boston in which
Judge Field of the Massachusetts, supreme court
granted an INDUCTION against the issuing OF
bonds by the Trust company, but as the real
matter to be settled was the construction OF a
Vermont statute and as Judge Field had no
| jurisdiction over the Vermont railroads which
entered into the compromise agreement, he
thought suit should be brought in Vermont
and the dissolution or continuance Of his in-
junction was made to depend upon the result
of the hearing before Judge Wheeler. The
bill recites the history of the compromise agree
ment, which was effected under No. 80 of the
laws of 1882, the several section Of which reads
as follows: "When two railroads are encum-
bered by a lien or liens upon the two roads, the
company owning either road may issue bonds
on the time and rate Of interest provided by
section 1850 of the Revised Laws, for the pur
pose Of extinguishing such lien or liens and
compromising disputes, and the same may bt
secured by mortgage or mortgages OF botl
roads by vote of the stockholders Of the com
panies owning said roads" The plaintiff
claims that that part OF the compromise scheme
which provides that the stock Of the Vernon
Il Canada railroad shall be exchanged fo
bonds Of the Consolidated railroad company o
Vermont (the successor Of the old Vernon
Central railroad company, at the rate of SO o
Vermont & Canada railroad company steel
for one dollar bonds is ultra Uires and beyonc
the power of the railroads to do, and therefore
void. The prayer OF the plaintiffs bill ask
that the mortgage executed by the Vermont
Canada railroad company jointly with the Con
soldated railroad company of Vermont, be de
clared void as to the Vermont & Canada rail
road company, and constitute no lien on tn
Vermont Canada railroad, and that the bond
be declared void as against the Vermont
} Canada railroad company, and also that tn
contract by which the Vermont & Canada rail
road company RENTED all overdue rent an
provided that the future rents until the bond
be paid be only 81 per year, be declared vol
and that the Consolidated railroad company @
Vermont be decreed to pay the sums due int
} court, and also asking for general relief, etc
The defendants claim that the statute in ques