Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1883-03-28

The adjourned term of the United States
court in this city, yesterday, Judge
Wheeler presiding, was rendered memoir
able from the fact that the Vermont
| Central railroad litigation was announced
and the matter closed so far as the courts
are concerned. In attendance on court
were John Gregory Smith, d. d. Ranlett,
ESQ, Hon E. J. Phelps, Hon. B. F.
Fifeld, Hon. Kittredge Haskns, Z. C.
Smith of St. Adams, and many represen-
| tatives of the Chittenden county bar.
After some unimportant motions covering
technical points, the case of Francis A..
Brooks and others, holders of Vermont
Central first mortgage bonds, vs.. the
Vermont Central railroad company and
others were called. Hon. William G..
Shaw, in behalf of the orators and by
arrangement with the defendants, asked
for decree of strict foreclosure of the
first mortgage, that a decree be entered
against certain of the second mortgage
bondholders, and that so much of the
orators petition as related to the removal
of the trustees be dismissed.
Hon. B. +. Fifeld in behalf of the
defendants acquiesced in Mr.. Shaw's
motion.
Thereupon Judge Wheeler granted the
motion and entered an order giving the
Vermont Central railroad company ten
days in which to pay on installment of
100000 and six months TO pay the whole
and giving the second mortgage bond
holders twelve days and six months and
two days for the same payments; and as
to all other sums to become due giving
one year from the days on which they fall
due. 1t appears that there is due the first
mortgage bondholders nearly three
million dollars (S2,9ll,9l2) of overdue
interest, and of this amount the plaintiffs
In this case held million and BALI.
The other railroad cases on the
docket were discontinued without costs,
rs follows: In equity, w. II. Webb and
others vs.. Central Vermont railroad COM
pany and others; jonathan Dwight ct ais.
VS.. Vermont e. Canada ct ais; same VS..
j. G. Smith. ct ais; William Sheppard
VS.. Central Vermont; Judith w. Andrews
vs.. j. G. Smith ct ais. on The law Docket
w. II. Webb ct ais. VS.. Central Vermont;
Charles B. Brooks VS. Vermont Central.
The frat mortgage bondholders will
now form new company under the
general railroad law of the state. and the
reorganization which has so long been
pending will be effected at once.
TIE ORIGIN AND HISTORY OF TIE LIrI-
CATION.
1t was in June, 1855, that the Vermont
and Canada railroad company filed its bill
lL chancery, in the Franklin county court,
which has been the basis of all subsequent
litigation. Most of the Vermont railroads
had a troublous time from the start; and,
the Vermont and Canada being unable to
complete lis road, it was finished by the
Vermont Central, which then leased
equipped and operated it, beginning in
the fall of 1850. The Central soon got
into financial trouble, and in 1852 its
entire property was conveyed to the trus
tees of the charlottesville bonds, two
million dollars in amount, having been
issued in 1881. On December |, 1854,
default was made in the rent due the
Vermont and Canada company; and the
next year that corporation began the now
famous suit against the trustcos-who at
that time were John Smith, W. II. Lee
and John S. Eldridge, all of whom died
many years ago. The case dragged along
after the usual fashion of lawsuits, and it
was not until 1860 that the chancellor,
Hon. Luke P. Poland, rendered decision.
This was adverse to the petitioners.
Judge Poland said, among other things:
81 am satisfied that the better course is
for the road to be kept in the hands of the
receivers who at this time were John
Gregory smith, the late Lawrence
Brainerd and the late Joseph Clark and
subject to the control of the court. The
present receivers have MANAGED
with great prudence and discretion, and
the management of the property could
hardly be changed TO new hands without
detriment'
From this decision-or decretal order,
to give ii its technical name-both parties
appealed. The following year came the
famous compromise Decree" and things
went along more or less satisfactorily until
nearly dozen years ago when the we'll
remembered crash came, the receivers
obligations went to protest, and there was
trouble all around Since then litigations,
hearings, Investigations and all sorts of
legal squabbles have been the order of the
day. The dockets of the state and federal
courts have been crowded with entries
bearing on the matter, and very great
proportion of the whole law business of
the state has been furnished by these
litigants. On the docket of Chittenden
county court some of these cases still
llnger, the most venerable dating back to
1909. These of course will now be
Free Press.