Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1883-03-30
A Decree Of Foreclosure In the Great
Railroad ContrOv


A Burlington despatch says: The long
pending negotiations between the parties in
terested in the Vermont Central and Yer
mont and Canada Railroads have come TO a
successful issue 80 far as the numerous suits
that have been in progress in the United
States courts are concerned, for they have
been settled or discontinued. Tuesday morn
ing the parties in interest appeared in the
United States Court by counsel and decree
of the strict foreclosure Of the first mortgage
bonds Of the Vermont Central Railroad was
rendered by Judge Wheeler, without objec-
ton on the part Of the parties to the suit
So much Of the bill as asked for the removal
of the trustees Of the first mortgage was
withdrawn. Judge Wheeler stated that ns
there was no expectation of any redemption
being made Of the first mortgage be would
give but ten days to the Vermont Central
railroad Company to redeem in the sum of
$500, 600 due the orator. The second mort
gage bondholders were given two additional
days for redeeming the amount of principal
and interest due on the first mortgage, which
is nearly three million dollars, and failing to
redeem they will be forever foreclosed of all
right, title and interest in the property, and
the title to the railroad will vest in the Trus-
tees of the first mortgage. All other suits in
the Federal courts between the parties are
discontinued, thus terminating all litigation
between the security holders Of these roads
in the United States courts. The Boston
Advertiser, speaking Of the preliminary steps
which have resulted in this compromise, says
that a settlement Of disputed points between
Gov. Smith and Mr.. Brooks president of the
Vermont and Canada, was reached near the
end of last week and Gov Smith purchased
both the Vermont Central bonds and the Yer
mont and Canada stock owned by Mr.. Brooks.
This cleared of all obstacles to the compile
ton of the reorganization, and the decree Of
foreclosure was the result The Central Yer
mont managers will now obtain by the fore
closure Of the mortgage of the property on
both roads, clear title, and will organize q
new corporation to which the franchise and
property of the CONSOLIDATED line will be
transferred and will probably continue to
operate the roads under lease from the new
company
THE ORIGIN AND HISTORY or THE LITIGATION.
1t was in June, 1855, that the Vermont and
Canada Railroad company filed its bill in
chancery. in the Franklin county court, which
has been the basis of all subsequent litigation.
Most OF the Nerm ont railroads had a troub-
lous time from the start and, the Vermont
and Canada being unable to complete its
road, il was finished by the Vermont Central,
which then leased, equipped and operated 1t,
beginning in the Fall Of 1850 The Central
soon got into financial trouble, and in $50 its
entire property was conveyed to the trustees
of the bondholders-the bonds, two million
dollars in amount having been issued in
] 1851. On December list, 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 trus-
tees-who at that time were John Smith, W.
Il. 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 1850 that the chancellor, Hon.
/ Luke F. Poland, rendered q decision This
was adverse to the petitioners. Judge Po-
land said, among other things II am salts
/ fed that the better course is for the road TO
/ be kept il the hands of the receivers who at
this time were John Gregory Smith, the late
| Lawrence Brainard 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 il its technical name-both parties APP
| pealed. The following year came the famous
compromise decree, and things went along
more or less satisfactorily until nearly a dozen
years ago when the well-remembered crash
came, the receivers obligations went to pro-
test, and there was trouble all around. Since
then litigations, hearings, Investigations and
all sorts Of legGl squabbles have been the or
der of the day. The dockets of the State and
Federal courts have been crowded with en-
tries bearing on the matter, and very great
proportion of the whole law business of the
State has been furnished by these htigants.
. On the docket Of the Chittenden county court
some Of these cases still linger, the most ven.
cradle dating back TO 1853. These Of course
| will now be discontinued