The Portland daily press., 1885-04-29
RAILWAY MATTERS.
The Passumpsic Company Brings Suit
Against she Montreal, Portland and B Os-

The Passumpsic Company Brings Suit
Against she Montreal, Portland and B Os-
ton.
special to the Boston Journal from Bur-
lington, VT, says: One of the most important
railroad lawsuits ever brought in this State
was instituted Monday in the form of bill in
equity by the Connecticut and Passumpsic
Rivers Railroad Company against the South
Eastern Railway Comp any and the Vermont
National Bank of S.. Adams and Receiver
Hsndee. The suit is brought in the United
States Circuit Court by Hon. e. J. Phelps of
Burlington, and Messrs. Edwards, Dickerman
& Young. the solicitors for the orator. The
suit involves the question of the title to and
ownership of the bonds and stock of the Mou-
treal, Portland and Boston Railroad offered for
sale By Receiver Hendee, which the orator
seeks to recover possession of on the ground
that 1t is the legal owner. The orator sets up
that June g. 1880, it was the lawful owner and
holder of 613 first mortgage bonds of $1,000
each and 100 second mortgage bonds OF $1,000
each, and also of 1924 shares of capital stock
OF the Montreal, Portland and Boston Rail-
roads; that on that day at Montreal the orator
sold said securities to the Southeastern Rail-
way, represented by President Bradley Barlow
and received in payment therefor for five notes
OF the Southeastern Railway Endorsed by Pres
ident Barlow for $4,000 each, payable at in
tervals of one year respectively from date. In
accordance with agreement these securities
were transferred and deposited in trust with
Mr.. George Whitney of Boston, to be held sub
Ject to certain conditions. Upon payment of
these notes it was stipulated that these securi-
ties should be transferred to Bradley Barlow,
but upon default for thirty days in payment
after maturing the bonds and stock were to be
surrendered to the orator, to be thereafter held
and disposed of as its own property; it being
understood that in the meantime Mr.. Barlow
should hold the proxy of said trustee to vote
upon said shares at all general or special meet
ings OF the Montreal, Portland and Boston
Railway. The orator further sets up that
about jan. 16. 1852, while said bonds and
stocks were in the hands of the trustee. and
said notes remaining. unpaid, and President
Barlow being engaged in negotiations with the
Canadian Pacific Railway for the sale of the
Southeastern Railway, and being DESTROYS of
satisfying the Canadian Pacific Railway syndi-
cate, that the Southeastern owned these secur-
tiles and could transfer a controlling interest
which forms part of the Southeastern Rail-
way line, applied to the trustee and orator to
obtain possession of the securities, and that
Barlow did SO obtain the same by transfer from
the orator in order to enable him to consum-
mate such proposed sale. 1t is further set up
that on the 9th day of August, 1888, the South
eastern Railway and Bradley Barlow failed,
and that all the notes given by President Bar
low remain unpaid. The Vermont National
Bank also failed at this time, and the orator
nj oin tn ha snla
to the bank to a large amount, upon some con-
sideration transferred all of said securities to
the bank, and that they are now held by Re-
ceiver Hendee as the property of the bank.
The orator claims that, the original contract
for the sale of the securities having been made
in Canada, and that under Canadian laws the
title OF the orator to these securities as unpaid
vendor thereof was not diverted by the trans
fer and delivery of the same to the Southeast
ern Railway, but remain as the prior and par
amount title against said road until the pay
ment OF said notes to the orator. The orator
let's up that the tranfer of these securities by
Barlow to the bank was illegal and fraudulent
and based upon no legal or sufficient considera-
ton, and prays that the title of the Connecti-
cut and Passumpsic Railroad to said bonds as
against the defendants may be established by
decree of the court, and that the defendants
may be decreed to deliver said securities upon
the delivery OF these unpaid notes. The orator
hereby tenders the notes for that purpose. The
orator further prays that in the meantime, or
until the hearing of this case, Receiver Hen-
dee may be eDjoined from selling or disposing
of the custody of these bonds and stocks.
Portland 81 Ogdensburg.
The Mercantile Trust Company of New
York has sold the Portland & Ogdensburg
bonds lately in Its possession, and Mr.. Phelps
and his associates have withdrawn from the
suit as counsel. The suit upon these bonds SO
far as the Trust Company is concerned, is end
ed.
The West Shore.
An Albany. N. Y. despatch says that the
report of the West Shore for the quarter ended
Dee. 81, 1884, which has been withheld from
the railroad commissioners for two months
makes very bad showing. Thers is deficit
OF $207 ,2l8, and the receivers have only paid
the ordinary running expenses. A floating
debt of $751; 1888 is reported.