Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1896-05-08
GIVES UP The LEASE.
Rutland Railroad Not Operated
by Central Vermont
But by the Ownsrs---An order Issued


by Judge wheeIer---whSt It May
Mean.
The Rutland railroad is no longer part
of the Central Vermont system. 1t is now
being operated independently by President
P. W. Clement. This change is the result
of an order issued at the Brooks House
Tuesday in the United States circuit court
by Judge II. II. Wheeler, to the effect that
the road be returned to its owners at mid
night of May 7. The hearing was based
on petition from the Rutland company,
setting forth that since the appointment,
on March 20, of receivers for the Central
Vermont system, the rental of about $1,000
per day had not been paid, and asking the
court to either order it paid or compel the
receivers to return the road, which was
leased to the Central Vermont company
Dec. 81, $780, for period of 900 years.
The Central Vermont receivers, in their
answer, claimed that they could not afford
to pay the rental demanded by the lease,
and said that the petitioner could have its
road, but objected to the appointment of a
master, as requested, to ascertain what
damages the Rutland railroad company was
entitled to on the ground that the company
had ample remedy at law for any such
damages.
BY the terms of the lease the Fitchburg
railroad company has been retaining $780,
600 per month for traffic balances and pay
ing it over to the Rutland company. This
has not been done since February because,
the petitioner believed, the receivers of the
Central Vermont system had directed that
it be not done.
Presidents Smith of the Central road and
Clement of the Rutland road were
present, together with the following coun-
sci: G. A. Prouty of Newport and David
Wilcox of New York, for the Rutland rail
road company; G. NJ. Wilds of Middlebury
and b. F. Fifield of Montpelier for the re-
ceivers of the Central Vermont railroad
company; G. p. Searle of Boston for the
American Loan 81 Trust company and 9th
er creditors, who opposed the surrender of
the lease: o20 ,. EkE5
The Rutland railroad runs from Bellows
Falls to Burlington, a distance of 120
miles, with a 16-mile branch from Leices-
ter junction to Ticonderoga, n. Y.
President Clement said he should en-
deavor to make such arrangements with
the Central Vermont management that the
present through train service would not be
interrupted.
His company has 100000 in rolling
Central Vermont company during the
terms of the several leases.
The petition of Charles Parsons, a
bondholder of the Ogdensburg Il Lake
Champlain railroad, now under lease to
the Central Vermont, against a possible
surrender of that lease, was presented by
F. b. Swayne of New York. Mr.. Fifield
appeared for the receivers of the Central
Vermont, Louis Hasbrouck of Ogdens-
burg for the Ogdensburg road, and NJ. II.
Cardozo of New York for the bondholders
in general.
Before the hearing was begun, Mr..
Swayne, in the interests of the bondholders
of the Ogdensburg & Lake Champlain
railroad, presented a petition requesting
that the court set aside all the earnings of
the Ogdensburg Il Lake Champlain road to
take care of the interest already accrued
upon that roads bonds.
The court made an order that the petit
ton should be marked for a hearing at
Windsor on May 10, at the opening of the
United States circuit court In the mean
time, the court stated that it was its UNI
Outstanding, which would be respected by
the receivers, that money already re-
ceived on account of the Ogdensburg lease,
and money being received from time to
time by the receivers from the operation of
the Ogdensburg Il Lake Champlain road,
should be held as a fund for the special
purpose of taking care of the coupons to
April l, 1896, on the bonds of the road.
This order seemed little of surprise
to the receivers, especially as the court
stated that it understood that no money
would be discussed by the receivers except
what was necessary for the operation of
tIn rrVnln oil nj W
granted by the court.
The petition of the receivers of the Cen
trail Vermont railroad for the cancellation
of the lease was met by counter petition
on the part of the Rutland railroad re-
questing that the terms of its lease might
| be fully complied with on the part of the
receivers, or that they should be allowed TO
| have the road returned to its officers.
This was met by an answer, which was
filed Tuesday in open court with Judge
Wheeler, which showed most remarka-
BILE condition of the Central Vermont rail
road.
The amount of the floating debt of the
| Central Vermont road, not including the
loan secured by 81 10000 4 per cent bonds
of that road to the Grand Trunk railroad,
irrespective of the preferred debts Offset
exceeded 81, 1900. The answer also
showed that about So, 900, 600 of the bonds
issued under the mortgage of Oct. 20, 1892
by the Central Vermont road were out
standing and held as collateral for liabili
ties of the company.
The hearing developed that the Rutland
railroad had been leased, and had beer
part of the system of the Central Vermont
road for more than 40 years. That the
present lease was dated in 1891. The frs
year (1S91) of the lease showed loss o.
S31 1874; in 1892 loss was shown of SOP,
532; in 1898 a loss of S136, sol; in 1894 {
loss of $50, 224, and in 1895 a loss of S695O
Lawyer Charles p. Searle made specia
plea that the system be kept intact.
Lawyer Cardozo stated to the court tina
he considered that the Ogdensburg d LAX
Champlain road was a vital necessity Il
the integrity of the Central Vermont sys
tenn.
Lawyer Prouty said that in case the roa'
was returned to the Rutland that compan,
would have claim against the Contra
Vermont for very large amount on &C
count of the cancellation of the lease. II
stated afterward that such claim woul
probably amount to 100000
1t appeared at the hearing that the Cen
trail Vermont road owned only 1913 mile
of the nearly 800 miles of road which
operates and controls.
1t was also brought out that the frs
mortgage for $1,000, 900, generally know
as the consolidated 5s, did not cover any
thing more than the roadbed and littl
equipment owned by the Consolidate
onr nf