The Windham County reformer. (Battleboro, Vt.) 1876-1897, 1896-06-05
THE CENTRAL RECEIvERsHIP.
Further Hearing Eriday-VariOus Orders
to Guard the Interests of the Different
and Complex Creditor Interests.

to Guard the Interests of the Dinerem
and Complex Creditor Interests.
The hearing at the Brooks house
Friday before Judge ii. II. Wheeler OF
| the United States circuit court result
ed in definite start towards untang
| ling things so that the different classes
of creditors will know, as the judg.
dangerously observed, where il is and
how it came there The petition OF
the receivers for leave to purchase POO
tons of steel rails and 80 new cars, and
form contracts for the purchase of
ties and certain bridges was granted.
Notifications of the order made at
Windsor were granted SO as to prevent
the payment of any monies by the re-
ceivers for supplies and traffic bal
ancesw without an order of the court.
The petition OF one of the bondholders
Of the Ogdensburg and Lake Cham
plain railroad, that the net earnings
of the road be set aside to meet the in
terest on the bonds, due April ST,
was granted and the order was extend
ed so as to also sequestrate the earn
ings. since October lst last, the date
upon which the present unpaid inter
est began to accrue.
The chief argument was over the
petition to pay for improvements and
new rolling stock. In behalf OF the
consolidated bondholders it was asked,
and finally ordered that the receivers
be required within 30 days to file an
inventory of all the property and as
sets of the company and of the lines
and steamboats, it controls which
came into their possession at the time
of the receivership, showing in Diet all
what is not yet paid for and to whom
the debts are due also a detailed state
ment showing what Indebtedness has
been incurred on account of the Yer
mont line, or theCeutral Vermont itself,
and what on account of leased lines
and also that the receivers be required |
to file a weekly statement of both gross |
and net earnings of both main and |
leased lines. with classified statement |
Of payments for each. and that they be |
directed to permit such expert ac
as shall be named by the |
American Loan and Trust company.
with the approval of the court, to |
nave access to and example the books,
and accounts of the company.
of the lines leased and controlled by
1t and of the receivers since their APP
continent. The attorneys for the re.
'elvers thought portions of the request
,aptlous, unnecessary and indicative Of
suspicion Of the receivers.
The second effort OF the Boston /
'eople was irected towards a curtail
nent of the powers of the receivers to
Use income or borrow money to pay
ertaln claims under the original or
Ter of appointment The receivers
we're author ed to use receipts and
rruw money, IN their discretion, to
'ay - Current expense. , taxes
nd assessments, 80 labor. sd aries and
upplies due now, IN the future. or
Fithin SIX m onths prior to the receiv
rship. and a rentals, track and car
lileage balances, rolling stock partly
aid for, and damage and injury !
laims. :
The Boston interests insisted tn at
lese payments should not be left to ,
ne discretion of the receivers, but that ,
the case of supplies, track balances, [
nd equipment, etc. where the claims |
ated prior to the receivership, 10 pay :,
ent should be made without order I.
the court after notice to all interested :,
record. Decision was that not one of |
lose preferred claims should be Z.
aid until after filing uf the SEIZED |
lie OF assets, liabilities, ETC., and then r
)t without an order of the court. {
t appeared that some of the supplies
r which order of payment was asked. 9
I'D been delivered prior to the re c
'ivership and all contracted for. That Il
'rtion which had been delivered prior Fl
the receivership. it was decided TO
ave in allegiance with the other pre- s.
FRED claims. Col Smith stated that "
lese supplies would be bought sothat v
ayment could be made in install I
ents, making it unnecessary to Dor e.
W money or issue receivers cert:f- y
ties. b
On the whole, the hearing was very :,
lportant and satisfactory one for hold n
3 of Central Vermont stock >
q allied securities. Col. 4. p
Smith, president of the n
,ntral and one of the receiv- ;!
5, Col. b. b. Smalley, president of ~
e Ogdensburg and Lake Cha mplain, !,
d Mr.. Hasbrouck of Ogdensburg. NJ
re present at the hearing. Mr.. Sto- "A
Mr. Fox and c. p. Searle repre- sent Al a.
the consolidated mortgage bond :,
lders, Mr.. Swnye theOgdensburg and e
Ike Champlain bondholders and Mr.. " y
field and Mr.. Wilds the receivers %
The court also heard arguments by ~
A. Straight of Portland and Elisha -. 81
~ of ST. Johnsbury for a new trial u,
the case of Wayne Cobleigh Us. ID -
and Trunk railway for injury at 80
'ssing at Suatford. y. II. for which -. -,
} jury at Burlington gave "a vr-tirf -, ~
=, 500. 49,