Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1896-03-26

st. Adams. March 23.-Owlng to an
equity suit brought by the Grand Trunk
railway against the Central Vermont rail-
road. 20 settle a difference In traffic bal
ances, claimed by the Grand Trunk to
amount to S4i6.7l2, the United States Cir
cult Court has appointed as receivers Of
the Central Vermont railroad, E. c. Smith.
president Of the Central Vermont, and
Charles NJ. Hays, general manager OF the
Grand Trunk railway. The papers were
filed in Utica, N. y, Hartford, Conn. and
Boston.
Judge Lacombe of the United States Cir
cult Court for the southern district of
New York has ordered that this court take
ancillary Jurisdiction with the United
States Circuit Court for the district of
Vermont In the case, and has confirmed
the appointment of the receivers. Bonds
In the sum OF $4,000 each were furnished
by the receivers.
Judge Lacombes order directs that no
property of the Central Vermont railroad,
now within this Jurisdiction Of which the
receivers may take possession under this
order nor proceeds thereof II sold shall be
removed by said receivers out Of this juris-
diction, except by order OF this court. This
order does not apply, however, to rolling
stock In actual use.
The action In the case grows out of the
ming OF complaint in the United States
Circuit Court in the district of Vermont,
in which the plaintiff seeks forfeiture Of
equitable lien upon the gross earnings of
the Central Vermont railroad. In it's an
swer the defendant company admits the
validity of the lien, but asks that tho
plaintiff be required to furnish proof as to
the amount due.
The receivers were appointed upon the
petition Of the Grand Trunk railway COM
pany to the United States Circuit Court
for the district of Vermont. That COM
pany Is q large holder of the securities Of
the Central Vermont company, and also
a creditor. The application was made en-
tirely without the knowledge of the Cen
tral vermont and was complete surprise
to Its officers. The motive of the Grand
Trunk company in this move Is not entire
ly we'll defined, but from the fact that Mr..
f. c. Smith, president of the Central
Vermont, was at Its request associated
with Mr. Charles NJ Hays. general man
ager of the Grand Trunk company, in the
receivership, 1t may be safely assumed
that 1t had only the best interests OF the
property In view, and that there will be no
interruption In the operation of the prop
erty so far as concerns the personnel OF
the staff or in its arrangements with its
railroad connections, or in the friendly
relations between the Central Vermont
and Grand Trunk roads.
The floating Indebtedness consists OF
bills payable and notes. The latter are
largely secured by collateral and the for
mer mostly protected by order OF the
court, which provides for the payment of
all outstanding Indebtedness for labor and
supplies. accrued within the past six
months.
The following circulars explain them
selves:
Office OF the Central Vermont
Railroad Company
st. Adams. VT, March 20 1896.
Pursuant to the orders of the Circuit
Court of the United States for the District
of Vermont, the undersigned have taken
charge, as receivers, Of the property and
business Of the Central Vermont Railroad
company. Until further orders, all Of
ficers and employees will continue in the
same duties as heretofore. as agents Of the
receivers. Existing arrangements will as
far as practicable be maintained.
The orders of the court provide for and
fully secure the payment OF outstanding
Indebtedness for labor and supplies, and
any legal action or expense incurred by
holders of such claims will be superhous.
1t is hoped this fact will be made gen.
orally known.
r. C. SMITH,
CHARLES M. HAYS,