Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1896-05-21
THE OGDENSBURG ROAD
WILL PROBABLY REMAIN A PART OF
THE C. v. SYSTEM.
Hearing at Windsor Yesterday on a Bond
holders Petition-other Railroad Mat
ters Considered and Business Done
by the United States Court.

Windsor, May 19.-The May term of tho
United States Circuit and District Courts
Tor the district of Vermont opened here
to-day, Judge Hoyt II. Wheeler presiding
Clerk G. E. Johnson, District Attorney j.
H. Senter, Marshal L, S. Harris and Dep
uty Marshals N. s. Stearns and j. A. Kel-
Icy were also present. The jury was call
ed and the dockets were run through. or
the % cases on the Circuit Court law
docket and the chancery docket, only one
was marked for trial at this term, that Of
Lydia NJ. Blood VS.. G. A. Brown and V. w.
Rand, L. 7. Fenton trustee
After little routine business court pro-
ceeded to hearing on the petition of
Charles Parsons of New York, consid-
cradle bondholder Of the Ogdensburg and
Lake Champlain railroad bonds, asking
that the receivers of the Central Vermont
road, which Ia at prescn. operating the
Ogdensburg road on a lease be ordered 10
pay the semi-annual interest OF sl05,O00,
Which fell due April /. 1896, but which was
defaulted F. Is. Swayne of New York.
Mr.. PARSONS counsel claimed that the
earnings of the road were impressed with
trust in the hands of the Central YER
mont road, or its receivers, IN favor of the
bondholders. and that whatever funds the
receivers had in their possession resulting
from tho operation of the Ogdensburg
road after the payment of tho operating
expenses on that road should be held for
the payment of the interest on the bonds
The receivers in their answer alleged that
they had not sufficient funds resulting
from the operation of that road after the
payment of the operating expenses to meet
that interest. The court ordered that the
net earnings OF the ROAD from April 1
should be set aside to await the determi-
nation of the petitioners claim, and Or
dcred further hearing to stand over until
May 20 at Brattleboro c. NJ. Wids ap-
pcared for the receivers.
The receivers of the Central Vermont
road presented petition for leave to af-
firm contracts for the purchase of ties
and cars, for the building ofbridgesand
for leave to purchase $500 tons of steel
rails, Upon request of II. d. Hyde, coun-
sci for the American Loan and Trust COM
pany, the petition was ordered to stand
over for hearing 10 May % at Brattleboro.
| The next matter dealt with the Rutland
| road. The Clement National bank of
Rutland, holding about $4,000 OF Central
| Vermont funds, has rendered to the re-
| COVERS about S25,000. claiming the right
to offset against the balance certain
claims the bank had against the Central
Vermont company. The receivers de
clined to accept the amount rendered, C.
A. Prouty appeared for the bank and b. +.
Fihed for the receivers and the matter
was discussed at some length. Finally.
on motion of Mr.. Prouty. the court order
ed the receivers to accept the amount
rendered, without prejudicing the right
to recover the balance and appointed G.. A.
| Davis of Windsor master to report tho
facts touching the banks claim.
The National Bank of Redemption of
Boston, by G. p. Searle as counsel pre-
sented n petition asking for a modifca-
| ton of the order appointing the receivers
touching the payment of preferential
claims and this matter also went over TO
May 90.
While the future management of the Og-
densburg and Lake Champlain road was
not definitely settled by to-days hearing,
/ 1t was found that the receivers and the
bondholdcrs were agreed that 1t would be
for the best interests of all concerned IL
the Central Vermont company should con-
! tinue TO operate II. Such being the case,
1t only remains necessary for the receiv-
ers to got together sl05,o00, being six
months interest on s3jO0,000 President
| Smith told IA Free Press man that the re-
ceivers hoped to pay this interest before
the road is forfeited.
Decisions in the following cases were
handed down this afternoon: Edwin L.
Foster receiver, VS.. Lincoln ct ais, de-
cree for the plaintiff; Boyd Ewing, receiv-
er, VS.. Burnham, motion overruled; Frank
Dudley VS.. United States, classification
reversed. The case of Blood VS.. Brown ct
ais. will come on for trial tomorrow
morning at O'Clock, to which hour the
court was adjourned