Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1898-01-28
NEW LONDON NORTHERN
shows Its Hand in the Central
Vermont Fight.

Claims That the Mortgage Given the
American Loan aud Trust Company
nv the Central vermont Receivers ~
Not Valid.
one of the most important of the moves
in the fight of the Central Vermont rail
road was begun Friday when the New Lon
don Northern railroad company. through
its attorneys. filed with the clerk OF the
United States district court in Burlington
a petition for the right of intervention DID
the case of the American Loan and Trust
company of Boston against the Central
Vermont Railroad company of \ermont'
The declaration is signed 10y President
Robert Colt and Attorneys Augustus Bran
digger and Walter e. NOyes tor the New
London Railroad company.
In the petition the New London North
ern railroad company prays for the right OF
Intervention IN the above case and for other
orders. In October, 1891, the petitioner
was the owner of railroad extending
from New London across Massachusetts, TO
a terminus in the town Of BrAttlebOrO. IL
also controlled the Bratteboro ~ White
hall railroad bv virtue of lease dated May
10. 1850. On Oct. Il. 1891, the petitioner
entered into a lease with the Consolidated
Railroad company Of Vermont, a corpora
ton existing under state laws whereby the
petitioner let TO that company its rights
and provisions. In the lease 10 was pro
vided that no assigning or sublettlug. lease
or transfer should be made without the
written consent of the lessee except TO the
Central Vermont Railroad company TO
whom said assignment could be made up
on condition that the Central ermoni
Should upon the execution OF the lease eN-
ecute an agreement to secure the payment
of the rental iu the same manner as had
been indicated. and that the lessee should
not transfer or part with leased road by
the Consolidated Railroad company or 9th
erWise except the Central Vermont without
the consent OF the Massachusetts legIsla-
ture
In December, 1891, in accord with the
lease and act OF the general court the Con-
soHdaled Railroad company assigned and
transferred to the Central Vermont com
pauy the road. and the company remained
In possession until March 20, 1896, when il
passed TO the management of {. NJ. Hays
and l.. c. Smith as receivers
10 is further set forth that the petitioner
has never given written consent or in any
other form for the further assignment or
sublettlng of the lease, or has the general
session OF saii road: vet without the
knowledge OF the petitioner the Contra
Vermont. on the 2G.h of October lsN1.
/ tor the purpose OF securing payment OF
! bonds thereafter TO De issued TO the Amer
, can Loan aud Trust company OF Boston as
trustee of certain mOrjrag. interests or
deed of trust. sold and conveyed the road
Oh. aforesaid American Loan and Trust
company. iu accepting the mortgage. knew
the case was included therein contrary 10
the provisions Of the act OF the general
cOuI.
NOW the American Loan and Trust com
pauy. as trustee has brought its bill Ci
complaint against The Central y ermJut
company for foreclosure of mortgage. and
j, praying tor a foreclosure OF the mortgage
or 10y aid of said mortgage and property in-
cluded in lease under direction OF the cour-.
Under the terms of the lease the com
panv has no lease. II the mortgage is not
void the act OF the Central Y ermont In
executing and delivering the mortgage and
the insti,utinr OF the proceedings is cousI-
tuuu- a breach OF said covenant before
outlined
The New London Northern Railroad
company prays that Il be allowed TO inter
ypue IN the above cause. and asks that IN
case the court nuds lhat the mortgage, so
far a. II relates TO the lease Is void. the
lease be entirely excepted from any decree
entered In this cause.
In case the court finds that the mortgage
is not void Dy the acts of the Central Y er-
mont Railroad company. and operated as
breach OF covenant in the aforesaid lease,
1T is requested that the lease shall. be eN-
cepted from the decree until the petitioners
sinai. have had a reasonable time to elect 10
terminate the lease and TO reenter and take
possession OF the premises and property,
and that until the petitioners shal. have
had surh reasonable time TO reruter they
may receive rent under the lease without
waving ITS righ, TO enforce forfeiture
OF. IN case the court finds the mortgage
is not vOid and the acts do not operate as
breach OF said covenant. if II shall make
decree OF foreclosure in the lease il shall be
excepted from the operation OF the same uu-
Il. 30 shall have had a reasonable time 10
give or withhold It's complaint In writing
10 the sale of the title thereto in strict fore
closure SO that if the petitioners shall not
give their consent the lease may he includ-
ed in the operation of the decree and so
that IN case the petitioner shall no, give its
cOnsen, the lease shall be excluded there
from.