St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1899-01-25
THELAKE ROAD INJUNCTION.
Served by Stockholders to Prevent the Issuanc
Of Two Cent Mileage Books.

Served by Stockholders to Prevent the Issuance
OF Two Cent Mileage Books.
A copy OF bill in United States Court
was served upon Chairman D. J.. Foster
of the State board Of railroad commits
sioners in Burlington Jan. II, in which
X L. Day & Co. for and in behalf of
themselves and all other stockholders,
and the Worcester County Institution
for Savings of Massachusetts, for and in
behalf OF itself and all owners OF first
mortage bonds of the st. Johnsbury and
Lake Champlain railroad, bring bill in
United States Court against the st.
Johnsbury and Lake Champain railroad,
the State board Of railroad commission
ers and the several attorneys in the
counties through which the road oper-
ates.
The orators set forth that the capital
stock outstanding exceeds 100000
and the bonded Indebtedness of the road
So 100000; that during the last six
years the operation Of the road has been
carefully and prudently managed yet the
territory through which it runs is thinly
settled, the local traffic small, the grades
heavy, with many sharp curves, all of
which make the property expensive of
operation; that the total gross earnings
Tor the past six years have been much
less than the expenses and necessary re-
pairs; that the money to pay the deficit
in operating expenses and necessary re-
pairs and interest accruing on its mort
gage bonds has been raised by the sale OF
the first mortgage bonds left in the
treasury in 1894; and that all such
bonds so lett are now disposed of.
That the annual deficits tor the past
six years have been as follows: For the
year ending June 80, 1898, 500 525 SO;
1894, $SO.s72 20; 1895 500 2U9 0S;
1896 $123,133 %; 1897, $156,6l3 "a;
1898, $149 1882
That previous TO November 81, 1898,
the company was selling mileage books
at the rate Of 212 cents per mile and that
such price was not exorbitant or unreas-
enable on that road and that any rcduc-
ton would materially decrease the earn
ings OF the road; that any reduction in
the price charged for transportation Of
passengers or freight would result in de-
priving the stockholders OF property
without due process OF law and without
compensation.
The bill then sets forth the require.
mcnls OF the act OF the last session OF the
Legi>lal ure relating TO the sale of mileage
books to bearer at two cents per mile
and the action OF the board OF railroad
commissioners to compel the company
to comply with that law; that II the
board are allowed to enforce he statute
as the orators set forth. it will do so
unless restrained by injunction; that in
that case the gross receipts of the com
panv would be reduced by more than
$4,000 year.
The orators further set forth that il
the said corporation does not comply
with the act OF the Legislature the seve-
raj States attorneys OF the counties
through winch It operates will institute
proceedings against said corporation tor
each and every offence under the act and
that the payment oi fines Tor such prose
cutions would increase the deficit and re.
duce the alb lity OF the company to paw
its expenses and interest upon It's debt
The orators, therefore. ask that all de-
PENDANTS may be eniolned and restra ned
during the suit; that the company be
permanently enjoined and restrained from
placing on salebooks TO be used BY
bearer at the rate Of wo cents per mile;
that the board OF railroad commissioners
be enjuiued and restrained rom insutut.
ing p oceednps against the company Tor
its failure 10 comply with he act of he
Legislature and from instituting any
proceedings or prosecutions in the Su-
preme Court for the enforcement of the
order made by said board in which said
road was given until January Is to
comply with the statute; that the sever.
al States attorneys OF the counties
through which the road passes be re.
strained and njrined from prosecuting
said road tor its failure to comply with
the law.
That the act of the General Assembly
referring to the mileage books to be sold
at two cents per mile be declared repug.
naut to the Fourteenth Amendment OF
the United States Constitution and void
as to said road.
The bill stands for hearing on the ques.
ton OF a temporary injunction tor Ianu.
airy 81 at Brattleboro. Pending the
hearing, Judge Wheeler has granted a
temporary injunction restraining the di.
rectors, officers and agents OF the com
pany from issuing or selling any mileage
books at two cents per mile.