Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1902-04-10
Gov, Stickney's Veto Now Vindicate

OF the Dill relating 10 tne CentTdl NerHlOnt
rail- Dad which the Legislature passed IN
spite of his Objection on the eve If Anal
adjournment, but it has now come and
strangely enough at the hands OF the Su-
preme Court CT Massachuse it's. The gist
of the whtle matter is the emphasizing Of
the principle that the purchaser of prop
erty under foreclosure proceedings can not
be compelled by legislation to ray unsc-
cured debts against the former owner of
the property, and the declaration that the
law in question Is unconst !tuitional.
The history of this case Is comprehen-
sive, but in view of the interest attached
to II from the standpoint OF both constitu-
tional law and railroad development 1t is
worth rehearsing at this time. The Cen
trail Vermont railroad, which was for a
time known as the Consolidated In 1886 Sc
cured a lease Of the Ogdcnsburg and Lake
Champlain railroad, and by virtue of such
lease gained control Ct grain elevator at
Ogdensburg This structure was destroy
cd by fire in September, $780, and F. F.
Woodward brought euit against the rail
iroad company for the loss Of grain stored
in the elevator. In March. 1893, the plain
tiff after respected failures not necessary
to enumerat, at this time secured juds-
solvent and sought to realize thereon by
tirsteeing the balances supposed to Re due
from the Boston nd Maine to the Central
Vermont, but found no satisfaction in tcat
direction.
In the meantime the Central Vermont
railroad was gradually lassing through
a receivcrship tc a change In ownership.
The property Of the company had been
mortgaged in 1883 to the American Loan
and Trust company to secure an issue of
bonds of which issue bonds to the amount
of s6,9s1, 900 were negotiated for value. IN
terest on these be nds having been de-
faulted aEi other debts contracted by the
United States Court to foreclose the mort.
gage and in anticipation Of the foreclosure
sale the first mortgage tondbolders organ
lied to protect their interests and appoint
ed a committee who entered into an agree
ment with the Grand Trunk Railway conf
pany to form a new corporation to pur-
chnse and operate the property, the CON-
those then held.
A corporation could have been formed
under the general laws Of Vermont for the
purpose Of owning and operating the
road, but in order to avoid all questions
regarding the character of the bonds to be
issued ~ woa deerned adyic q hle IN Se-
cure a charter from the Legislature The
struggle which ensued in the Legislature
Of 1898 is one Of the most remarkable in
the history of Vermont railroad legisla-
ton, for in order to secure charter il
was found necessary by the proposed COM
pany to agree to various Concessions, u
including the payment of various named
unsecured debts against the old Central
Vermont Railroad company and other
outside provisions, which would make an
interesting story in themselves, and the
full details concerning which have never
yet been published.
The new corporation was chartered az
the Central Vermont Railway company
and on January q, 1899. Judge Wheeler OF
the United States Court issued decree
ordering the sale of the property. By the
terms of the decree the buyers acquired
the property free and discharged from
the lien of said mortgages and from the
claims of all stockholders and creditors
and all other persons claiming by. through
or under the railroads corporations here
inbefore named including the Central Yer
mont Railroad company or either of them
since the date Of either of said mortgages
except such claims as should be adjudged
by said court to be prior in lien or SUI
perior In equity to said mortgages" The
Woodward judgment was not fortunate
enough to have friends In the Legislature
and it accordingly was not included ir
those which the new company were forced
to pay in effect as the price for theil
charter.
Accordingly in 1900 tho idea was con
ceived of providing for some Of the in
6ehtedness not included in the act of 1S9
was passed amending the act to incorpor
ate the Central Vermont Railway com
rany to the effect that in addition to tn,
payments specifically required by section
6 CT No. 1859 of acts of 1895 t. be mado b,
the Central Vermont Railway company
said company shall pay in full with inter
est all such judgments as have been mad
or recovered against the Central Vernon
Railroad company for loss of property b!
fire In the grain elevators OF said las
named corporation at Ogdensburg. Sept 8
1890. The said Central Vermont R,ilwa!
company shall deliver to the said severa