Chapter 244: Railroad Trustees and Holding Companies

The trustees to whom a railroad has been assigned, or conveyed in mortgage for the benefit of creditors, shall call a meeting of the creditors whose claims are secured by the mortgage once a year, to be held at some place on or near the railroad, by publication in 2 daily newspapers published in Boston, Massachusetts, and one newspaper in each county in which the railroad is located.

If the trustees, on application of such creditors to the amount of 1/3 of the whole sum secured, do not, within 14 days, call such meeting, 5 or more creditors holding the like amount of claims may call it in the same manner.

At such meeting, the trustees shall make a report of the state of the trust property, and of their proceedings and management in relation thereto, according to the usual custom of directors of railroads to the stockholders.

The creditors at such meeting may elect, by ballot, 3 or 5 trustees, being creditors, and a majority, at least, residents of the state, each creditor being entitled to one vote for each $100 of his debt and having the same right to vote by proxy as stockholders of railroads at their meetings.

Upon the election of new trustees, the interest of the former trustees shall be transferred to and vest in such new trustees; and the former trustees shall render and settle an account of their trust with such successors, and pay and transfer to them such mortgage estate and any balances in their hands; and, if a balance is due the retiring trustees, the assets of the trust shall be charged therewith.

No trustees or assignees of a railroad mortgage, who have the railroad in their charge, shall, as such and without their own default, be personally responsible for any damage, by collision or force, occurring to any passenger or freight upon the railroad.

In case of such damage, the company assigning or mortgaging the railroad shall be liable; and the assets in the hands of the trustees shall be held for such damage as part of the expenses of the trust, in preference to the claims of the general creditors of the company.

The superior court shall have summary power to make all orders and decrees necessary to carry such trusts into effect.

Any corporation, whether foreign or domestic, which owns a majority of the capital stock of any railroad in the state, or operates the same under lease or otherwise, shall make returns and furnish information to the department of transportation as to such railroad properties and railroad business; and all provisions of law respecting reports and information concerning railroads and respecting the issue of securities shall apply to such railroad properties and railroad business.

If any such holding company shall, after reasonable notice, fail to comply with the provisions of RSA 244:9, the supreme court shall, upon petition of any party interested, dissolve the railroad corporation, a majority of whose stocks is owned by such holding company.