Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1852-04-02

chiefly for, as il is addressed to, the Sharehold-
ers of the Vermont Central Railroad, we give
below from the Boston Ala, pretty full and
accurate synopsis of its contents -
Mr.. Quincy and the Vermont Central
Railroad.
II appears by the statement. that, in July,
1919, Mr.. Quincy, after much urging, was in
duced TO accept the Treasurership OF the Cor
poraton, This was at period when the ser
vices of a man of fortune credit and acknow-
lodged ability were looked upon as being most
essential to the interests of the Stockholders
A bargain was struck between the Directors
and Mr.. Quincy; and he accordingly, the Sep
TENDER following, commenced the duties ofhis
Office. The Vermont and Canada Railroad
was not then in process Of construction, altho'
the route had been surveyed and was ready for
contract. BY the advice OF the late Treasurer,
the Vermont Central took a permanent lease
Of the Vermont and Canada, by which 8 per
cent. per annum was to be paid to the share
holders. Bv the charter ofthe latter Company,
the amount Of 500 600 OF sock was to be TAX
en- before operations were to commence. No
subscriptions were effected, and Mr.. Quincy
| himself took stock to the amount of SJl 400,
aud started the road into existence, In this
enterprise he became personally responsible at
various times for 81 ,2S4,00
When Mr. Quincy took the Treasurershp
of the Vermont Central, in July l749, the
amount reported TO the Directors by the En-
gneer, as necessary TO complete the road was
$3.50, 900, the bonded debt OF the Company
was but 1927, 800, and the ptal stock paid
in was S3,!45,573 So. Since that period he
has raised for the Corporation Si,75O,O00, as
follows, viz. $4,000 900 on mortgage bonds {;
81 500 900 on new stock VT Central, and 81 =
100000 on new stock OF the Vermont aud
Canada r. r.
In November 1851, the Directors of the Cen
trail took from Mr.. Quincy the management of
the COmpany's affairs as he states, contrary to
their written agreement, tor the reason that he
had pledged bonds of the Company, rs cdlldter-
al for his pirate deIts, which bonds had been
delivered to him III his individual capacity, as
collateral for his endorsements for the Com
panv. He states also, that by contract the d.
rectors had no right to demand possession Of
those bonds. We may add that these are what
are called the "disputed bonds" and are in the
hands Of parties to wnom they came in regu-
lar business transactions. Mr.. Quincy states
that he has had authority from the Directors
to do with these bonds az he has done-that il,
pledge them for hs individual notes THIS
authority was in the shape o, votes of the Di-
rectors "a follows, Aug. 81, lSl9.
Jotcd, That .losiai. Quincy, Jr., be anthor-
ized to pledge any of the bonds or scrip of tn.
Corporation as security for lis debts or labili-
Ties, and in like manner to pledge any CT said
bonds or scrip as security for any debts or La
bilties, which he shall incur in his private
capacity, for tho use or benefit Of the Corpora
ton.
And, a, meeting Of the Directors of the
Vermont and Canada Railroad, held at Boston
; on the oath of August, lS49, present Johr
Smith, Charles Paine, s. S. Lewis. aud Law
renee Bra nerd, on motion, it was
Ordered, That tho signature or endorsement
notes or drafts snail be binding on this Cor
poraion to all intents and purposes.
The agreement between the late Treasurer
and the Corporation contained the following
article -
said Quincvs duties as Treasurer shall III
clude the ordinary and legal duties of Treas
nrer, and also tn, endorsiug of all negotiable
paper. which Shall be necessary for conducting
adyantageously he atiaiyS otthG Company. He
will also use all reasonable and proper pains &c
; procure the necessary money by the sale ant
discount of said paper, the loss and dlscoun
thereon to be bIrno by said Company. The
; financial business Of the Company shall as ia
as CONVEX. cnt, he transacted at SAID Quincy
office in Boston"
In consequence Of these votes, Mr. Quincy
in money transactions, either gave the corpora
: ton note, with lis own endorsement--hs owl
note, endorsed tv the corporatlon-the corpo
ration note, secured by bonds. or his own not,
secured by bonds. Every loan but one was
made on his no'e secured by bonds, this mode
being preferred by the lender. Some two anC
half millions we're borrowed in this way;
par, Of it from directors Of the Central road, dnt
members Of the tjnancc Committee.
At a meeting OF the stockholders. Nov. %
1850. T. COMMITTEE of investigation submitted q
resolution. to tie effect that the net Nf the ID
rectors, giving to the Treasurer uncontrolled
discretion to bind the Company in any pecu
mary obligations, without even the knowle q
Of the Directors, was Il departure from sount
principles of arrangement on the part OF th'
Directors. At this meeting Mr.. Quincy spoke
and stated that such was the condition upol
which he mad accepted his office, and was TIT
only condition u0on which he would RENAL
t responsible. This resolution was laid on Tn
table; and the stockholders, by declining to ac
upon 1t, thus declared their approval Of TIN
course of the Directors.
~ CldlPt 10 dlsO uIlbc VI Il iuIoO 'h'iy ~ 'i
, report of Is l9-thc bonded debt having bee
placed at 500 300, when it was in reaht.
soy 900. The assets also at that time pro
nounced TO be good, were proved to be com
paratvely worthless, and the outstanding bill
were undcrstated. Mr.. Quincy states that
assuming that the right to use the name an
bonds Of the Company, was no part OF the con
: slderaton ! was to receive for my services, "a
i MAINTAIN it was, vet with such votes and wit
5 such immense and unookedtor debts and re
sponsblities and under such circumstances,
q was clearly justified IN using the facilities q
the corporation in sustaining my own cred
S when, If failed the Corporation failed. rs
Il pecially when was placed in the position b
n MISREPRESENTATION when had ample mean
to respond to all the facilities might use; an
y when from the manner IN which had idont
n fed myself with the Corporation, our accoun,
is were from necessity SO lnterwoven, that II wa
IL impossible to separate them"
lie also states that
There is not an Individual note secured b
y bonds that was not when given, and is nov
G within the letter and spirit of my authorit.
o however it may be interpreted"
o We have thus given, as briefly as duty
our readers would permit. sketch ofthe pom