Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1852-04-08
Josiah Quincy Jr. VS.. Vermont
Central Railroad.

We have not been favored with copy OF MI
Ouiucv's pamphlet, and must rely upon more
favored editors for an account of the matter
The following is from the Batteooro Eagle
As the Directors are TO make a statement upon
the subject. we withhold comments which under
other circumstances would be made A single
narncraph annexed from the Boston Courier is
sufficient for the time being.
In lslo. when this Company were in circum-
stances of need, and when man OF fortune,
credit, and abb was most essential to their inter
ests Mr. Quincy was persuaded by certain par
ties and on certain considerations to accept 'he
Treasurership of the Company. At TINS Time,
the Vermont and Canada line had not Deen put
under construction, and It was OF importance 10
the Vermont Central that the work should 60
on a. II had been surveyed, therefore
Tie Vermont Central took a permanent lease
Of the Vermont and Canada, by which : per
cent. per annum was TO be paid TO the share hold
ers. Bv the charter of the latter Company, the
amount Of ! 10000 Of stock was TO be taken be
fore operations were TO commence, No sub
scrptions we're effected, and ur Quincy hun
self took S94l00 of the stock. and started the
road into existence In this enterprise he be-
came personally responsible at various tunes Tor
Sl,25i,0O
When Ms Quincy took the Treasurership OF
the Vermont Central in July, 1919 the amount
reported to the Directors by the Engineer MS
necessary to complete the road, was SS3OuOO'
the bonded debt Of the Company was but SI9I, q
$50, and the capital stock paid 1t was ! ,l4o,-
573 So. Since that period he has raised for the
Corporation S4,s 5000 as follows, viz; $4,000
600 on mortgage bunds 81 100000 on new
stock Vermont Central. and 81 ,25OO0O on ne"
stock of ernont and Canada Railroad.
1t was in these various operations that MI
Quincy, urged on by his public spirit and lll'
desire to carry the Vermont Central Corporation
safely through all their embarrassments, pledget
all his own fortune, received in turn full author
~ FROM the Company TO pledge any OF their BOND.
or scrip MS security for any of their debts or va
bliites, and IN like manner for any debts or la
bllttes which be should incur in his private ca
pacitv for their benefit. 1t seems that IN oliectnl
these loans in aiJ Of the Company all but on
was made on his own note, secured by bonds, TN
mode being preferred by the lender. In Noyem
Der, 1881 the Directors Of the Central took iTou
Mr. Quincy the management of the Company
aAlFs, as he states, contrary TO their write
agreement, for the reason that he had pledge
bonds Of the Company, as collateral for his or
private debts, which bonds had been delivered {
to him in his individual capacity, Us collateral 10
has endorsements for the Company the possession
of these bonds the Company by their contrac
having no right to demand.
1t is also charged by Mr. Quincy, that falls
entry was made IN the report OF 1919, alluded I
obove--the bonded debt having been placed
SGl7,390, when il was in reality S597, $50. b
assets also at that time pronounced TO be GOO
were proved 10 be comparatively worthless, an
the outstanding bills were understated.
] hus, while Mr. Quincy had uncontrolled di'
cretion to bind the Company for loans efiecte
for them, THAT being the condition on which !
accepted the 'freasurershp,) his own notes al
endorsements were also demanded as addition
security. and these he willingly gave thereby Il
volvlng his whole private fortune which has pr
duced his recent failure and led to his presc
mlsiurtunes.
The Boston Courier comments on the recc
Letter OF HIN. JOSIAH QuiNoY, Jr., to the Shar
holders Of the Vermont Central Railroad, as fc
lows
Mr. Quincy has paid nothing to the corporate
on account of the shares purchased, and as Il
company have met all It's engagements, endors,
menis and all. it does not appear how he can ha,
lost any thing by It, or why he should not no
surrender IN good faith the collateral bond
pledged by hun in his individual capacity {
the payment Of S2S7 900, borrowed by him
different parties not one dollar of which Ia
ever been received by the Corporation. If \
Quincy has lost this money in the South Shol
Old Colony ana ontral Railroad speculation
his estate Is answerable for 1t; ana however mu
sympathy he as an individual, may be entitled
no blame or loss can or should be charged to 1
Directors, or To the corporation.