The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1873-07-15


ing in this manner with the ioundcry com.
pany. Since his appointment in lS70,we
lind that this contract has been continued
in force, and that he has received the
royalty the same as before. Ii was
claimed before US in consequence of bis
.-,-tlon to the trust he had no right to
s',I; .uta,u =. W. 10 sum SO received. Upon this
;",' i y rrorer ma;q2eq opinion to express, as
the settlement of his accShSssJ soJ Jua.ca'ea III
with the Court of Chancery. eso,'''
In respect to the prices paid for cassI
ings or wheels, and whether the prices
we're greater than they ought to have
been, we found ourselves surrounded by
considerable conflicting testimony which
it was impossible to entirely reconcie,and
although we do not feel fully assured and
certain that there was not too much paid,
still we do not find affirmatively, taking
into consideration all the advantages de-
rived from this contract,--th saving of
freight, the terms Of guarantee, the con-
venience of having the castings delivered
to them, and other considerations of like
character, together with the further fact
that this matter was submitted to the en-
tire board of trustees,-that there was
too much paid or that thore was any fraud
in these contracts with the foundery conl-
pany in respect to the prices paid.
We ought perhaps to add that an ad-
visory committee elected by ballot by the
hondholders approved of this contract and
all other contracts made by tho trustuus
and managers.
SECRET SERVICE FUND.
Considerable testimony was introduced
in reference to secret service fund Sci
apart by the trustees and managers. Ii
was charged that such fund was sol
apart, and we were requested to make IN
uuiry into the fact as to whether it was
done for corrupt purposes or not, aud
whether any corrupt practices were GOV
erily contaminated through the agency.
That there was fluid set apart uudci
the direction of Que OF the trustees. )
Gregory Smith, aud IS chiefly under hl'
supervision aud coutrol, there is no ques
ton. 1t was stated by him that it wa!
set apart for detective purposes, IN ordei
that there might be sum OF money tha
could be used in such manner as not Il
disclose the names Of the persons to WHOM
paid, or the service rendered by them
and that if it was not necessary 1t was t
least expedient that such course shout
be pursued for the best interests Of th'
trust in the management Of their business
We fail to see any great necessity fo
such fund, and while we do not believ'
it was set aside to facilitate the appropri
alton of any part Of it to the private US
of the trustcees and managers, still we d.
find that in some instances it was misap
piled.
The following arc the material fact
developed in relation to the fund -calle'
| the secret service fund .- ...
We find that the money itself whicl
constituted this fund was not kept separ
ate from the funds of the trust-but tina
special account OF it was kept in a bool
by itself by the treasurer OF the manage
meDt.
We also find there was another botl
kept upon which the final disposition L
the funds more fully appeared. Tbi
was private book belonging to j. Greg
ory Smith. We find that S3,975 of thl
fund was loaned to Samuel Williams, tn
former treasurer Of the management
We find that December %. 1870, 81,
800 was paid to 10 d. Hatch, but fo
what purpose we are unable TO ascertain
Mr.. Hatch does not recollect ot receiyin
it or disbursing it.
That January 5, 1871, 5000 Of thi
sum was paid to 10 d. Hatch, who ha
used part Of it for expenses as agen
for the management and the balance
in his hands.
We find that July 3, 1871, the sur
of two hundred dollars was paid by W
c. Smith to citizens association IN 5
Albans 10 aid of the erection of an oil
servatory. We find that Mr.. Smith col
tributed of his own funds for this objeC
and paid this sum of 5000 on the groun
that this appropriation would add to tn
attractions of St. Albans, and necessaril
tend to increase railroad travel.
That the sum Of six hundred dolla'
was paid to B. II. Smalley by }. Greg
cry Smith for counsel and in the intere'
of the trust; but as to the subject matte
he was advised with about Mr. Smith r.
fused to disclose to the committee. W
dud that some twelve thousand dollal
stands charged to j. Gregory smitl
which sum he stated in part had bee
paid for detective service. The balan'
b of this sum be declined to testify IN II
gard TO, only TO state that he had used
! for the benefit Of the trust aud none OF
hau been used for the purpose Of corrup
ing legislation.
Ia reference to this branch Of our il
quiry We have ouly to add that there
= 50 much of this fund that We are unab
to fiud for what purpose it was appropi
= ated that we abstain from a full expire
c sion Of opinion in regard to it, and viii
=. we do not find that it has been corrupt
used from any testimony that come b
i fore US, still from the incompleteness
u the testimony we do not believe we shou
y be warranted in finding it was or was n
c corruptly used without fuller investig
IS ton and we are willing to leave its fn
J ther consideration to those whose duty
i will be to examine the subject mo
thoroughly than we have been able to d
j., PRIVATE REGULATIONS.
o We were directed to ascertain wheth
= the trustees aud managers had in a.
n way committed fraud and peculatior
IS and in pursuance with this direction :
4 took some testimony in regard to t
e. manner the books were kept, aud as
10 the opportunity they had of convcrti'
IS the property OF the trust to their oy