Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-07-09

MONTREAL AND vEREoNT JUNCTION RAILROAD.
This road is principally owned by j.
Gregory Smith and Joseph Clark, and oper-
ated by the trustees and managers of the
Vermont Central under an agreement by the
terms of which the Central pays fifty per
cent of the gross earnings as rental. This
amount has been paid over to Smith and
Clark, and amounts in the whole to nearly
1897, 900. This road was built some eight
years ago, and it has been charged that its
construction was unnecessary, and that
frauds were committed in it's construction,
and that instead of it's being built in the in
terests of the trust property, it was built in
the interests and for the benefit of Smith and
Clark. In the investigation of this affair in
connection with this road we found that the
books containing the construction account
were at Stanbridge, P. O., aud though the
committee Indicated to j. Gregory Smith
that they desired them for examination they
were not brought forward, and the commit
tee not having the power to send for them
in Canada were compelled to take such tes-
timony as could be procured.
The testimony that was introduced estab-
lished the fact that there had betn no fraud
upon the trust in the construction OF this
road.
The committee express no opinion in refer
ence to the necessity or purpose of building
the road as they did not seriously consider
the subject, but find that since its constru c.
tion and lease it has been operated honestly
under it, and that one-half of its gross card
ings have been retained by the Vermont Cen
trial.
We will only add in reference to the Suli-
van and Montreal & Vermont junction
roads, that if there is any improperly in the
relations sustained by the trustees to them
that render it obligatory upon them to turn
over to the trust fund the profits resulting
from the leasing and operating of those
roads, it is a matter for adjudication in the
judicial branch of our government.
W. C. BROWN.
We took the testimony of j. G. Smith on
ly in reference to the alleged bribery Of w.
y. Brown, the former attorney of the Osdens-
burgh R. R., from which it appeared in sub
stance that he was paid twenty five thousand
dollars by the VI. Central and the lower
| roads that were interested IN the lease of the
| Osdensbursh road, as retainers to secure his
| services in sustaining the lease, which Was
| taken Tor twenty years, each road paying Its
due proportion OF the sum
Gov. Smith stated that some further con-
| siderations that influenced him IN the pay
ment of this sum on the part of the manage
ment, which fully appears IN the te5tlnpny.
lt also appears that this sum was paid by
two notes of j. Gregory Smith two days
alter the lease and after the consent and
agreement of the lower roads. This tran ac-
| ton appeared upon the books of the manage
ment as charged to the lower roads in the
VT. Central account with them.
! r tals hat Off
Brown was paid a salary of about $500.
He was formerly director as we'll as attor-
ney and was on the pay roll of the Ogdens-
burgh road. His name got upon the pay roll
of the Central by mistake and when dlscov-
cred the amount was charged to the Osdens
burg road.
| In view of the whole transaction, as it
appeared before us, the committee are unan-
imousy of the opinion that it was an unnec-
essary and extravagant tee-but do not find
that it was paid as a bribe.
OTHER MATTERS.
| No testimony in reference to the construc-
ton OF the Missisquoi Railroad was presented
before us or in reference to the payment OF
money to attorneys to draw the bill for the
incorporation of the Central VI. R +. Co.,
or whether this bill was a measure of relief
solely for the trustees and managers; or as
| to one of the commissioners under it saying
he would give 500, 900 for the appointment.
| By referring TO the testimony it will be
seen that one Of the attorneys for the trus-
tees and managers offered to furnish list oil
witnesses to be examined in reference to that
| branch of the resolution, requiring an in
vestigation as to whether ''any members or
officers of either Houses of the General As
| bou tol tr
be published, the articles in the Bostor
1'rausLier touching any measure now pending
before this Legislature. Also whether any
members or officer Of either House of thi,
General Assembly are in the pay and employ
ment of any individuals opposed to the pass
age of any such pending measures"
No list was furnished, and the committe,
know of no testimony that could be obtaineC
that would have a tendency to establish suct
| a state of facts.
PASSES.
In regard to passes the committee find thai
in accordance with their custom passes haC
been issued in exchange with other roads-tC
lState and National officials, and to SOM
prominent men not connected with the man
agement. How this record compares witt
the practice of other roads, we have nC
means of knowing. We would however rec
ommend that the whole system be abolished
When railroad managers besJow pass they
part with so much property of the road, an(
quite as often as otherwise the consideration
Is more personal to the officials than advan
, tageous to the interests of the management
Its tendency is to create privileged class
and it undoubtedly tends to give railroads al
, undue political influence.
Such state of affairs we believe to be op
, posed to a sound policy.
JUDICIARY.
The committee are aware that great dea
has been said outside OF the State calculating
to undermine confidence in the judiciary Q
Vermont. 1t has all grown out of the anOma
Ious and unfortunate relation sustained
by the Court for 80 many years to these debt
burdened roads. Il may have been mistake
even though consented to by the representa-
tlves of all the parties at the time, to hav
continued the old suit of the VI. Il Cdnad
Us the Vt. Celtral indefinitely in Court, fJ
: any purpose otner than the specific On
: named in the decree. The legality of an
subsequent orders or DEGREES which postpone
or rendered more difficult the realization q
the end for which alone a receivership wa
created has been questioned. Be this as
may, the continuance of the case practicall
: converted the Courts into supervisors of
business which they could not be supposed
! understand, and made ethem responsible il
the eyes Of complaining parties tor what tn
very representatives Of those parties had cor
sented to.
: Considerable has been said about the fac
that the trustees and managers had not file
their accounts according to the decree, bu
= it should be borne IN mind that during a
: that time no party called the Court s-atteu
T tlon to the fact, and Courts may well be SUP
posed to persume that their DEGREES are bein
fulfilled until judiclally informed to the con
. . trary.
i The fact of the case is, that the securit
: holders who were the real parties to tn