Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-07-11


REPORT OF TIE LEGISLATIVE COMMITTEE
We give herewith the report of the com
mittee to investigate the affairs OF the trus-
tees and managers of the Vermont Central
and Vermontand Canada railroads, emitting
only the Joint resolution of the Legislature
appointing them. and the recital oil the
facts of the employment Of counsel, ana 'ie
days and time occupied by them IN theif
labors. The report, after these ree'taiS'
commences with the subjert oil
LEGISLATIVE CORRUPTION
One branch Of our inquiry, and the one WIZ, VIZ
more than all Others, occasl stoned TINS nv
was in reference TO legislative corruption 10 49,
the public attention had been called by the puni,ca
| ton Of the Hath Voucher" 30 called IN the
ton TrarsHer and other newspapers Ih' ,,,rt
Z uuruurted to he a statement Of a spccai Auo'l-
rendered by 10 ID. Hatch, December D. i7os 1-a, .i
the trustees and managers OF the Vermont tehtl".
[ and Vermont and Canada railroads, and a re5eipt
[ for the payment 81 The sane. Inc sum yi'li 7f
Hatch was one thousand dollars anu m ms a1.iii
I rendered he stated IL was for expenses At 'n -
pclicr. session 81 l-69, in resisting adverse IS-.s
lion and I'm preparing for and opposing app44eatlu..
| f,r parallel road from Burlington 10 Canada inc,
l etc etc; and in his account accompany M ,i's
~,,,7si settlement il appeared that AT or near the
close Of the session he had paid several Peli i1-i
members Of the Legislature each the sum ul - ans.
had also paid money % attorney not men - "a
[ the Ierislature The balance OF the one tAuu'Anl
SaIlars heinz the sum Of four hundred and thirty
dollars WAS for his own bill al ray nom anu S'
dry expenses during the session OF 49, - Al.
BY the terms Of this voucher u Will De so t''
l money has been paid % resist adverse r.
and unless explained. the Legislature OF NeIiiNl4'
Z ~ isGl an m Ieast certain prominent members.
would rest under the implication 9i pa ~ ~ &
/ Is received money % influence the.l 'ui ~ -
and the trustees and managers would stlI.i 10.
/ In tbe public estimation with having ptid money
/ FOR that purpose. copy Of this so-cIlieI hi'sn
| Voucher and list accompany M D. W ~ . ~,
| the appendix marked EXHIBIT A. anu az. .9' "
/ names OF each Of those gentlemen on the A7l' "h'
/ were members OF the Legislature ln 49, anu re-
| ceived money from Hatch, is a cipher Inc COM
| ,nittee find that the list OF names was made ht
Hatch as memorandum IN l-t9 ana com i'1u t"'
-, T. = flenier who had been employed pro-
fe-sinnallv IN the Interests OF the ei"ht Ntuti-l
r,il-ad Together with those who were Thought ." Ne
friendly 10 rs interests and We lind no el denee tenn
in. to show that any on this ~ VINO nl.' ~ t~f
I t-,3 received money from the vermont 'ent.'l,
railroad did 80 for any but legitimate ana laN-"4
purposes AL those who recel' 60 money in l1' -
appears by this voucher, were ATTORNEY =. c@,eP.
{ one who was not member and reccfcu uie SUM
oftweutr dollars which, it is cidimed Wa iald nun
Tor trouble he had been put e. in adlu.tA- s3i.e
difficulties with the railruad-wnlch Iiel No H'i Z.
: H. a. claimed The attorneys who were not mem
hers except Col. Neazey, were at Montpelier dui-
u. the -ess ON 81 -9 10 the interest ul the tru'ht
Central and we lind no testimony Nlleh 'H any way
Indicates that they attempted O. influence lc-i-iA
ton u any improper manner "l were t'i1-l -'i any
such purpose. By referring O. the test lI'Nt' pa-'
IL I'm nc seen that Col. cazey earned his money
and could ia NO way be charged with any corrupt
motive OF practice. This dspUses 90 all Those "i'-e
name, appear on the youc ger. except ~ueh as were
members 90 either the Senate or House ~ -o'- lh
respect % those gentlemen. we du not hul ilti any
Of them received the money believing % Wa para
or any sery.ces they bad leil"fMe" or NoIe ,- W.
form for this railroad IN their Official capacity nut
an the contrary supposed That The reason as -Aei
aur their employment was as slated h5 H"'SH' -
the uurpo-e ut retaining them IN 4c- innate anu
proper manner and placing them under unIer "ni'-
-,tn to render iur the railroad such profess oual
aH he "a .HHN be- .. H
Ne lre not equally fortunate in being able t. End
That This money was paid solely for reasons ass gu
ed. that t was entirely for the purpose OF -"' .n-
counsel in different part % the state ." lu,A aitt
the Interests % the road 10y attending % the Nu7-
ness that M. -ht arise IN their immediate 4oci mites
In Their professional capacities as lawyers. u such
Wa the isct then the trbutun % their retaluefs
,ya exceed n..lv in-uuicous and ill-lIvsei. 90 20
least the Ella u. for -i0st baggage, -orcrchar-e- ui
freight" ami other and similar clan were more
numerous and troublesome Ia those Localities where
energetic young lawyers united o. the.r lI'ig--
.oual qualifications considerable political activity
and influence.
We do not end that auy particular measures Doe ]
fore rlc Leg stature were fa--cl OF deiraleu u ei
sequence OF these reta 'ncrs of ti1t KY. i,
been Improperly iuhucnced thereby Ht W. o.'i,.1
% o. be our duts o. condemn the praci Gee % employ
in-morc attorneys Indifferent parts n tlr STATE tiA
would De necessary t1 transact Their letl business
- one ca cu.ta 60 pair the confidence "i inc -
JIG generally n t4e purity oi cur le- station A. ]
though 10 j. i1tr O. presume thAl -I t4e eAP.s
d =
time thar tie rsal -ht receive some dssstinre l
from them .u professional capacity. -t-l We ma ]
that the chief object and purp -e "is O. secure Z
their friendship o. tl.e interests gl tl- iN- .l Is
managers. We lp not believe That they retained /
attorneys Deb ewing that by means o- tie chalmers
they would secure their cH-a ieiltifu anu ASSIST ]
amos .u legislative matters against thefr honest l
convict ar- but We da think that they hope4 ald I
expected o. find them friendly O. taer it,l, 1A
les mau.fa-tly .uclu- steut with tuc-r official au-
ties. Do short. they expected more ot them in /
general way hy hrip .u- O. create and Maintain .
PROBES oral services they mi-ht De called Upon % {
perform
csE COMPANIES.
Tie next suh.ee, Of inquiry cantemp-Ited by The
resolution Is iu rc'f tuce O. the Nat.onI- Dis
patch and the eruOut Iron and Car Compaue-
IL was char el that these cemVau. c- were organ
Cd, and the stock taken hy TIE trustees and man
.s-ars and 1., Tie onl-.lr~uf the vermont Central
and their immediate friends that these cay COM
pau.c- had been run lu connection with the rail-
roads jon corrupt manner that the st1cA holders
had become enriched while the ra-lrul4 securities
had deprecated iu value.
The committee End that the Vermont Central d'd
not llve --ht cas- cuon-h O. meet tlt demands
W thc.r business and that they had uu funds they
could use To- the construction u cars. and Do order
O. supply this press ny want oi the rIad ior add
toua. IRE. -ht cars, and undoubtedly ID the view
o. making god Investment Tie trustees and
other officials % the road did procure the charter
for 10 Incorporation of the National Dispatch toll-
pany, ana d-i tlhe l1r-e lNIl-Nn % l1e si.ca 'i
sad company. TIE comm ttee also ana tilt tle
cars ul the satiuual Dispatch Company were Kun
upon the Vermont Central- and leased Lines o-
road. and upon the other roads, cul-f Tut ~ what
is u-ulllv termed the Vermont Central Line. and
an these roads paid the same rates 90 this Company
ar Tho use .- their ears that Use Vermont Central
dil. except the VI chi -lu Central. The company I
80 find that the stock % tl.. CON lHuy proved o.
hc good .uyl- fIlaut and that the offices % tbs
company were hllel prime pllly will tlr officials
employed hy the Vermont Central Bur tle CONE
ul ttce to not lind that there was any attempt nn /
the part of these officers who bad Che general man
a-cment OF the Vermont Central O. -l operate tie
4 ed ri I 3D. D
those belonging Co tho Vermont Central.
The Committee find the fact that Che Geue-ll So
rcriutcudeut and the General Ere -ht AGENT urthe
Central. although interested 100 thU National l--
patch Co.. did issue orders that the cars belonging
o. the Vermont Central should Dee u-ed iu prefer
euee o. Those belonging O. the National Dispatch
Company. and we believe they honestly eudeigarei
o. enforce surl regulations as would prevent any
q .-cr.minlton ia mVur oi the National bsHI-cn 3
Il undoubtedly true That the iutcrests oc thc ,
public generally have been better served .u cnuse-
lueuce the employment of these cars and that tine
\ ermout Central ha- earned more ircf -ht- than %
0therw Sc would have done. Although we tud thar .
me uitcrs 10 charge rccted ana Intended that tAe
'ir- so THIS company should not Pee used 90 tlc eN-
;-us ON n. the Central ears, still we find that in one
'r two instances preference was made iu favor of
ucs- ears. 10 j. tins liability o. abuse that arises
from the very nature Of ti u-s AMI must always ac-
company business transactions where there con-
Diet o interests that induces us question the pro-
lriety and public policy Of railroad officials and
employees in organizing and running car companies G.
ia connection th the roads they are connected %
n where their Interests could n Any event bee adj "a
These two ear companies stlnd nearly upon the e
same has--su much 50 that % seems unnecessary a
add uyfhiu- further iu relation o. the ]. & G. d
Company. unless % say that vii lc we find that
Pie uf this company huilt az The Central Do
shops with Little or NJ profit o. the trust still we 90
ina that there fraud los o. the trust n o
hc.r construction. We lind also that the trust fund
las not been derauded in consequence OF these COM
lancs. 2
Al the FIRST meeting OF the Committee. Hon. Asa
Reynolds. the mover %. the resolution cams before
as and among other matters that he desired O. Dee
uvcsti gated, and Dee stated, constituted one of
he reasons why he introduced the resolut' MS Vere
he transactions of the Managers of the vermont y
entral and eriuonr and Canada "a lruats with the
50 Alnan- Foundry company. Considerable tr-t'- !
mouy was taken IN reference % tic rclt ous cA st.
M between the railroad managers and this co-n- !
lany, which resulted n the developing OF the ia.-
The st. Adams Rundry Is located At St Alhaus
md has FURNISHED most 90 the castu and wheels
or the roads, under the trustees aud nana since
The commencement OF the trust.
Prior O. the appointment Of J. g. smith. one of +,
The trustees % the first mortgage bonds oi the Yer
mont teutIal railroad IN loi0 AMI sometime iu the
ear lisa, contract entered into hy and be- ]
ween the trustees ofthe first mort-a- bonds ami !
TIE -. Adams Foundry Co. which company was B
composed % j. e. ami " c. smith. hy whehcontract
he foundry company furnished the car-wheels and .
'asiln-s o. the trust. Upon the appointment .
y j. q. smith as one 81 the trustees he sold q
and assigned his interest in ana To- said contract To-
". &. smith in accordance with the terms OF the As
silheut, as shown hN eNhihit 90 NJ ~, that after Z %
that time the trust continued "a receive their cav g
wheels and clssn-s Of the 81. Alhans Foundry / u
company coNu % the present time. After j. g..
SIN Ga retired from the lirm w. C. smith owned the
uundry business and prosecuted il unit. September >
], lSdu, at which time he leased the property d q
ieorSe }. Staun1rd and Edward A. Smith accord Z
NJ % the terms Of their contract 40 that date. !
which contract was as set forth iu tine appendix "a
PAGE p. Ii was claimed and find the ilct o. ho =
hat j. e. smith was made a party 70 ;hat contract I
or the reason that ne was oue-half owner OF the u
eal estate, that at the expiration OF this leaS. "