New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-30

ernOr could do this without putting somebody W sO
expense. it s not easy But the Northern '0io
Railroad receives very little oensuro Tor ae'oi'S '"
construct its road moro economical pHhc'p'oo
No one doubts Gov, Smiths capacity LOT '"anas'"k
his own private affairs. From inventory "h'cn, from
want NJ that faithful memory that distinguished oakes
Amos the Governor has forgotten that ne ever maue ID
appears that in 1862, shown by us pHpoiS' no wa"
worth about 900; in 1869 no was worth soo'o"i anu
since 1869 there is every reason to beheVe tnat MS '
has not deserted him Nearly million OF dollars must
no nlaced TO his credit dscred as you are disposed
n view it, Two views Of the nature OF such an acq us
dion are only possible when one is acquainted with the
methods by which 1t was made The Governor anu aS
soates as receiver and managers OF the vermont Oon
trail found it necessary to procure castings ana WhcoS
10 keep things moving as many otheT raroau nan"see
have found it necessary do though not, Is 10 DC
hoood NTH the same frequency. But IL Is not
avery railroad manager that has happened In such
crisis 10 own an iron fOundery, leased by nephew ana
cousin and producing carwheels OF suoh superior eAce
Ience that the makers justified in charging al eaSt
$40 or S pair than carwheels cost at any other
mandatory. This was the fortune OF the Vermont
Central road W. G. Smith, OF the receivers owned
the St. Adams Iron Foundery 1t was leased by John
W. Newton, nephew Of Gregory Smith, and by Edward
A. Smith, Gregory's cousin. The vermont Cchual
esteemed it privilege to buy Slese castings at the
advance prices indicated. The St. Adams Foundry
Company claim that they better wheels than can be
Judging from their sales the Vermont Central Is the only
road which can be convinced OF this fact.
A SORT or CREDIT MoBILIER OPERATION.
Railroads as is well known, are in the habit nowadays
of hiring and paying for the Of their railroad Stock
Companies are formed which let cars to the railroads.
and the latter pay at the rate OF 1; cents mile Tor the
distance travelled by each The National Car Com
pany OF Vermont formed for the purpose OF building
and leasing its cars to the Central line. j. g. Smith,
Cheney and Clark we're largo stockholders in this Com
| pany. Their esteem for the cars furnished by the
National Car Company-whch, OF course, cost twice as
much as the Of any other ine-ed them 10 charge
three cents mile for the use OF their cars Oi course
the Vermont Central paid twice as much Tor the use OF
cars as any other road Smith, Cheney and Clark after
ward reduced their prices The second lot OF cars they
generously charged at cents and since the LIST OF Janu-
| airy they have como down to two cents mile
only half moro than Is charged for other roads,
The indignant clamor Of bOndhOlders may have occa-
stoned the reduction Gov. Smith, 1t Is sad' owns
| 5000 OF the capital Of the Car Comany.
The Vermont Iron aud Car Compay was also organized
by the Ring The Central Railroad shops built the cars
for this Company and sold to them, as some dare to say
below cost; and the Vermont Iron and Car Company
rent these cars at two cents mile That Company has
| paid 20 per cent on the capital.
Another operation IL as follows The Montreal and
Vermont Junction road from the Canada line to St.
john or more accurately, TO within 40 miles OF ST.
| III
Chambly road, which runs from st. John to Waterloo
| and is owned by the Vermont Central. The Montreal
aud Vermont Junction road is run in connection with
| the Vermont Central. II is owned by Gov. Smith and
| Joseph Clark AS managers OF the Vermont Central,
make bargain for themselves side and for the
Vermont Central on the other The actual length Of
miles. There doubt about this But in settling ac-
! counts the Montreal and Vermont Junction road Is
Teckoned miles long, and ii receives 80 per cent OF
the gross earnings calculated this supposititious
length of IS miles This so cent is distracted on the
fnHlu ifIun al
| in repair and operating this road is only nifty
per cent The recent report OF the ho
Grating and repairing roads III New-EngaDd nearly 10
per cent of the gross earnings that Smith and Clark by
this transaction appear TO get double the receipts that
belong TO them OIL the estimation OF expenses ana 90
The alleged inst6catjon for this Increase in mileage is
TO allow for additional expenses Another nice mute
this: The Stansled, sheford and Chambly Road runs
from Waterloo 10 ST. John II belongs TO the Trust om
St. John tho line is &c miles The Montreal and Yer
mont Junction Road % Clio miles, and then strikes
the Stansted, Shefford and ChamOly Road The llQ
miles then at the ST. John end belong TO the Vermont
Central but Joseph Clark and Gov Smith think tins
24lO miles is OF Importance To them than 10 Ibe
Vermont Central so they claim Tor ther ROAD e Whoe
distance to John This distance is but small, but in
the course of five years would pay $1,000 or soo1 10
the Vermont Central which should be credited wth the
! freight and passengers for that distance.
INGENIOUS CONTRIvAECBs THAT IMPOVERISHED THE ROAD.
The building OF the Missisquoi Valley Railroad
nishes another subject for Investigation. 1t is small
tributary road The Governor, as President and Man
ager of the Msssquoi Road caused 1t TO be laid over
old plankroad the stock Of which he had bought at
about 10 cents on the dollar The plankroad probably
cost him 5000 or $1,000 He condemned the pankroad
il s said $4,000 when there was more feasible route
little westward The road has not paid 1t lost about
81 900 the first year. IL built on very heavy grades
make it over that pankroad 1t said that haf
mile farther west the grade would not nave Oeen ~
feet to the mile, against los feet by the present route
The Sullivan road runs from the Vermont Central at
70 hn pays 'S from @ to
thousand dollars year to IT'S lessor Us lessor Is Gov:
Of tbe way S out Of the state the Vermont Central could
not lease it, But they might have made contract with
e rEaS fact that ali the Which they have
leased and own individually pay good profits. But why.
Central millions of dollars IN debit get the profits OF
these leases and contracts 1t is question which only
such man as Gov Smith answer without embar.
rassmen. There two instances OF contracts which
hardyladd to the managers reputation ior Judgment,
the other the contract with the Rutland road Tney lost
$4,000 the ogdensburg road aud 100000 on The Rn
land. They claim II Is paying better now 49,
Smiths success in making contracts for himself is so
notable that 1t Is pity that he dd not succeed better
time the neg3aons were gong on i9r me lease OF inc
the confidential counsel for that Company. Being
NewYork corporation, Mr. Brown gave opinion that
Stale GOV. smith Immediately sent for him to come to
ST. AlDans. Brown went. At st. Adams he found sud
den reason for changing his opinion IL matter of
some interest the President of the Ogdensburg Road
learn how their counsel became so suddenly enight
eDed The report current Is that Gov. Smith used
$4,000 argument III tue shape OF two checks for s20O
each
par with this is the secret service fund. 1t ap
| pears that among tbs books in which the Company
keeps its unique system OF accounts was little book
called the Secret Service Book. representing the
service fund its disbursements This fund amounted
to little over $4,000 in u years Three thousand
dollars of that fund be traced TO expenditures for
Legislative influence. Two three thousand more have
gone 70 other private pockets The of this strange
fund remains unaceounted for Here Is the evidence OF
systematic acerument OF funds for direct purposes of
cOrruptOn-fOr securing influence in any quarter in
which 1t might be convenient to DestOw It's patronage
| The way in which this fund made up Is also sig
fran Ia md pAa OF