Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-02-26

individually. thereby enriching themselves
at the expense of the security holders of the
Vt. Central that some of them have mis-
applied the trust funds, used the roads and
property, expended the earning from the
same, and made expenditures upon the same,
for their own private and personal emOlu
ment and gain.
Therefore. the petitioners pray that j.
Gregory Smith, Joseph Clark, W. G. Smith,
B. P. Cheney and Lawrence Barnes be forth
with removed from their present Offices as
Trustees and Managers; that an account may
be taken, under the direction of this Court,
of all property IN the possession of said trus-
tees and they be ordered and decreed to sur
render the roads and all the privileges, ap-
purtenances and property thereto belonging.
Another petition was then filed by Messrs.
F. A. Brooks, Hard & Royce, counsel for
the Vt & Canada Co. The petition recites
that S l20 900 were due the Vt. & Canada
stock holder for rent Dec. l, that $4,000 was
due for Incidental expenses, and that neither
have been paid; that the trustees have not
reported their accounts to the Court as direct
ed in the decree appointing them; that they
cave made contracts with the Northern
Transportation Co, without authority of the
management, the trustees were unable to
meet their Liabilities last summer, and dspos-
ell of halfa million eight per cent. new notes
at nominal rate of 80 cents on a dollar
through the agency of the National Car Co.,
having however to pay the Grand Trunk R.
r. Co, large proportion Of their receipts
therefor; that the effect of this is to increase
the debt OF the company in this direction
= yr, fold hot Tina 1iyod sod
by the managers to furnish short extension
Of their over due notes, by paying 20 per
cent that the trustees do not possess the
confidence OF the pubic as prudent and safe
men, and could not dispose of said loan, ex-
cept by barter to the National Car Co.; that
they themselves took a quantity of loan at u
discount Of 10 per cent. contrary to the order
of court that J. q. and w. Q. Smith, as
presidents of the Vt. Central and Vt. & Can
ada, improperly attempted to represent the
stockholders. Other counts are included in
the petition. similar to those in the preced-
ing petition. The petitioners pray that all
the managers except Barnes and Cheney. be
removed summarily, as if by writ of eject
ment
They petitioners further show that they
believe and fear that their railroad property
is in danger of being wholly sacrificed, and
its value to them destroyed, by j. Gregory
Smith, the chief of the board of managers ;
that by reason of his schemes for the pretend
ed purpose of developing and improving the
railroads in his possession. there is now up
on it a funded debt of So 795, 500, and float
ing debt of some $4,000, 900, all incurred by
said managers; that said Smith became owner
of the capital stock of the Vermont Central
railroad company by purchase at executor S
sale for trlhing sum, to obtain absolute
control of said Vermont Central railroad
and is now its president; that 10 view of the
expectation of future failure anddscredt of
the managers, and their inability to retain
confidence of security holders, he sought and
procured from the Vermont Legislature a
charter by controlling which he might swallow
up and absorb the great and valuable rail-
road property now under his management,
and that, If manager longer to exercise the
absolut; control Of the property as now, be
viii ION be able to carry into successful
operation his purposes.
Gov Smith IN reply To these charges says:
a. This is the first time since the matter has
been before the public, that the trustees aud
managers have had an opportunity to meet the
charges that have been brought against them.
they have been made before in such a man
ner as to preclude areply. Newspapers have
made bitter charges against the personal
character OF the managers; and these charges
continue. The petition does not take me by
surprise. | as advised some weeks ago by
Gentlemen who presented 1t that if l would
noJ submit to terms which | thought to be
unjust, this petition would be presented, in
the most obnoxious manner but | do not
desire to discuss this NATTER here. SO far as
the trustees and managers are concerned, We
desire this hearing now. Our accounts have
tiways been open for inspection by the Of
ii ers appointed by this court, at all times,
aud supported by the proper vouchers
rney have also been open to inspection by
the Vermont & Canada stockholders, and
othfr security holders, at any time. Every
important transaction entered into by the
trustees and managers, has been with the ap-
pr,val of an advisory board appointed by the
court and they have been sane Toned by the
Vermont x Canada directors themselves 1t
is due to US that we have full hearing on
all these charges which have been made
against us, and tor our part we shall prefer
tnat 1t take place to-day" The hearing was
adjourned until tuesday, the 18th OF March.