The Rutland weekly globe. [volume] (Rutland, Vt.) 1873-1877, 1873-07-11

to fix upon the amount due from or to
them. We do not find that any fraud or
peculation has been committed by them
upon the property of the trust, and as this
is a matter that must be settled elsewhere,
we do not think the subject matter calls
for further comment from the committee.
SULLIVAN RAILROAD.
In September, 1861, j. G.. Smith pro-
cured the lease of the Sullivan Railroad,
and in one form or another it has been
leased until the present time, and is now
leased to j. G.. Smith for the benefit of
himself and his associates. We find that il
is undoubtedly for the best interests of the
Central road that the Sullivan road should
be operated in connection with it that
their interests should be identical and not
adverse. We also find that the Sullivan
road has not been run to the prejudice of
the interests of the Vermont Central road.
Since the leasing of this road in 1861,
large profits have accrued and been paid
over to J. Gregory Smith and his asso-
ciates II appeared that the net earnings
had exceeded four hundred and fifty thou
sand dollars.
MONTREAL AND VERMONT JUNCTION RAIL
ROAD.
This road is principally owned by ].
Gregory Smith and Joseph Clark, and
operated 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 e Clark and amounts in the whole
to nearly 1897, 900. This road was built
some eight years ago, and 1t has been
charged that its construction was,p nrT1aAS3i,sA'
sary, and that frauds were comm tilted in
its construction, and that instead of its be
ing built in the interest of the trust prop
crty, it was built in the interests and for
the benefit of Smith and Clark. In the in
vestigation Oh this affair in connection with
this road we found that the books contain
ing the construction account were at Stan
bridge, p. O., and though the committee
indicated to j. Gregory Smith that they de-
sired them for examination they were not
brought forward, and the committee not
having the power to send for them In Can
ada were compelled to take such testimony
as could be procured.
The testimony that was introduced es-
tablished the fact that there had been no
fraud upon the trust in the construction of
this road.
The committee express no opinion in
reference to the necessity or purpose of
building the road, as they did not seriously
consider the subject, but find that since its
construction and lease il has been operated
honestly under it, and that one-half of its
gross earnings have been retained hy the
| Vermont Central
We will only add in reference to the
Sullivan and Montreal Il 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 matter for adjudication
in the judicial branch of our government.
W. C. BROWN
We took the testimony of ]. G.. Smith
only in reference to the alleged bribery d
w. c. Brown, the former attorney of tie
Ogdensburg II. r., from which it appear
ed in substance that he was paid twenty
five thousand dollars by the Vt. Central
and the lower roads that were interested il
the lease of the Ogdensburg road, as II
tanners to secure his services in sustainin.
the lease, which was taken for twenty
years, each road paying its due proportion
of the sum.
Gov. Smith stated that some further con-
SlttIdltllS llldl llllutllNfNl hin III lIlt pay
mcnt of this sum on the part of the man.
agement, which fully appears in the tes-
timOny. 1t also appears that this sum was
paid by two notes of j. Gregory Smith two
days after the lease and after the consent
and agreement of the lower roads. This
transaction appeared upon the books of
the management as charged to the lower
roads in the Vt. Central account WFit
them.
II also appeared that after the retainer
Brown was paid salary of $4,000. lie
was formerly n director as well as attorney
and was on the pay roll of the Ogdens-
burg road His name got upon the pay
roll of the Central by mistake and when
discovered the amount was charged to the
Ogdensburg road.
In view of the whole transaction, as il
appeared before us, the committee AZ,
unanimously of the opinion that it was Al
unnecessary and eXtravagant fee-but dc
not find that il was paid as bride.
OTHER MATTERS.
No testimony in reference to the con
struction of the Missisquoi railroad wa
presented before us or in reference to til,
payment of money to attorneys to draw TIN
bill for the incorporation of the Central Vt
II. IL NlO.s VI Nutllltl llllS Dlll W 10 u lilNd'
ure of relief solely for the trustees and man
ayers; or as to one of the commissioner
under it, saying he would give 800, 900 fol
the appointment.
BY referring to the testimony it will bt
seen that one of the attorneys for the trus
tees and managers offered to furnish lisi
of witnesses to be examined in reference to
that branch of the resolution, requiring an
investigation rs to whether ''any members
or officers of either House of this Genera
Assembly, have written or aided in prOcur
ing to be published, the articles in the Bos
ton Tugeller touching any measure now
pending before this legislature Also
whether any members or officers of either
House of this General Assembly are in the
pay and employment of any individuals OPP
posed to the passage of any such pending
measures"
No list was furnished, and the commit
tee knew of no testimony that could be OBJ
tanned that would have tendency to estab-
lish such state of facts
PASSES.
In regard to passes the committee find
that IN accordance with their custom passes
had been issued in exchange with other
rOads-the state and national officials, and
the management. How this record com
pares with the practice of other roads, We
have no means of knowing. We would
however recommend that the whole system
be abolished. When railroad managers
bestow pass they part with 50 much
property of the road, and quite as often al
otherwise the consideration is more persona
to the officials than advantageous to the in
terests of the management
Its tendency is to create a privileged
class, and it undoubtedly tends to give rail
roads an undue political influence.
Such a state of affairs we believe to bt
opposed to sound policy
JUDICIARY.
The committee are aware that a grea
deal has been said outside of the state cal
culating to undermine confidence in the ju
dietary of Vermont. 1t has all grown out
of the anomalous and unfortunate relation
sustained by the court for so many years t.