Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-07-10

siOnal qualifications considerable pOlitl-
cal activity and influence.
We do not find that any particular
measures before the legislature were
passed or defeated in consequence of
these retainers or that legislation has
been improperly influenced thereby,
but we believe it to be our duty to con-
denim the practice of employing more
attorneys in different parts of the State
than would be necessary to transact
their legal business, as one calculated to
impair the confidence of the public
generally in the purity of our legisla-
ton. Although it is fair to presume
that in the employment of these at
torneys it was contemplated at the time
that the road might receive some assist
ance from them in a professional
capacity, still we find that the chief OBJ
ject and purpose was to secure their
friendship to the interests of the road
and its managers We do not believe
that they retained attorneys, believing
that by meas of the retainers they
would secure their cooperation and as
sistance in legislative matters against
their honest convictions, but we do
think that they hoped and expected to
find them friendly to their interests I'M
less manifestly inconsistent with their
official duties. In short, they expected
more of them in general way by help
ing to create and maintain public senti-
ment favorable to them than from any
professional services they might be called
upon to perform.
CAR COMPANIES.
The next subject of inquiry contem-
plated by the resolution is in reference
to the ''National Dispatch" and the
Vermont Iron and Car Companies. 1t
was charged that these companies were
organized and the stock taken by the
trustees and managers and by the officials
of the Vermont Central and their inn
mediate friends; that these car cOmpa-
MES had been run in connection with
the railroads in a corrupt manner; that
the stockholders had become enriched,
while the railroad securities bad depre-
cated in value
The committee find that the Vermont
Central did not have freight cars enough
to meet the demands of their business,
and that they had no funds they could
use in the construction of cars, and in
order to supply this pressing want of
the road for additional freight cars. and
undoubtedly with the view of making a
good investment, the trustees and other
officials of the road did procure the
charter for the incorporation of the Ma
tional Dispatch Company, and did take
a large portion of the stock Of said COM
pany. The committee also find that
the cars of the National Dispatch Com
pany were run upon the Vermont Cen
trail, and leased lines OF road, and upon
the other roads, constituting what is
usually termed the Vermont Central
Line, and all these roads paid the same
rates to this company for the use of their
cars that the Vermont Central did, eX-
cept the Michigan Central. The com
pany also find that the stock of this
company proved to be a good invest
ment, and that the Offices of this COM
mittee were filled principally with the
officials employed by the Vermont Cen
trail But the committee do not find
that there was any attempt OK the part
of these officers who had the general
management of the Vermont Central to
so operate the Central as to give a pref
ercnCe to these cars over those belong
ing to the Vermont Central
The Committee find the fact that the
General Superintendent and the General
Freight Agent of the Central. although
interested in the National Dispatch Co,
did issue orders that the cars belonging
to the Vermont Central should be used
in preference to those belonging to the
National Dispatch Company, and we
believe they honestly endeavored to en-
force such regulations as would prevent
any discrimination in favor of the Ma
tional Dispatch cars
1t is undoubtedly true that the inter
ests of the public generally have been
better served in consequence of the en-
ployment of these cars, and that the
Vermont Central has earned more
freights than it otherwise would have
done Although we find that the officers
in charge directed and intended that the
cars of this company should not be used
to the exclusion of the Central cars, still
we find that in one or two instances a
preference was made in favor of these
cars. 1t is this liability of abuse that
arises from the very nature of things,
and must always accompany business
transactions where there is a conflict of
interests that induces us to question the
propriety and public policy OF railroad
officials and employees in organizing and
running our companies in connection
with the roads they are connected with
where their interests could in any event
be adverse.
These two car companies stand nearly
upon the same basiS-sO much so that it
seems unnecessary to add anything fur
Their in relation to the Y. l. & c. Com
pany unless it is to say that while we
find that the cars of this company were
built at the Central shops, with little or
no profit to the trust, still we find that
there was no fraud or loss to the trustin
their construction. We find also that
the trust fund has not been defrauded in
consequence of these companies.
FOUNDRY COMPANY.
At the first meeting of the Committee
Hon. Asa Reynolds, the mover of the
resolution, came before us, and among
other matters that he desired to be in
vestigated, and, as he stated constituted
one of the reasons why he introduced
the resolutions were the transactions of
the Managers of the Vermont Central
and Vermont and Canada railroads with
the St. Adams Foundry Company. Con-
siderable testimony was taken in refer
ence to the relations existing between
the railroad managers and this company,
which resulted in the developing Of the
following state of facts:
The St. Adams Foundry is located at
ST. Adams, and has furnished most of
the castings and car-wheels for the
roads, under the trustees and man.
ayers, since the commencement of the
trust.
Prior to the appointment of J. G.
Smith, as one cf the trustees of the first
mortgage bonds of the Vermont Cen
trail railroad, in 1858, and sometime in
the year 1854, a contract was entered
into by and between the trustees of the
first mortgage bonds and the st. Adams
Foundry Co., which company was com
posed of J. G. and w. G. Smith, by
which contract the foundry company
furnished the car-wheels and castings to
the trust. Upon the appointment of J.
G. Smith as one of the trustees. he sold
and assigned his interest in and to said
contract to W. G. Smith, in accordance
with the terms of his assignment, as
shown by exhibit " u; that after that
time the trust continued to receive their