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

DoQcHb Oh duu Slctl r.
In the investigation of this affair IN
connection with this road, we found
that the books containing the construc-
ton account were at Stanbrdge, L. W
and though the committee intimated TO
j. Gregory Smith that they desired them
for examination, they were not brought
forward, and the committee, not having
the power to send for them in CANADA,
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 seri-
ously consider the subject, but find that
since its construction and lease it has
been operated honestly under it, and
that one-half of its gross earnings have
been retained by the Vermont Central.
We will only add in reference to the
Sullivan and Montreal & Vermont juno
ton roads, that if there is any improprl-
ETY. 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 a matter
for adjudication in the judicial branch
of our government.
W. @. BROWN.
We took the testimony of J. G. Smith
only in reference to the alleged bribery
of w. c. Brown, former attorney OF the
Ogdensburg railroad, from which it APP
peared in substance that he was paid
twenty-five thousand dollars by the Yer
mont Central and the lower roads that
were interested in the lease of the Og-
densburg road, as retainers, to secure
bis services in sustaining the lease, which
was taken for twenty years, each road
paying its due proportion Of the same.
Gov. Smith stated that some further
considerations influenced him in the pay
ment of this sum on the part of the
management, which fully appears in the
testimony 1t also appears that this sum
was paid by two notes Of }. Gregory
Smith two DAYS after the lease and after
consent and agreement of the lower
roads. This transaction appeared upon
the books of the management as charged
to the lower roads in the Vermont Cen
trail account with them.
1t also appeared that after the retainer
Brown was paid salary of twenty-five
thousand dollars. He was formerly a
director as well as attorney and was on
the pay roll of the Ogdensburg road.
His name got on the pay roll of the
Central by mistake, and when discovered
the amount was charged TO the Ogdens-
burg road.
In view of The whole transaction, as
it appeared before us, the committee are
unanimously of the opinion that it was
an unnecessary and eXtravagant fee
but do not find that it was paid as
bride.
OTHER MATTERS.
No testimony in reference to the con-
struction of the Misissquoi railroad was
presented before US, or in reference TO
the payment of moneys to attorneys
to draw the bill for the incorporation
OF the Central Vermont railroad
company, or whether this bill was a
measure of relief solely for the trustees
and managers: or as to one of the COM
missioners under it, saying he would
give one hundred thousand dollars for
the appointment.
BY referring to the testimony it will
ba seen that one of the attorneys for the
trustees and managers offered to furnish
a list of witnesses to be examined in
reference to that branch Of the resolu-
ton requiring an investigation as to
whether . any members or officers OF
either House of this General Assembly,
have written or aided in procuring to
be published the articles in the Boston
Tr10e'Zer 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 opposed to the passage OF
any such pending measures.
No list was furnished, and the COM
mittee knew of no testimony that could
be obtained that would have a tendency
to establish 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-to State and National Off
Gals. and to some prominent men not
connected with the management How
this record compares with the practice of
other roads, we have no means of know
ing. We would, however, recommend
that the whole system be abolished.
When railroad managers bestOw a pass
they part with so much property of the
road, and quite as often as otherwise the
consideration is more personal to the
officials than advantageous TO the inter-
ests Of the management.
Its tendency is to create a privileged
class, and it undoubtedly tends to give
railroads an undue political influence.
JUDICIARY.
The committee are aware that a great
deal has been said outside of the State
calculating to undermine confidence in
the judiciary of Vermont. 1t has all
grown out Of the anomalous and unfor-
tunate relation sustained by the Court
for so many years to those debt burdened
roads 1t may have been a mistake,
even though consented to by the repre-
sentatives of all the parties at the time.
to have continued the old suit of the
VT. and Canada VS.. the VT Central in
definitely in court, for any purpose 9TH
er than the specific one named IN the
decree. The legality of any subsequent
orders or DEGREES which POSTPONED or
rendered more difficult the realization of
the end for which alone a receivership
was created has been questioned. BE
this as it may, the continuance of the
case practically converted the court into
of a business which they
could not be supposed to understand.
and made them responsible in the eyes
of complaining parties for what the very
of those parties had con
sented to.
Considerable has been said about the
fact that the trustees and managers had
not filed their accounts according to the
decree, but it should be borne IN mind
that during all that time no party called
the Courts attention to the fact, and
Courts may well besupposed to presume
that their DEGREES are being fulfilled un-
til judicially informed to the contrary.
The fault of the case is, that the Sc
curity- holders, who were the real parties
to the cause, were widely scattered. and
so long as they received their dividends
and heard favorable reports of the roads.
they did not take the trouble to inquire
into the particulars. Nothing was done
.