Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-05-09
The Vermont Central Railroad Investigation.
FRIDAY FORENOON.
Mr.. Davenport proceeded with the ex-


animation of
W. c. SMITH.
Q.-When you leased the foundry, ald
you reserve any interest in the railroad
castings?
At the time made the arrangement for
the lease of that property | had contract
with the Railroad Co. for furnishing cast
ings. In that arrangement a compensation
was offered for the good will of the business,
my willingness to endorse their paper and
| they were to pay me 81 so wheel and one
! half cent per pound for castings. Had no
interest except for wheels furnished the
Railroad Company. By the next contract
they were TO pay 50 per wheel and hall
cent as before Think that was in 1865 or
1866. Have no means in my possession to
tell the amount of castings furnished TO the
Railroad from year to year. j. G. Smith
was half owner of the real estate with
myself Newton & Smith have no interest in
the real estate, machinery, patterns, etc,
! they are simply lessees. The contract TO
which | have testified was parol contract
although the original was written one;
In 1870 or ISL, my brother and
| Mr.. Clark told me they had made a settle
ment Of the earnings Of the Sullivan road,
| leaving some SIP 900 to be divided between
| Cheney and myself. | asked Mr.. Cheney
how he desired to have it divided he said
what DO Won say to s. 900 for you and So
| 600 for ne. | replied it was satisfactory.
lie said | ought TO have more than
| st. 900 in consideration Of the risk and
RESPONSIBILITY. Mr.. Cheney didn't receive
the 50 600 from me, suppose he took 1t.
have received the s., 900 from my brother
| was not one of the lessees Of the Sulli-
van road nor was Mr.. Cheney. received
the 81 900 as an individual didn't intend
to credit it to the trust. Received nothing on
Sullivan lease for the year 1872, no dlvls-
ion having been made in that year. So far
as know the understanding Is that Mr.:
Cheney. Mr. Clark my brother and myself
are to share in the profits. Never heard
that Mr.. Brainerd was to share.
CroSs-clamincd BIZ Mr. Fifeid: The secret
service fund my brother told me was for de-
tective and police services In regard to
the lease. the first rent was 81 400; can't
tell exactly for how many years that rent
was paid think for SIX years. The first
lease was for five years, it was then renewed
for three wears, and again three years. The
rent was increased in 1866 to =, 200. The
lease of the machinery, real estate and pat
ferns was included in this rate of rent.
Shouldn't be willing to rent the property
far that amount alone; it is worth more.
Nv first contract was in 1850, to manutac
ture Such ear wheels and such castings as
were desired by the road. The price was
then satisfactorily made with the company.
The first contract was with Gov. Paine, be-
fore tine road went into the hands OF the
Trustees: afterwards when Mr.. Lee came
into the management of the road, more
full contract was made, and he allowed a
certain percentage on the price of wheels
] IN, .f fhar allnrVql nv
other establishments the ground upon
which claimed this and upon which he al
lowed it. was the convenience of having the
castings manufactured at the point of CON
sumption. the saving in transportation, and
upon the consideration that il the castings
were found to be defective they were to be
returned and charged back was obliged
To keep on hand a large amount of IRON OF
such quality and kind a. the railroad should
designate: they were 10 determine what
portion ofnew and of old iron should be
used another advantage to the railroad
was the encouragement of business at this
point: inaSmuch a the road derives an IN
come from the transportation OF freight,
being paid for the transportation OF the ma
teral used in the manufacture OF the wheels
and castings. which were to be made under
the directions Of the mechanics OF the road.
In regard to locomotive cylinders, the I'M
Outstanding was that if they were found de-
fectiye. they We're not only to be charged
back. hut al labor expended on them was TO
be charged Objections were once made 10
the prices paid for wheels and castings, and
were taken before the court, who sustained
the contract | continued to furnish wheels
satisfactorily TO the road till 1850; from
that time until ! was appointed manager !
had no interest in the road. This matter
has been carefully examined into by the
Advisory Board elected by the first and
second mortgage bondholders, and the ac-
counts approved by them. Cannot say
whether any change has been made IN the
rates since | became manager; | have had
nothing to do with them since appointed.
R. f. Taylor, representing the holders of
the l-t ami 2l mortgage bonds, was here a.
manager Think in 1850 or ls67 he exam
incd the accounts, and among other things.
the price paid for wheels and castings was
brought up. He seemed to think the rate
should be changed, and he suggested that
other manufacturers be written and their
prices secured. lie instructed Mr.. Foss to
look up the matter, and after the prices
were received he told me what he thought
would be about right. We agreed substan-
tally. except On the price of wheels. He
AlANA-4A LlAtt IA lAi llAAfN AllsAA ~ wa N1AA
tinued there should be n description agreed
upon. showing the kind and quality of the
wheels to be manufactured They said he
had decided, after consultation, to use a |
new stock wheel. to be made of entirely
new iron and Of the best quality. After [
further consideration and further confer |
ence with him, the price was finally fixed |
upon that basis.
| am not aware that the price has been |
changed since | have been a manager; | |
never knew my brother took any part in |
fixing the rate he said he declined to have /
anything to do with it have no interest |
in what the railroad company pay the |
foundry company it makes no difference to /
me. In my arrangement with the foundry |
was acting as private indivld- /
ual. In regard to the Sullivan railroad | /
it was leased by my brother; it |
was private lease. and he claims the pro- |
fits.
Re-cInained5y Mr.. Davenport was
a written contract with Mr.. Lee;
cannot tell where it is; | don't know
whether it Is in my power TO produce 1t ; |
Will endeavor to DO so; also all other writ
ten contracts ! have had with railroad
This matter of the price to be paid for car
wheels and castings came before Judge
Smalley don't know whether before the
creation Of the trust or not.
| never told j. NJ. Pinkert0n or Otis
Drury that received a royalty on castings
and ear wheels from the Foundry Company;
nor do | remember of telling Clark, Barnes.
1r Cheney think | may have told J. G..
smith. Mr.. Taylor knew that had an in
-erest i'll the car wheels. Mr.. Lee was
formerly one Of the trustees of the road.
There was an understanding that the capital
furnished should be furnished at six per
'ent.. and have been private endorser for
hem.
EDWARD 4. SMITH
eStifel first became interested in the St
Adams Foundry Company, Sept. |, 1850
When Newton came into the Foundry
'ompanv thee was change in prices Of
wheels and castings. We have received
,21 60 Cor freight car wheels, and S25 for
passenger. My impression Is that the price
las been higher at some time We have
eceiycd Cor castings five cents per pound ;
think that i, the highest price We have
eceiyed for them. We furnish no castings
sed about the track, except, perhaps. a
rog or two. do not know of any trouble
With +. F. Perkins on account of the price
aid for castings. do not know a. the
rice was raised while Perkins was here.
'
lent for furnishing wheels and cast
ngs. Tie contract between myself '
nd W c Smith was made in pursu-
nee of my purchase of his interest, and !
obtained clause about rent, etc q; there |
ave been verbal understandings about that
ontract since, and it has been varied. |
ave neither been an officer or stakeholder I
4 the National Car Company; have stock 7
4 the Vermont Iron and Car Company a
bout S35 900; ! don't know that | owed c
Y Smith then-the firm owed him $40 4
90: don't know as the firm owed him for ]
ny royalty; have borrowed money of W /
Smith, and have owed him during the
lst five years more than $4,000: when
lewton and | first went into the Foundry t
Company, W Smith left about $50 900 t
-orth of stock, etc, and it has been in I
reased and decreased since then; we keep i
lr bank account at the Vermont National v
ank we keep stub check book. | was C
director in the Missisquoi Railroad Com :
any; was not managing director think s
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