Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-07-09

by Hatch, for the purpose of retaining them
IN legitimate and proper manner, and plac-
ing them under obligation to render for the
railroad such professional services as they
might be called upon thereafter to perform.
We are not equally fortunate in being able
to lind that this money was paid solely for
reasons assigned, that it was entirely for the
purpose OF having counsel in different parts
OF the State to look after the interests of the
road by attending to the business that might
arlsei their immediate localities, in their
professional capacities as lawyers. If such
was tho fact then the distribution of their
retalners was exceedingly injudicious and
ILL l-advised; or at least the claims for " lost
baggage" {" overcharges of freight" aud
other and similar claims were more numer.
GUS and troublesome in those localities
where energetic young lawyers united to
their professional qualifications considerable
political activity and influence
We do not find that any particular meas
ures before the Legislature were passed or
defeated in consequence of these retainers; :;
or that legislation has been improperly infu-
enced thereby, but we believe iE to be our
duty to condemn 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 i'm
pair the confidence of the public generally in
the purity of our legislation. Although it
is fair to presume that in the employment Of
these attorneys it was contemplated at the
time that the road might receive some assist
ance from them in professional capacity,
still we find that the chief object and purpose
was to secure their friendship to the inter-
ests of the road and its managers. We do
not believe that by means 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 fad them friend
ly to their interests unless nanifestly incon-
slstent with their official duties. In short,
they expected more of them in general way
By helping to create and maintain public
sentiment favorable to them than from any
professional services they might be called
upon to perform.
CAR COMPANIES.
The next subject of inquiry contemplated
by the resolution is in reference TO the
Iron and Car Companies. 1t was charged
tbat these companies were organized and the
stock taken by the Trustees and Managers
duO tuC OluCiolo vi buO SOt hOue Orhpini dUu
their immediate friends that these Car COM
panies had been run in connection with the
railroads in a corrupt manner; that the
stock holders had become enriched, while le
railroad securities had deprecated in value.
TIE committee fud that the Vermont Gen.
| tral did not have freight cars enough to NEE,
the demands of their business, and that they
| had Do funds they could use in the construc,
of and order m this
pressing want of the road for additional
freight cars, and undoubtedly with the view
of making good Investment. the trustees
and other officials of the road did procure the
charter for tue Incorporation of the National
Despatch Company, and did take largt
! portion of the stock of said company. The
committee also tind that the cars of the Ma
tional Despatch Company were run upon the
Vermont Central, and leased lines of road
and upon the other roads constituting wha,
s usually termed the Vermont Central Line
and all these roads paid the same rates Z
this company for the use of their cars tha,
the Vermont Central did, except the
| Michigan Central. The committee also find
that the stock of this company proved to bt
a good inves tment, and that the Offices o
this company were filled principally with
the off ,lals empljy jyed by the Vermont Cen
tral. But the committee do not find tina
there was any attempt on the part of these
officers who had the general management O.
the Vermont Central to SO operate the Cen
tral as to give preference to these cars ovel
those belonging to the Vermont Central.
The committee find the fact that the Gen
eral Superintendent and the Genera Freigh
| Agent of the Central, although interested il
the National Despatch Company, did issue
orders that the cars belonging to the Yer
mont Central should be used in preference tt
those belonging to the National Despatch
Company; and We believe they honestly en-
deavored to enforce such regulations a.
would prevent any discrimination in favor o
the National Despatch cars.
1t is undoubtedly true that the interest
of the public generally have been bette
served in consequence of the employment o
these cars and tnat the Vermont Central ha
earned more treights than it otherwise woul
have done. Although we find that the off
GERS in charge directed and INTENDED that th
cars of this company should not be used t
che exclusion OF the Central cars, still W
fnd that in one or two instances preference
was made in favor of these cars. 1t is thi
liability Of abuse that arises from the yer
nature of things, and must always accom- pa
nY business transactions where there is
conflict of interests, that induces US to ques
tion the propriety and public policy of rail
road officials and employees in organizing
and running Car companies IN connection
with the roads they are connected with
where their interests could in any event b
adverse.
These two car companies stand nearly up
on the same basis-so much SO that it seem
unnecessary to say anything further in re
lation to the Y. [. & G. Company unless it
TO say that while we tind that the cars Q
this company were built at the Centra
shops with lutte or no profit to the trus,
still we find there there was no fraud or los
70 the trust in their construction. We ho
also that the trust fund has not been de
frauded in consequence of these companies
FOUNDRY COMPANY.
At the first meeting of the committe
Hon. Asa Reynolds, the mover of the reso
luton, came before US, and among other mat
ters that he de- ired to be investigated, ano
| as he stated, constituted one OF the reason
why he introduced the resolutions. were tn
transactions of the Managers of the Vernon
Central and Vermont & Canada Railroad
with the st. Aibans Foundry Company
: Considerable testimony was taken in refeI
enee to the relations existing between th
railroad managers and this company, whlct
resulted in the developing of the iollowin
state of facts:
The st. Albans Foundry is located at 81
: Albans, and has furnished most of the cast
,ngs and car-wheeis for the road under tn
Trustees aud Managers since the cOmmenc'
ment of the trust.
Prior to the appointment of j. 6. Smith
as one of the Trustees of the First Mortgag
| Bonds OF the Vermont Central r. R.,
1858, and sometime in the year 1854, cor
| tract was entered into by and between tt
, Trustees of the First Mortgage Bonds an
: the st. Albans Foundry Company, whic
company was composed Of J. G. and W. {
Smith, by which contract the Foundr
l1, III OAR md cas-