The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1873-07-15


charged that these companies were oroon.
lied aud the stock taken by ,ae ,rnt,oos
and managers and By the officials oe .be
Vermont Central and their Immediate
friends that these car companies had
been run in connection with the railroads
in "a corrupt manner that the slockhold-
ers had become enriched, while the rail.
road securities had deprecated 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 or
der to supply this pressing want of the
road for additional freight cars, and uu-
doubtedly with the view Of making a
good Investment, the trustees aud other
officials Of the road did procure the char
ter for the incorporation of the National
Dispatch Company, and did take large
portion Of the stock Of said company
The committee also find that the cars of
the National Dispatch Company were
run upon tho Vermont Central, and leased
lines of road, aud upon the other roads,
constituting What is usually termed the
Vermont Central Line. and all these
roads paid the same rates to this COM
pany for the use OF their cars that the
Vermont Central did, except the Micbi-
gan Central. The company else God that
the stock Of this company proved to be a
good Investment, and that the offices Of
this committee were filed principally with
the officials employed by the Vermont
Central. But the committee do not fnd
that there was any attempt on the part
these officers who had the general man
ogemcnt Of the Vermont Central to SO
operate the Central as to give prefer.
eucc to these cars over those belonging to
the Vermont Central.
The Committee fud the fact that the
General superintendent and the General
treis sht Agent OF the Central, although
Interested iu the National Dispatch Co.,
did i-sue orders that the cars belonging
to the Vermont Central should be used il
preference to those belonging to the Ma
tioual Dispatch Company, and We believe
they honestly eudeavored TO enforce such
regulations as would prevent any discrlm
ination iu favor OF the National Dispatch
cars.
1t is undoubtedly true that the inter
ests OF the public generally have beer
bU.tvi so,.od ia consequence OF the en-
ployment Of these cars, and that the Yer
mont Central has earned more freight.
than it otherwise would have done. AL
though we fiud that the officers in charge
directed and intended that the cars Of
this company should not be used to the
exclusion of the Genital cars, still we fnd
that in one Or two instances preference
was made in favor OF these cars. 1t i:
this liability Of abuse that arises from the
very nature Of things, aud must alway:
accompany business transactions where
there is conhlct of interest that induce.
US to question 'he propriety and public
policy Of railro officials and employe,
in organizing AL running our companies
in concection tth the roads they are
connected with % here their interests coult
in any event be adverse.
These two car companies stand nearly
upon the same basis--so much so that il
seems unnecessary TO add anything fur
ther in relation to the Y. |. q G. Com
pany unless it is to say that while W,
fad that the cars Of this company wer
built at the Central shops, with little o.
10 profit to the trust. still we fud tha
there was no fraud or loss to the trust il
their construction. We find also tha
tae trust fund has not been defrauaed i
consequences of these companies.
FOUNDRY COMPANY.
At the first meeting of the Committe
Hon Asa Reynolds, the mover Of tn
resolution, came before us, and anon
, other matters that he desired to be inve:
, tigated, and as he stated, constituted on
7 OF the reasons why he Introduced the res
Managers of the Vermont Central an
. Vermont aud Canada railroads, with tn
, St. Albaus Foundry Company. Consc
cradle testimony was taken in relerenc
TO the relations existing between the raj
! road managers aud this company, whc
resulted in the developing of the followin
+ state Of facts
: The ST. Albans Foundry is located Il
! St AIbaus, and has furnished most Of III
casting aud car wheels for the roads, ut
! der the trustees aud manages, since th
! commencement Of the trust
Prior to tho appointment of j. {
= Smith, as oGe OF the trustees Of the tir
mortgage bonds OF the Vermont Cents
= railroad. ia 1858. aud sonnet time in It
Ii year lSj1, contract was entered int
: 10y aud between the trustees of the fir
Il mortgage bonds aud the ST. Albai
= Foundry Co, which company was con
d ;osed of j. G.. aud w. Q. Smith, /
u which contract the foundry company fu
! ni,hed the car-whees aud castings TO II
trust. Upon the appointment Of j
. Smith as one of th trustees, he sold ar
o assigned his interest in and to said co
/ tract to w Q. Saith, n accordance wi
the terms OF his assignment, as shown |
II exhibit M; that after that time Il
c trnst continued to receive their car-whec
u aud castings of the ST. Albans Found
Is Company down to the present time A
It Ter ]. &. Smith retired trcm the firm, V
n c. Smith owned the foundry business at
5 prosecuted it until September /, Is 20,
d which lime he leased the property
l. George J Stannari and Edward
J. Smith, according 10 the terms of the
l. contract at that date, which contract W
Is as set forth in tn Appendix, page 20.
III was claimed and We find the fact to |
ut that j. q. Smith was made party
ie that contract for the reason that he "
a. one half owner of the real estate that
ct the expiration Of this lease, John
d. Newton took the Place Of Gen. StaunaI
Is and that from that time to the prcse
~ time the foundry company has consist
~ of E1Wnrl A Smith and I,hn ~ NJ