Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-05-09
TON. VT, FRIDAY MORNING. MAY 9. 1873
The Vermont Central Railroad Investigation.

|GTON, VT, FRIDAY n
The Vermont Central Railroad Investigation.
The hearing before the Committee o
Investigation of the Vermont Central rail
road affairs ordered by the last Legislature
was commenced at ST. Adams on Tuesday
This committee was created in pursuance o
the following resolution, offered in the. Sen
ate November 6, 1872, by Senator Reynolds
of Grand Isle county, and unanimously
adopted by both Houses:
WAereas, Grave charges have been publicly pre-
ferred that money has been used 10 influence egis
latio. and subyert Justice in this State, which
char seem TO involve the Trustees and Managers
Of IT, Vermont Central and Vermont Canada and
leased lines Of railroad, rs well as several gentle
men OF high official position IN the Legislature and
other branches of the government OF the State in
A. d., 1863 and at sundry times before and since
that time; and
whose charters are under the control OF the Legis
lature to alter amend and repeal rs the public sbod
may require, have been organized anu run IN con
nection with the aforesaid railroads, and are rep
resented by various persons AS involving corrupt
practices to n large extent; and
Uhereas, The aforesaid corporations and railroads,
and the officers in charge thereof, creatures
Of the Legislature and judicial branches ofthe gov
ernment Of the State, and as said charges involve
the fair fame OF the State TO such an extent as to
justify and demand 4 searching investigation into
| their character and management therefore,
Resolued by the Senate and House Of Representa-
tires, That committee of three Senators and three
members OF the House be appointed respectively by
the President Of the Senate and Speaker Of the
House. 10 inquire whether or not il Is true that in
a. d., 1863 at any time before or since that time,
money paid directly or indirectly by any trus-
tee, receiver, manag gor officer agent Of any rail-
ROAD or railroad company IN this State, 10 any mem
Der of either House Of the Legislature, Tr'the pur
posing OF influencing legislation; whether OF not il
| is true that under any power derived from either
branch OF the government Of this state any person
| connected with the aforesaid railroads or compa-
nies, has practiced frauds peculations; andhnay
to nvest gate fully all and singular all the matters
| above referred to, and said committee have power
10 send ior persons and papers and TO employ coun
sci to prosecute the inyesti cation 30 its fullest
tent. and 10 make report to the present session OF
| the Legislature.
To the foregoing resolution, Senator
Powers, Of Lamoille county, offered the fol-
lowing amendment, which was adopted
| Also, to inquire whether any members or officers
| o. either House OF this General Assembly, have
written or aided In procuring 10 be published, the
articles in the Boston TTareHer touching any meas
ure now pending before this Legislature: Also,
whether any members officers Of either House of
this General Assembly are in the pay OF employ
meut Of any individuals opposed 20 the passage OF
any such pending measures.
The committee was composed. a. follows
Senators d. X. Bailey of st. Albans. Jacob
Estey Of Bratteboro, and John NJ Bartlett
of Island Pond; Representatives y. =. Pit
kin Of Montpelier, Josiah Grout. Jr., of
Newport, and Loveland Munson Of Man
chester. Being unable to complete the in
yestigation and report to the Legislature
before the final adjournment. Joint reS0lu
tlon was adopted authorizing the committee
to continue their Investigations until the
first of July, 1873, and then report 10 the
Governor who Is to cause the report to be
published.
At the opening Of the hearing there We're
present Messrs Bailey. Estey and Bartlett
Of the Senate, and Pitkin and MunSon of
the House of Representatives. Hon. Levi
Underwood of Burlington. b. F. Fifeld of
Montpelier, MesSrs. Noble and Smith and
Jasper Rand of st. Adams appeared for the
trustees and managers of the road, Hon. G..
y. Davenport and \. g. Stafford. Esq, as
counsel for the committee.
THE EVIDENCE
Mr.. f. Stewart Stranahan. Secretary and
Treasurer of the National Car Company,
was then called 10 the witness stand and te-ti-
fed that he had in hi> possession the record
book, OF some 200 pages; also the treas
urer'S book, journal and cash book also
transfer books, one or two. These the Wit
ness was then sent out 70 bring in. and the
committee adjourned till two o'clock.
TUESDAY AFTERNOON.
Mr. Stranahan read from the books the
names of the stockholders Of the National
Car Co., on the first day Of October last
b. p. Cheney. held 800 shares. Jos. Clark.
4
iO9 NJ. q. Elliot. l2j. Jame> NJ Foss. -,
/. ;. Grover. Il: j. d. Hatch. 80 and a,
trustee, II Gylcs Merrill. l05: L. Mills,
1876 j. NJ. Pinkerton, 90, Eugene Putnam,
60 W G. Saith, lli: j Gregory smith.
756 Samuel Williams. 66 j. W. Hobart,
II, +. Stewart Stranahan and wife. Il
George Gregory Smith. Il shares.
The company owned .O06 cars az that
time. Owned no place L. repair ears, the
business of the company being the owning
and letting of cars. We contracted with
the different roads forming the line. In
1872. the company paid its President -
500. its clerk and treasurer 81 .5O0. and each
of the directors 800. The capital is now
one million dollars.
The adjustable gauge cars cost third
more than common ears. Dividends of ten
per cent. per annum were made on the par
value last year II per cent was paid.
Along the first of the service ? cents per
mile were paid for ear service, since then
y until Jan. last, since which time it has
been two don t think the present rate pays.
The rates are irrespective of whether the
cars are loaded or not
Witness gave detailed answer showing
the receipts from each of the road, under
the control of this management. down to
October last, which aggregated $50 goo
the receipts by the Car Co. from other roads
in the line from Boston to st. Louis. aggrc-
gated from $50 900 10 $500 900.
\ great many officials Of the Grand Trunk
were stockholdcrssn this Co. and nearly all
the roads in the VI. Central line were also
interested. None of the Northern y. H.
road were interested.
The officers of the other roads i'm the line
were interested in this company the same A.
those of this road were. Nothing more has
been paid by the Vermont Central for ear
service than by any other roads between
Detroit and Boston. On tonnage rates. at
four mills per mile. the ears, if loaded with
ten tons, pay better than our cars on the
mileage basis. Our company make all the
repairs. We keep 4 superintendent, Mr..
Fletcher, at $4,000 year, and before We
sold the cars to the Grand Trunk, had an
cars cannot be more than seven or eight
years. During the first two or three years
the business for such a company Is good
one. but for the term of life of q ear it can
not be.
CYLES MERRILL
is general superintendent of the VT Cen
tral.
The road owned li35 freight cars: they
had 767 in 1888 when these Trustees went in.
Think some of those last fall had been built
some ten or twelve years. With no through
freight lines and no leased lines. the num-
ber of cars actually required by the Vt.
Central and Vt. x Canada roads would be
about $500 or more. We should find work
enough for 5000. The largest number ever
owned by the management was 1925.
| am stakeholder in the National and
Vt. Iron Car Companies. 80 cars were
built at the VT Central shops for the VT
Iron x Car Company. and most of the re-
pairs have been made there. The Company
paid the road $50 each for the first box
ears, and witness gave prices of Others
They are better grade of cars than those
manufactured by the Wason Car Company
ofSpringfeld The cars were not made ut
the bare cost Of the material and labor, un-
less Mr.. Sessions misinformed me.
Ifthe VT Central had been able to build
and run its own ears, he had not much
doubt but that it would have been better
than to hire. My salary is $1,000 in all.
and it is paid me for looking after the in
terest of the security holders. did not
want to take ear stock-did not take il be-
-, l .Lorrb+ tho intarp-t. Of IL, 800 4 ro