St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1873-05-09
st. Bloomsbury Galedunian.
The Investigation.

The last Legislature appointed II
committee of its members to invc>ti-
gate the transactions of the Vermont
Central Railroad with permission to sit
after the adjournment. and report i'll
June to the Governor of the State. The
committee commenced their duties dur
ing the session, hut finding they had Il
big elephant on hand. adjourned and
recommended THEN labors at -. Adams
last week.
Mr.. Davenport, of Blattlehoro, is
attorney for the committee, while the
officers of the road have to assist them.
Underwood, Fitield. Coy. Stewart, if
not others.
A fair judgment cannot he reached
till the examination is concluded. As
it progresses matters of interest aIe DC
eusionally developed. showing the way
the business of the corporation has
been conducted, clearly accounting for
the reason why the officials of the road
have become rich while the owners
have had very little.
To begin with, there is Il railroad /:
then National Car company: then II
Foundry Company. The public gener
ally own the railroad Officials of
the read own the Car Company and the
Foundry Company. which provide ears
and castings for the road at their own
price, and besides. some of the officers
of the road, OF their relatives and
friends, have II royalty in the castings
furnished to the road. The ears are
furnished OF cost --ome $500 each
more than il is well understood they
can he had elsewhere This is not all -
officials of the road have large sal
aries, and at the same time are -;llaried
MS Directors or as officials in the out
side companies. In addition the stock
officers of the road at :jOc on the dollar.
and it is proved that it paid Ii TOGO per
cent dividend to its owners. Large
sums of money have been otherwise
expended by officers of the road. of
which they do not render very intel
ligent account. Sometimes it is ac
ounted for IA paid for attorney fees, at
Others rs expended to prevent adverse
legislation. to fight the Lamoillc Valley
railroad and fOr numberless other lie
ultimate" things. When the witnesses
a Il
ditures were for, tAfy were very sure
it WAS all for Legitimate" objects. They
could swear this way, but failed often
in giving the items.
The road has another appendage at
tached to its financial system. That is
secret "service fund" out of which
payments ale often made. OF course
these funds were used for Legitimate"
purposes, though it may he question
able if such fund il legitimate with
ordinary railroads.
1t would not he prudent to predict
the result of the investigation. as it
may he made up by the committee.
One thing will appear plain enough.
With such an absorption of the earn
ings of the road in salaries to its off
eials, and other tributaries debouching
into their packets, it will remain no
longer wonder that the pockets of the
owners are empty. \ novice in tinan-
cial matters will see this is II ..legiti-
mate" result
1t would be an oversight should we
pass over the testimony of j. ID. Hatch.
who has paid great variety of bills at
Montpelier on account of this road.
These bills have been paid during SEES
sions of the Legislature, in the main.
and TO members of the same, and others.
Last fall Mr.. Hatch testified that the
money was paid to prevent adverse
legislation and to look up lost baggage.
Recalled at st. Adams he now leaves
off the lost baggage, and calls the ex-
pendlture legal fees to prevent adverse
legislation, to fight the Lamoille Valley
road, &c. One bill of several hundred
dollars he does not account for only Il
portion of it was paid to the Pavilion
Hotel, and he is sure none of it WAS for
grog. certain list of names. held by
Hatch lis it white OF ''black list ?'')
of retained men-mostly members of
the Legislature lawyers and some
not. Mr.. Hatch swore that he paid
them railroad money, some of them
several times. though could not say
they rendered any legal service to the
road, with two OF three exceptions. He
called the payments retaining fees.
The people of Vermont will he snrpris-
ed to learn some of these names Others
will cause no surprise. People knew
them well before, and that they were
men who had THEN price. and took it
when they could. On the whole. it APP
pears that indefinite amounts have
been paid ont undes the head of legal
fees within II few Years. The list con-
tains the names of some thirty men re-
tanned to prevent adverse Legislation
and to defeat the building of other
roads, &c. We shall keep the list fol
future use. 1t presents IA formidable
array of the legal talent of the State.
P. S. The investigation il Fastening
to conclusion. The committee de
eided to withhold their decision for a
future session. Mr.. Davenport, for tn.
StntR occunied thra. b,,,, -, , .,,,,.,,..l