Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-05-09

thought best to Use this for the nnrnoaa
above specified, and thus originated the so
called secret service fund.- After Mr.
Williams left, Mr.. Putnam took charge of
Of this fund Not aware that the
money has been used for any purpose
except legitimate one; never for corrupt
ing the legislature or the fountains of Justice
Mr.. Hatch has been employed by the road
ior years in various positions. mainly to
resist hostile legislation in n fair and legiti-
mate manner. Ii was on the recommendation
OF Mr.. Tracy and myself, that counsel were
employed IN variOus places throughout the
STATE. We paid from S25 to 800 each.
thought this very economical measure
Tor the road because we often saved heavy
suits against Us. Trustees knew of this
special iund- II the Court of Chancery in
settllng my accounts wish me to disclose
Where paid 1t out, | shall nav it myself
When Mr.. Putnam left me he stole A part of
my vouchers in order to carry out his pur-
pose OF reyenging hImSelfon me for discharg-
ing him. large portion of this secret
service fund mas gone back into the hands
OF the managers. Since 1871 have expend-
ed from ! 500 to s. 900 for detective pur-
poses; made myself responsible for this
fund, expecting To account to the Court of
Chaneery for it. Refused to give the names
oil the detectives to the committee, no one
1
the one who received il from me Have
paid money to several persons. John T..
Butler, Judge Kellogg, Chas. X. Field,
Judge Weston, ID. &. Denison, Geo. NJ.
Fisk, Phllander Perrin and Ex-Gov Dilling-
! ham were employed during the life time Of
Peck & Tracy. Field and Butler never tried a
cause for Us in the courts. They came to
the Legislature and helped US Could not
remember when Judge Kellogg appeared
in court for Us. Fisk was retained before
he was member of the Legislature could
not tell when Judge Perrin tried n suit for
Us. The Managers kept n legal service ac-
count. Vouchers are preserved for these
disbursements.
Q-How would you know whether II. II
| Powers was your attorney?
! All didn t know, would 90 to Hatch
| (Cireat laughter.)
B. F. Fiheld, Gov. Underwood. and Gov
| Stewart are the principal counsel for the
management Fifeld's salary Is - 900.
Judge Wheeler's name does not appear on
our books as counsel | never employed
him. Soon after Buffers death Hatch sug-
| geSted that it might be good idea to EN-
| plOy Wheeler, and he soon afterwards EN-
| plOyed him. Butler and heeler' connection
with the road, was in relation to the Yer
mont Valley and Vermont S Massachusetts,
railroads, we being then in a contest with
the Rutland road Ii was expected that in
case ofany suitsin Windham county, Clarke
Il 1askins should attend to them. {. II.
Chapman and ID. c. DennisOn have appear
ed for Us in Windsor county. Our counsel
in St. Albans are Noble a Smith. K. C.
Benton, Jasper Rand, and Park Davis
b. ii. Smalley of Swanton has received $500
from the secret service fund for legal servi-
ceS. lie was our attorney, and had a general
retainer. He has not done very active
service. has not been in active practice for
eight or ten years. Paid this money two or
three years ago. Considered him an able
lawyer and excellent counsellor and often
wished his advice in various matters. Con-
Sidered him in some matters better counsel
than Gov. Underwood, Gov. Stewart and
Mr.. Fifeld
Q.-Nhat matters. Gov.
A.-AlatterS Of importance concerning
the trust
Q.-Wh hat matters Of Importance?
A.-Alatters that do not concern you, sir
Here Gov. Underwood objected to making
the witness tell what he consulted Mr..
Smalley about lie had already stated that
it was matters of Importance concerning the
trust and he did not believe he could be
forced to answer the question as Mr.. Daven-
port wished him to.
that the witness must answer the question
Al consulted B. II : Smalley for advice
on special matters and those of general i'm
portancc to the trust.
Smalley had talked with him about the
LamOIlle Valley railroad suit concerning
the bonding Of the town Of Swanton.
The Governor here refused to answer
further in relation to his consultation with
Mr.. Smalley. Mr.. Davenport here filed
three exhibits, being three receipts Of $500
each, from 3. II. Smalley to j. G.. Smith.
Received - 900 December 2l, ISL, from
secret service fund, through Samuel vii
liams. Did not know for what purpose
that was used. Did not know that c. H.
Heath had been retained until the hearing
before the chancellor. Heath's receipt for
so was filed by Mr. Davenport.
SAMUEL WILLIAMS
recalled. Gov. Smith ordered me to pay
Geo. G.. HINT November 20, IS6S. S23O, for
which | had a memorandum. and afterwards
charged To the secret service fund. While
| was treasurer | paid, from time to time,
mainly by Gov. Smiths order, sums
amounting to S3O,O00, during a number Of
years. 4 portion of this money was paid
to Mr.. Mills in Boston. aud the remainder
to take up drafts made on Gov. Smith indi-
vidually. When | left the treasurership.
this amount had been reduced to So, 900.
Did not know what use this money was put
to. Kept cash memorandum Of this for
some time, and afterwards placed it on the
books Cash book shows this entry
- Cash, Northern Pacific railroad, S22.-
600" Supposed this money was used in
connection with the Northern Pacific rail
road. Gov. Smith used to lend his private
funds to the company, and receive eight per
cent. interest. No knowledge Of cOmmu-
tation ticket to E. u. Fuller, charged to
Gov Smith.
Cross-e1amined By Mr. FIfeld.-When
disbursed money To Gov. Smith, the trust
was owing him largely. Knew of no fraud
or corruption IN the matter.
LAWRENCE BARNES
was one Of the Trustees and Managers of
the road First heard of this secret service
fund when the hearing was before the
Chancellor, never was consulted about this
fund and never advised it, had only been
Trustee two years.
". G.. SMITH
knew nothing about why the 5000 was
paid L. II. Smalley knew of the secret ser
vice fund, shortly after accepting the
trusteeShip in 1870. Was informed of its
purposes by my brother and approved it.
Had disbursed some myself; gave S2OO.tO
an association of citizens to erect an Obser-
vatory on Prospect Hill. St Adams,
thought the erection of the observatory
would help travel on the road; gave also
towards the observatory from my own
pocket. Understood Hatch was at Mont
pelier too look after general interests of the
road. Matters were left to his discretion,
and he had authority to disburse
monies for Legitimate purposes. First
became concerned in St Albans Foun-
dry Company in 1916 Had an interest in it
until lsGO, when disposed of my business
interest to Gen. Stannard and Edward A.
Smith. Owns the real estate now with j.
Gregory smith. J. w. Newton went into
the Foundry in lo6l Reserved an interest
in castings when disposed Of the business.
An arrangement was made with Z. A.
Smith and Newton that they should pay me
a certain compensation for such work a
was furnished the railroad. Mr.. Daven-
port asked what that compensation was,
which question witness declined TO answer.
Mr.. ID. asked that the committee compel the
witness to answer the question This question
might be as well settled in the case of an ex-
Congressman as any one. Witness said
the committee could find all about the
castings from the proper officers, but he de-
elined to explain this private arrangement.
Some of our exchanges are animadverting
rather severely upon Senator MOrrill's
course in drawing his back pay and turning
it over to the State Treasurer. We can see
nothing deserving Of censure in the act.
We are not 20 sure that the pay of our Con
gressInen ought not to have been increased,
but the back pay clause was certainly
wrong. The money has been appropriated,
however, and the members have a legal
right to draw it; and by drawing it they
have it in their power to give 1t for char
liable purpuses, where it will do much more
good than it would If allowed to remain in
the National Treasury. For example, a
member might devote his back pay to
private charities, and by that means keep
starvation from the door of many poor
family We would like to see the member
from th;s district hnnafe n nnrtinn of his