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


treasurer's semi-annual report OF the re-
GENTS. etc. do not show correctly the
Profits of the road. because the lessees nave
| 10 nav ont of that all the expenses oil oper-
ating the road, and all damages to the road
as well as damage for all accidents 10 ihui-
yidaals on that road up to 1863 the lesseeS
received no profit from the road; the profits
will not average sos 900 per annum Tor the
whole term of the lease the profits OF the
road have not been increased by the hut
land lease. and have been decreased by the
| Ogdensburg lease my brother statement
| is. think. correct, but that was an extra
ordinary year; cannot say that IN 100,
1865 and 1869 we averaged $3.50 do
not think Putnam had any means OF m
formation on that subject sun, he might
| have taken gross amounts, whlcn Woulu NOT
correctly represent the profits the Vermont
| Central furnished engines, WOOD ana men,
and the expenses pro rata were ciiarSeu ., eI
to the lessees. and we paid them; directed
| Mr. Merrill 10 do 50. Have had several
losses on that road. but have not charged
them to the Vermont Central railroad.
Mr. Dayenport-Why did you not take
this lease for the benefit of the trust?
To answer that question | Will read
letter.
twill be remembered that at the time this
was written, the Sullivan railroad was IN
debted to the Vermont Central about S10,-
600 and was unable to pay 1t, and that the
road was likely to pass into the hands oil
hostile interests, and 1t became necessary to
resume its control by an interest friendly to
the Central:
Grxrrr,u,S We have received and perused your
letter Of the nth instant 1t is no doubt your duty,
both as mana gers and trustees, 10 take such meas
ures as may be in your power To secure the pay
ment Of tho debit already accrued and which may
hereafter accrue against the sullivan Railroad
Company as will best promote the interests OF the
trust property. To require the prepayment Of
CHARGES on FREIGHT passing over the Sullivan road,
will not, in our Judgment, accomplish the desired
object but would prove disastrous IN Its consequent
ces to the interest.of the property placed under
your control IL would not only leave unsecured
the amount now due but would IN all profanity.
result in its loss and break up the through traffic
and divert over other roads much Of the traffic
which now IA sSes over the Central This procedure
then, would seem to be inadmissible. We inierlirom
your letter that the only means OF security that the
sullivan Company has in its power 10 make is by
lease of its road lease on the terms proposed, it
is believed would ultimately result in the pay
ment OF the sum now due and as security for subse
uueut cla inns. 4 lease too, 10 parties whose inter
80 are identified with those OF the Central would
Greatly tend to protect the traffic over that road
and prevent is diversion 10 other routes. Should
n uarties connected with the Cheshire line er with
The lower roads east Of White River Junction, the
consequences II ght and probably would be injuri-
o to the hest interests Of the Central line Should
mo friends Of the former line obtain the control il
would be in their power, by charging local fare
over the Sullivan and by other means, to force
FREIGHT over the Rutland fad which would other
wise mass over the Central II the friends of the
Concord line should obtain this control they would
have IL in their pewer to control TO some extent, tho
rate OF charge for the Central on through freight
-tr4tfr4 But the various which
such control ight be made disastrous 10 the Cen
trail will readily occur 70 you. The danger that
the control o the Sullivan may pass into the hands
Of those having an adverse interest, is not as we
have reason 10 believe, altogether ina ginary. We
have, therefore no hesitation IN saying that in
opinion the beet interests oi your trust calls for the
yecution Of the proposed lease. But have YOU the
right as receivers or trustees 10 take the lease
This may we'll be doubted. lfyou choose % take !
the ease a. individuals. we can sec NJ legal ohiec
ton 10 l. and would advise to that course. Nor |
can We zee any legal objection 10 your using the |
stock of the Central to operate the sullivan road,
bv paving fair compensate for is use. provided
,uch use docs not Interfere with the working the
Central line. II Is hardly possible that any person
whodcslres 10 promote the interest Of the Central
line rs d object 90 such course. II is measure
wh.ch should be favored by all
Beleyin-We have substantially answered Your |
euQu ries. We remain
Very respectfully your obeicut servants
LUCIUs i. Pax,
ANDREW TRACY.
Hon. J. g. Smith and other Mana gers and Trustees
Of Vermont Central Railroad.
Governor Smith, before reading the let
ter. made a statement Of the freight mo- !
nopolv existing at the time, which COM |
PEELED the Vermont Central interest 10 |
gain control of that road. Acting upon the |
instructions Of the trustees and managers, |
we took the lease.
We took the lease because the Vermont |
Central was then in the midst OF trials and |
>. nd a..Il tnL
Sullivan road was then offered S2j 900 |
more than we offered, and they endeayored /
to force Us to accept the proposition To /
charge the Vermont Central railroad the /
highest local freight rate, and | refused |
after we got a charter for an Independent /
line they came 10 terms; they offered 10
let Us keep IL. but refused to let 1t 70 us m /
our trust capacity; they thought our indi-
yidual security better than our trust Sc
eurity We take all the risks on the road of
every description.
Joseph Clark and built in part Mon
treal IL Vermont Junction railroad IL is
about twenty-iour miles long majority
of the stock is owned by Mr. Clark and my
self. the capital stock j. about $500 600:
Mr. Clark and own about $500 600 each
there are several other stockh0lder>-s1me
in Canada and some in Boston Baker, Of
Canada, owns 81 600 Des kiyieries owns
some. Riddle owns some. and Mr.. Taylor
| have not seen the books for some time
they are in Canada. in the possession of the
clerk and treasurer, | boughtmy go shares
some time ago Clark and ! bought the
township shares some time ago. now own
the bonds issued by the road some $3.50
600; they were negotiated in the market,
and some went TO the contractor; bought
them afterwards
Mr. Davenport-ll0w much capital did
you have inve>ted-how much were you
worth in 1855.
Governor smith, you can tell, You can
do better than can.
Mr. Fifeld-l respectfully submit to the
committee that the question is little ex-
uayagant in its scope.
Governor smith cannot answer that
question now, but if the Legislature of the
State Of Vermont are anxious to pry into
my poverty or means, | Will endeayor TO
place books and papers at their disposal.
The Montreal ~ Vermont junction road
cost about $50. 900. Of which s25O. 200 Is
in bonds, and a little less than $780, 600 in
stock, the townships gave less than $780,
BOO; Clark and myself got some Of the
money to build that r0adof the Montpelier
Bank. at Burlington, Middlebury, Water
bury and St. Adams, and we sold some
stocks and raised money, and also borrowed |
sol, Oo0 of the Northern railroad; we took
no money from the trust to pay for the
'oad; | had separate bank account while
was building the road; Clark and had
zone jointly.
Mr.. Davenport, what was the form of the
notes given for the money borrowed to pay
or Montreal and Vermont junction Rail
Dad?
Ave gave our private notes; Brai-
lerd ; name as financial agent appeared a
ecurity.
Uninterrupted by Mr.. Davenport who
-fter repeating the question says. want
'ou to answer my questions as if yOu had
leyer been Governor of the State of Nerm-
mont?
Gov. Smith Sir | claim no immunity on
hat ground
Mr. Fifeld | think there is no
'ule of law more universally recognized
han that witnesses shall be protected from
insult and We think it ought to apply here
Mr. Davenport Where did YOU and
0seph Clark get the money to pay these
otes?
Al think that does not concern you, 9
ir; it is enough to say that not one dollar
anne from the trust fund.
The Governor made an appeal to the com
iittee Directing to the course of examina-
ion pursued and wished to be permitted to c
tate all the facts and not have a garbled I
tatement drawn from him by categorical a
uestions. u
The chairman think one half of the c
ommittee think the question fair and that I
ne witness should answer and that the re-
arks were uncalled for Some one of the I
1mmittee said he did not know the com |
ittee had been divided into halves
Gov. Smith here entered into long ex- o
lanation of Clark's and his connection Il
it'll the Montreal and Vermont junction
lad, how it was thrown upon them to
lild, and that the return had been about Il
per cent on the investment, that the 50 Il
sr cent of the gross earnings paid him and r.
lark was but temporary arrangement Fl
I'd that he had tried hard TO have another Fl
made the Montreal and Yer fC
ont Junction railroad goes in at IS miles, E,
1T its actual length is about 81; the Sulli- F
IN railroad goes in at 26 miles its actual W
myth; the Vermont Central goes in at IA IN
lies which Is frrea tor than its aPtual ! ii