Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1873-07-11
The Railroad Investigation.
REPORT OF THE COMMITTEE

4 mont central fdiiroau, udue tnelr Eepoit
last week. The testimony has not yet
appeared, and the report, it is stated, is a
compromise report" or such one as
the committee were able to agree upon
unanimously. While the report exon
crates the railroad managers from the
charges of bribery and corruption, it
censures their extravaganza and the " Sc
cret service fund, which they say was
misapplied in some instances. They do
not find that any legislation has been
influenced, defeated or passed. in conse-
quence of retainers paid to lawyers in
various parts of the State. On several
points the committee made no expression
of opinion, because, as they say, it is a
matter for the courts. In regard to the
retainers paid to those who we're MEM
bers of the legislature of 1869, the COM
mittee say:
We are not equally fortunate in being
able to find that this money was paid
solely for reasons assigned, that it was
entirely FOR the purpose of having coun-
sci in different parts of the State to look
after the interests of the road by attend
ing to the business that might arise in
their immediate localities, in their pro-
fessional capacities as lawyers. If such
was the fact then the distribution of
their retainers was exceedingly iniudi-
cious and ill-advised, or at least the
claims for " lost baggage overcharges
of freight" and other and similar claims
were more numerous and troublesome in
those localities where energetic young
lawyers united to their professional quail
ifica tons considerable political activity
and influence.
We also copy the following;
"Those who received legislative re-
tanners are exonered of corrupt intent,
but those who paid them did so chiefly
to gain influence in creating and main
tanning public sentiment. The car com
panies were organized by the officers
and their immediate friends and were
profitable, but did not defraud the trust
and were of advantage to the public.
: The policy of such organizations is, how
ever, questioned. The foundry contract
yielded a royalty of S135000 to w. c.
Smith, which was proper before he be.
came a trustee; since then they leave
the courts to determine. They do not
feel sure that the prices of castings were
not too high, but do not find affirmative
, ly. They find secret service fund set
apart and controlled by Gov. Smith,
which they do not consider necessary
1t was in some instances misapplied, and
large portion was unaccounted for ow-
ing to Gov. Smiths refusal to testify in
regard to it.
They cannot find whether it was or
was not correctly used. They do not 90
into the subject of private frauds in the
trust, but leave it to the Courts The
Sullivan road has been run for the ben.
eft of Gov. Smith and his associates,
and has Melted them upward of S450,000
but it has not been run to the prejudice
of the Vermont Central. Messrs. Smith
and Clark received nearly 1897 900
from the M. and Vt. j. road. The COM
mittee requested the books, but they
were not brought from Canada, SO they
could not ascertain as to the alleged
frauds in the construction account. Since
; the lease to the Central road, the road
| has been operated honestly under it. /
there was any improperly it is referred
to the courts. w. G. Brown was paiG
/ $25, 900 as retainer on which they hat
no testimony but that of Gov. Smith
3 They find that it was an unnecessary an(
/ extravagant fee. but do not lind that i
: was bride. They recommend that thu
f whole system Of passes be abolished a
t QUE against public policy, and tending
!. to an undue political influence, and tn,
creation of privileged class. The cen
r sure of the judiciary heard outside o
! the State is accounted for on the grount
r of the unfortunate relation so long sus
s tanned by the court to the roads Th
!. general impoIicy of continuing a caus
;. indefinitely in court when it involve
!, important business operations is con
r demned.'