The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1873-07-15

be settled elsewhere, We do not think the
subject matter calls for further comment
from the committee.
SULLIVAN RAILROAD.
In September, 1861, j. G. Smith pro.
cured the lease Of the Sullivan railroad.
and in one form or another it has been
leased until the present time, and is now
leased to j. G.. Smith for the benefit of
himself and his associates. We find that
it is undoubtedly for the best interests of
the Central road that the Sullivan road
that the operated in connection with it /;
and not adRterests should be identical
Sullivan road has We also find that the
prejudice of the interests '6p- run to the
Central road. Vermont
Since the leasing Of this road in 1S6II
large profits have accrued and been paid
over to J. Gregory Smith and his as
sociates. 1t appeared that the net earn.
ings had exceeded four hundred and fifty
thousand dollars.
MONTREAL AND VERMONT JUNCTION RAIL-
ROAD,
This road is principally owned by j.
Gregory Smith and Joseph Clark, and
operated by the trustees and managers OF
the Vermont Central under an agree
ment by the terms of which the Central
pays fifty per cent Of the gross earnings
as rental The amount has been paid
over to Smith and Clark. and amounts iu
tue whole to nearly 1897 900. This
road was built some eight years ago, and
it has been charged that its construction
was unnecessary, and that frauds were
committed in its construction. apd that
instead of its being built in the interests
of the trust property, it was built in the
interests and for the benefit of Smith and
Clark.
Ia the investigation of this affair il
connection with this road, we found thai
the books containing the construction ac
count were at Stanbridge, ?. O., and
though the committee intimated to j
Gregory Smith that they desired then
for examination, they were brought for
ward, and the committee, not having tn,
power to send for them in Canada, were
compelled to take such testimony as coulC
be procured.
The testimony that was introduced es
tablished the fact that there had been nc
fraud upon the trust in the construction
of this road
The committee express no opinion il
reference to the necessity or purpose O
building the road, as they did not seri
ously consider the subject, but find tina
since its construction and lease it hal
been operated honestly under it, and tina
one-half of its gross earnings have bcel
retained by the Vermont Central.
We will only add in reference to tn,
Sullivan and Montreal & Vermont juno
tion roads, that if there is any impropri
ETY. in the relations sustained by the trus
tees to them that render it o5ligator,
upon them to turn over to the trust fun,
the profits resulting from the leasing an,
operating Of those roads, it is a matte
for adjudication in the judicial branch o
our government.
W C. BROWN.
We took the testimony Of j. q. Smit
only in reference to the alleged briber
Of W, G. Brown, former attorney of tn
Ogdensburg railroad, from which it ap
peared in substance that he was pai
twenty-five thousand dollars by the Yer
mont Central and the lower roads tha
were interested in the lease Of the Og
dcnsburg road, as retainers, to secure hi
services in sustaining the lease, whic
was taken for twenty years, each roa
} paying its due proportion Of the same.
, Gov. Smith stated that some furthe
considerations influenced him in the pay
J ment ct this sum on the part of the man
agemeut which fully appears in the testi
mony. 1t also appears that this sum wa
paid by two notes of j. Gregory Smit
two days after the lease and after consen
. and agreement Of the lower roads. Thi
: transaction appeared upon the books {
t the management as charged to the lowe
roads in the Vermont Central accour
, with them
1t also appeared that after the retain
er Brown was paid a salary of twent,
: five thousand dollars. He was formerl
director as well as attorney and was Q
t the pay roll OF the Ogdensburg roa,
r His name got on the pay roll of the CeI
. tral by mistake, and when discovered Il
, amount was charged to the Ogdensbui
5 road.
La view of the whole transaction,
D it appeared before US, the committee al
+ unanimously of the opinion that it WI
. an unnecessary aud extravagant fee
/ hut do not 6nd that it was paid as
/ bribe.
OTHER MATTERS.
No testimony in reference to the co
struction of the Mlssssquoi railroad W
presented before US, or in reference
the payment of moneys to attorneys