Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-03-27

| ployed unnecessarily large number of
attorneys and paid them large sums of
money.
That j. Gregory Smith, taking adyapr-
tage of his fiduciary relation = the prop
eety, purchased for nominalsuph large
debts against the corporation # fthe VT.
| Central r. r. Co., and therein caused
the entire capital stock of the sameto be
attached and sold to himself, corruptly
and unlawfully.
That the said j. Gregory Smith and w.
G. Smith have appropriated 20 their own
use large amounts of brick, furniture,
house finish and other materials, the
property of the trust estate, without pay
ment.
That the receivers haYe depleted the
earnings of the trust property by issuing
an unwarrantable number of passes and
free tickets for the sake of advancing
their own personal and political ends.
That large amounts of freight have
been transported for the receivers with
out charge.
That employees of the receivers, in
their private capacity, have been per-
mitted to pass and repass over the road
without payment of fare.
| That the receivers have made contracts
with themselves for the furnishing of
! equipments and supplies at rates largely
in excess of the market value of the
same.
! That the said J. G. Smith and Joseph
Clark. corruptly and for the purpose of
their own aggrandiZement and gain, used
and expended the funds of the trust for
the purpose of assisting in the construC-
ton of the Montreal and Vermont juno
ton railroad a railroad connecting with
the Vermont and Canada railroad at the
Canada line, and wholly situated in a
foreign country, which said expenditure
was unauthorized by the court at the
time of the outlay, and has been studi-
ously and completely concealed from the
court and from the petitioners and other
stock and security holders interested in
the administration of the trust estate.
That the said j. Gregory Smith and
Jossph Clark, claiming to have acquired
a controlling interest in the said Mon
treal and Vermont Junction railroad
company, by reason of pretended adj
yaucements out of their own private /
funds, instigated and caused a corrupt, |
unlawful, imprOYident and, sO-called, /
temporary running arrangement to be |
made without the authority Of the court, |
which said so called temporary running /
has been in force now more /
than six years, by and with the consent /
of the other receivers, and out OF which, |
as these petitioners are informed and be- |
lieve, the said Smith and Clark have /
realized more than $500, 900
That said receivers have allowed Smith /
and Clark to receive and appropriate to |
themselves a greater sum than that to |
which they would be entitled by the |
terms of the aforesaid temporary run
ming arrangement.
That the receivers, for the purpose of |
benetiting Smith and Clark, have divert
cd traffic over the Montreal and Vermont /
Junction railroad, losing thereby seven /.
and tivc-tcnths miles less car service in /
the pro rata division of through freights
than they would have received by con- /
tinuing the same upon the old line of |
the Vermont and Canada railroad.
That the said receivers have been /
large stockholders in certain car COM
panies. and as such receivers and such /
owners of stock, have not only made fa-
YOrable contracts for the said companies
out of which the s4id receivers have re-
ceived, as these petitioners are informed, |
about fOrty-eight per cent. per annum
ON the money invested by them therein,
but also in order to increase the same to
said sum they have directed their SER
wants and employees to load said cars in
preference to the rolling stock owned by
the said management, and also they have
entered into, or caused to be entered in
to, extensive contracts for the transpor- /
tation of property in the cars of said car
well knowing that the same
would result in a loss OF the trust estate
and a corresponding gain to themselves
as individuals
That the said receivers, without the |
authority of court, expended the sum of
$50, 900 in building a tram road to mines
i'll Canada, in which J. Gregory Smith
was interested.