The Rutland weekly globe. [volume] (Rutland, Vt.) 1873-1877, 1873-07-11

The next subject OF inquiry contemplated
Ivy the resolution is in reference to the
National Despatch" and the Vermont
Iron and Car Companies. 1t was charged
that these companies were organized and
the stock taken by the Trustees and Man
ayers and the officials of the Vermont Cen
trail, and their immediate friends; that
these car companies had been run in con-
nection with the railroads in corrupt
manner; that the stockholders had become
enriched, while the railroad securities had
deprecated in value.
The Committee find that the Vermont
Central did not have freight cars enough
to meet the demands of their business. and
that they had no funds they could use in
the construction of cars and in order to
supply this pressing want of the road for
additional freight cars, and undoubtedly
with the view of making good invest
ment, the trustees and other officials of the
road did procure the charter for the incor-
poration of the National Despatch Com
pany, and did take large portion of the
stock of said company. The Committee
also find that the cars of the National Des-
patch Company were run upon the Yer
mont Central, and leased lines of road, and
upon the other roads constituting what is
usually termed the Vermont Central Line,
and all these roads paid the same rates to this
company for the use of their cars that the
Vermont Central did, except the Michigan
Central. The committee also find that the
stock of this company proved to be Il good
investment, and that the offices of this
company were filled principally with the
officials employed by the Vermont Central.
But the committee do not find that there
was any attempt on the part of these Off
GERS who had the general management of
the Vermont Central to so operate the Cen
tral as to give preference to these cars
over those belonging to the Vermont Cen
trail.
The committee find the fact that the gen
eral superintendent and the general freight
agent of the Central, although interested in
the National Despatch Company, did issue
orders that the cars belonging to the Yer
mont Central should be used in preference
to those belonging to the National Despatch
Company and we believe they honestly
endeayored to enforce such regulations as
would prevent any discrimination in favor
of the National Despatch cars.
1t is undoubtedly true that the interests of
the public generally have been better served
In consequence of the employment of these
cars and that the Vermont Central has
earned more freights than ii otherwise
would have done. Although we find that
the officers in charge directed and intended
that the cars of this company should not
be used TO the exclusion of the Central cars,
still we find that in one or two instances a
preference was made in favor of these cars.
1t Is this liability of abuse that arises from
the very nature of things, and must always
accompany business transactions where
there is Il conflict of interests, that induces
! n nlIaotion tho anil al
icy of railroad officials and employees in
organizing and running car companies in
connection with the roads they are con-
nected with where their interests could in
any event be adverse.
These two car companies stand nearly
upon the same bass-sO much so that il
seems unnecessary to add anything further
in relation to the V. |. & c.. Company UNI
less II is to say that while we find that the
cars of this company were builtat the Cen
trail shops with little or no profit to the
trust, still we find there was no fraud OF
loss to the trust in their construction. We
find also that the trust fund has not been
defrauded in consequence of these COM
panies.
FOUNDRY COMPANY.
At the first meeting of the Committee
Hon. Asa Reynolds, the mover of the reso-
luton, came before US, and among other
matters that he desired to be investigated,
and, as he stated, constituted one of the
reasons why he introduced the resolutions,
were the transactions of the managers of
the Vermont Central and Vermont q Can
ada Railroads with the ST. Adams Foundry
Company Considerable testimony was
taken in reference TO the relations existing
between the railroad managers and this
company, which resulted in the developing
of the following state of facts;
The st. Adams foundry is located at St.