Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-05-08
Especial Telegram TO the Elerald.I
The Legislative Railroad lnvesti-
CATION.
THE SCOPE OF INVESTIGATION.

to the purchase of car-wheelS from the
st. Adams foundry company. This
drew out a long discussion in regard to
the scope of the investigation, and the
forenoon was consumed by counsel in
the discussion of this question, (before
suspended by the committee awaiting
the arrival of Mr.. Grout), Mr.. Under
wood, for the trustees, taking the ground
that the question involved matters of in
terest only to the security holders, whose
relations with the managers are cog
nizable only to the Court of Chancery,
while this committee should investigate
only such matters as the Legislature can
act upon.
MIR. Davenport replied that the Ian
guage of the resolution was plain, while
the Specifications filed by the mover of
it left no doubt that they wanted the
whole truth, and the credit and honor of
the State demanded that there should be
an exposition.
Mr.. Fifield replied in long and able
argument in support of Mr.. UnderwoOd's
position, when the committee adjourned
for consultation.
On reassembling, this afternoon, the
chairman filed written statement of its
views as to the scope of its inquiries,
and decided to go into full and search
ing investigation of the whole case.
HATCH's TESTIMONY.
The examination of j. d. Hatch of
Burlington was resumed. He testified
to the retaining of attorneys in different
parts of the State to look after suits and
claims brought against the trustees and
to look generally after the interests of
the railroad management in their respec-
tive locations, but in no instance had he
known of one dollar having BEEN ex-
pended for any Legitimate purpose in
connection with the trust.
GOV. SMITHS TESTIMONY.
The so-called secret service books
were produced and Governor Smith was
examined in regard to the sources from
which this fund was drawn, and its dis
bursements He explained, item by
item, showing that it had come from
miscellaneous sources, not directly in
come from the trust property, but be-
longing to and expended directly in the
management of the trust. Why it had
been called a secret service fund he did
not know, unless because a portion had
been paid out for detective service. His
former private secretary was discharged
for cause He had stolen few of the
vouchers belonging to this account,
which were now being used in this
prosecution. He respectfully declined
to admit the authority of the committee
to require the names or enquire into the
specific occasion for the expenditure of
portion of this fund accounted for as
Legal services" this being entirely a
matter for discussion in the auditing of
his accounts by the Court.
". c. SMITH s TESTIMONY.
The examination of w. G. Smith was
resumed He was asked the question
''what were his relations to the ST
Adams Foundry Co.." which he re-
spectfully declined to answer, denying
the authority of the committee to ex-
tend their investigation into his personal
affairs, but expressing his readiness to
give all information in regard to price
of car wheels, or on other matters per-
tanning to the trust, in his capacity as
one of the managers.
Mr.. Davenport demanded that he be
compelled to answer, and pending dis
cussion on this point, the committee adj
journcd till tomorrow. A.
PROGRESS OF THE HEARING.
ST. ALBANS, May :.
At hearing to-day before the legis-
lative committee in relation to the
charges preferred against the trustees of
the Vermont Central railroad of having
used improper influences upon the leg
islature and the judiciary, Governor
Smith, Worthington G. Smith and Joseph
Clark, trustees, were examined. Gov
ernor Smith and w G. Smith were ex-
amined at length The committee took
wide range and made full enquiries
relative to all their transactions rs truS-
tees.
GOVERNOR SMITHS TESTIMONY.
Governor Smith explained in full the
lease of the Sullivan road and what had
been received from it; showed that it
had been of great advantage to the Cen
trail produced a letter from Lucius Peck
and Andrew Tracy, both now deceased,
but eminent attorneys, advising the lease
of the Sullivan road as a protection to
the trust. He also explained all the
facts relating to the Montreal junction
road, to the fees paid MIR. Brown for his
services in relation to the Ogdensburg
lease, that the expense was borne by all
the roads in the line, and that the fee
was paid, not at his instance, but at the
instance of other officers in the line.
THE ST. ALBANs FOUNDRY COMPANY.
The relations between the proprietors
of the St. Adams Foundry Company
and the managers, and with w. G.. Smith
as an individual, were also explained by
w. G. Smith, Governor Smith, j. w.
Newton and E. A. Smith, the last two
being proprietors. Il was shown that
while the prices paid were somewhat
higher than those charged to other foun-
dries, there were other considerations
in freight, in quality of iron and in man
ufacture, which in reality made the con-
tract of great advantage to the railroad
BEHAVIOR OF THE TRUSTEES.
There are but few of the points
taken up. The trustees manifested a
disposition to aid the committee in every
way-produoed all the books. papers.
and vouchers of every description, when
called for. There has been, thus far, no
hesitancy in laying before the committee
everything possible, not only to show
that there has been no attempt to use
improper influences, but also to show
that they have not impoverished the
trust for their own benefit.
EXAMINATION OF BOOKS.
ST.. ALBANs, May 4.
The Legislative committee yesterday
examined the books of the Central rail-
road, from 1858 to the present time, to
see whether or not there was any evil
dence of fraud or peculation on the part
of the trustees. They were aided by
Samuel Williams, former treasurer, Mr..
Coote, chief clerk of the present treas
urer, Mr.. Camp, chief clerk of the
shop department and by several other
clerks
THOROUGH AND SEARCHING.
The examination was thorough and
searching, the counsel EMPLOYED by the