New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-30
VERMoNTS CRBDITMOBILIER.
HOW A RAILROADS. vTTALs WERE EATEN
OJVr

TRIAL RAILRoAp-How IT'S AFFAIRS WERE MANIp-
UL,TED-ALL ITS EARNINGS GO TO SUPPORT A
RING-THE LEGISLATIVE INVESTIGATION ABOUT
10 BEGIN AT ST. AIBANS.
tFRoM AN OCCASIONAL CORRESPONDENT THE TRuBUNE.l
BosroN, April 26.--0ne of the largest speci-
meus OF railroad iobbery that afflicted NewEu
gland. any other part of our forbidden
country. is 10 DO the subject of Official
investigation at St. Adams, VT. beginning on
Tuesday say Investigation" for such Is the
form aud object which the Vermont Legislative Com
mittee aud undertakes. Whether the Commit
will determine to probe whitewash brush
remains 10 be The Vermont Central Railroad
which the object Of this legislative inquisOn Is by
Omeans an easy thing to investigate 1t requires an
extraordinary amount Of moral and private ana
official virtue TO investigate company which, thouBu
Its stock not worth IS cents share Is yet repueu w
DC rich enough 10 buy up nearly the whole state OF Ne
mont including all that purchasabe in its Judiciary,
its Legislature and its newspaper press anu - uiSPo
now as in times past to spend money freely when Other
arguments fail. And further, its TRANSACTIONS arc
so Opaque that it requires remarkable degree OF Po
trauon-more than most legislators posseSs-'o e0o
through them.
WHAT THE INVESTIGATION SHOULD DEVELOP
PINT - ever a legislative ommIttee had glorious OPP
nortuntv 70 serve their constituency by unearthng and
rebudng the frauds. intrigues, ana oorruptons vi
dOmineering and avaroious railroad ring TINS commit
tee is one glorously privileged IL Is almost needless
IN remark that the m1uagembul-N tHdt WOIu Csiu DO
used in connection with this road-ot the Vermont Cen
trail has been the subject OF scandal oil through New
England IL has been Ofense unto all railroad men
except those participating in ITS profits The personal
and official conduct of those who control II has been
more than held up 10 public reproach and, II all
that is charged against them is capable of proof their
experience in handling tue Vermont Central would adj
mirably hit them to tgure in Credit MoOlier or any
other Congressional enterprise which might pay high
dividends the public shame. Your readers outside
New England may not be familiar with this road and
It's history, but there is not one of them living in the
states that has not heard Of this road For IL
is VIGOROUSLY one OF those roads which defy all
common laws of mathematics. For several
years past the has been adding to its
resources adding TO its expenses and numerically add
ing to its debt But instead adding to its receipts and
adding credit the principle of subtraction comes
here, and works to up all the receipts and
leave the treasury empty while the debt feeds on moth
ingness and gets fat But while the road is getting
poorer and debt bigger its trustees are getting rich
with rapidly which utter reDuke to the old prov
erb. nitilO mill fL just how the subtraction re-
ferred managed is an important and delicate mat
ter; there adayits extant which will materially
aid the Committee If they have any desire 10 know. In
the railroad literature of this country the Chapter Of
Vermont Central" will deserve place by the side Of
"Chapter of Erie" far the moral OF the two his
tories is concerned
SUPPRESSION OF EvIDESOE-RELATIoS OF ROADS.
attempts tolnvestgate tue affairs of this road have
failed 1t is believed that this because the
road manipulated both the Legislature and the pub
lie press. The only thing approaching investigation
was the judicial farce enacted in chancey in March last
on suit brought by the Vermont and Canada Road TO
Obge the payment Of rent due them from the Vermont
Central under conditions of perpetual lease TO the
latter road. Some startling disclosures would have
been made at that time II the Chancellor had allowed
them TO be presented but by rulings which disnter-
eSted lawyers regard very singular, the most vital
evidence was excluded, and the Judge rendered de-
cison which left the just where it when the
ton was begun.
The relation of these two roads may as well state just
here The Vermont Central built between the years
Isl5 and 1850 The Vermont and Canada Road
OF the same line from Essex Junction, was then
built and the Vermont Central took perpetual lease Of
the Canada Road at rent Of cent upon the cost Of
the road originally built thereafter increased. The
Central operated the Canada Road under that lease and
paid promptly the rent until December 1854 At that
time they first failed to pay the Vermont aud Canada
Road In April 1855, the Vermont and Canada brought
suit against Central enforce payment and caused
the Central Road 70 be put into hands of receivers,
who operated the Central and the Canada roads under
the during the tendency Of the suit At the ter
minatOn of the suit which decided in favor Of the
right the Canada Road have its rent made chargeabe
out Of the first earnings OF the line these receivers
continued in Office for the purpose OF meeting the
payment the Canada and also for paying the interest
series of bonds-rst mortgage and second mortgage.
The decision of the court modified in 1864
require the receivers after paying the Canada rent to
pay the interest the first and second mortgages.
They and did pay the interest the first mort
gage but had enough TO pay the interest the
second They paid rent and first mortgage interest up
70 June ls72 before this time they had incurred
as receivers, liabilities for equipment purposes TO the
amount of 100000 and floating debt of $2OOO0OO In
the Summer of 1872 they unable pay the debts
which they had incurred and went to protest and in
December of last year they failed to pay the
interest on the first mortgage bOuds, and i'm
mediately afterward failed to pay the rent Of
the Canada road. The Canada road applied 10
the court for order to require the pay
rent alleging that the court had already decided that
they entitled paid OF the first earnings Of
road before any other creditors taken Of
That application for hearing in March, and the
court without deciding the rights of the parties held
that necessary to have account taken before
they could decide those QuestiOns whereupOn the
Canada road withdrew the application, and left nothing
70 the Of litigation pending between the parties.
The failure to expose the facts In court occasioned
public disappointment: but brought light
show how much more there must be which left In
darkness. Prior to this, however, charges had been
made that the road used its vast influence through
money suasOn TO control the State Legislature.
gard for its sefrespect If other charges of corrupt
prodigate aud ckless management had been suf
Gent in0uced the Legislature. in October last APP
point Committee OF Investigation, with power 70 sit
during the recess Only three sessions were held
before the Legislature closed in December and these
examined only voluntary witnesses. The Committee
purpose to begin the nves tigation next Tuesday in
earnest and array Of peculiarly redoen facts may
be expected If they could at all be translated INTO
tent odors nobody could 20 into that part Of the State
of Vermont without holding his nose.
THE RING RECEIVERS.
The receivers under whose whose management the