Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-07-09

present time the Foundry Company has
consisted of Edward A. Smith and John W.
Newton, and has been doing business since
then under the terms of the lease as made
with Smith d Stannard, except as to the
price of castings furnished.
BY the terms of this contract it will be
seen that "royalty" WAS reserved on all
| the castings furnished the railroad, and for
all car wheels manufactured for the railroad,
which royalty" amounting IN all to more
than $135,OOO has been paid to and re-
ceived by W. g. Smith. Prior to the time
Of his becoming one of the trustees and
managers of the road, We see no impropriety
In his contracting in this manner with the
Foundry Company. Since his appointment
in 1870, we find that this contract has been
continued in force, and that he has received
the royalty the same as before. 1t was
claimed before us in consequence of his rela-
tion to the trust he had no right to retain
this sum so received. Upon this subject we
have no opinion to express, as it is proper
matter to be adjudicated in the settlement of
his accounts as receiver, with the Court of
Chancery.
1n respect to the prices paid for castings
or wheels, and whether the prices were great
er than they ought to have been, we found
ourselves surrounded by considerable conflict
ing testimony which it was impossible to en-
tirely reconcile, and although we do not feel
fully assured and certain that there was not
| too much paid, still We do not find afhrma-
| lively, taking into consideration all the ad-
vantages derived from this contract,-t
saving of freight, the terms of guarantee,
| livered to them, and other considerations Of
l. ka ohara toto uItbr ho ftrY HOY
that this matter was submitted to the entire
board OF trustees, that there was too much
| path or that there was any fraud in these
contracts with the Foundry Company in re-
spect TO the prices paid.
| We ought perhaps TO add that an advisory
committee elected by ballot by the bondhold
ers approved OF this contract and all other
contracts made by the trustees and mana
gers.
SECRET SERVICE FUND.
| Considerable testimony was Introduced in
reference to a secret service fund set apart by
the rru,tees and managers. Ii was charged
that such a fund was set apart, and We weIe
requested TO make inquiry into the fact as
to whether it was done for corrupt purposes
or not, and whether any corrupt practices
| were covertly consummated through the
agency.
That there was a fund set apart under the
direction of one of the trustees, j. Gregory
Smith. and was Chi q 2 under his Supervision
and control, there Is no question. 1t was
stated by him chat it was set apart for de-
| tective purposes, in order tn 1t there might
be sum of money that could be used in
such manner as not to disclose the names
OF the persons to whom paid, or the service
| NV hat IT
necessary it was at least expedient that such
a course should be pursued for the best in-
terests of the trust in the management OF
their business. We fail to see any great
necessity for such fund, and while we do no t
believe it was set aside to facilitate the ap-
preparation of any part of it to the private
use of the trustees and managers, still We do
find that in some instances it was misap-
piled.
The following are the material facts devel-
oped in relation to this fund called the Sc
cret service fund:
We find that the money itself which con-
stituted this fund was not kept separate
from the funds of the trust-but that a
special account Of it was kept in a book by
itself by the treasurer of the management.
We also find there was another book kept
upon which the final disposition of the funds
more fully appeared This was private
book belonging to j. Gregory Smith. We
fnd that $3975 of this fund was loaned to
Samuel Williams, the former treasurer of the
ma nagement. We find that December %,
1870, $500 was paid to 10 ID. Hatch, but
for What purpose we are unable to ascertain
Mr.. Hatch does not recoliect of receiving 1t
or dsbursing it.
That January S, 1871, $500 of this sum
i ,,a bad q
part OF it for expenses as agent for the man
agement and the balance is in his hands.
We find that July 3, 1871, the sum o
5000 was paid by W. c. Smith to a citizens
association in ST. Aibans in aid of the erec-
ton of an observatory. We find that Mr..
Smith contributed of his own funds tuf tnis
object and paid this sum of $500 on the
8 ground that this appropriation would add tt
the attractions of st. AIbans, and necessarily
= tend to increase railroad travel.
: That the sum of six hundred dollars wa'
D paid to B. Ii. Smalley by j. Gregory Smitt
e tor counsel and in the interest of the trust
, but as to the subject matter be was advised
, with about Mr.. Smith refused to disclose to
7 the committee We fad that some twelve
thousand dollars stands charged to j
/ Gregory Smith, which sum he stated in par
had been paid for detective service. The
balance of this sum he declined to testify il
re gard to, orlv TO state that he had used il
for the benefit of the trust and none OF 1T haC
been used fol the purpose OF corruptin!
: legislation.
In reference to this branch Of our inquir,
we have only to add that there is so much o
this fund that We are unable to fad Tor whit
purpose it was appropriated that we abstai'
8 from full ex preston Of opinion IN regard t.
t it, and while we do not find that it has beel
| eorrnptly used from any testimony that com
before Us, still fcom the incompleteness o
3 the testimony we do not believe we shoul(
! be warranted in fading it was or was no
: corruptly used without fuller investiga
tion, and we are willing to leave its furthe
consideration to those whose duty it will b'
to examine the subject more thoroughly thar
, We have been able to do.
PRIVATE POPULATIONS.
We were directed to ascertain whether the
: Trustees aud Managers had in any way com
. mitted fraud and pecalatons, and in pur
suance with this direction we took some tes
. timony in regard to the manner the book
were kept, and as to the opportunity the
). had of converting the property of the trust t
, their own use. We fad that an account i
kept Of all the materials taken from tn
, shops by any of the Trustees, and of the la
Dor per formed by the employees of the rail
road for them; but as it would be necessar
to 60 through the whole shop-stock accoun
q to ascertain the condition of the accounts, W
: contented ourselves with learning the fac
that an account was kept in the different de
partnents which could be looked into an
q definitely settled, though it does not appea
n in general account. We heard come testi
: mony as to the private accounts of the Trus
q tees with the Trust, but did not go ia
4 enough to be able to fix upon the amour
h due from or to them We do not find tha
!, any fraud or peculation has been committe
v by them upon the property of the trust, an
!, as this is a matter that must be settled else