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

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account to ascertain the condition of the
accounts. we contented ourselves with
learning the fact that an account was kept
in the different departments which could
be looked into and definitely settled,
though 1t does not appear In a general ac-
count. We heard soma testimony as to the
private accounts of the Trustees with the
Trust, but did not go far enough to be able
to fix upon the amount due from or to
them. We do not find that any fraud or
peculation has been committed by them
upon the property of the trust, and as this
is matter that must be settled elsewhere,
we do not think the subject matter calls
for further comment from the committee.
SULLIVAN RAILROAD.
In September, 1861, j. G. Smith pro-
cured the lease of the Sullivan Railroad,
and in one form or another il has been
leased until the present time, and Is now
leased to J. G. Smith for the benefit of
himself and his associates. We find that it
is undoubtedly for the best interests of the
Central road that the Sullivan road should
be operated in connection with IT.; that
their interests should he identical and not
adverse. We also find that the Sullivan
road has not been run to the prejudice of
the interests of the Vermont Central road.
NlilCc tIlc lcuSllp Vi tlllS TOdu-ln lOOl,
large profits have accrued and been paid
over to J. Gregory Smith and his asso-
ciates II appeared that the net earnings
had exceeded four hundred and fifty thou
sand dollars.
MONTREAL AND VERMONT JUNCTION RAIL
ROAD.
This road is principally owned by J.
Gregory Smith and Joseph Clark, and
operated by the trustees and managers of
the Vermont Central under an agreement
by the terms of which the Central pays
fifty per cent of the gross earnings as
rental. This amount has been paid over to
Smith & Clark, and amounts in the whole
to nearly 1897 900 This road was built
some eight years ago, and it has been
charged that its construction was unneces-
sary, and that frauds were committed in
its construction, and that instead of its be-
ing built in the interest of the trust prop
erty, il was built in the interests and for
the benefit of Smith and Clark. In the in
vestigatlon of this affair in connection with
this road we found that the books contain
ing the construction account were at STAN
bridge, p. O.. and though the committee
indicated to }. Gregory Smith that they de-
sired them for examination they were not
brought forward and the committee not
lltN luS tlt pONtl W Stllt III tiitill Ill SdH-
ada were compelled to take such testimony
as could be procured.
The testimony that was introduced es-
tablishcd the fact that there had been no
fraud upon the trust in the construction of
this road.
The committee express no opinion in
reference to the necessity or purpose of
building the road, as they did not seriously
consider the subject. but find that since its
construction and lease it has been operated
honestly under it, and that one-half of its
gross earnings have been retained by the
Vermont Central.
We will only add in reference to the
Sullivan and Montreal & Vermont Junction
roads, that if there is any improperly in
the relations sustained by the trustees to
them that render it obligatory upon them
to turn over to the trust fund the profits
resulting from the leasing and operating of
those roads, 1t il a matter for adjudication
in tho judicial branch of our government.
W. G. BROWN.
We took the testimony of J. G. Smith
only in reference to the alleged bribery of
w. G. Brown, the former attorney of the
Ogdensburg II. r., from which it appear
ed in substance that he was paid twenty
five thousand dollars by the VT Central
and the lower roads that were interested in
the lease of the Ogdensburg road, as re-
taners to secure his services in sustaining
the lease, which was taken for twenty
years, each road paying its due proportion
of the sum.
Gov. Smith stated that some further con-
siderations that influenced him in the pay
mcnt of this sum on the part of the man.
agemcnt, which fully appears in the tes-
timony. 1t also appears that this sum was
paid by two notes Of j. Gregory Smith two
days after the lease and after the consent
and agreement of the lower roads. This
transaction appeared upon the books of
the management as charged to the lower
roads in the VT. Central account with
them.
1t also appeared that after the retainer
Brown was paid a salary of $4,000. He
was formerly a director as well as attorney
and was on the pay roll of the Ogdens-
burg road. His name got upon the pay
roll of the Central by mistake and when
discovered the amount was charged to the
Ogdensburg road.
In view of the whole transaction, as it
appeared before us, the committee are
unanimously of the opinion that it was an
unnecessary and extravagant fee-but do
not find that it was paid AZ bribo,
OTHER MATTERS.
No testimony in reference to the con-
struction of the Mssisquoi railroad was
presented before us or in reference to the
payment of money to attorneys to draw the
bill for the incorporation of the Central VT
X. II. Co., or whether this bill was meas
ure of relief solely for the trustees and man.
ayers or as to one of the commissioners
under it, saying he would give 800, 900 for
the appointment.
By referring to the testimony it will be
seen that one of the attorneys for the trus-
tees and managers offered to furnish list
of witnesses to be examined in reference to
that branch of the resolution, requiring an
investigation rs to whether ''any members
or officers of either House of this General
Assembly, have written or aided in procur-
ing to be published, the articles in the Bos
ton 1rareiler touching any measure now
pending before this legislature Also,
whether any members or officers of either
House of this General Assembly are in the
pay and employment of any individuals OPP
posed TO the passage of any such pending
measures"
No list was furnished, and the commit
tee knew of no testimony that could be OBJ
tanned that would have a tendency to estab-
| ilsh such q atato OF facts.
PASSES.
In regard TO passes the committee find
that in accordance with their custom passes
had been issued in exchange with other
roads-the state and national officials, and
to some prominent men not connected with
the management. How this record COM
pares with the practice of other r0ada, we
have no means of knowing. We would
however recommend that the whole system
DO abolished. When railroad managers
bestow pass they part with SO much
property of the road, and quite as often as
otherwise the consideration is more personal
to the officials than advantageous to the in
terests of the management.
Its tendency is to create a privileged
class, and it undoubtedly tends to give rail-
roads an undue political influence.