The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-07-23
BY TELEGRAPH.
special to the GLOBE.
RAILROAD HEARINGS.
Annulling tho Rutland Railroad Lease.

Annulling tho Rutland Railroad Lease
ST.. ALBANs, July 90.
The hearing on the petition of the Rut-
land railroad company for leave to bring
proceedings for annulling the lease Of that
road to the Vermont Central trustees came
on before Chancellor Homer i. Royce to-
day. Hon. George +. Edmunds, Daniel
Roberts, esq, of Burlington, and Hon.
John Prout of Rutland, appeared for the
Rutland road b. +. Fifield, esq.,, OF
Montpelier, Hon. Luke p. Poland of st.
Johnsbury, and Hon. Levi Underwood of
Burlington for the trustees. The counsel
for both parties vgreed that the proceedings
for annulling the Rutland lease might be
brought and Chancellor Royce will make
an order to that effect.
TIE RAILROAD ACCoUNTING-G SMITH
TESTIMONY.
The hearing in the railroad accounting
before Hon. Paul Dillingham;, Hon. Dud-
ley G. Denison and John l.. Edwards,
esq, was continued to-day. Hon. John
Gregory Smith was the first witness called.
He was appointed receiver of the Vermont
Central in 1858, and held ii until July /,
1873 Joseph Clark was appointed in 1859.
For the first three years his salary was
fixed at $4,000, and IN 1862 was increased
to 81, 500, and afterwards it was raised to
$500. The salary was fixed by Judges
Smaley and Pierpoint No settlement had
been made since 1862, but he had drawn
money not intending TO exceed that sum.
When he was appointed receiver he as
sumcd control of the Vermont and Canada,
and Vermont Central, 1877 miles. Took
the control of the Sullivan in 1868, which
was the first lease. The lessees were Law
renee Brainard, J. Gregory Smith aud Jo-
seph Clark, term five years, from Sept. 1,
1861, and the rent paid $4,000 year, rent
to be paid monthly and further term of
five years optional with the trustees. The
road was run as an independent road aud
separate account kept with it.
The cars of both roads ran
over 1t. All expenses were divided
accordRg to the mileage. lie proceeded
to give long and connected history of
what was called the 50 years contract, the
controversy with the Northern railroad,
and the charter for new road from Wind
sor to Fellows Falls, which brought the
Northern road to terms aud they made
new lease which extends indefinitely and is
now held, with the only condition that
they (he Central shall not distinguish
against the Northern on business coming
over the passumpsic road.
The new lease increases the rent to $685.
coo. The lease was extended three years
ago to Gov. Smith himself the under
standing by parole. Several unsuccess-
full efforts have been made to get a written
lease. The rent has been paid quarterly by
the treasurer Of the receivers. The ac-
counts of that road are kept on separate
books and settlement made with
the lessees once in six months.
An explanation was made of the method
of collecting accounts Tor through business
over connecting railroads. The object in
taking the Sullivan road was to secure a
debt Of sixty or seventy thousand dollars
which was subsequently, taken out of the
accruing rent, AMI stop the loss from the
80 years contract. After certain date the
lease had yielded him personal profit.
| lie had never accounted to the trust for
| any of the profits Of the Sullivan lease.
They have been divided among the trustees
Brainard, Clark, and himself. After the
| board OF management came in, b. p. Che
ney, Clark, w. G. Smith, and himself, had
the profits. Since July l, 1878, the lease
has been assigned to the Central Vermont
For two or three years prior to that there
had been no settlement, and the profits are
in the hand of the trustees. After Mr..
Brainard's death, his, Gov. Smiths, pro-
portion was about $4,000. II.