Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1875-11-03
The Railroad Accounting.


The Railroad Accounting.
The receivers of the Vermont Central have
been giving their account before the special
Masters in Chancery. When the legislature
appointed a committee Of investigation, the
same ground was substantially gone over as
in the present case. The same parties who
appeared to arraign the trustees in the in
yestigation, also have appeared to contest
their accounts. The attempt was then made
to fasten on the trustees the charge OF faith
lessncss to their trust and the perversion Of
trust funds to their own use. The attempt
in that case most signally failed, and the
managers of the road were entirely vindi-
Gated by the legislative committee, and in
the judgment of all rejecting men, from
any corruption or fraud or abuse of the prop
erty placed in their hands The investi-
cation was not partisan or a withdrawing
affair 1t was very thorough and very con-
elusive, and it had the effect to disabuse the
public mind of the wholesale misstatemcnts
which had been freely circulated by certain
parties against the managers. The good eff
feet of the report of the investigating com
mittee was felt, even in the business circles
of Boston and New York, and there was no
difficulty in securing the stock of the Cen
trail Vermont corporation, which was organ
lied for the purpose of consolidating the
various securities in the care of the trustees,
and removing the immense interests they
held, out of the hands of the chancellor and
courts of the state. Gov. Smith was also
placed at the head of the new corporation +;
the corporation was made receiver of the
trust property, until such time as the secu-
rites should be consolidated, and the old re-
special masters, for the property committed
to them.
This accounting has just been completed
and the public now awaits the report of the
masters. What that report will be can be
very safely conjectured from the testimony
that has been given and the arguments that
have been made. 1t is quite obvious that
the enemies of the trustees have failed to
substantate any charge of fraud or corrup-
ton against the old managers They have
appeared before the masters with able coun-
sci, and had free and full use of the books
of the trust, and nothing has been developed
duplicating at all the integrity and honor of
the trustees. On the other hand the reports
of the case show that the trustees have acted
with prudence and sagacity that they have
largely increased the property aud business
of the trust that it is in a far better condi-
ton, in every respect, than when they under
took it, and that they have never entered
upon any extension or leases of other roads
except by and with the consent of all the
parties interested in the trust fund
One singular fact has been developed in
the course of this accounting and the litiga
ton attending it. 1t has been earnestly
charged against the trustees, almost as
criminal breach Of trust, that they should
have leased the Rutland railroad under a
false impression of its earnings and expenses
and have thus involved the trust in heavy
annual deficiency in order to meet the rent
But we have before us the affidavit of the
President Of the Rutland road showing that
the lease was not made under any false i'm.
preston Of its value to the trust, and also
showing that the lease must have been a
source OF very great financial benefit TO it.
Thus the statements Of one party hostile to
the trust disprove the statements of another
party which is hostile to it. Governor Smith
must be gratifed to have the indirect testi
mony of Governor Page TO the wisdom OF
his action in the matter of the lease Of III,
Rutland road.
We trust that the litigation in these rail
road matters is nearly at an end 1t is time il
was ended. We do not soc how there can
be any renewal of these old battles in which
the same ground is gone over and over again
the same charges of fraud are made and re-
futed, and the same management repeats
continually its conclusive vindication. II
is time that the trustees, the chancelors, the
judges and courts of the state, should nc
longer be subject to the old calumnies which
have been rcckessly hurled at them W,
can conceive of no interest to be subservet
by repetition of the charges which hav,
been so many times disproved. The Yer
mont and Canada directors were elected a
the late annual meeting in the interest
of the proposed consolidation with Ia,
Central Vermont. Mr. Brooks, who ha,
stirred up so much strife and litigation, wa.
left out, and will be unable to carry on hi.
guerilla warfare any longer. There is NO
reason why the proposed union should not
be effected now. II is most ardently to be
desired, also, that the Rutland and Central
interests should be separated, for the sake Of
the mutual advantages that must result. The
Central is now doing fair business and its
annual financial statements show that the
receipts of the road exceed its expenses for
the year. 1t will be a great blessing to the
state to have the railroad war ended forever,
before the close of the year.