Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-07-20
OH 9ree Rress.
RUTLAND RAILROAD.
Statements of the Directors. ex-
Gov. Page and the Expert.
No Intention of Issuing New Stock
10 Garry the Election.
Gov. Pages Dcfence-Spurious shares
la the linnds OF the bankers Glenn

Gov. Pages Defence-Spurious Shares
la the linnds OF the bankers Glenn
Especial Despatch to the Free Press ani Times
RuiLASD, VI, July l5-The directors of
the Rutland railroad and Gov Page will
issue II twelve page statement tomorrow in
reply to the Clements. II denies the charges
against Gov. Page in that statement and
says the statement published by Prout and
Walker is true in every particular. 1t denies
that the directors contemplated Issuing new
common stock to use in the next election aud
contains sworn statement by Haven as fol-
lows
IL, joel NJ. Haven, on oath say that US
treasurer of the Rutland Railroai company
/ have had the custody Of the stock
books Of said company and have been respOn.
sble for all entries made therein and that II
any mistakes or ire ular,tics are TO be found
therein Gov. Page is not responsible there
for, nor has he in any way been knowing to
the existence thereof"
Statement OF the Directors to tho stock
holders.
1t becomes our painful duty to announce
to You that the cash account of your late
Treasurer, Joel NJ. Haven, is short to an
amount not less than S3S, 000-and possibly
larger sum-which can only be determined
by II thorough Investigation of all the &C
counts of the company for series Of years,
which investigation Is now being made by n
skilful accountant and nearly completed. 1t
also appears that there has been a large
overissue of stock, at one time amounting,
according to the books, to 5000 shares, but
tho actual overssuc apparently outstanding
is now believed to be 2s91 shares, if spuri-
Gus shares can he made valid 10y the surren-
der of other stock, without action by the cor
poratiOn. That there was an overlssue was
discovered by an examination OF the stock
books by II. b. Wilbur, at the suggestion, as
we understand, of the president. When
these irregularities became known to the
president lie requested and secured the res
igna,ion of Mr.. Haven, and MIR. j. Ii. Will
lams was appointed treasurer pro teiu. which
office he still holds
An attachment has been placed upol the
properly If Mr.. Haven and 1t is hoped that,
together with his bond, enough may be Sc
cured 10 save the road from ultimate loss.
The examination of The stock books has
been thorough and complete AMI revealed the
fact that your late treasurer has ov,rlssued
both the preferred and the common stock
from time to time, and to large amounts.
One of the la' est aud most important transac-
tons took place in November last. There
was issued At that time to L. w. Clement
$40 shares of the preferred stock, for which
no valid shares were Surrendered. these
spurious shares, invalid in their origin and
issued uu,er very peculiar circumstances, are
now in first hands and, as We believe, afford
no ground for claim against the corporation {;
and under advice of its counsel bill in
charcery has been brought against joel NJ.
Haven, u. ". Clement, Charles Clement, w.
&. Clement and John A. Mead, the latter of
whom was party to the sale OF The said
spurious shares 10 the Clements. aud IL tenn
porary injunction obtained restraining them
from making any use of said shares, from
transferring them, or bringing suit in regard
to them until the court adj udlcatc5 as to the
matter.
1t is Intended to faithfully prosecute this
suit and it is believed that upon the evidence
the company have, these shares will be cam
celled and tue company suffer no loss there
from.
In every case of overissuc where the sigma
ture of Gov Page was used II WAS IA breach
of trust Oh the part of Mr.. Iuvon-the sig
nature being left with him for lawful uses
only, us is the custom IN large corporations.
The board have directed that II new set OF
stock books lie opened. and that future is
sues be guarded by the counttrsign If some
independent and responsible corporation.
We annex statement from Mr.. McLaugh-
lin, the accountant employed by the company
In gard to the stock and cash accounts of
the company, showing that no other OIL
Ger of the company but the late treasurer
Is in any way responsible for the irregular.
tiles.
1t is understood that an effort is being
made to change tho board at the coming
election, and that among the principal par.
ties in this movement are the parties who
have been sued by the road for the overssut
OF stock rs referred to elsewhere. The un'
dersigned are not anxious to retain their po
sition as directors, but they think it would bt
against the interest of the Rutland railroad
to lose the services of Gov Page at this juno
ture of their affairs. lie is familiar with al
the matters, and it would in our opinion be
mistake for the stockholders to dispens,
with his services at time when new com
plications urc about to arise, whenhis expert
ence and ability will be of much benefit.
In conclusion we request stockholders II
far as practicable to attend In person the an
nusl meeting, and hear all The reports, an
then Judge what it is for their interest TO do
If they cannot attend in person they shoul,
be sure to give their proxies to parties VIII
will use them for the best interest of the cor
poration, and not to subserve private ends O
personal eumiies.
HENRY NJ. WHITNEY,
+. A. RICHARD,
w. f. ROBINSON,
JAMES w. HicKoK,
JAMES Ii. WILLIAMS,
JonN PEoUT.