The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1883-07-19
The Rutland Railroad.


We have received circular from the
Rutland Railroad Co. signed by the diree.
tors. which also includes statement from
the president. Gov. Page The latter is q
reply TO Published statement from the
Clemeuis, which sought 10 make Gov.
Page party to the deficit in the cash 40.
count, and also to the over issue.
A. We understand it there 10 no evidence.
thus far. that Gov. Page had any knowl-
edge whatever Of the transactions until
The recen. investigation was commenced.
We copy from the circular showing the
amount OF the shortage and also the over.
issue:
II becomes our painful duty to announce
that the cash account OF your late treasu-
rer, Joel NJ Haven, is short TO an amount
not less than S3S, 000~-and possibly larg.
er sum--which can only be determined by
thorough investigation OF all the &C.
counts of the company for series OF years
which investigation is now being made by
a skilful accountant and nearly completed.
II also appears that there has been large
over issue OF stock at one time amounting,
according TO The books, to $500 shares,
but the actual over issue outstanding is
now believed to be 1891 shares. If spur.
GUS shares can be made good by the sur
render OF other stock, without action by
the corporation. That there was an over
issue was discovered by an investigation
of the stock book by III. Z. Wilbur, at the
suggestion. as we understand, OF the Pres.
ident. When these irregularities became
known to the President he requested and
secured the resignation OF Mr.. Haven. and
Mr.. j. II. Williams was appointed Treas.
urer pro tea., which Office he still holds.
An attachment has been placed upon
the property OF Mr.. Haven and it is hoped
that together with his bond, enough may
be secured to save the road from ultimate
loss.
The examination Of the stock books has
been thorough and complete, and revealed
the fact that your late Treasurer has over
issued both the preferred and the COM
mon stock from time to time, and TO large
amounts. One OF the latest and most i'm.
portant transactions took place in Noyem-
Der last There was issued at that time to
p. W. Clement $40 shares OF the pre-
ferred stock, for which no valid shares
were surrendered. These spurious shares,
invalid in their origin, and issued under
very peculiar circumstances. are now in
first hands, and, as we believe, afford no
ground for complaint against the corpora
ton; and under advice OF its counsel bill
in chancery has been brought against Joel
NJ. Haven, p. W. Clement, Charles Glenn
ent, W. G. Clement and John A. Mead,
tho latter Of whom was party TO the sale
Of said spurious shares to the Clements,
and temporary injunction obtained, re-
straining thom from making any use OF
the said shares. from transferring them or
from bringing suit in regard to them until
the court sdjudicates as to the matter.
II is intended to faithfully prosecute
this suit, and it is believed that upon the
evidence tho company have these shares
will be cancelled, and the company suffer
no loss therefrom.
In every case of over issue WHARF the
signature Of Gov. Page was used it was q
breach Of trust on the part of Mr.. Haven
the signature being left with him for
lawful uses only. as is the custom IN large
corporations The board have directed
that new set OF stock books be opened,
and that future issues be guarded by the
countersign Of some independent and re-
sponsible corporation.
We annex statement from Mr.
Mclaughlin. the accountant employed by
the company, in regard to the stock and
cash accounts Of the company, showing
that no other officer OF the company except
the late treasurer is in any way response
BILE for the irregularities.