The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1860-03-23

gnwe on Teul esthtes hS
could raise at least $4,000 or $4,000. Mr..
Leavitt and Mr.. Weston both testified that
the lands were sufficiently valuable to re-
deem every dollar for which they were thus
pledged, and that the low figure for which
they were sold to Leavi,t by Boynton, was
not to be considered any index to their real
worth, inasmuch as the sale at that price was
regarded by the parties as an equitable ad-
justment of some previous transactions, in
virtue of which Boynton considered himself
honorably bound to treat Leavtt with liber-
ality. Whether the property was a veritable
basis on which 10 negotiate the loan OF $780,
600, or such part thereof as could be obtain.
ed, does not appear however to have been
very seriously discussed by the gentlemen
concerned in the negotiation. Mr.. Weston
tersely expressed the whole transaction when
he informed the Committee that "he and
Leavitt armed Peck with the notes and the
mortgage and told him to enter the financial
market and make the best fight he could"
All these shifts for raising money for the
Canasa operation. were based on the hope
and expectation that by July 1859. the mill
would commence running and that the rapid
sale of lumber Immediately ensuing, would
finally provide some cash means little
more tangible and reliable than accommo.
dation notes, which Mr.. Peck himself do.
clares to have been in many instances, Of ga
doubtful character" Disappointment, how
ever, was In store for the unfortunate COM
pany. and instead of having the mill com.
pleted in July, it became evident that post
ponement to the autumn was inevitable. This
state of affairs was one of peculiar hazard
,h.. apf 70 oil hn into
es,ed, but more especially to the five who had
advanced no money. Early In August they
seem all to have known that up to that date
Mr.. Peck had advanced over sixty thou
sand dollars and according to the terms
of the Bangor agreement, printed on page
page IL of tho report, he could have called
on each of his partners Tor his proportion in
money, and unless the same was paid within
three months after the notification, oil claim
to ownership or interest would have ceased
on the part of Leavitt, Weston, Cushing,
Hallowell and Smith. Had Mr.. Peck taken
this decisive step at this point, 1t is quite evil
dent that the i've persons named would have
been compelled to pay him their several pro-
portional parts of the large sum then expend-
ed, or else have surrendered by the tirst of
November, all interests to the Canada proper
ty and have left him the sole owner thereof
Mr.. Peck seems either not TO have recognized
his rights in the premises, or to have lacked
the disposition aud resolution to enforce them.
The other parties, however. scented the dam
ger to thems elves, and perceived the necessity
of placing the property in such a position as
would render il impossible for Peek TO fore
close aud secure his rights as guaranteed in
the Bangor agreement. The anxiety felt and
the plan conceived, are very well set forth in
the testimony of the parties who acted as
chief agents. Thus. in his testimony before
the Committee, Mr.. Leavitt said:
"In August last, Weston and got uneasy,
for we had furnished the $50 900 worth of notes
secured by mortgage, and by the agreement with
Peck we were liable to lose all our interest in
the Canada property unless we paid in three
months. IL called on, our full proportion in the
whole operation. We could not realize out OF
the lumber. Weston and TALKED orer a plan.
We went to Portland and got Peek to convey
the property to Smith and Hallowell in trust.
He also wanted Smith and Hallowell's notes for
$4,000 or $50 900 to raise money. and we blend
ed the two things together and he agreed to con.
vey, and afterwards did convey to Iallowell and
Smith. Weston made the writings"
Wr. Weston in his testimony. given before
Leavitt's, agrees substantially with him. lie
says:
"We supposed in August that the Canada
concern had absorbed ahoYt $50, 600. had no
knowledge hat any other person than Peek had
paid anything. We were conscious that Peck
was getting into figures beyond his alleged abili-
ty TO carry and we iodnted 10 plan for him.--
Leaytt and myself went TO Portland in August.
There was no especial necessity for the transfer
to Smith and llalowell being made at that time
or because any particular sum was then needed.
Ii was upon general survey of what would be
needed before long. Peek did not 66ject to the
transfer when Leaytt and l went to Portland.
IL had for months been fOrcseen by US that the
property must be hypothecaied IL we did not get
relief from lumber"
The "plan" which I.eavitt says he and
Weston talked over, and which they appear
to have jointly devised, was for Peck to con-
vey the Canada property to George Il. Smith
and A. Il. !lallowell, and take from them an
obligation to reccnvey when certain notes,
which said Smith and IIallowell were to furn-
ish him. should be paid. In other words
Hallouell aud Smith were to furnish their
notes to Peek for $4,000 for the purpose OF
procuring funds by their discount-that to
secure these notes Peck was to convey the
Canada property to Hallowell and Smith to
be held in trust by ,h0m-they giving an OBJ.
legation to rcconvey when the notes were paid
~ Peck. This "plan" was urged upon Peek
by Leavitt and Weston, and at Portland on
the 23d Of August, assented to by Peck
From that date Weston, Leavitt and their as
sociates had the property placed beyond
Peck's control, and themselves relievetsfrom
the liability Of forfeiture imposed upon them
by their Bangor agreement Of July 20, 1858.
The following is a copy Of the paper which
Peck received from Hailowell and Smith. and
which was written by Weston on the "plan"
agreed upon between himself and Leavitt:
..r. COPY.
PORTLAND, August %, 1859.
We have this day received conveyance from
b. ID. Peck Of the property and timber limits on
L'Assumption river. conveyed to him on the 10th
logs cut last winter, on said limits, and the logs
bought Of Edward Scallan, and OF the mill lot,
mill and booms at Repentigny, said conveyance
being agreed to be perfected hereafter according
to the laws Of Canada.
This is to acknowledge that the above convey
ance is made to secure for our notes Tor fifteen
thousand dollars, furnished and agreed TO be
furnished for the accommodation OF said Peck,
and we agree TO hold and manage said property
for the following purposes, after securing our
selves against said notes. First, we will apply
the proceeds Of the logs TO the expenses Of saw.
ing them. Second, we will hold the balance Of
the proceed, to repay said ID. ID. Peek for all
his advances. with interest and charges, for the
concern known as the '0ttawa laundering
Company" and also to reimburse any other
member OF said company. who has made or shall
make advances for L.. In cash, or securities, sub.
ject to the above charges. We hold the proper.
ty itself TO be reconveyed on request to said
Peck to be held BY him for himself and as trustee
for Others, as he has heretofore held, and until
we reconvcy to him. we hold Il charged with the
rights In Il which he has stipulated in favor Of
ourselves and other partners. And We agree not
to sell the property without the assent OF all the
members Of the "0ttawa LAUNDERING Company"