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

culiar system Of financiering adopted to pro-
mote the enterprise. Mr.. Hallowell says he
consulted Mr.. Peck in regard to the admis-
sion Of Mr.. Smith to the partnership, and
that the arrangement was pronounced 10 De
u very acceptable one to all concerned.
The property purchased by the company
consisted Of " limits" or permits to cut the
timber, on 266 square miles Of land on the
Assumption river, 60 miles from its con-
huence with the st. Lawrence, together
with mill site and old mill run by wa.
ter power some fifteen miles from the
ST. Lawrence and three miles from Indus
try village. Owing to the difficulty OF RUM
ing manufactured lumber over the rapids
of the Assumption river to the st. Lawrence
and the high rate of land carriage thereto,
the purchase Of mill site and erection of
mill on the shores of the latter river, were at
once resolved upon by the new company-the
determination to that effect being made as
early as August 1858, when Messrs. Peck,
Leayitt, Hallowell and Cushing went to Can
ada. purchased the site on the ST. Lawrence
and made arrangements for the speedy erec-
lion of new steam mill with power to man
ufacture 6rs millions of lumber in single
season. the capacity of the old mill not being
site was $1,000, assumed or advanced by Mr..
Peek. From that time forward, Mr. Cush-
ing remained on the ground as general agent
and manager OF the joint business, and his ac-
counts show with undoubted accuracy the
amount Of money put into the operauon'
During the Autum of 1858 there was expend-
ed the sum of Ss,725.6l, besides the $4,000
paid down, and the aggregate amount passing
through Mr.. Cushing's hands and laid out in
the oper-tion up to December 10. 1859, was
SGs, s,I73.6O. This sum does not include
the original $4,000 paid by Mr.. Peck, nor
does il include $4,000 advanced by him to
anticipate the Leavitt notes held by Scallan.
and which that gentleman during the sum-
mer of 1859 was willing to sell for 25 per
cen, less than their face. Adding this Sli,-
600 to the above, together with $500 paid on
A note given for saws, and two sums Of $500
each reserved by Mr.. Gushing from large
drafts negotiated by him for Peck in Montre-
al, and the expenditures in the Canada oper-
alton will be seen to have reached the enor-
nous aggregate Of $50 ,673.6O.
This large sum, according to the uniform
testimony of all the witnesses, was vastly
greater outlay than had been originally con-
templa,ed. The first project apparently in
mill, and the building Of the new steam mill
when resolved upon was estimated at S20,-
600, with $4,000 as the outside figure. 1t
cost however nearly $4,000. and while 1t
was in process Of erection, a heavy sum OF
money was expended in cutting and driving
logs. 1t was hoped and expected by the COM
pany that the mill would be ready for saving
by midsummer, 1859, and that by the latter
part Of the ensuing autumn large amount
of lumber would be ready for market-thus
aaor1ing return for the heavy outiays and
expenses incurred. Instead however of hav-
ing the mill in operation by midsummer, there
was not wheel turned until October, and
when il had been running little more than
a month hue collapsed and the saving of
lumber suddenly stopped. The agent, Mr..
Cushing, concluded that IL was idle TO at
tempt 10 run the mill any longer until the
coming spring. and so arranged for winters
"logging." and was engaged in that under
taking when the deialcation OF the State
Treasurer was announced, and the "ways
and means of further operations in Canada
by this company suddenly and etfectually
cut of.
Not one of the parties engaged with Mr..
Peck in this Canada speculation furnished
~ it on. Indeed. in their testimony before
the Committee, not one Of them pretended to
have done so. They were all obliging enough
to furnish Peck with notes to any amount, at
any time, TO be negotiated at any discount
and to be paid by any body-except the
makers. Mr.. Hallowell in his testimony be-
fore the Committee, unqualiaedly confirmed
this view of the case. He said, 81 don't I
know of cent furnished by Smith; don't
know and have not supposed that either
Weston, Leayitt or Gushing furnished any
money; my understanding was that Peek
furnished al the money" Mr.. Weston
seems by his own testimony to have kept
Peek well supplied with his notes-"a large
number Of which," Weston says, "were ne
gn,iated BY Peck, and considerable quanti-
ty is still on hand" Mr.. Weston informed
the Committee that he "sent these notes TO
Peek in nAoie batehes." and that he kept no
minute of their number, their amounts, nor
their dates of maturity, being perfectly will
ing, as he expressed IL, "to risk the notes II
the Banks hAaf discounted them 9cre." These
notes were en- dorsed by Peck, renewed by
him when they matured. or paid directly
from the State funds. When the original
notes were not so paid, the renewals in all
instancesiwherc they were paid at all, were
paid by drafts directly on the Treasury funds
Mr.. Leavitt gave out bu, few ofhis own notes,
but furnished an abundance OF other peoples,
and did very large business in the nego,ia-
ton of Treasurer's checks. Among the notes
furnished at different periods during the year
1859 by Mr.. Leavitt, were those principally
OF Leonard Jones of Bangor, and Of Treat &
Co. of Frankfort. Mr.. Leavitts understand.
ing was that "Peck could have these dis.
counted readily at the Banks where he kept
State deposits, and that as they matured they
should be renewed, and thus KEEP, along until
the money was obtained from the lumber. 1t
was understood that Peck should furnish the
money for the operation" The notes Of
Leonard Jones were apparently for the ac-
commoda,ion of Mr.. Leavitt, and oil that
were discounted seem to have been paid by
Mr.. Peek, with the exception Of eight that
were given in November and December, 1859,
for the following sums:
One for S165 90