The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1868-01-23
European and North American Railway

I
domestic news, shipping news, market reports,
| court reports, &C., SC.
European and North American Railway.
Some further developments have occurred
in the affairs OF the European and North
American Railroad Company, and we resume
our account of the controversy which has at
tracted so large a share OF the public atten-
tion. A letter which has just appeared in the
Boston Journal elucidates some points which
have hitherto remained obscure 1t had not
previously appeared in the newspaper discus
sion, for example, that Messrs. Peirce and
Basdell were originally the sole contractors,
and that they, after receiving 574 shares of
stock and Sl50,O00 of company bonds as col
lateral security, associated with themselves in
the contract ]. Edgar Thompson and VIM. G.
Case of Pennsylvania, Gov. Dennison of
Ohio, Geo. K. Jewett of Bangor, and others,
making ten in all. These gentlemen agreed
to cash the bonds of the city of Bangor as
| fast as they could be reached, ard 100000 in
bonds were also subscribed for in Bangor
| The bonds by the terms of the act authorizing
their issue were to be delivered at the rate of
| 100000 .for each section of ten miles COM
pleted, but the citizens subscription was
made payable in advance, as the work pro-
gressed, after $4,000 had been expended by
the contractors.
The work was accordingly begun in Ban
gor on the 1st January, 1867, and on the
31st August S121 ,122 had been expended on
the line in Maine. 1t does not appear as yet,
whether any further expenditure was made in
Maine, but on the 9th November it was re-
ported that 1851 ,2l6 had been expended by
the associated contractors sin Maine and
New Brunswick" and of this amount the
Journals correspondent (Toby Candor) says
all but S131 ,47S had been raised on notes in
dorsed for the contractors by Mr.. Jewett, the
President of the company, aud Noah Woods,
the Treasurer, in their individual capacity.
Under these circumstances the Bangor
subscribers were called upon for 20 per cent.
OF their subscriptions, payable on the 1st De
center. To this call they declined to re-
| spond, only $4,000 of the 100000 called for
having been paid in. Thereupon it was pro-
posed and five of the nine directors voted to
indemnify VIM. G. Case (wbo appears to
have advanced the greater part of the money
actually furnished by the contractors) by is
suing to him 1850 shares OF the capital stock
of the company. This movement would have
given Mr.. Case controlling interest in the
road; it would have deprecated the shares
held by the associated contractors; it is also
| represented by Mr.. Poor as a violation of the
contract of March %, 1866, which provided
that no further issue OF stock or bonds should
be made until the line was completed 10
Winn
| A petition was at once presented to the
directors for stockholders meeting to be
called for the 18th instant. Mr. Peirce tap
piled to the District Court for an Injunction
to restrain the issue of stock, and Messrs.
Poor, Gilman and other stockholders made a
similar application to the Supreme Judicial
Court OF Maine. Mr. Peirce's application
was refused by Judge Fox, on the ground
that he was controlled by majority interest
of the associate con ractors. The stock
holders meeting, after some preliminary diff
culties which have been explained, was held
on the 18th. Meanwhile Peirce had been
enjoined from representing the 347 shares he
holds in trust, except in conformity with the
wishes of his associates, and the 1850 shares
had been issued to Case. If these 1850
shares are genuine, there was no quorum
present. Ii they are bogus, more than one
fifth OF the stock of the company was
nfo1 ny
appeared as President and Clerk, and claim
ed their right 10 act, but were set aside by
the stockholders, the President as a party to
the contract and the Clerk for alleged unfaith-
fulness in recording the doings of previous
meeting. The stockholders then voted to re-
strain the directors from issuing any stock
except with the consent of the stockholders.
On the 18th preliminary hearing on the
stockholders application for an injunction
was had at Portland before Chief Justice
Appleton, and Case was made a party to the
| bill end the hearing postponed two weeks to
secure service on him, he being absent from
the State.
| AS the whole matter is now subject Of
| judicial enquiry, there would be an obvious
impropliety in making any comments upon
the merits of this controversy. The compile
tion OF the European and North American
Railway is aconsammation in which the peo-
| pie of Maine have common interest What
ever hastens or retards the progress of the
work will inevitably command the attention
of very large portion of the reading public,
and we have simply discharged an imperative
duty in reciting the circumstances of this
| fr0cds as they have gradually come to light.