The Republican journal., 1873-06-12
The Railroad Decisions.

term of the Supreme Court, at Augusta,
were two in which the Belfast and Moose
head Lake Railroad Company was plain
tiff, and subscribers to its capital stock
the defendants. The most important of
these was the suit against the town of
Brooks, to recover S1S, 800, being the
unpaid balance of its 1000 subscription,
the town authorities having paid the sum
of $500. before others were chosen on
the non-paying issue. The defence made
was mainly that in the warrant calling
the meeting at which the amount was
voted, the purpose of the meeting was
not rightly stated-that the language was
''to see if the town will lend its credit in
aid of the railroad" when the vote
actually was to take so much stock. It
seems that the court considered the de-
fence inadequate, and probably frivolous,
and held that 1t was sufficiently apparent
that those who participated in the meeting
understood and sanctioned its real inten-
ton. The attempted reputation by the
town, after it had secured the road and
its advantages, was an act of deception
which has met a very Just rebuke. This
decision is final in the matter, and there
remains nothing for the town to do but to
pay, as execution will Immediately issue
But this is not the only act of nun icipal
bad faith toward the railroad corporation.
The town of Unity subscribed $50, 900 by
authority Of meeting called for the
purpose, and now seeks reputation in
the same manner that Brooks attempted.
A brief statement of the situation of the
railroad corporation at the time the road
was built, will show how utterly mex
cusable this course must appear to any
and every fair minded man. The cor
poration did not start upon this enterprise
with purse sufficient for its completion.
1t was necessary to choose that route upon
which, other things being equal, it could
secure the largest subscription. This was
authorized by the charter, and this course
the directors openly stated that they
should pursue. Besides the route by way
of Unity, two others offered themselves;
that via Troy. and the one via Plymouth
and Dixmoat-each leading to some point
of connection with the Maine Central and
each offering large town subscriptions
When the wealthy town of Unity came
forward with the inducement of $50, 900
subscription to the stock, the directors
saw at once that the interest Of the cor
poration lay in accepting it, and did so.
But to their surprise and indignation,
while they were struggling for means to
complete the last few miles, Unity, having
secured the road by its construction
to the town, deliberately repudiated its
obligation, and has not to this day paid
one dollar. By straining the credit of the
company and Of persons and corporations
interested, the road was completed, and
its advantages have been fully enjoyed by
that town. The decision in the Brooks
case is undoubtedly an indication that in
due time all the delinquents, individual
and municipal. will be compelled to do
Justice in this matter The case of the
town of Thorndike is very similar to that
of Unity, and is to be pressed to decision
as soon as possible. The Unity case is
continued for furt her consideration, and
the Thorndike case is not yet argued.
Certain individual subscribers to the
stock of this road have also refused to
pay, but not in large amount. A test case
that of Calvin Moore, was decided by
the law court adversely to the company.
1t seems that certain decisions have been
had in this and other states in reference
to subscriptions under old charters, that a
person subscribing for stock must not
only agree to take it, but to take and p0V
for it. The latter condition was in some
way omitted in the paper which the de-
PENDANT Moore and others signed. But
the charter in this instance has a new pro-
vision which gives the company power to
sell the stock Of delinquent subscribers,
and hold them tor the balance. The action
of the company was brought to compel
payment for all the stock, and it was upon
this that the adverse decision is rendered.
Actions will now be brought against all
the delinquent subscribers to compel pay
ment of the difference between the auction
prices of the stock and par value-and of
the result in those cases there can be no
doubt. The Brooks decision has increased
the value of the stock, so that the COM
pany will be q handsome gamer by the
suits, while those who have chosen to
litigate the matter will pay their money
and have no stock to show for it.
Since the above was in type we have
received the Moor decision in full. which
will be found in another column.
A 4 !