Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-03-18
TIE EASTERN RAILROAD AND NAME
CETTRAT

day last, an investigation into the affairs OF the
Eastern Railroad. At the hearing the first wit
ness called was John 3. Parker, Treasurer and
Clerk of the Eastern Railroad. His testimony IN
regard to the purchase of Maine Central Stock by
the Eastern Railroad was as follows:
He stated that the cash book contained a record
Of all the receipts and expenditures OF the road
from 1865, He had with him the various
books of the corporation. February II, lo'o' ne
thought it was, that he first paid out any money
for shares in the Maine Central Railroad; the
amount was $50, 900. President Lothrop told HIM
that certain party would offer him Maine Cen
trail stock at certain price, which he was to take
and pay for. There was no record vote of the di-
rectors in regard to it. IIe as treasurer of the
road was to pay himself as trustee, money
enough to pay for the stock. Mr.. George b.
Ward brought in the certificates of 500 shares of
Maine Central stock, and he paid him the money
for them and took the certificates. lie then
sent them to Augusta, and had them transferred
TO himself as trustee. In November 1t became
necessary to raise some money for the company,
and the stock was transferred to Samuel Hooper.
February pa S42 900 worth Of stock was bought
by direction of Mr.. Lothrop of Mr.. Ward. He
did not know where Mr. W ard got It. lie under
stood that it was purchase, not loan. lie paid
SEQ for both lots. Mr.. Lothrop told him, Mr..
Parker when the first lot was purchased that he
had arranged for 1000 shares. There was no writ
ten contract between Mr.. Ward and Mr.. Lothrop,
but Mr.. Ward had agreed to sell 1000 shares.
third purchase was made March Is, Slo,330. The
stock that stood in names not familiar to him was
sent to Augusta and exchanged; and that which
stood in Mr.. Wards name kept at Mr.. 10th
rop's suggestion that the company might want TO
| raise some money Monthly payments were made
| I'D to and Including November, when lO,olZ shares
| had been purchased at a cost OF S4l202i. Then
| the company needed money Previous to that
notes had been given by the company. In Novem-
Der it became necessary 10 raise money, and 1913
shares were transferred to Mr. Hooper and 1919
! to Mr.. Woodbridge collateral on notes which
they indorsed. He trustee took no rece PTS
| from Mr.. Hooper or Mr. Woodbridge for the
stocks Receipts would have been required from
apy one who had not been director in the road.
| The notes paid al maturity, but the stock
had never been transferred back to him as trustee.
fle understood from the beginning of the trans
actions that the object was to acquire the control
of the Maine Central Railroad and relieve the
Eastern Railroad of the very burdensome contract
which was made in 1871. The Eastern road had
| purchased a large amount of property IN Charles
| town for the purpose of doing the Maine Central
business, which was being diverted and 1t became
necessary to secure the control of the road in or
der to utilize the money already invested. When
he was purchasing the stock he did not know
what it brought in the market. His instructions
came exclusively from Mr. Lothrop. 1t did not
occur to him that it was strange, for they always
oheyed the President Of the road. lie was the
chief, and whatever he said they did. paper
was produced by the witness which proved to be
a written contract by which the company bound
itself to buy certain amounts OF stock. In the
return made to the Legislature in November,
1873, the fact was not stated that this stock had
been bought, but it was set down in the property
account.
No mention was made Of it in the expense ac
count. The word Maine Central was not used
In February 1874. in the report to the stockhold-
ers it was not mentioned that the stock had been
bought. That would have defeated the whole
project for it would have let out that the Eastern
was endeavoring to obtain control of the Maine
Central. In February, 1874, he paid for stock
S45 los; in March Sj3 100; and in June Sll3,
40. The whole number of shares bought
1924. The June purchase completed the con-
tract by which $4,000 worth of shares was to be
purchased from Judge Rice, former President OF
the Maine Central road. The stock was taken at
par though the Eastern had been buying stock at
81 to e.. That arrangement was made perhaps,
in the interest of both roads. The payment of
the difference between GO and par on 1900 shares
was paid to Judge Rice, SO far witness knew,
by President Woodbridge, without consultation
with other Directors. The latest payment for
stock in the Maine Central was IN March, 1870.
Nothing was said of the purchase in the report to
the stockholders IN February, 1870. 1t was in
tended to keep the whole thing secret until the
project carried out. The purchases of the
stock had not been completed in November, 1874,
and were not up to the present time. There
no payment from June, 1874, to March, 1879, and
at the latter time the sum OF SOB 600 paid to
Mr. j. 7. Cook of Salem. The stock bought in
1874 and 1873 was transferred follows 1000
shares to the Manchester Savings Bank as coat-
teral for loan of $50, 000 2000 shares for
special loan, to the Bank of Commerce; 1000
shares to the Merchants Bank for special loan
of $4,000 100 shares for a special loan, to the
Mercantile Bank; and 81 shares remained in the
possession of witness The total amount paid out
was 81 Ola, 1S0.49.
Witness believed that if the Eastern could get
share more than half OF the stock of the Maine
Central, that stock would be worth at least 100.
The committee of the Directors valued the stock
at 80 last November. Witnesss directions came
in all from the President. Witness never
heard of any vote of the Finance Committee au-
thorizing the purchase Of Maine Central stock.
AT meeting of the directors vote was passed
approving the purchase of the Maine Central
stock, according to the remembrance of the wit
ness.
| Mr.. Woodbridge brought the vote to the meet
ing all prepared, and gave it to Mr.. Williams, who
offered it. Witness thought that previous to that
| time Mr.. Williams knew nothing of the transac-
ton. AT none Of the directors meetings was there
any discussion so far witness knew The Maine
Central stock stands pledged for loans amounting
i'll the aggregate to $4,000. If the total value
be $500 900, the margin in favor of the road would
be $40 0O0 beside. the sixty-tw shares remain
ing i'll the hands of the treasurer. In answer to a
question from the chairman witness stated that up
to May, 1870, no more than four, and perhaps on.
| " three OF the directors knew anything Of the
Maine Central transaction. The powers of the
Finance Committee were very large, and its do
ngs were always ratified by the Directors. Wit
ness knew of no services rendered the Eastern
Railroad by Judge Rice, except by selling his
stock and placing the power in the hands of the
Eastern OF the purchase money of Judge Rice's
stock $4,000 was in money and the remainder in
notes, which are still out though not in. the hands
Of Judge Rice.
| NEW UAHPSHIRE-- SOME "INDE-
PENDENT" ISLANDERS REFJTED.
Correspondence Of the Ne~ York Times.
CONCORD, Wednesday, March 10, 1876.
Even before the votes are all counted the Dem
ocrats, and more especially the Assistant Demo