The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-11-07
THE wrNsLow PACKING co.
Important Equity Suit Hearing i'm tn,
Case of j. WINSTON Zones et al. VS.
Charles p. Nlatfocks.


Charles p. MattocLs.
About eleven O'Clock yesterday morning tire
hearing in this important case began at the
Attorneys Room, City Building, before Judge
Virgin. Strout, Gage & Strout appeared for
the plaintiff and Hon. G. f. Libby and A. A.
Strout ESQ.,, for the defendant The great
public interest in the case was evidenced by
the presence of a considerable number of at
torneys and business men.
The hearing began with the reading of the
bill filed in the cause. The main points in the
bill have been given before but are again APP
pended below:
The bill relates that on the first day of January
1882, j. Winslow Jones s. Co., an English corpora.
tion owned 10 corn factories and other factories
used for packing Holsters and other fish and meats
with other real estate, goods, supplies materials
and trade mark valued altogether at S40O, 900.
secure bonds amounting to $4,000 or 500 900.
J. WinsloW Jones then owned S35 900 in these
bonds absolutely and $4,000 pledged to English
900 were owned and held by English parties. The
c cap STOCK OF the company was S175.-
I S6o, OF which q Zone Jones owned $780, $50. the
DaIapce OF 40, 900 being held in England.
On Jan. 1, 1882, the company was indebted ia
farmers for corn about $50 00O and to other cred
isors about $l2o 900, and was obliged to stop pay
hent. April 8, 1882. an agreement was made
between Jones, Mattocks and r. K. IF. n. Furber
q Co., of New York; whereby Mattocks was to form
new corporation under the laws of Maine for the
corporation; Thurber & Go. were to adyanee it ia
Mattocks as trustee, all moneys needed for the re-
sumption OF business, to be repaid or before Jan
10, 1883, with per cent interest and Commission
of 212 per cent; and Jones was to transfer to Mat
locks in trust all his stock in the English corpora
ton ami bonds OF the corporation with other prop
erty TO fully secure Mattocks as trustee. 1t was
agreed that stock in the new corporation should be
issued at par to the farmers and other creditors
=. Wlnslow Jones & Co., in payment or purchase of
tocks was authorized to sell the bonds entrusted to
him. or to use them collateral for the purpose of
executing his trust.
In pursuance of these agreements Mattoc,s or
gained, May 8, 1882, the Winslow Packing Com
pany and took pos ,esson as trustee of the facto-
Iaes ana other property of J. Winsow Jones q Co.
Charles P. Mattocks, W. H. Dudley and John L.
Best were chosen directors of the new company,
ana elected Mattocks president. Only Ave shares
OF stock OF the par value of So had then been is
sue 70 nve persons, and no other stock was issued
until 1858. By the bylaws, the president was
charged with the general oversight. care an man.
agement OF all the property and business of the
Mattocks then proceeded to ACQUIRE for the new
company, as agreed the rights of the English cor
poration and secured, July IA, 1882, release and
conveyance OF all rights under the English mort
gage He also discharged the debt for which the
$4,000 of Jones's bonds were held in England.
the entire property of j. WinsloW Jones q Co
came into bis hands as trustee for the Winslow
Packing COMPANY.
The bill states that Mattocks has been reouested
to convey the property to the new Corporation but
refuses to do So The bill also states that tIe adj
vanee S Of Thurber Co. were not fully repaid, as
agreed IN January 1883, but balance of S75. 900
OR $1U0O 900 remains to be paid ont of tbe
of this seasons work. r Soes-s
Its further alleged that after allowing ali dsburse
ments charged by Mattocks and all charges for SER
Of a. ~.
company from the trustee. The complaint alleges how
ever that there has been proper auditine Of the
INA! Sne o!nces OF president and trustee are
Iilconapa!lole, since IN one capacity Mattocks ap
proves his own charges in anothe The petitioners
therefore,, ask that he may be restrained from act
ing as president hereafter, and that he NAV he re-
qured 10 render an account as trustee.
The reading of the bill occupied little over
half an hour. AT its conclusion, Hon. s. C.
Strout proceeded to open the case for the
plaintiff. In substance, he said.
Perhaps there is little need of many words
on this preliminary motion, but it is brought
by stockholders, who at the time the proceed
iugs began, were all the stockholders save those
VINO held the first five shares ever issued, and
1t is brought because it was felt that all was
not right, and those interested wished to see
now The moneys had been disposed of. and
now the business was run. With the idea of
ascertainiDg the true ststs of affairs, we pro.
cured from Gen. Mat!ecks a statement of his
accounts, and examined them to see what ex.
hiblt they would make, and what the result
would be. A month was spent in the work.
The result of that investigation is Substantial
IL recited in the bill. After negotiations, in
the hope that things might be satisfactorily
settled, this bill was brought John Winslow
Jones, prior TO 1880, owned corn factories in
Maine and lobster factories in this State nd
the Provinces. He went to England and
formed new company, transferring to that
company all his right, title and interest
In the old one, Consisting of factories
mentioned above, trademarks and mate.
mails on hand, and other interests.
Some stock in this new corporation was sold
but Jones held the bulk of it, The property
here was then mortgaged for $40 900 or $780,
GOO. lie afterward borrowed $50 600, owning
all bonds save the $4,000 sold, pledged S45..
600 of stock as security. So the bottom and
backbone of the company was j. WinsIow
Jones. He returned to this country and the
corporation ran along for year. Eight new
factories were built in the course of the season
and preparations made for large yield. Thus
liabilities were incurred. The crop was cut
of, only two-thirds of what was expected was
harvested and SO large amount of tin and
very many cans were left on hand and the
debts due the farmers could no5 be paid when
they came due the following January. Still
the company owned valuable property and
even then the concern was solvent had time
been granted. So with view to paw the
debts of the old company and save the business
the scheme was devised by General Mattock /
and Mr.. Jones to form a new corporation as
the bill shows. An arrangement was at The
same time effected with the English bondhold.
ers who had already begun suit for the &C.
QUESTION of the property. To this end Jones
gave General Mattocks $35, 900 worth OF bonds,
the stock he owned, everything he had, and
authorized him to use the bonds and assets tn
carry on the business and to secure him from
liabilities 1t was also understood that Cen
eral Mattocks as trustee to make arrange
ments with Thurber Co., and that
for the year 1882 they would advance
money for the business, and that Mattocks
should use some funds not exceeding the yalue
of the stock in his hands at that time, to clear
off the membranes and restore to the Wins
low Packing Company its assets. In pursuance
of this plan the Winslow Packing Co. was
formed with capital of 100000 divided
in $40 shares. OF these but five shares we're
ever issued, namely, one share each to G. P.
Mattocks, John A. Hayden, John L. Best,
U. III. Dudley and Frederick Jones' No more
stock was ever issued until the summer of
1888. Bylaws were made, which gave to tbs
President almost unlimited power, and three
directors were chosen, U. FL. Dudley, John L..
Best and c.. P. Mattocks. These directors
by choice of G. P. Mattocks as
President. The result has been that Gen,
Mattocks has been the whole concern. He
made an arrangement with the foreign credit
ors " hich allowed him to run tho factories and
transact the business. According to the agree
nent entered into, Mattocks drew from Thur
Der & Co. upon his own drafts $267 900, for
which Mattocks gave his personal notes. At
the end of that season he had received. with
interest on the same charged by Thurber, an
amount which is unknown to the plaintiff. "a
dispute arose over this amount between coun-
sell, and Mr.. Strout said he would leave it to
be settled by the evidence.) At all events,
from the acts Of Mr. Mattocks il apnears that