Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1883-06-29
TRONRLE IT RNTLAND.

y. NJ HAVEN SUED FOR 100000 ron AN OVER.
ISSUE or RUTLAND RAILROAD sToCK-FuLL
PARTICULARS IN REGARD TO THE NATTER,
WITH STATEMENTS AND COUNTER STATEMENTS
FROM THE OPPOSING INTERESTS IN THE CASE.
For some time past rumors have been nfoat
that Joel NJ lIayon Of Rutland was financial
" embarrassed and that there was some ir-
regularity in his accounts as treasurer of tho
Rutland railroad company. Last Saturday
the matter eliminated in suit for $50, 900
begun against Haven 10y the railroad company
TO recover for money fraudulently received
by him as treasurer. Mr.. Haven has been
treasurer Of the Rutland company for a long
time For ten years past he has been regard
ed rs one of the wealthy men of the state and
his standing has been very high. lie has
branched out into various enterprises, chief
among them being his purchase of the Bates
House. making it one Of the best hotels in
the state, and running 1t as temperance
house. He Is deacon Of the Congregational
church and q prominent member of that body
in the state. The facts, ms thus far developed,
seem to be that when Mr.. Haven became
heavily embarrassed last spring, he took GER
tifcates OF the Rutland stock which we're in
his hands, signed in blank by the president,
John b. Page, to facilitate stock transfers,
filed them out for large amount, and sold
them to Charles Clement d Sons, who bought
for the purpose of ousting Page from the
presidency, there having been a long standing
and bitter fight between Clement and Page.
The overissue OF stock was Immediately sus-
pected, investigation was made and the re.
suit is the suit against Haven for the sum
named. The Rutland Herald gives the fol-
lowing particulars as furnished by Prout Il
Walker, attorneys for tho Rutland railroad
company
"The sum demanded 10 the writ is 100000. This
claim, we understand Is for a deficiency in the funds
of the company, Of which Mr. Haven was treasurer.
Other writs were afterwards served in favor OF other
creditors. II is supposed that his estate, which Is
large, will eventually be settled in the insolvency court
"a bill in chancery has also been brought by the
Rutland railroad company against Clement Il Sons
for the purpose OF obtaining the surrender and cam
collation. Of certificates Of Rutland preferred stock
sold to them by J. NJ. Haven at time when he owned
no such stock aud for which he furnished certificate
which was an overssue. They are cnioined from dis
posing Of the certificates until the question Of their
validity Is determined 1t is thought that for two
three years past Mr. Haven has been accustomed to
make sales Of non-existng stock and issue certificates
therefor afterwards replacing the shares by purchas-
es in lower market speaking Of this course Of deal
ing selling stock short As soon as this became
known to the directors his removal quietly cf-
fected, and Jas H. Williams president of the First
National bank Of Bellows Falls has acted treasurer
for the last two months. The books have meanwhile
been thoroughly examined, aud the history Of the
oyerssucs ascertained, well as the devices by which
they were concealed This examination also revealed
the misuse Of the company funds, which successive
Investigations expert accountants had failed
close. It is understood that the company is secured
against loss and that Mr.. Haven alone is responsible
for the transactions in question.
since the discovery OF the fraudulent stock issues
the railroad company has managed fairs with great
caution and given Mr.. Haven every opportunity to
exricate himself and explain the situation II possi-
BILE 1t having at last become apparent that no c1-
plauation could be made which would show the trans
actions to be legitimate and that it impossible for
Mr.. Haven to protect his creditors without illegal
preferences, tue course above stated determined
upon at the recent directors meeting and at once
put into execution We understand 1t will be followed
10y other measures designed To protect the interests
the company and that the fullest publicity will be Civ
en- to all the facts soon It can safely be done"
To this the Herald adds:
"After the attachments on Saturday deeds were de-
llyercd and uut on record from J, NJ Haven To W q
Clement aud A. Mead conveying all his property TO
them. Mr.. Ravens real estate is estimated 6y good
judges as worth from 100000 to SEQ 900 above cncum-
brances there being about sos of mortgages upon
1t. The real estate embraces the Bates House and eN
tension, with stable willow street. the Sprague
block on Merchants Row, and the Bates House cot.
tages $50 called) being the former residence Of Mr..
Haven on Main street; also the Pine Hill aud Pratt
iarms with other lots in Rutland village, farm at
Mount Holly etc He has also carried shirt fac
tory, electric light company and has been engaged
in the propagation Of fish aud various other enterrs
es, none Of which appear to have been profitable OF
course there il large amount Of personal property 10
his hands. No estimate yet be made to either
his assets or liabilities; but with the large hduciary
claims of the Rutland railroad company, the claim Of
Clement Sons for bogus stock sold them, aud his
business obligations, he Is undoubtedly insolyent.
MI. haven course treasurer % HE Rutland
road company Is great surprise TO his friends aud a
great blow 20 this community, and 1t is hoped be may
be able to explain II such explanation be possible, the
present bad aspect Of affairs
Clement a Sons, who are among the larg.
est stockholders of the Rutland railroad com
pany, made the following statement. which
the Herald published in the same issue with
the above:
last fall and winter the stock dropped from about
20 to a. and Notwithstanding that committee Of the
directors examined the books and pronounced oyery
thing all right, We we're convinced that there was
trouble in the Office. We applied, 10 junction with
some Boston stockholders tNlr Geo. Barnard and Mr..
Coolidge, president OF the Columbian national bank
Of Boston and ohers) for permission to examine the
books. This being refused, we Immediately procured
injunction against the president, J. b. Page and
the treasurer j. NJ. Haven restraining them from in
terfering with our examination. We had four men at
different times making the examination, aud they all
reported the stock oyerssued. This examination
CURED in March or April and lasted some weeks and
since then we have been doing all we could 10 have
the stock replaced Part Of It has been replaced We
understand and the overssue has been reduced from
1894 to about 2iOO shares II - difficult to say but II
we have any OF the overssued stock 1t IL less than 1000
shares All stock is issued by the president and treas
Jointly. The oyerissued stock was not all issued
20 Mr.. Haven some has been made to other parties
and institutions. The president claims that he is not
party to the oYerissue but signed the certificates in
blank"
This latter statement was evidently resent
ed by Gov. Page as roundabout intimation
that he was in some way connected with the
overissue, and on Tuesday Prout a Walker
published statement in his behalf in which
they say that, instead Of refusing an inyesti.
CATION to the stockholders, the directors court.
ed one, and that the Mr.. Coolidge above re.
ferred to sent II. b. Wilbur, M expert account.
ant, to make such investigation in March last,
with the full approval Of Gov. Page The
statement continues
"Mr. Wilbur went away on April 7aereeipa To send
to the president on the following Monday copy Of
his report as far as he had gone On April II, Mr.
Clement appeared at the Office with another expert,
and proposed TO enter upon another examination.
GOV. Page out Of town, the first examination was
understood to be still pending, and Mr.. Haven wise
y or notdecned to throw open the books request
ed. The demand was made the foundation Of long
bill in equity, which had evidently been previously
prepared for It was sworn to on the day charg-
ing Gov Page with completely with MT Haven in over
issuing the Clement stock, and also the same day
an injunction was obtained by which both the presi-
dent and treasurer were enJoined from control over
the stock books and from making any entries there.
in. This order was dated April IL, and was to stand
only "a hours er pdrte au opportunity to show
against 1t on the next day being wisely given by the
Chancellor. Though obtained in haste, it irds not
scrred on Ar. HdrfH until Iprit 10. IL trds usrcr
serred G0u. Page but was afterwards dissolved as
to him without q hearing Meanwhile, proposition
was conveyed to GOV. Page from the Clements that II
four Of the board Of directors would resign some ter
ribe disaster would be prevented OF COURSE no At
tention was paid to the threat. The intimation
that the president any way responsible for the over
issue is perfectly gratuitous. The practice OF signing
stock certificates in blank for the of the transfer
agent IS almost universal among corporations, espec-
tally when transfers frequent and gave the treas
urer no right whatever to issue them on the can
collation. of existing shares the certificates read"
The railroad attorneys also say that Glenn
ent ~ Sons made Haven buy back 200 shares
of the fraudulent stock at an advance of per
cent, and that, instead of surrendering their
bogus certificates as soon as the crookedness
became known, they claim that the company
is liable for the oVer-issue, SO that it became
necessary to begin suit to recover the GER
tiacates for 2970 shares which the Clements
hold. "Other features of this campaign" are
promised, 'if newspaper controversy is de-
sired"
NOrthheId, Mass.