The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1890-12-17
Pulp and Paper Concerns and Mr.. C.
r. nallliken.
Hon. C. 3. Libby Opens For the Otis
Falls Pulp Company.
Hon. n. w. Gage States the Case For
the Orher Side.

Pulp Company against Charles r. Mllliken
for S65 600. the second by the Otis Falls
Pulp Company against the Poland Paper
Company for $4,000, and the third by the
Poland Paper Company against the Otis
Falls Pulp Company for $4,000, all grow
log out of the same subject matter.
The case in behalf of the Otis Falls Pulp
Company was opened by Hun. G. +. Libby
his opening consisting largely of the reading
of contracts and correspondence between
the parties and statement Of connecting
facts to show the issues involved in the suits.
Only a brief outline Of the opening can be
given, as the printing Of the correspondence
alone would occupy many columns.
From the statement of Mr.. Libby 1t ap-
pears that the Otis Falls Pulp Company was
organized in the fall of 1887 for the purpose
of constructing a pulp mill at Livermore
Falls, on the Androscoggin river. The mill
was built In the fall and winter of 1873, and
commenced operations about the middle Of
July, 1888. PIior to the completion OF the
mill. on the 28th of February. 1888, the Otis
Falls Pulp Company entered into two con-
tracts, one with the Poland Paper Company
dividually. to furnish each Of them FIVE tons
OF pulp each secular day for the period of
five years from the date of those contracts,
at the price of S1.45 per 100 pounds, atmos-
pheric dry weight, in the case Of the Poland
Paper Company, and at S1.37a per 100 pounds,
atmospheric dry weight, for Mr.. Milliken's
contract, settlements TO be made monthly.
The Otis Falls Pulp Company commenced to
furnish pulp uLder these contracts, and con-
tinued to do so until September %. 1888.
when, without any notice or complaint, they
were notified by Mr.. Milliken that, for q
breach Ut contract he claimed to terminate
the contract with the Poland Paper Com
pany. What the breach was was not stated,
and the Otis Falls Pulp Company refused to
terminate the contract, and continued to
furnish the pulp as usual, there being no
breach claimed so far as Mr.. MIlliken's con-
tract was concerned. The 0tIs Falls Pulp
Company claimed that there was no grou d
for asserting that there was a breach of the
contract, and that what Mr. Milliken wanted
was to be relieved on his own contract, and
TO continue the contract of the company.
The Otis Falls Pulp Company refused to
consider any such negotiations unless there
should be withdrawal of the charge Of the
breach OF contract made by the Poland Paper
ys o.,
was signed by Mr.. Milliken In benalf of the
Poland Paper Company, withdrawing the
claim of breach of contract and acknowl-
edging the liability Of the company and
willingness to continue to receive the pulp
under tbs contract. As an outcome of the
was made, which, on the payment of $1,000
by Mr.. Miiliken, his contract was suspended
so long as the Poland Paper Company
should. in good faith, without technicality
or evasion, continue to perform their con-
tract, and that, whenever any variation of
that contract should take place, the Otis
Falls Pulp Company reserved the right to
revive the contract against Mr.. Milliken. A
further agreement was also made with the
Poland Paper Company that, In case any
question or controversy should arise under
their contract, the matter should
named therein, whose award should
be final, and that, IL the aw ard was
against the Otis Falls Pulo Company, the
pulp company should have a reasonable time
within which to perform it, without affecting
the continued existence and validity of their
contract, or working any recision or termin-
alton thereof The Ogis Falls Pulp Compa-
ny continued after this date t. supply pulp
to the Poland Paper Company until about
January LIST, 1890. when the latter company
refused to accept two cars OF pulp as inferi-
or in quality, and made claim on account
or the deficiency in weight based on tests OF
atmospheric dry pulp. The Otis Falls Pulp
Company thereupon requested that the mat
ter be refe red to the referees, but Mr.. Put
nam, one OF the referees, declined to act.and
th- Poland Paper Company refused to re-
ceive further pulp and made claim upon
the OILS Falls Pulp Company for damages
amounting to some tweHty-hve thousand
dollars for injury to this business growing
out of the quality of the pulp delivered.
Meanwhile twenty cars of pulp had accumu-
lated at Danville junction, which the Poland
Paper Company refused TO receive. and on
the refusal of the latter company to carry
out the contract, the Otis Falls Pulp COmpa-
ny sent these twenty cars TO different paI er
manufacturers in different states, and the
testimony of these manufactures constitute
part of the evidence in the case as showing
the Otis Fslls Pulp C0mpany's claim that
their pulp was Of a superior quality, and In
every way 10 accordance with the contract.
AT the suggestion of the referees that it
might, perhaps. facilitate the understanding
Uf the cases aud the bearing OF the evidence
as the hearing proceeded If the claims of the
Poland Paper Company and Mr.. Milliken
should also be stated at this point, Mr.. Gage
proceeded to open the case In behalf of the
Paper Company and Mr.. Miliken, stating.
first, that the contracts which had been read
by the counsel for the Pulp Company in his
opening where those upon which all the
rights, duties and obligations of all the par
ties to this controversy depended, and by
which they must be governed; that, so far
as the counsel for the pulp company had
stated the history Of those contracts, he
had. In the main, stated IL correctly, but
that certain facts haa been omitted which
would repel the infereLces which might be
fairly enough drawn from what had been
stated; that the contracts Of February 8.
1888, upon the part of Mr.. Milliken, and at
the price of S1.37a. and of the Poland Paper
Company at Sl.45 were, in fact, made upon
that date, but that the Poland Paper Com
"a
holm, made on December IL. 1887. identical
with the one of February 28tn, and with the
right reserved therein for Mr. Chisholm to
have n w one substituted therefor by the
Otis Falls Pulp Company, and that this new
contract was the substitution there provided
for. while the contract with Mr.. Mllliken
was first made in February, 1888, at a time
when the price OF pulp had declined to
S1.37a. The negotiations which resulted in
the contract Of November 16, 1888, by which
Mr. Milliken'5 contract was suspended, re-
suited from information conveyed to Mr..
Milnken, soon after the delivery Of the
pulp com nenced, that the Otis Falls Pulp
Company were actually manufacturing In
their mill two qualities OF pulp, one upon
stone grinders, and the other upon emery
grinders at much greater expense and
which latter pulp sold for higher price and
was, therefore, considered to be of
better quality. AS the contracts called for
first quality Of pulp, Mr.. Milliken questioned
whether mill making two qualities OF pulp,
cue of higher grade than the otheis could
oe supplying him with the lower grade Ia
fulfllment of the contract calling for first
quality of pulp. Thi> question was of suffi-
cient doubt that a compromise was iiualiy
made by which the Otis Falls Pulp Company
took Mr.. Milliken's notes for $1,000. on long
timos, without interest, for suspension OF
his individual contract for the entire remain
ing term OfSnearly five years, and that, Ia
view Of the fact OF this small sum being paid
while the Otls Falls Pulp Company Is now
claiming SCI, 900 as damages for breach of
that same contract for less than four years,
1t might we'll be considered matter of very
grave doubt whether the Pulp Company
were, in fact, furnishing first quality OF pulp
as they had agreed. These facts the counsel
stated for the purpose Of correcting the i'm
preston intended to be conveyed that the
Paper Company and Mr.. Milliken were en-
deavoriug to evade the terms OF their con
tracts, which they by no manner OF means
intended or desired to do.
After November, 1888, and until the
fall OF 1889, the pulp furnished was satisfac-
tory, except In some minor matters Of no
particular consequence, but in Decem-
Der, 1889, and January, 1890, complaints h.
gan to come in to the Poland Paper Compa-
ny from their customers scattered ali over
the United States, as to the poor oualitv
OF certain grades OF paper furnished them
Inese complaints were investigated and
found to be well founded. In conssnnsnca a
u tnls trouble 1t was necessary 10 allow
rebates, the paper was taken back ana soDoa
VI tnelr valuable customers were lost. In
'estisaeionS were carefully made 10 ascer-
ain the cause Of this Door pnln The nro-