The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-12-16

GU had made quite large losses IN
those years?n
"Yes.n
."Do you think the investment of half
of SO large an estate III railroad securi
ties was wiser
" i thought SO at the time"
What would you Say now"
in view of the criticisms made per-
haps should not do it again, out OF re-
spect for that criticism"
Mr. Gage then turned to the books and
on suggestion of Mr.. Cram raised q ques-
ton as to SO, 565 of New York Central
stock which was bought in 1883, and
sold il 1884 at q loss OF S2o95; put OF
which NO record was made on the ac-
counts of the estate until 1881, OF SIN
years later"
MIR. Gage then uestioned-"Why did
Won NOT nrts1hat transaction onto the &C
countsSn
"Because we expected to rcinvest in
thas stock and make it up"
"Dld YOU consider that proper"
"Yes under the circumstances.
"Whs was that not speculation:"
81 a. not think it was"
Nov you say that this New York
Contra! stock was not included in the
list of losses testified TO by M. Oxnard
yesterdayfA
at was not
"1he gains and losses showed yester-
day about balanced; but with this in
Guided does not the loss side overbalance
by over S2000f"
Il should answer in The Affirmative"
So the statement OF yesterday needs
to be revised?s
Eyes"
Mir. Gage thea cent into the invest
ments in railroad stocks as distinguished
from bonds. sIn railroad stocks
alone the estate has $50, 22T worth.
Mr.. Gage asked if, in this whole sum
of stocks, Ghere had not been a huctua-
tion of 25 per cent as compared with the
purchase price
Mr.. Cram, after figuring over the list,
thought the fluctuaton would average
about 10 per cent. He arrived at this by
taking the net shrinkage and ascertain
ing its per cent to the total cost.of the
securities.
Mr.. Gage objecBed to this, Shrinking that
the fiuctuation had been about % per
cent.
Mr.. Gage persisted in determination,
he said, to show that the trustees had
been specuiating and not investing. This
Mr.. Cram resented. saying:
You take our entire holding OF Sl12,-
600 of railroad bonds and stocks, and
even in this extreme market they have
not receded over six or seven per cent.
do not think that is bad showing con-
sidering the amount of the estate OF
course we are not infallible."
Mr.Gage then went into this loan to
Mr.. Grams sister, Mrs. MoeD, and asked
if she was not the wife of the Mr.. Moen
to whom SIC, 600 was loaned. Witness re-
piled that she was.
aDid you consider that $40, COO invest
ment good?"
we did not like it, but we made no
loss on it,"
"Why not?n ~
"We sold it. .
what inducement was there for any
one to buy it?"
"You will have to ask the purchaser
"And that purchaser was your mother"
eyes"
Sand she made the purchase after the
conference in Mr.. Strout's office, whereby
you were notified that these proceedings
were to be made?"
"They had been threatening us all
along"
Mr.. Gage then went into the loan re-
Gently made to Mrs. Moen on second
mortgage on a house on West Seventieth
street.. This house witness thought
worth forty-ive thousand dollars, and
believed the security ample.
The line of questioning then was
directed towards the relations of Mr..
Cram with Mr.. William Warren. The
latter atsvarious times asked for loans,
and Mr.. Cram complai ed that payments
on such loans were SO uncertain and
such source of friction that finally
he, Mr.. Cram, declined to make another
loan. Mr.. William Warren's son John
had protested against the increase of one
of these loans to his father.
Qestioned by Judge Symonds, Mr..
Cram said that he had never as trustee
attempted to conceal anything regarding
the estate from the benefciaries. In
those years when gains had been kept off
the books, the beneficiaries had the adj
vantage of them, and there was no
motive for the concealmenC other than
that of avoiding taxes The New York
Central stock was a legal trust fund
stock in New York. Witness also testi-
fed that at the meeting in Mr.. Strout's
Office last spring the only subject
brought up was relating to friendly
division of the estate and nothing at all
was said about removal of the trustees.
The first important proceeding in the
afternoon was the introduction OF Mr..
Lewis Pierce Of this city, who gave some
interesting expert testimony about The
Character of Railroad Securities.
Mr.. Pierce testified that he had for
many years been counsel for the trustees,
and had given them advice as to invest.
ments. He had told them that under
the will they could not invest In real
estate. He had also advised them that
they could not lend money without
security; that note was not security
enough. II they should lend money to
Villa II Warren on his note they could
secure it on his income If they would
take the risk OF his aieing before it was
paid. He had ADVISED them that they
could iavest in railroad stocks provided
that they were good. He considered
Flint s. ssPeFe Marqette good invest
ment at the time il was bought. He him
self had invested trust funds in it and lie
knew careful trustees in Boston who had
invested in it. The President of the
company, Wr..W. Grape, Of New Bedford,
Il man wtD has ST, ono, 600 in a single
one OF the many trusts he holds, is one
of those who have invested in Flint &
Pere Marquette. it has been a seven per
cent stock until lately but he was of the
opinion that when the present depression
in Michigan shoaid be over the road
would pick up again. The Chicago,
Milwaukee and st. Paul securities he
considered good. The G. C. C. g. St. L 4
he had never considered very desirable
stock. The Wheeling & Lake Erie he
considered less desirable than the Flint
q Pere Marquette; but it was i'll good
repute i'll "a. The Central New Jersey
stock h tna1ioht W.. a1rynvs roOd Y The