Morning journal and courier., 1893-05-17
MCLEOD EXPLAINS

He Answers in Full the Implied Cen- sure Administered in I. l.. Rfce's R C. port of the Railroad stock Deals. PHILADELPHIA, May 16.-Mr. Mcleod tonight made a lengthy reply to the i'm piled censure of himself contained in I. L. Rice's report of the Boston and Maine and New York and New England stock deals, in which he ssys:
 Everything I did, from the beginning to the end, iR the purchase of shares of tho Boston and Maine road and of the New England was done solely and exclusively for the purpose of insuring to the Philadelphia and Reading company for its benefit and not all for my own, the con- trol necessary to accomplish this slli- suce. Had it not been for my desire to benefit the Philadelphia and Reading com pany I would never have purchased e shsre of the stock of either of those companies. My motives were com municated at the time not officially, but very fully to three directors of the Reading company. to one of the prominent officials and to several other persons. They were fully apprised from the beginning and throughout of my intention concerning these shares.
 Parties who held large amount of the stock of the Boston and Maine road shared my views of the sdvissbility of 6 close sl- llance between the three companies, but their holding was not sufficient to secure the requisite control. It was necessary to purchase about 30, 900 additional shares. 1 determined 10 purchase shares to the ex- tan af 1,fa ct risk. intended, however, at the start to hold these shares at the disposition of the Philadelphia and Reading. I 60 expressed myself to the parties have specified.
 ''I caused written contract to be enter ed into on the 29th Of August, 1892, with F. H. Prince for the purchase by him of these 15 900 shares at price not to exceed $185 per share. The Philadelphia and Reading was not mentioned in this con tract. It was not bound by its provis- ione. MT. Prit ce agreed to purchase, for his own account, at like price, 8 likely quantity of shares. The 16,00O shares were purchased. I supplied ss col lateral $320, 900 of general mortgage bonds belonging to myeelf. The residue was sup piled by the Philadelphia and Reading. If 1t had ultimately determined not to assume the purchase 1t would have been my duty to make good such contributions by it.
 "Mr. Prince utterly failed to perform his part of the contract, it became necessary to make good his default in the purchase of the remaining IS, ,000 Of these shares 9, 900 were purchased on the same account as that of the 15,000. A personal friend bought the remaining 5000. On ths~26th of October, 1892. was elected to the presi dency of the Boston and Maine.
 "The road was under no legal duty to assume my purchase. It was, however, under @ moral duty to do go, in view of the fact that had acted solely and exclusively for its benefit. feel certain my friends would have assumed the whole purchase.
 "I disclaim all responsibility for the sales, since my resignation of the presi- dency of the Philadelphia and Reading company at very inadequate prices and an injudicious way, of the shares of the Boston and Maine road, while was acting ss president and as receiver, I warned MT. Prince not to sell. la view of his default in purchasing he had no right to do so at the cost of the Philadelphia and Reading. To me, the sl- lowsncs which seems to have been prom ised to him of same $1S0, 0,000 as compen sation, Is inexplicable. It was not until after the appointment of receivers that he made any claim for additional compenss- ton. It was instantly repudistsd. His sole compensation was to the brokerage, which was charged and allowed. He was entitled to nothing and nothing was col lectsble by him."