The Portland daily press., 1895-09-20
SERIOUS CHARGES.
Two Bills in Equity Against Two
Boston Corporations.
ALLEGING FRAUD on A GIGANTIC
SCALE.

Hundreds of Thousands Involved-A Port
land LAWYER Filed the Bills for Stool k
holders-The Stock Is Scattered All
Over Maine-Long List Off Maine
Stockholders.
Last Tuesday there were filed at Boston
in the United States Circuit court for the
District of Massachusetts,, two bills in
equity, one against the Boston Invest
ment company and the other against the
Massachusetts Real Estate company.
Both these corporations were organized
in Maine several years ago. At present
Porte W. Hewins of Taunton and Parke
w. Hewins. of tho same place, are the sole
co-trusJees of both these corporations.
Porte W. Hewins is treasurer of both
corporations and Parke w. Hewins is
president of the Massachusetts Real
Estate company.
These bills are brought by stockholders,
who ask for removal Of these trustees on
the ground of fraud and mismanagement.
The bills set forth an alleged fraudulent
transfer of five pieces OF property OF the
Boston Investment Co. in Sioux City to the
Massachusetts, Real Estate company. This
transfer is claim Ell to have been made for
the amount of $671, 1875. 1t is claimed
that this transfer was made in order that
the remaining unissued capital stock OF
the Massachusetts Real Estate company
should come into the hands of the Boston
InvestmenJ company, when the trustee OF
the latter personally would vote this
stock at the annual meetings OF the
Massachusetts, Real Estate company and
thereby be enabled to re-elect the manage
ment which these trustees desired
This, it is claimed, was done, at subse-
quent annual meetings.
The stock so voted amounted TO ALSO
shares 1t is claimed that the property,
so transferred, was inflated over $170 600.
The bill sets forth that the salaries re-
ceived by the trustees cf the Boston In
vestment company were two per cent per
annum Of the capital stock issued, and
that in order to make the salaries as large
as possible, the two per cent was figured
on a large amount of stock, which the
corporation had taken back at par, the
amount Of which represented over $780,
900. on which alone, it is claimed, the
trustees received an unwarranted addition
of over sl9, 900 year to their salaries.
The salary of these two trustees for the
year ending June 1st, 1894 was SGT, 542
For the four years next preceding, their
salaries amounted to from ~, 900 to over
s37, 900 per year.
The aggregate of the salaries of the
officers of the Massachusetts Real Estate
company for nine years was over $3.50, 600,
and of the Boston Investment company
in the vicinity of $2O7, 600.
In July, 1894, at the annual meeting OF
both these corporations at Augusta, Porte
W. Hewins was forced to make some ex
plantations of transactions of the COM
panies A few days later it was agreed
between the officers of the companies and
representatives of the stockholders that
committee Of investigation should be ap-
pointed by the chief..Justi ces of Maine,
Massachusetts and Rhode Island, IN
which states most of the stockholders re-
side There is in Maine about $50. 600 OF
the, 1ock of the two companies
Chief Justice Peters appointed Eben
Winthrop Freeman, Esq, of this city to
represent Maine on this COMMITTEES. The
representatives of Massachusetts, and
Rhode Island were Hon Louis q.
Southland of Boston, and Arthur M.
Watson of Providence.
Chief Justice Field of Massachusetts,
has stated that he was not invited to ap-
point the Massachusetts representative.
After few meetings of tho committee it
seems that the Maine representative sue
ceeded in getting at many of the books
and papers in the Boston office and by
comparing statements there found, with
statements already issued by the officers,
discovered a state of affairs which caused
him to be distasteful to Porte W. Hewins
Accordingly at mesting of the stock
holders held in January 1895, at which
meeting Hewins held the controlling in
terest, it was voted to substitute MT.
Freeland Jones of Bangor on the COM
mittee in place of Mr.. Freeman of this
city, who was removed at that time
Since that Time MI. ff6eIHdu HIS pocu
acting in the interest of stockholders who
desire to bring this matter before the
courts. The result is the filing of the
bills in equity above mentioned. Mr..
Freeman is counsel for the stockholders
who bring this action. Associated with
him is Prof. Samuel Williston of the
Harvard Law School.
In the bill against the Massachusetts,
Real Estate company it is further alleged
that Porte W.Hewins sold fraudulently at
an exorbitant price to the corporation of
which he was one OF the trustees, certain
pieces of property in Taunton, in which
he was personally interested, and that
this property has failed to be profitable
in Iestment.
1t is further alleged that dividends in
both corporations were paid out of the
49, Tonight