The Portland daily press., 1895-05-04
CROSBY AND HIS ROAD.
Financial Affairs of the Wiscafset
and Quebec.
What Delinquent Subscribers Claim the
Reason of Their Refusal to Pay-The
Case Tried at Wiscasset This Week.
Especial to the PREss.)

especial 10 the tThESS.)
Wisca sset. May 3.-The event of the week
here in the ancient brick court house has
been the trial of the civil suit brought by
the Wiscasset and Quebec railroad against
DR.. W. P. Giddings. Perhaps it would ne
better way to put it to call it half a trial.
for the case was sent to the Law court by
agreement without any evidence being put
in by the defense. This is one of the score
of cases brought by the company to compel
delinquent subscribers for stock to pay
their assessments. These subscriptions are
just now occupying good deal of attention
hereabouts. SO much so that at an enter
tainment given in the skating rink here by
amateur talent topical song was sung ex-
pressing the dissatisfaction felt by some
people with the way in which subscriptions
were procured. =
Dr. Gfddings was represented By Hon.
Leroy L. Carleton as counsel. associated
with Mr.. Carleton being Gen. ". S. Choate
OF Augusta, and County Attorney Heselton
of Aennebec. The case was fought on the
ground that the terms of the contract
had not been kept by the company in that
the S50l. GOO which was to be subscribed be-
fore any assessments were made was not
Forthcoming. number of large subscrip-
tions being worthless. The attorneys for
DR.. Giddings confined their efforts to ask
ing questions concerning the records of the
corporation which were produced in court.
The relations Of George Il. Crosby, the for
mer president of the company, to it. were
an important feature in the case II will
be remembered that Mr.. Crosby was ono of
the leading spirits in the enterprise and a
l,on ,teor {1,,~ a.
able to meet his obligations when the time
for payment came. On January 4, 1894, Mr..
Crosby presented bill against lie COM
pany for services and disbursements, the
services including the item of campaigning.
This bill was allowed and Mr. Crosby was
given payment in the shap of 800 shares of
stock for his services. disbursements, risks
and guarantees. incident TO the promotion
and capitalization of the company On
May IA. 1891, claiming TO have received over
S30O.000 in subscriptions, the company made
first call for cash, levying an assessment of
SIS on share. payable in thirty days. Then
came the developments which revealed the
fact that Mr.. Crosby was not able 10 pay
for the 100000 of stock for which he was u
subscriber. On the Sth of June, the
directors appointed committee to INQUIRE
into the affairs of Mr.. Crosby. and OIL June
II. this committee reported that they were
satisfied Crosby could not pay for his stock.
So on June 20, the company compromised
with Mr.. Crosby. taking $4,000 from him
and giving him that amount in stock paid
up. OF the $4,000 issued 10 Mr.. Crosby, for
his services, risks. Disbursements, ETC.,
$4,000 was returned. Now. the defendants
claim that before the time OF the first pay
inent on the subscriptions came around, il
had become evident that the req uired $780,
600 had not been secured, Ind that the road
had consequently failed to keep its agree
ment. ,se-. ,e.-.s
At the time Mr.. Crosby was acting as
president and general manager. Mr.. ". F.
p. Fogg was counsel, clerk and treasurer.
at a salary of several thousand dollars a
year. Nj. Fogg subscribed for $1,000 of
stock, but he too, failed to pay, and with
him compromise was effected for S10t0.
But this is not all that the defendants
allege is shown by the records. MI. Howard
of Boston and Mr.. Van Wort also of the
Hub. between them, were subscribers for
S40, 900. but they have never made pay
ment. and the treasurer testified that he
did not know where to find them. Or the
S3l7 600 alleged to have been subscribed in
good faith, the defendants maintain that
less than $4,000 was good.
1t WAS also brought out by the reading of
the records that DR.. A. R. G. Smith of
Whitefield received Sl.SOO in stock as con-
mission for securing subscriptions to the
stock of the road. To another man who
accompanied DR.. Smith, $1.500 In stock was
paid, but of this eleven shares were re-
turned.
After the transactions reconnted in the
records produced in evidence, the rev
management took onarge of the affairs of
the road, and aye trying to MAKE it a sue
cess. They are this year to lay seven and
one-half miles of rail in the direction of
Burnham. to which place the road is graded.
Meanwhile people in Waterville are agitat-
ing the question of securing a con lection
with the read by building a link from thar
city.
in the suit tried this week, George B.
Sawyer, Henry ingalls, and nerson Hilton
appeared as the roads counsel.
An Investigation Seems to be Needed.