The Portland daily press., 1896-10-03
THE OTTAWA HOUSE.
Litigation Over 1t Is Now Begin
ming.

Mr.. Cushing's Bill in Equity is Stumbling
Block in the Sale of the Property to the
Governm emit.
At the Office of Clarence Hale, ESQ.,,
yesterday, testimony was taken in the
equity case of Francis Cushing vs.. Cush-
ing's Island Hotel and Transporta ton
Company and others. Mr.. Hale repre-
sented Mr.. Cushing and Mr.. Byron D.
Verrill the defendants.
This bill in equity, which was filed
some time ago in tina Supreme Court,
has now come to play prominent part
In the sale of the hotel
This hotel property is now under con-
troll of the Cascoss Bank. whose directors
propose to sell it to the United States
government.
This purpose Of the bank Is meeting
with much Gopposition. If the govern
ment succeed in getting the house 1t is
probable that its use as hotel will end.
Mr.. Francis Gushing, and other summer
residents of Cushings Island. are very
kuAAOub u0dU u00 kOVcIAuOAS b0oAA hOu
get the property, as they feel that it will
be great detriment to the island.
. There was talk that the Messrs. Kicker
of Poland Springs, might buy the house
to run it in connection with their other
hotel. OF course q sale to the govern
ment would prevent any such use Of the
property.
The sale to the government has been
arranged; but it has been impossible to
consummate it because the bill of equity
brought by Mr.. Gushing, clouds the
title.
1t seems probable that the case involved
in this bill will be tried soon, either at
the term before Judge Haskell this
month, or at the next term. The testi-
mony taken yesterday was in view of
called for examination were Messrs. D..
W. Clark, D. W. Snow. John W. Bur-
rowes, T. L. Talbot and George Knight.
The bill in equity is brought as the
result of a controversy between MIR.
Gushing and other stockholders in the
hotel property. 1t alleges that the COM
pany has capital stock of SIS. 900, divid-
ed into $50 shares of the par value of
800 each; that Mr.. Gushing subscribed
for and paid for ITO shares of the stock
at its par value. by conveying $1,000
worth of real estate to the company; that
on Jan. IA, 1888, the company voted to
bond the property for $50, 900 in order to
complete the hotel, Messrs. Wescott.
Daveis and Cooling being trustees of the
mortgage; that the respondents, Messrs.
Small, Pitcher, Wesoott. Daveis and
Cooling obtained control of the unissued
stock of the company in such way as
| to wrongfully deprive the complainant
of his control of thu property; that q
contract was made with John W. Bur.
rowes to build the hotel for $65, 00a, $40,
600 to be paid in bonds and $40, 900 in
| stock; that in fact Burrowes was actual
~ paid but $685. 900 for the work, the
stock and bonds named In the contract
going to the respondents; that Other
stock and the bonds of the company were
illegally issued; that the conduct of the
respondents SO impaired the credit of the
i company that the mortgage was fore.
closed and the property went to the bank
at an unjustly low figure; that the sub
sequent organization of the Cushing
Island Hotel Go. in 1891, In which the
complainant had no voice, was Illegal
etc.
In view of these allegations Mr.. Cush-
ing asks the court to set aside the fore
closure proceedings. cause the recall Of
the ock alleged to have been illegally
issued. cause John W. Burrowes to re-
lease all interests that he is alleged Il
have acquired illegally. and appoint {
receiver for the property.
OF course the defendants deny the
allegations; and 1t looks now as though
the case would be tried out in court.
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