The Portland daily press., 1897-12-03
MoosEHEAD PULP CO. FAILURE
History of Transactions Which Led Up to
Recent Disaster
(Lewiston Journal. J

Scion, December 2.-The assets of the
Moosehead Pulp and Paper company of
Embden, whose liabilities have already
been given as $500, 600 in round numbers,
are as follows: The plant, subject to
mortgage of 5000 about 1000 cords of
wood at Scion and 1000 cords at Bing-
ham, also other personal property valued
at about $4,000. A conservative estimate
places the personal property at $4,000,
which with the plant is all there is TO
satisfy debts to the amount given above.
Last March the Moosehead Pulp and
Paper company found themselves in such
stress financially they were obliged to smut
down the mill. Mr.. Mills, general
manager looked in this time of trouble to
Mr. Wallace A. Clement of Rutland,
VT, stock holder. for the assistance
needed to put the company on JUS Ieet
again. April LIST stakeholder meeting
was held at Emblem, when Mr.. Clement
was elected president; Turner Boswell,
treasurer. With the incoming of this new
management came also hope to the
creditors generally as they had absolute
confidence in the treasurer who at this
time ana repeatedly since, we are in
formed by some of the creditors, assured
them of the payment of their claims in
full
In June the three heaviest insecure
creditors the Messalonskee National bank
j. H. Eveleth and the Somerset railroad
were called together at Oakland by the
directors, who proposed paying them rs
per cent of their claims in cash, or in
full in secured time notes. The creditors
represented there agreed to take notes
with good security, we are informed, but
have never heard anything further from
this proposition. AT this time they made
a statement of the financial condition of
the company to those auditors.
November goth the creditors brought
suits against the company in large
amounts, having been put off as long as
they felt to be safe and risk losing
their claims on Clement who had the pre-
vious June transmitted all the stock he
owned in the company, excepting about
one hundred shares, to a New York man.
At the time of bringing suit, the creditors
intended to force a test case through the
December term of court and Immediately
bring suit against Clement. Vain hope
for events, proved that Mr.. Clement had
several surprises in store for them which
were sprung in quick succession. Clement
had previously employed one of the best
law firms in the state, Symonds, Snow &
Cook of Portland, which, with his own
attorney, Frank D. White, and Turner
Buswell, made a strong team.
In Portland the week before the assign
ment new company was organized.
Some time previous to this Boswell &
Clement both resigned as officers of the
old company, although Mr.. BuswelI was
still clerk, Frank D. White OF Rutland,
VT, said to be Mr.. Clements attorney,
being prominent in both companies.
Next the Mr.. White makes demand of
the Boston Safe Deposit 81 Trust COM
pany, trustees for the bondholders to take
possession of the property and they
make their demand on the NJ. P. and p.
company for possession, November 49,
Mr.. Harry o. Alexander agent and at
torney, elected for the purpose. immedi-
ately made delivery at the same time
turning over the loan of the Moosehead
company, the rental to be paid to the
bondholders.
November 4th the M. P. and P. COM
pany went into insolvency and here comes
the question, how much is there for the
unsecured creditors.
Dir Buswell is credited with saying
pow that according to law there is abso-
lutely nothing for the unsecured creditor,
but that he presumes White will be in
clined to be liberal with them.
What the result OF this tangle will be
no one knows.
This case is attracting much attention
and is III fact, about the only theme of
conversation here, and we lind the feel
ing among great many people against
one of the prominent parties concerned is
very bitter.
A prominent business man of Bingham
says it will take ten years Of prosperity
for that town to recover its losses from
this failure. The taxes of the NJ. p. and
P. company due the town of Emblem are
still unpaid and Mr.. Barron, the collector,
says.h shall sell the plant very soon to
satisfy that claim.
1t is understood that they propose to
start the mill at once, which will I'M
doubtedly be of great benefit to the town.
The business men, especially, have keen
ly felt the depression within the last few
months and will gladly welcome better
times.
SMALL DAMAGES FOR GILMAN.
Watarville Decen,har > I'm a I.ra