The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-11-24
WISCASSET'S ROAD.
Continued from First Page

which stock was sold by the COMPANY to
bona fide purchasers practically aft mar
one hundred shares Of which are held nv
the orators.
The orators say that about August 1.
1894, the railroad mortgaged its entire
property to secure the interest and prinoi.
pal upon $500. 600 of bonds and that no
part of the interest and principal thereon
was ever paid; that about August /, 1895,
the railroad took up this issue with a new
issue for $500 900 that the second issue
was taken up and refunded about August
1896, by an issue of bonds to the amount
OF 500, 900; that the interest upon all
three issues was defaulted and that no in
terest or principal has ever been paid,
The railroad company own, subject to
the mortgage of $500 600, and operate
line of railroad extending from Wiscasset
to Albion a distance of 43 miles, the
gauge being "a inches, and that the ROAD
has no traffic outlet or railroad connection
except at Wiscasset.
The orators say the railroad is now and
at all times has been in a hopelessly in
solvent condition and is wholly unable to
borrow money or sell the securities in it's
treasury, and that it is now greatly in
arrears to it's employees for wages due
them; that in numerous legal actions
inducements have been obtained against
the railroad company which now remain
unsatisfied; that the earnings are made
quate to pay the operating expenses and
that there is great strife, disorder, con-
tention and lack of unaminity of action
among the stock and bondholders and
officers of the company.
The orators say that the nine directors
of the railroad company are men engaged
in other business, with little or no ex-
perience in railroad management; that
the affairs of the company are controlled
by two of the directors, Albert NJ. Card
and VIM. d. Patterson; and that these
two directors are largely controlled and
influenced in the management by W. P.
F. Fogg, whose sole interest in the corpo.
ration is the salary drawn by him and
the ownership of ten shares of stock.
The orators say the road is grossly M is
managed; that it's assets are being dissi
pated and lost, and that the office of
president has long been vacated, no steps
being taken to fill the vacancy.
The orators say that in February, 1897,
Mr. Fogg and one Bostwick, at the desire
of Fogg, were authorized by certain OF
the directors to go to London, upon the
representation of Fogg that he could sell
the defaulted first mortgage bonds in the
oompany's treasury and that this trip,
as the orators believe, cost $1,000, which
the company will be expected to pay.
Tho orators say that in April, 1897, the
a committee to whom the performance of
the duties of the directors was surrend
cred; and that by this action all law,
regulation and business judgment in re-
speot to the management of the corporate
business was set aside and three directors
were thereby given absolute control OF the
affairs of the corporation.
The orators say that within six months,
the railroad company has received q
proposition from representatives. of New
York capitalists, contemplating the eX-
tension and rebuilding of the railroad at
standard gauge from WisoaSset to the
Canadian Pacific, without any expendi-
ture or cost to the respondent company /;
that the orators are satisfied after investi-
cation that the proposition was worthy Of
respect and should have been accepted
but that the said General Manager Fogg
and other directors controlling the said
board of directors, as heroinbefore set
forth. frustrated all attempts to bring
about the accordance of said proposition,
that the proposition was manifestly to the
interest of the company, its creditors and
stockholders and that by it's rejection the
said directors wasted and lost valuable
opportunity to put the property upon q
paying basis.
The orators are informed and believe
that about July IL, 1897, General Manager
Fogg and others, directors of the COM
pany, secured from the aforesaid directors
the execution Of contract between the
railroad company and Haines; and the
orators believe that this contract eontem-
plated the disposition and removal from
the state of first mortgage bonds of the
company to the value of $500, 900 and stock
to the value of S3l2. 600, and that for bond
and stock the company will not receive
adequate compensation.
The orators fear that the agreement
ir1 10
company and to themselves.
The orators say that by this contract
Haines is to receive for services to be
rendered by him controlling interest in
both the stock and bonds of the railroad
company and they therefore, allege that if
the contract is carried out the company
will still remain insolvent and unable to
earn and pay any appreciable part OF its
bonded Indebtedness.
The orators say that Haines has already
failed to fulfill his obligations under the
contract and it should be declared null
and void.
Wherefore the petitioners pray: First
That the court enjoin the railroad COM
pany from delivering to Charles D.
ITaines any stocks or bonds, other seouri-
ties or evidence of debt until the further
order of the court.
Second-That Haines or his attorneys
be enioined from receiving any such
securities, etc, until the further order of
the court.
Third-phat the road be place in the
hands OF receiver during the pending
of this suit.
Annexed to the bill are plaintiffs ex-
bibits A and b. Exhibit A is COPY of
che agreement to extend the road to the
line of the Canadian Pacific which agree
ment was not accepted by the road. W.
d. Lowell and Wallace Wilson of Boston.
are named as he arties Of the first part.
They proposed to recognize the company
so that it should own Or operate under a
long lease a standard gauge road from
Wiscasset to the Canadian Pacific or Ban
gor and Aroostook touching the city of
Waterville. Holders of the bonds of the
old company weresto receive for the cash
or indebte ness represented by the bonds
one half bonds and one-half stock of the
new corporation. Stockholders were TO
have-an equal amount of stock in the
new company. The total bonded debt of
the new road was not to exceed $4,000 a
mile and the total stock debt, $4,000 a
mile
Exhibit B, the contract with Mr.. Haines
provides that MIR. Haines shall receive
$500, 600 in bonds, and the stock in the
treasury in return for building
the road from Albion to Pittstield The
also agreed to call in il possihle