The Portland daily press., 1897-05-25
LAWYER WANTS THE BONDS.
Suit In Equity Against the Wiscasset
; & Quebec Railroad.

An Action Involving a Contract Which the
Railroad Of1cials Claim Had Expired
Interview With General Manager
Fogg.
Yesterday in the U. S. District court
Wallace Wilson of Braintree, Mass, fled
a bill in equity against the Wiscasset and
Quebec railroad praying the court ito
decree to him bonds to the amount of
s125, ZOO in accordance with an agreement
made by the company with him. A. M.
Spear of Gardiner was the counsel acting
for Mr.. Wilson. The court ordered
hearing on request from an 1nJunctlon
the hearing to take place Thursday the
9th inst. TheTnotice was served on W.
D. Patterson treasurer of the Wiscasset
& Quebec.
Treasurer Patterson and General
Manager W. f. P. Fogg were both in
town, last evening, on business con-
nected with this case. In an interview
with PRESS reporter General Manager
Fogg thus outlined the case and the COM
pany's defence
About year ago a contract was
made between the Wiscasset & Quebec
railroad and z. D. Lancaster of Pitts
field resident of the Sebasticook g. Moose
head railroad. The contract was de-
signed to accomplish completion of our
road from it's present terminus at Albion
to Pittsfield. There were various ele-
ments entered into the contract, some
of which have no part or bearing in this
case.
The principal consideration of the
contract on the part of the railroad COM
pany was the delivery to Mr.. Lancaster
of $125,000 of first mortgage bonds. In
consideration he was to do certain things,
and there were embodied, in the contract
certain stipulations regarding the
franchise of the road above Pittsfield.
Pending the execution of this contract
the company authorized new issue of
first mortgage bonds, the new issue being
designed to retire the original issue and
to furnish funds for the completion kof
the road. Mr.. Lancaster's contract re-
lated to the new issue.
OoA1oAN2SiA'1S oOiety Vo' S-APS-ASAASSS- 49,
contamination of the new bond issue,
by reason of the company's inability to
call in all of the bonds of the first issue.
By reason of that delay we found our
selves unable to make delivery Of bonds at
the time stipulated. ssBut Mr.. Lancaster had
always been friendly with us, as our in
terests were practically mutual. There
was no inclination on his. part to take
advantage of our remissness. Finally it
was mutually agreed that the matter
should be dropped, none of the condi-
tions of the contract to be performed by
either party. In other words, the con-
tract expired by time limitation and by
mutual consent.
pending this termination of the con-
tract, Mr.. Lancaster came to Wiscasset
bringing Mr.. Wilson of Braintree, who
was introduced to the officers of the COM
pany. Mr.. Lancaster represented that he
had negotiations pending, through Mr..
Wilson, for disposal of those bonds.
1t was mutually understood that Mr..
Lancaster expected to raise money on the
bonds to enable him to perform the con-
ditions of the contract. He represented
that Mr.. Wilson was in communicate on
with parties who would pay more for the
bonds than could otherwise be obtained
Therefore, in order that Mr.. Wilson
might have some evidence that he was
authorized to handle the bonds in Mr.
Lancaster's behalf, Mr.. Lancaster re-
Tod 10
drawn by him on the railroad company
for the delivery of the bonds to Wilson,
when they should have been certified to
by the trustee. The president of the
company saw fit to sign that acceptance.
After the contract had been terminated
by mutual consent, Mr.. Lancaster agreed
to return that order to the railroad COM
pany, it of course being without any
consideration; but by reason of some
neglect, or Mr. Wilson's refusal. it has
never been returned. Now Mr.. Wilson
has brought this bill in equity in the
United States court to obtain order for
delivery of those bonds to him, and to
restrain the railroad company from other
wise disposing Of them.
"Our answer, in brief, is that the
whole matter hinges upon and is con-
trolled by the contract between Mr..
Lancaster and the railroad company that
Mr.. Lancaster never acquired any title
on the bonds, as he had performed none
of the conditions of the contract and had
performed none at the time the order
was given in favor Of Mr.. Wilson; that
the delivery at this time to Mr.. Lam
caster or Mr.. Wilson would be entirely
without consideration; that neither Mr.
nor Mr.. Wilson could have
any legal interest in the funds, except
that the proceeds were to apply to the
of the road from Albion to
Pittsfeld, under the terms of the con-
tract; that Mr.. Lancaster claims no
breach of contract, nor does he demand
any delivery of the bonds; but on the
contrary recognizes the contract to have
been terminated by mutul consent with
out damage to either party thereto"
General Manager Fogg expressed re-
GREET that the cOmnany should he draooed