Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-05-21

agreement and still continues to do so,
whereby plaintiffs say said Spaulding
became and was, and ever since, has
been and now is charged with a trust
or duty in respect to the management
OF said property for the joint and
equal benefit of all the bondholders
ard stockholders of said Waterville &
Fairfield Railway & Light Co., ac-
cording to their respective interests as
well DIS of himself.
During all the time for the II years
now last past said William S. Spauld-
ing has deliberately, persistently and
fiagrantly msmaraged the affairs Of
SAID corporation and abused the trust
reposed III him and for particulars and
specifications CT such acknowledgement
and abuse plaintiffs allege the follow
ing:
Durin:, said entire period of II years
ne has caused said Waterville & Fair
field Railway & Light Co, to do a
large and continually increasing bust
ness i'm a prosperous and wealthy COM
munity at prices and rates utterly in
sufficient to pay the expense of opera
ton, interest charges and other neces-
sary costs, which should be met by
proper, prudent and economical man
agement.
He has encouraged and assisted COM
petition to arise by failing to provide
the service required by the public in
the community served and after such
competition has arisen has fOolishly
endeavored to ruin the competitors
and stifle the competition by selling
electricity at unusually low rates,
thus causing great financial loss to his
own company without success In de-
fcatilg the competition.
He has wastefully, lavishly and ex
travagantly expended the income and
revenues, which have been derived
from the property in divers ways ut
terly contrary TO the intent of the
company and holders of the securities.
NHc has failed to properly provide
the additional equipment required from
time to time for the company's growing
business, but has purchased large
quantities in his own name and leased
the same to the company, retaining the
title in himself.
He has invested very large sums of
money in property similar to that own
ed by the company, situated in the ter
ritory covered by the company's fran
chise, and in some instances held, own
ed, operated and managed said prop
erty for his own individual profit, and
in other. instances has leased such
property to the defendant company
upon terms profitable to himself.
AS the result of the Encouragement
and abuse of trust as above set forth
said Waterville & Fairfield Railway &
Light Co., for long period of years.
to wit: since November 1899 has failed
and refused to pay interest upon it's
securities known as class B, bonds
amounting in all to $157,50O, issued
and outstanding, of which bonds those
held by the plaintiffs in this suit are
a part. The overdue interest now un-
paid amounts to approximately $4,000.
AS a further result the market
price of the securities issued by the
Waterville & Fairfield Railway &
Light CO., has been greatly deprecated,
particularly the price of class b Bonds,
and said Spaulding has improved the
opportunity to acquire large amounts
of said bonds at very low prices, and
prices far below the actual value of
said bonds, to his own great advant
age, and in utter disregard of his duty
as trustee as above set forth.
Said Elias Milliken, Isaac C. Libby,
Edwin c. Swift, Matthew Luce. and
Henry b. Goodenough have deceased
and the parties mentioned above as
executors and administrators are their
personal representatives respectfully
as named; no personal representative
having yet been appointed for Edwin
c. Swift; that no sale was ever made
by any one of the signers of said trust
agreement of his beneficial interest in
said stock during his lifetime, nor has
any conversion or distribution thereof
been made by the executors or admin
istrators of any of the estates of those,
who have been deceased.
They allege that an action at law
against said Waterville & Fairfield
Railway & Light Co, brought upon
the overdue coupons of Mr.. Weber,
one of the plaintiffs in this suit was
met with the plea that q majority of
the holders of bonds of said class B
had waived payment of interest there
on in accordance with the provisions
of paragraph IS of the mortgage above
referred to, which plea plaintiffs be-
lieve constituted legal defense to
said action.
Wherefore defendants pray that said
trust agreement of July 81, 1897 be de-
clared null and void
That the control, management and
operation of said property be restored
to the stockholders to whom it belongs.
That said William S. Spaulding be
declared trustee. .....
That said William S. Spaulding be
ordered to account for his doings and
management of said property includ-
ing the receipt, and expenditures of the
income thereof. ..-
That receiver be appointed to
take immediate charge of said COM
pany's affairs pending restoration of
control to the parties properly entitled
thereto
Hearing is prayed for at the July
rules and Harvey D. Eaton of Water
vile and E. F. Danforth of Skowhegan
appear as solicitors for the plaintiffs.
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