Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-08

with the original understanding, pur-
| chased by the New England Naviga-
| ton Co. A part of the purchase price
| was applied, by my order, in pay
| ment of NV note at the National City
Bank of New York. Two million del
lars was paid me in cash and the bal
ance was applied on my notes neld
by the New England Navigation Co.
The $4,000, coo capital of the Billiard
| Co was used by the company to pur-
chase of me the remainding $4,000
600 gold notes of the New England
| Investment & Security Co, which l
still held
when the transaction was conclud-
ed I held 81 100000 of the capital stock
of the Billiard Co. That company had
outstanding notes for $14,25O,000, the
| proceeds of which, together with its
capital of 100000, were invested in
$3.50, 900 of gold notes of New Eng
land Investment & Security Co.
New Haven Relations
"Anv subsequent dealings of the
Billiard Co with the New Haven Co.
or its subsidiaries were all simple bus
mess transactions and in no case that
1 recall, but one, was there any &C
| companying verbal understanding
! That case was as follows:
THE New England Navigation Co.
| held a block of New Haven shares
which President Mellen desired to
| sell. In order to have them listed on
the Stock Exchange they had to be
! sold to an outsider. President Mellen
! suggested that the Billiard Co. should
| buy the shares, and should endeaVor
to work them off, meanwhile main
tanning the market price for the pur-
| pose of buying small blocks of shares
when necessary to relieve the market
! from pressure. 1t was arranged that
the Billiard Co. should give its notes
| for the purchase price of the shares
| and take title to them, and when the
transaction should be finally con-
| cluded, the Billiard Co. was to ac-
count, suffering no loss and making
no profit except fair commission. 1t
! turned out that the market was
| falling one and the shares were not
| sold In accordance with the verbal
! agreement, the shares were turned
| back upon an accounting, so that the
| Billiard Co. neither lost nor made
| dollar by the transactions.
AT certain times when the Billiard
! Co. needed cash in the course of it's
| liquidation it sold some New England
| Investment and Security notes, partly
| at par and partly at a discount, the
| New England Navigation Co.
1.-The shares of Boston & Maine
| stock which 1 bought subsequent to
my original purchase from the New
| Haven of 091, 94S shares, l sold after
| completing my sale to the New Ha-
ven at the best price obtainabie from
the Boston Railroad Holding Co. The
! price l mentioned was approved by
the railroad commissioners of Massa-
chusetts AS I recoltect it, 1 sold the
common stock at little over $3.50 a
share and the preferred stock at a
] little over $16S share, receiving in
payment a note of the Boston Rail
road Holding Co. This note, in accord
ance with an understanding l had
with the New Haven Railroad Off
Gals, was taken over at par and in
terest by the New Haven Railroad
Co., the proceeds of this note being
applied in liquidation of my note to
the New England Navigation Co. and
the balance due me being paid in
cash.
"Out of all the cash received by me
from these transactions, I had, of
course, to pay my notes at banks in
| New York. | do not remember exactly
what the Boston & Maine stock cost
me, but l know that 1 made a profit
upon this transaction.
mo officer or director of the COM
pany was in any way associated with
me or had any interest in my transac-
IL. IL 60 l.
or in the Billiard Co.
When the Billiard Co. was in pro-
cess of liquidation, I told President
Mellen that in order that he should
feel that, if anything happened to me,
he was in position to protect the in
terests of his company as creditor of
| the Billiard Co, l would deposit with
/ him nearly all of the certificates of
the Billiard Co. stock endorsed in
! blank, to be returned to me at my
request. When he resigned as presi-
dent, he asked me if he might tempo
rarily use the certificates as security
| for lean of $375, 1000 he desired to
/ make from the New England Naviga-
ton Co. with the approval of its di-
rectors. To this I consented. The note
to the New England Navigation Co.
1 was subsequently pau 1i4o tiic WI
lateral released.
1.-THE charter of the Billiard CO., as
| understood it, lapsed some time ago,
or at least the public authorities of
the state of Connecticut so contend
ed In process of liquidation the COM
pany's capital stock was reduced to
! &c shares, which were transferred to
other stockholders and I resigned as
an officer and director"
Burning of Books
When the inquiy was continued aft
| er recess MI Billiard resumed the
stand and said his own books showing
the transactions referred TO in his
statement We're burned by him several
years ago. He put them in the furnace
| himself, he said.
The books of the Billiard Co, witness
stated, were disposed of when the
affairs of the company were wound up.
ORGANIZER ON STAND
Continued from Page One)