The Barre daily times. (Barre, Vt.) 1897-1959, 1914-05-08

9U0 shares OF Boston Il Maine stock
for $l3,794 ,500--at l25-from the New
Haven company, and sold them back
at $50 share-netting a profit of ST.
/ 74S,7 50--to the Boston Railroad Hold
ing company, organized by the New Ha-
ven as a subsidiary.
| Both in the purchase and resale of
this stock" Billiard said, "the negotia-
tions between me and the railroad com
pany were absolutely free from any Sc
cret arrangement or understanding"
He admitted agreeing, however, in
view of his profit, on June 80, 1909, to
take over from the New England Nav
| igation company, New Haven sub
sidiary, $l6,000,000 of gold notes of the
| New England Investment & Security
company, another New Haven subsid-
larry, controlling trolley lines at Worces-
ter and Springfield, Mass, in payment
| for the Boston q Maine stock, repur-
chased by the New Haven railroad
Billiard testified that he bought the
great block of Boston g. Maine stock
when the Massachusetts, supreme court
declared that its ownership by the New
Haven was Illegal. He borrowed i'm
mense sums from New York banks and
risked his entire private fortune, he said,
in the deal. Among his loans was one
of $ll 100000 from the National City
Bank of New York.
II knew the New Haven company
hoped at some time" Billiard testified
ito get the law changed so it could
hold the stock. At that time it was
generally understood that the railroad
company had to part with this stock.
81 offered President Mellen Sl25 a
share for the stock, about the market
price He telephoned me that if would
give Sl25 share he would help me
finance the purchase. This / agreed
to do. l paid a part of the purchase
price with a note and the balance in
cash.
"There was absolutely no understand
ing by which ] was to be protected
against a fall in value of the Boston &
Maine stock, or by which ! was under
any obligation to keep the stock, or to
sell it again to the New Haven rail
road"
Billiard said the 100000 shares of Bos-
ton & Maine stock did not give him
control and "to strengthen his position"
he bought $4,000 more shares.
After holding the stock year, Bill
ldiu Edlus tiH NEW MAVEN HDb u Dill
through the Massachusetts, legislature
to authorize its holding of Boston &
Maine stock, Incorporating the Boston
Railroad Holding company.
"The New Haven then wished to re-
acquire the stock" said Billiard.
He did not volunteer the details Of
aid given by Mellen in financing the
deal, but said at one time the stock
dropped to give him a paper loss" OF
more than SI,000000
81 sold it back at about the market
price," he declared 81 received $50
share. showing me a profit of S25 share
on my original purchase of 100. 900
shares. ] was not at that time a di /
rector OF the New Haven company and,
both in the purchase and resale, the
negotiations between me and the rail
road company were absolutely free from
any secret arrangement or understand |
ing"
Gas measure OF self protection in
case Of DEATH" the witness said the |
Billiard company" was formed in 1909, |
with charter from the Connecticut as
sembly.
"But the Billiard company never had |
to do with the Boston & Maine |
stock" Billiard asserted.
The witness said the subsequent OPP |
erations of the Billiard company were as
He sold the sl4,25o.0O0 gold notes OF |
the New England Investment & Secur- |
ity company (of the Sl6,250000 received /
for the Boston g. Maine stock to the |
Billiard company and received an equal |
amount of Billiard company notes. The |
latter, he said. were sold Gin accordance
with The original understanding" to the
New England Navigation company, the
proceeds liquidating his note with the
National City bank.
He paid S2.n00000 cash, and the bal
ance was applied TO his notes held by
the navigation company, he said.
"The S2.000,000 cash capital of the
Billiard company" Billiard stated, was
used by that company to purchase of
me the remaining S2.o00,000 of gold
notes of the New England Investment
Security company. When that trans
sction was concluded | held 100000
If Billiard company capital stock. That
company had outstanding notes for Sl4,-
100000, the proceeds of which, together
with its capital of S2.000,000, was in
rested in si6,250,0O0 of the gold notes
If the New England Investment & Sc
,urity company"
Later dealings of the Billiard COM