Daily Kennebec journal., 1916-09-20
Overwhelming Approval

ONCl &APHAONo
The vote Of approval was overwhelm-
ingly in favor Of endorsing the resolu-
lion introduced by r. H. Long Of
birmingham. II was marked, however,
by protests Of minority counsel. Con-
rad ". Crooker, for the Boston &
Maine Minority Stockholders Protec-
tive Association, that proxies had been
"traudulently tricked by post-dating
to effect an unbeatable majority COM
bnation" and by Asa P. French. rep
resenting the Lawrence estate Of Med
ford, that the 81 per cent. holdings
owned by the New York. New Haven
& Hartford Railroad were voted il
legally by the trustees who are acting
under federal court appointment.
Seeking Report
Attorney French proposed a resolu-
ton calling for the appointment of a
committee TO report two weeks hence
on various features of the roads af-
fairs
Explanation Of circumstances by which
the Intercontinental Rubber Co. of New
Jersey a creditor, acted at the insti-
CATION of the directors in asking for a
receiver; a report as to what efforts the
directors made to renew further outstand-
Ing notes. or to test the roads credit be-
fore ''instigating" these proceedings; the
reason why the directors have made no
move toward settlement Of the suit in
yolving claims of the Hampden Railroad
which has tied up $4,000 600 of Boston &
Maine property through attachments and
answer to the question why the direc-
tors die not consult with the stockholders
IN 50 important a crisis instead OF secretly
determining the receivership." were man,
ed as the duties to be required Of this
proposed committee. The resolution was
turned down by the same vote that regis
tered in favor Of the resolution Of en-
dorsement
Speaking at length, Counsel Crooker
asserted that !. was the self-confessed
purpose Of the roads directors not to re-
lieve the roads financial strngency. but
to carry out the plan Of reorganization
which Marcus P. Knowlton. chairman of
the federal trustees, had characterized
as Injurious and unjust to the stockhold-
ers Receivership was the intended means
to this end, he sai6. He asserted that
the document containing petition for re-
ceivership was drawn up through collu-
sion between the directors and creditors
counsel to mislead the court and court
was risled. While we are without legal
redress here" he concluded, there are
yet courts not dictated by Wall Street
that invite criticism and Intervention"
Although differences developed between
the two minority counsel growing out OF
severance Of relations between Attorney
French and the protective association.
counsel for the protective association an
nounced his support Of the resolution in
uoduced by Mr.. French. Mr.. Crooker
eontended. like Mr.. French. that voting
OF the federal trustee shares was illegal
and violation Of the Sherman act.
Mr.. Crooker stated his belief that the
Boston & Maine at time when it had
N,o00,o00 in its treasury could have
extended Its obligations and so averted
rsceivership. In answer to a question
BY Hacop Bogigian Of Lancaster. anoth-
er minority holder, President ]. H. Hus-
lis, now temporary receiver of the road.
said there was no way out of the road S
oiftculties except through a receiver
ship.
5ogigian said he held proxies Of a
7c-year-old spinster who held the orig
'nal stock issued by the road and who
depended upon the dividends now stop
ped as her only source Of income. He
said also he held few shares held by
church which used to get a little out
Q! them. but now gets nothing. Il
cnefge that this condition is due to
'oe work Of bankers who have been and
are connivtng because q plum is here
to be picked"
William H. Coolidge, former counsel
OF the road, who announced that his
.eslgnation two years ago was due to
ms opposition to Q plan for re-organiz-
ing the system proposed by the direc-
.oss at that time declared himself in
nvor Of the plan which was interrupt
"a BY the rsceivership proceedings. I'm
yer this plan. he held. common stock
holders Of the Boston 4 Maine were
oeins treated fairly. while leased lines
.sre guaranteed their just due. Al
.nough declaring In favor Of the reso-
.uuon upholding the directors. the
seeaker asserted that he was holder
proxy Of the minority Lawrence
s.sate to vote IN favor Of the adoption
e ne latest reorganization plan.