Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-09-08
HOUSING CORPORATION
SUES FIVE SUBSCRIBERS
DEFENSE ALLEGES FRAUD

A case in equity OF interest ana
ironortance TO many people in the
city was started Wednesday fore
noon in the municipal court room
before Judge ". G. PhiIbrook in
which the kennebec Housing Cor
poration IL suing five subscribers 10
the building project carried on by
the corporation for an aggregate
sum Of s. 900 The defendants are
Charles H. Barton who subscribed
81 900 and Henry j. Collins. Ernest
l.. Cove. Edward G.. Grondin and
Edmund d. Noyes, 5000 each. The
defendants allege fraud. misrepre-
srntation, negligence and misman-
agement und also allcgc that vote
was passed by the corporation 10
sue by legal action all subscribers
who have not paid and only five sub
scribers have been sued. Counsel
for the defense are Carl 6. Jones
William s. Linncll of the law firm of
Bradley. Linnell q Jones of Port
land, while Harvey y. Eaton is ear
irg for the interests of the corpora
ton, II is evident that the case
will be u long one, probably lasting
through today
William A. knauff cashier of the
Peoples National Bank, who. is
treasurer of the I<ennebec Housing
Corporation and Addison G.. Pulsi-
fer of Auburn. architect of the
houses erected by the corporation
were the witnesses examined in the
forenoon
With Mr.. knauff on the witness
stand, the counsel for the defense at
tempted to show misrep presentation
on the part of the corporation by in
Producing the advertisement in the
Waterville Morning Sentinel of the
date of January -, 1919. in which
it was stated that already the ma
terials for 20 houses had been Sc
cured which had been bought at
two thirds the market price A
prospectus, issued by the company.
was also introduced in evidence but
the witness stated that he couldn't
tell who issued the document or
when il was sent out, but that II. d.
Eaton and f.. G. Libby had charge
of 1t and IT was probably sent ont
by the clerk of the corporation. Mr.
Eaton. A part of the advertise
ment in the Sentinel was read by
Attorney Jones. Attorney Eaton
stated to the court that this evil
dence was only numbering up the
case, but Judge Philbrook ruled that
the defense intended to show that
the material had not been bought at
the time that the advertisement
stated that it had
Further evidence on Mr. Knauff's
part showed that the books of the
Corporations which were in court. did
not show that anything had been paid
Tor on january IL. The books did
snow that organization expenses had
been paid on January 81 and vouch-
rrs were introduced bearing later
dates showing that certain bills for
lumber and other material had been
paid for at various times on dates
ranging from January II to March 3.
TheSe bills were read in detail and
when asked by the court if if wouldn't
he as we'll To read the lump sum paid.
hut Attorney Jones explained that
the object was to prove that the ma
terials We're not bought at two thirds
the market price.
Before Mr.. knauffs testimony WAS
completed. permission was obtained
from the court. by agreement of coun-
sci, to hear the testimony of Addison
G, PulSifer of Auburn, architect for
the corporation as Mr.. Pulsifer wish
ed to leave for ArOostook county for
a conference with Governor Baxter
and others in regard to the plans for
Il tuberculosis hospital.
Mr.. Pulsifer stated that along the
first Of March. he was called by u
j. McGillicuddy of Lewiston. who
wanted him to get into communica-
ton with John II. F'rieI of WaterviIle
and that as result he came TO Wa
terviile and met committee from the
kennebec Housing Corporations: that
among those present were f. c..
Morse. F.. c. libby. j. 4. Friel. w. A.
knauff. f. d. Eaton and others whom
he could not name. They told him
that they had formed a CORPORATION
and of their housing scheme and they
said that they had already bought