Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-09-09

purchased maerials at two-thirds of
the market price. That the personal
guarantee of the directors was given
and the investors we're assured that
they would get their money back and
y per cent. interest That David H.
Staples and z c. Libby went out and
told That the corporation was to build
80 houses at a cost of $500. that ma
terials had been purchased At two
thirds the market price, and that tho
defendants had subscribed their names
upon these representations That the
houses had cost double the sum stat
ness men would not have subscribed
to the project had they known that
the houses were TO cost that figure
Horace w. Hodgkins of Lewiston,
carpenter, was the first witness for
the defense. He has been a foreman
for d good number of years and was
employed by i. c. Libby to work for
the kennebec Housing Corporation.
/ He began work in April 1920 as as
sistant superintendent with Addison
G. PuIsifer, architect of Lewiston as
superintendent. Mr.. Hodgkins said
that he was nuder the impression tina t
the corporation was to build 50
| houses to cost $4,000. and that he sa w
i the plans and said if they were to
build theh ouses for $500 he would
/ take the first train for home. He told
them that the houses would cost
$4,000. He testified that some changes
were made in the plans which caused
some delay. These changes were or
dered by Mr.. Libby and some of them
We're for the best When askd who
was the boss on the job, he answered.
II don't know | was supposed to be
| boss" He admitted that he Dbeyed
Mr. Libby in the uatter of his work
after he found that Mr., Libby had
full charge. The matter of some
trouble existing between Mr. Hodg
kins and Mr. Libby was ruled out by
Judge Phlbrook as not material. At
torney Eaton objected to the question
as To what hindered the construction
of the houses and materially increas =
ed the construction cost Judge Phil
brook then explained that fraud was
proven only false false representa- =
ton Of an existing fact, and asked
that the questions be confined to that
line.
The testimony then went on to show
! that much of the time materials for
| construction were not on hand But
! the witness said that there were nails
| and brads enough for 1000 houses
That there was purchased after he
went there columns which are in the
| field now. bricks. sewer pipe. windows
and frames purchased from Andrew
Ware. asked of what material there
was enough for IS houses, Mr.. Hedg
kins stated that there was zinc
enough for 100 houses and nails. col
umns. Iaths and doors. That it took
! about IS. 600 feet of lumber to house
| That he thought the Jealous lumber
was worth s3S at the time it was
, bought. but that he wouldn't buy il
at all. if he could have got something
else,
+ Twice the question Did anything
. else. eliminating the trouble with Mr.
! Libby and the lack OF material on
! hand. hold mp the construction Of the
! houses" was put to the witness who
affected not to understand. "All
right, never mind" said Attorney
! Jones while the witness winked
broadly at Attorney Eaton. F.. G. Lib
by and n H. staples. who were
grouped near. The witness stated
that ne started IS houses and the out
side work was done on all hut foui
I
| 1920 He said that he never had
enough of the big essentials on hand
at any one time to complete Is
houses.
Harry NJ. Hilton, treasurer of the
| Proctor and Bowie company was Their
called and asked about market prices
at the time the bills which had beer
iFead by Mr.. Knauff were submitted
Judge Philbrook ruled that this
should only apply to material bought
before tho date Of the advertisement
Of January 10, 1920 and as no bills
for material bought before that date
had been read. this testimony should
not he given MT this time. Mr.. Hill
ton was Withdrawn and +. c. Libby
|
respond. n recess was called till
O'Clock in the afternoon.
\ The court session was resumed
promptly at > o'clock and Lionel
Jealous Of the Central Maine L,Sm
her company. from whom some OF
the lumber was bought by the Hous-
ing corporation. vas the first wit
ness He stated that he sold 100000
feet of lumber to the Housing Cor
porsnon in April 1920 at S3S thou
sand and that he did not consider II
two-thirds of the market price.
Orlando r. Frost of Belfast was
the next witness. Mr.. Frost testified
that he sold all the inside finish to
the Housing Corporation and that
there was enough for Is or II houses
and that the amount sent to his firm
from Vassalboro to be milled would
do for five or six houses. Being