Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-07-20
DENY GRAFT
Continued from Page One)

mental to the stockholders, had turn
ed out to be Improbable and would
result in the liquidition of the COM
panies. Immediately several lawyers
were on their feet to deny this state
ment. w. Harold Hitchcock, repre-
senting the First Peoples Trust COM
pany, declared that his company was
in good condition. and General Sher-
burne also objected.
Judge Crosby then said that it had
been stated in court and had not been
denied that statesmen were sent
around with misleading statements
and B. V. Killion, representing the H.
V. Greene company, disputed that
claim.
The contention of the defendant at
torneys was that they had gone into
the H. " Greene affairs from a sense
Of public duty to conserve as far as
possible the interests of the stock
holders and that they had acted con-
scientiously and honestly without re-
ward or expectation of emolument.
Counsel for the petitioners, how
ever, asserted that having gone into
the thing and having learned that it
was a fraud, the defendants at on e
have taken steps to wind up the COM
pany's affairs and bring the guilty to
justice. The defense argued that the
stockholders of the Green Companies
will benefit most by continuing the
present management while the petit
TONERS asserted that receivership was
the best remedy.
General Sherburne, himself a de-
PENDANT, opened the arguments for
the defendants. He, with Attorney
Samuel L. Powers. acted as counsel
for the Mutual and Commercial
Finance Corporations and took part
in the management of these organ
izations. He said as result of the
suit his personal bank account had
been attached and that he had been
compelled to borrow money to meet
his obligations.
General Sherburne. in reply to
questions by the court, said that in
case of immediate liquidation the
Mutual Finance Corporation could
probably pay $3.50 on each $50
share. while the Commercial FL
nance Corporation could pay $21 80.
He said however. that If the two
corporations were successful in the
suits now pending against the H.
V. Greene Company. the stockhold-
crs would probably receive 100 cents
on the dollar. He said the liquid
assets of the two companies amount
to S1,SOO,00O and the receivable
claims more than 100000 more.
The original capital of the two COM
panies was S4,100,00O.
After conversation with Greene,
General Sherburne told the court an
auditor was appointed to go over the
affairs of the companies which had
been attacked in financial journals.
| The auditor reported that bad sit
uation existed. AS result. stock
holders committee was appointed.
| General Sherburne said that he
and his associates entered into the
work thinking that they were per-
forming a public service.
/ I'VE entered into no conspiracy
to divert funds" he said. From the
| day I found that there was an i'm
! pairment in the capital, Mr.. Greene
was ordered to refrain from selling
stock. and no stock was sold.'
Arthur D. Hill. former corpora
ton counsel for the city Of Boston
appearing for the plaintiffs. declared
that if these corporations were
merely card houses, the sooner they
were destroyed the better. He de-
clared that there had been no effort
on the part. of the defendants to
hold Mr.. Greene up to the public
as the rascal that he is"
These men may talk of their
public-spirited motives" he said,
but I ask your honor how Mr..
| Greene could have had greater as
sistance than from these gentle
| men?
They were all fishing in dirty
| water. You cannot touch pitch and
not be defiled."
Sherman L. Whipple today filed
in the court an afidavit denying the
allegations made in the bill con-
corning his connection with H. V.
Greene and the afhliated companies.