Barrow. Spring did the legal work, drawing up the declaration of trust, originally making his son, Edmund, practicing law in Boston, the nominal administrator, unpaid, omitting the names of the beneficiaries who were the actual trustees. The document made each interest in the trust indivisible in itself, inseparable from the remainder of the corpus, and non-transferable by conveyance or special mention in a will, except by express statement, oral or in writing, addressed to the other trustees, of testamentary intent to make a gift, or by testamentary deed of trust, to take effect in the event of disabling incompetence or death of the beneficiary.
At the initial meeting of the trustees, held on the second Sunday in November at the headquarters of the Barrows Construction Co. at the sand pits in Hampton Falls, Spring had described the trust agreement to the others as a cordon sanitaire. "Discretion is important to us. If one of us dies, as all of us someday surely will, we do not want estate appraisers rummaging around in this operation, asking awkward questions. That's why we're making it a lock-box: very hard to get into; you had to be there. Almost impossible to get out of by yourself unless you're literally willing to die in the attempt."
The instrument provided that in such event, or upon application by a beneficiary or his attorney-in-fact for liquidation of his interest, the value of the interest would be determined by appraisal, and the surviving beneficiaries at their sole option and discretion choose either to admit the decedent's designee to his vacant place, or if for reasons of uncertainty or reservations about his suitability they chose not to, thereupon either by additional capital infusion or by sale of trust assets redeem the interest of the late beneficiary by payment to his successor in interest an amount equal to the value of his prorata share.
The original arrangement soon proved to be geographically unwieldy. For that and other reasons, including perceived risk, in 1961, five years before the statute of limitations would bar state prosecution of any criminal offense possibly committed in connection with construction of the courthouse, Spring had thought it best to suggest to Edmund that he draw up the document substituting Philip Fox of Hampton Pond as the managing trustee of record.
Fox owned and operated the Fox Agency, Real Estate amp; Insurance. Fox's firm had handled the bonds underwriting the courthouse construction, so he had followed the project attentively and was keenly aware of its many ramifications. His agreement to serve as trustee specified that at the end of his first year he would be credited with a management fee of a ten percent ownership of the Fourmen's Trust fund, subject to divestment should he fail for any reason to serve for a total of at least five years. For the next four years thereafter he would annually receive a further interest amounting to two-and-one-half percent of the value of the fund that year, also subject to divestment if he failed to complete the specified term of five years. Thereafter he would participate in gains and losses on equal terms with the original four holders. While his duties as managing trustee would continue, he would cease to receive any additional compensation. Everyone involved in his admission to membership understood the interest he received to be hush money, although Lane was the only one who called it by that name at meetings, causing the others to wince.
Lane though blunt was right. Fox's addition to the trust served prudence as well as managerial efficiency. From his bonding work he knew that the original monies constituting the corpus of the trust consisted entirely of kickbacks from rigged-bid contracts and subcontracts for materials involved in the project, completed in 1957.
The total came to about $135,000, slightly over eleven percent of the total cost of the building and grounds.
Spring conservatively oversaw its enlargement in the bond market. Nine years later he had more than doubled it, to approximately $315,000. On his advice the trustees then voted to begin gradual diversification of their holdings, transferring some of the profits from the bond accounts into common stocks and investing the rest in real estate, both by purchasing undeveloped land and by buying up mortgages insured by the government. In 1970, Barrows had commenced construction of the trust's first cautious venture in long-term ownership of residential real estate, the sixteen-unit apartment building at 1692 Eisenhower Boulevard, at a rock-bottom cost of $7,100 per unit $113,600. The trustees also accepted Spring's recommendation that the trust become more aggressive in the stock market, using about seventy percent of their remaining capital to purchase common stocks issued by companies among the 500 indexed by Standard amp; Poor.
