When the Ace & Acme Lumber Company shut down their logging railroad in 1900, they kept some of the engines running for a while to move things between their two lumber mills. One day in 1902, 1 derailed when picking a flatcar out of a siding up on Squam Mountain and was simply left there. By the time the Lincoln and Concord purchased the A&ALCo and started rebuilding it, it had been overgrown -- the L&C crews saw an overgrown woods siding, disconnected it from the mainline, and went on their merry way.
It wasn't found again until 1954. The PV&T, understandably nonplussed about the discovery, left it in place until 1960, when they hired a pair of heavy tractors to pull it out and drag it down to Parsons Vale, where it sits in the old LW&C enginehouse, right next to LW&C 1065.