The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1860-03-30
BIDDEFoRD, ME-, FRIDAY MORNING, MARCH 80, 1860

Peck testi6es that Lenyitt said to him, III
gave Smith about 5000 in checks, TO sdre
his neck" A part Of this, Peck allows 10
have been due, but large portion is dis
claimed. An exact settlement Of the issue
is unimportant for the purposes Of this in.
vestigation. Leavitt testified one way and
Peck the other, and the Committee do not
feel called upon to take sides with either.
Francis W.Hill, Of Exeter, one Of the d.
rectors Of the Norombegc, but who was en-
tirely ignorant Of Peck's transactions with
the bank, ,estifes to several interviews with
Peck after his deialcation became public.
Hill showed him the schedule Of checks as
held by the Receivers, (S24,475, J and says:
81 told Peck that thought his fsst obliga.
ton was to protect Smith. the cashier. because
his bondsmen had signed with knowledge Of
their liability, but that he had asked Smith to
rob the stockholders Of the bank, by going
there secretly and asking Smith to lend him
money without the knowledge Of the directors !;
knowing as he peek did, that 1t was a trans
action that might ruin Smith and make him a
candidate Cor the State Prison."
Hill further says that Peck assented to
this and admitted that bis first obligation
was to take care Of Smith and he would do
so. But Peck's testimony on this point
contradic,s Hill as follows: al told Hill that
considered the claim of my bondsmen on
me before any other, and | told him that
should consider my first duty in any event
to save myself from State Prison."
Speaking further Of their interview, Hill
SAYS:
;'Peck then picked out some $4,000 in the
schedule Of checks, and said he did not ieel
under the same obligation TO pay them as the
others. l asked him why and he said he
would tell me il | would say nothing about IT.
He then said those checks (Sl2, 900 WORTH were
not negotiated by him but by Dudley +. Leayitt,
though he presumed he had the money. The
balance of the checks except one lot OF S5,OOO
from Schwartz, he had himself from Smith, but
not in Bank loans"
Mr.. Hill after Peck's cohesion as just
given, had an interview with Leavi,t and
says:
al told Leavitt he must respond to the bank
for the Sl2, 900 Of checks. I told him sa,o
hiS foot m the trap. Leavitt said there were
Others who had their feet in the trap with him,
and that they should be equally held to answer.
l told him what Peck said about the checks
aud he did not deny it,
Peck's uniform and persistent asseveration
to the Committee has been, that his real
that he had never received the proceeds Of
any of his checks beyond that. Lcavitt aud
Smith tell different story but the Commit
tee do not feel called upon to decide a
question OF, veracity between these parties.
Leavitt asserts that he always paid the pro-
ceeds of the checks to Peck, whereas Peek
positively declares that Leavitt negotiated q
large number without accounting TO him for
the money. Peck denies that he ever adj
mltted to any one that his bona fde debt at
the Norombcga exceeded $4,000. The
case in the judgment Of the Committee is
not susceptible of n definite conc lusion, and
therefore they do not pretend to have arriv-
cd at one.
In addition TO the amount thus raised by
checks, Peck had notes discounted at the
Norombega, between July, 1853, and Oc'o-
Der, 1859, to the amount of Sl5,752 73-
S3,i55 III OF which was over due and un-
paid when the Receivers exhibited the
books to the Committee. The notes were
generally Of an inferior character though
some of them bore good names. The great
majority, however, would not be considered
responsible, and were made valuable only
by Peck's endorsement, which in turn dcriv-
ed its strength solely from his official posi-
ton. The settlement that has been, or is
to be, effected between the Bank and tho
various parties TO these transactions, is no
part Of the business of this Committee
their duty being fully discharged in point
ing out, as they have done. the evil agency
of the Bank in affording facilities to Peck
to get money which in the end made
fraud upon the Treasury natural sequel.
The evidence before the Committee,
clearly established the fact that Messrs.
Drumpnon. Hill, Donahoe and Field, Of the
Board Of Directors, knew nothing whatever
Of Peck's Objectionable transactions with
the Norombcga.
MECHANICS BANK, PORTLAND. or this
bank, Mr.. Peck says in his testimony:
"My checks, as Treasurer, have been dis
counted somewhat extensively by the Mechanics
Bank. Some of these checks were dated ahead,
but the bank agreed to keep them for a specified
time. These transactions date back to 1857, but
have been more frequent within the past year.
Allen Haincs, President Of the bank,
testified thus:
"Pccks account IN our Uaukp as lteasutei,
was open throughout the whole three years.
lie had different notes, sundry ones, discounted,
and proceeds carried to the credit OF the State.
He sometimes endorsed these notes as Treasurer.
do not know that he was authorized to do this
but supposed the State was held. thought the
money was needed for the purposes Of civil gov
eminent
IL appears that Peck was in the habit Of
procuring discounts in this way, and after
The money was carried TO the credA OF the
State, he would check it out for his own
purposes, by checks payable to bearer, or ID
his own order, or 10 the Eastern Express
Company, or in some way that did not de-
fine the destination of the money. His
carrying the money to the credit OF The
State, was a mere ruse and one so trans
parent, indeed, that it is hardly credible
that the officers of the bank should no, have
seen through il. The bank is highly Gen.
surahle Tor ever discounling piece Of ne
go,iable paper with Peck's name as Trea-
surer upon IL, as such transaction Is, IN
all respects, indefensble and illegal.
Wthou, rcmarking farther upon the gen.
eral practice OF this bank. or calling atten-
ton to the numerous improprieiies thus
committed, it is proper TO direct the a,ten-
ton of the Legislature to one specific tran
sac,ion Of so grave character as, in the
opinion Of the Committee, TO demand re-
dress, immediate and effective. 1t appears
upon the joint and sceordan, testimony Of
Mr.. Peck and Of Mr.. Haines the president,
and Mr.. Stephenson the cashier, that some
time IN the early part Of the past autumn,
MIR. Peck presented to the bank, for dis
count, tho note OF George X. Smith and A.
X. Hallowell for $4,000, payable at the
Suffolk Bank, Dec. 24th-27lh. II was
payable to Peck's order, and he proposed to
endorse il. He len the. note for the con-
ference Of the bank officers, and when he
returned TO learn its fate, he was told that
A L., 10