The Portland daily press., 1875-12-02
THE BANK OF PORTLAND.
Examination of william N. GoeId.


Q-How came the one for 1896, which you
say you did not give up to Clement, separated
from the other?
Al took thespacksge out hurrieely, and
the vault.
Q-Were all the checks due and unpaid at
the time you gave them up? Had any of
them been paid or settled in any way by Glenn
ent?
A-They were all due from, and unpaid by
him, and in no way settled.
Q-You say that no one ever saw said checks
up to the lime of your failure but you and
Clement. Did any one but you two see them
after the failure and before they were given up,
to know what they were?
A-Not to my knowledge.
Q-You stopped payment on May Alb, the
first meeting of your creditors on your call oc-
CURED ON the 18th of the same month. Were
the checks given up in the interval between the
4th and 18th; if SO, on what day?
A-They were given up in the interval. The
day do not recollect. To the best of my rec
objection it was the last of the week in which 1
stopped.
Q-Did you comm unicate to your counsel at
the time that you had given up the checks?
Al did not.
Q-How lately did you make known to any
the facts as you say they are of the existence Of
these checks end your giving them up to Glenn
ent?
Al do not recolect how recently it was, but
l think that it is within three mouths. l really
cannot get it definitely. 1t was after [ was ad-
judged bankrupt at Bangor. should think
that it was within fortnight after the election
of my assignee.
Q-Were you not aware that Clement was
one of the petitioners in the bankrupt proceed
ings against you, and made oath to large
claim for deposits. and why did you not COM
municate to your counsel or to the court, that
the claim was false and fraudulent, as your
statements now make it appear?
Al understood that he was petitioner and
had made oath to a large claim. AT the time l
gave these checks up to Mr.. Clement he ver-
bally agreed with me in consideration OF my
giving up these checks or memorandum to
him, that he would use all the means in his
power and that he would obtain settlement
of the affairs of the Bank with its creditors.
He to obtain this by his own methods or in
any manner which he saw fit to accomplish
that end.
Q.-And on your part did you agree to deny
that he was a partner, and to conceal the fact
that he had drawn out more money than he
had put into the bank?
A-The first time that anything was said
about the checks was on the morning of the
failure. went to the bank on that morning
before half-past seven o'clock and found Mr..
Clement there. Before concluded my inter
view with him that morning he spoke of these
checks, and wished me to give them up to him,
partner of him, and asking me if 1 would not
protect him. replied in answer to that that
he was already protected, as he had over
drawn more than. he had put in and l could
not give up the checks, as they were my only
vouchers. In the course of quite number of
private interviews with him, in each of which
he urged me strongly to surrender those men,
oranduns to him, l at last acce led to his re-
quest upon the following conditions. He agreed
to use all his influence to obtain favorable
settlement of the affairs of the bank if would,
on my part, shield him from being partner in
the concern as far as was able. He also told
me the plans that he should adopt to make the
settlement. He stated to me that if gave up
these checks to him he should destroy them at
once and then there would be 20 evidence that
any such amounts had been drawn; that his
deposit books and the books of the bank would
agree, and that we could both swear that they
were correct, and that he would prove his
claims with the other creditors and induce them
to accept settlement. This being done he
would not defraud any of the creditors of any
of this money drawn, as all he wished was to
escape partnership liabilities. He also urged
as the expenses and losses could be shown to be
large, that the creditors would readily accept
the statement showing the total deficiency to
consist of expenses and losses. He also took
solemn oath to me at the time OF the surrender
of the checks that he would not wrong, cheat
or defraud the creditors one cent Of the amount
repre- scented by these checks. l aeceded to his
arguments and agreed to protect him from
partnership liabilities to the best of my abil-
ty.
Q-And having thus accede1 to his proposed
scheme did you not deny to your creditors and
to the committee chosen by the creditors to in-
vestigate your affairs, that he was partner?
Al did.
Odd you not also conceal from them the
existence Of these checks and that they had
been given up, as you say they were?
Al did.
Q-The chief object, as understand you, as
stated by Clement to you, was to get rid of
this liability as partner. Were you not aware
that if he was partner, he was liable for
means to pay them, the creditors, in full?
Aft he was O partner he was, of course,
liable for the debts. I supposed that he had
the means to pay them in full.
Odd it mol occur to you that by entering
into this scheme by which you aided in conceal
ing the fact that Clement was partner You
were attempting to cheat and defraud the cred
itors?
Alt did not occur to me at that time.
Q.-Concerning the partnership at what date
was it formed?
A.-Our final agreement was made about the
last of May, 1874
Q.-What do you mean by final agreement,
and why can you not give the precise date?
Ain answer 10 this question will state
the facts of the business relations between Mr..
CleLneuG anu myself IrO1n Iuo COMMENCEMENT
in December, 1873. 1 understood through
friends that Mr.. Clement had expressed wish
to go into some business similar to mine, and
after some talk through this friend he came in
to see me, at my place of business, and said
that he understood that wished to see him in
regard to forming business copartnership. 1
told him that 1 needed more capital in my bus
mess and that if found the right person who
wished to put capital in with me / should like
to form a copartnership. He said that as he
was out of business, that he had been investing
his funds in dsooun pd notes that he liked
chance there for that business and that if we
could agree he should like to put in some CAPT.
tai with me into the business. [ told him that
if he wished l would snow him my books and
accounts, aud from them he could obtain
good idea of the amount of business was do
ing. 1 showed him my books and accounts, ex-
planned them to him as fully as l could, and he
said he would take the matter into considera-
ton. That ended the first interview. A short
time after he came in again and asked me if l
a partner. I told him 1 had concluded it was
the best thing I could do. as l needed more
funds to carry on my business. He then asked
me how much capital 1 should expect to offset
my business and capital in an equal copartner-
ship. I replied that as my average of deposits,
above forty thousand dollars, had made up
my mind that forty thousand dollars would be
q fair equivalent to offset my business in an
equal copartnership. Clement at first demur-
red, thinking the amount too large, but finally
agreed, after again looking over the books, that
forty thousand would be fair equivalent in
offset. He then stated to me that he
should like the business, but that his funds
were SO invested that he could not put it all in
at once, but that he could within six months by
realizing his investments, get about thirty
thousand dollars, as he thought. and that if we
could make satisfactory arrangements, he
would get the balance in as soon as possible,
stating at the same time that the balance
would have to come from the firm with which
be was formerly connected. L then told him
that had always dreaded having a partner,
hat would not 60 into business with any live
man until he had been in and out of my place
Of business, had become familiar with the bust
ness, and my ways of transactipg it, and had
become thoroughly acquainted with his ideas
and method of doing business l told him that
[ was short of funds and that if he wished to
90 into business, he could, as he could realize
On his securities, put the money into the bust
ness of the bank and l would give him colat-
sral security therefor in the shape Of n otes of
my discounted loan, and he should come into
my place of business, make his headquarters
for business purposes there, to enable us to be-
come familiar with each other and our methods
Of trausacting business, and then, at the end
Of one, two or three months, or, l expressed it,
If We liked one another and could agree upon
terms of copartnership, we would enter into
that relation in the business. He agreed to my
came in and made nv Mace of