The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-12-01
THE BANK OF PORTLAND.
Examination of william N. Goold.

The examination was continued at p. M,
yesterday as follows:
Q-How long before the first check of $4,-
1916 was drawn was this arrangement, spoken
OF in the foregoing answer, made.
A-But short time before. 1t was within
a month certainly,
arrangement it was made to enable Clement,
and yourself if you desired, to obtain tenn
porary loans of money from the bank from
time to time, to be paid in short time. Is this
correct?
A-Itis.
Q-Was it known or supposed between you
and Clement at the time the arrangement
was made, that the bank was in a bad condi-
ton at that time?
Alt was known to both OF US at that time
that the expenses of the bank were very heavy.
We made no figures at this time in regard to
the weight of the expenses.
Q-Was it made to enable Clement to with
draw privately what he had put in, in view of
any possible failure of the bank?
Alt was not 1t was matter OF borrow
ing.
Q-Then your position is that this arrange
ment was not scheme in contemplation of the
failure of the bank to get Clements friends out
whole, but rather method OF borrowing funds
from the bank?
Alt was simply method of borrowing
Q-Clement had three separate modes of do
ing business with the bank then as l under
stand. First he began Dec. 29th, 1878. to make
his large permanent deposit continuing to Dec.
Both, 1874 amounting to So, 1884. Al, from which
he withdrew nothing up to the time of the fail
ure. Second, he had an ordinary deposit ac-
count beginning April I'd. 1874, and continuing
till March 26, 1875, from which he drew from
time to time in the ordinary manner, leaving,
as appears by the books, a balance of So, 968 Al
due him at the time of the failure. Thirdly,
independent of these two modes, he used to
borrow of the funds of the bank from time to
time, sums of money. by the checks which you
have enumerated in your answer to interrOga-
tory "A, none of which were paid, and which
rect, or, if incorrect in any particular, phase
state the exact facts?
Alt is correct.
Q-Will you state also whether or not from
time to time, Clement, after he began to do
business with the bank, got notes discounted in
the regular ordi nary way?
Ale did.
estate, whether or not, at the same time
whilst Clement was borrowing money by
means of the checks enumerated in your
answer, which he never paid, as you say, he
was making deposits from time to time in said
general or special accounts?
Ale was.
Q-Calling your attention to the first check
dated May 1, 1875. for 81 1896, which was drawn
for $4,000 note discounted, please describe
said note, who was the maker, to whom paya-
BILE, its date as near as you can, and on what
time it was given, and the rate at which it was
discounted?
Al think Twitchell, Champlin & Co. were
the makers 1t was payable to Moses b.
Clement. do not recollect the date. l think
the time was for four months. / do not re-
member that any rate was made on the note.
Q-Judglng from the amount of discount de-
ly the rate and the time the note had to run?
A-Not knowing the date of course I cannot
make the figures.
Q-Was it discounted by you for Clementlon
the date of the check, May l, 1874?
Al permit ted him to draw against it. 1t
was discounted st that time.
Q-Then after discounting the note as above,
I understand you to say that you took this iden-
teal note and raised money on it elsewhere
which you let Clement have, and for which
Clement drew his check of exactly the same
amount and thus received twice 50, 895 on the
same note?
Al did not receive twice $4,895, but drew
but one check, the note not having been euter-
ed on the books Of the bank. the second 3d.
S95 which he receive being raised on the note
Q-From what source did you receive the
money on the note?
Alto the best of my recollection, from the
Everett Bank of Boston.
Q-Do you meat that you got it discounted
there?
Al think that obtained loan, leaving
the note with others as collateral do not
recollect the amount of the loan.
Q.-Are you sure that this note was not dis
counted for you by the Everett National Bank?
Al think it was not at that time. l am
not sure. The books Of the Everett will prob
ably tell. am not sure but what it was dis
counted.
Q.-Then the transaction of your raising
money upon the note is not entered upon your
books? 1 mean the books of the bank.
II tain md T Il NOT ono1
lect.
Q.-Do you know that the transaction of
your discounting the note of Clement is not
entered on your books?
Al think it is not will ascertain and
report.
Q.-WaS the transaction of your discounting
the note of Clement entered upon his bank
book?
Al do not recollect. can tell by exam
lining his book. On examination of copy of
his bank book, should say it was very evident
that it was entered.
Q.-Why was it that it was not also entered
oDathe books of the bank?
Alt was a common occurrence in the
course OF my business, when parties presented
notes for discount, and they were discounted,
for me to figure the discount at once, and enter
the avails on the credit books of the bank be-
fore entry on my discount book. In this case
the entry was made in the same manner, at the
time Mr., Clement presented the note. AS his
was made before had an opportunity to enter
the note, and as he agreed to repay the amount
borrowed in short time, did not enter the
note, but let the matter rest. To the best of my
recollection it was never slaughtered out on
| the books of the bank.
Q.-How did you manage on the books of
bank in regard to the $105, the amount of the
discount deducted?
A.-The matter never being Strengthened out
on the books OF the bank, the $105 was never
called into account.
Q.-What Strengthening out could there be
if there was no entry on the book?
Al mean there was no entry on the said
book.
Q.-This loan and all the others spoken of
in answer to interrogatory "a were understood
to be of temporary character, you say. This
was made more than year before your fai lure.
Was this one or any of the others paid? If
not, why not?
A.-They were never paid. Mr.. Clement
would make repeated excuses for not paying
them.
Q.-Why We're they not deducted from as off
set against the sums deposited previous to and
during the time said loans were made?
A.-Because of the arrangement between
MI. Clement and myself in regard to tempo
rary loans.
GLOW could you manage to get along with
your business with more than four times your
capital and more than the whole amount of
your deposits in Clements hands not drawing
interest?
A-By .discounting notes for my loan
whenever had an opportunity and by making
temporary loans from other banks. This was
my principal method.
Q-Were you not greatly pressed for money
during the last year of your carrying on bust
ness. SO that you were obliged to incur large ex-
penses and adopt extraordinary means in rails
ing money?
Al was.
Q-Why then did you not then collect those
temporary loans from Clement?
Al relied on Mr.. Clements promises to re-
turn the money which he made from time to
time, having full confidence that he would do
SO. The reasons that he gave we're principally
that he wished to use the money very short
time longer, and in was inconvenient for him
to pay it then, and similar reasons.
Odd he know that you were paying one
quarter of one per cent to the Eastern Ex-
press Company to transfer money by telegraph
on the morning of one day to meet checks
drawn the day before on the Everett National
Bank?
Ale did.
Odd you know or did said Clement tell
you for what purpose he wanted so large sum
of money?
Al did NOT know; neither.did he tell me-
He stated to me at several different times that
he was engaged in speculations outside, men,
tioning among them operations in sugar, mack
erel, and, l think. I connection with Capt
Bartlett in some West India yantura