The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-05-26

| ibSe at heCsptlOn HAIL. lily BuliulnSj W iiotoh
\ to the report of the committee appointed at a
| previous meeting to investigate the affairs OF
Mr.. Goold. About fifty persons were present,
showing nearly all of the creditors, embracing
merchants, bankers, mechanics and those VINO
had placed their funds in Mr. Goold's BANK for
| safety. The meeting was called to order by
| Col. John O. Cobb, who was chairman OF the
| previous meeting, and Andrew Halves. Esq,
| of Deering, acted as Secretary. The chairman
called upon j. NJ. Heath, Esq, of the commit
| tee to make a report. Mr. Heath said that the
committee entered at once upon the duty assign
| ed them, and had worked with diligence. Tho
most intricate part of the work was the exam
| inatiou of the books, which was done by Messrs.
| W. L. Gould and Samuel Small. The report
would only be oral and as Mr., Butler had the
| matter arranged be would call upon him.
| NJ. NJ Butler, Esq, said that the report was
general, and could be reduced to few points.
| The committee found that there were no assets
| in the bank except note of $1,000, given by G.
| p. Kimball, and another for $500, lanes for
| gotten. All the rest of the paper mentioned
in the assets had been disposed of to the banks.
He would first state the condition of the books.
|
| record of the transactions of the bank. He
| (Mr. Goold) knew how to keep books, and
| knew these were not correct. There was no
| expense account no profit and loss account, 10
| way of telling where notes could be found, no
way to tell what sums had been drawn out for
private use or banking purposes. For exam
pie, his private expenses were sometimes chang
| ed in the bank account sometimes not at ALL
The committee, consequently, were compel
| led TO go outside of the bank books, and from
all possible sources, get all the information that
could be obtained. Mr.. Goold began business
in June, 1872. He had been clerk in banks
and knew how to keep books. He put in $10-
900, half cash of his own, hale raised on mort
gage. He bought the assets of the old Second
National Bank and cleared $1,000 by the bar
gain. He got the Munjoy lots clear. These he
mortgaged to A. B. Stephenson for $1,000, which
was put into the business He sold timber from
his farm to the amount of $2500, three house
lots on Munjoy for $500 and his interest in a
brick concern for $4,000. His liabilities are
$50, 900 in round numbers adding his capital to
this amount and the total amount which he
should account for is 100000. Of this amount
he can show but $4,000, of which $4,000 is ov-
er due paper. Consequently there is a deficit to
be accounted for of over 100000. All the facts
tend to one conclusion, but that conclusion Mr.
Butter did not state. The first year Mr.. Goold
did good business ard made something. His
first losses took place at the time of the panic
in the fall of 1873, and since that time, one
year and eight months, 100000 had vanished.
For this loss Mr.. Goold gives no satisfactory
account. He has lost nothing on paper for
even the Kimball note is counted in the assets;
he has not been engaged in outside speculations
has had nothing to do with stocks; his only
speculation has been $1,000 worth of Newbury
port silver stock, which is put into his assets at
$4,000; his personal expenses have been very
moderate; his bank has been run economically,
having but one clerk, cheap rents, Sc. the only
exception being when he was compelled to hire
money of other banks. On the other hand, he
had the use of an average deposit of $40 900 on
which he paid no interest, the only deposit on
which he was to pay interest was the O,O0O OF
Mr.. Clements, but he received none. Tho in
terest on this was quite large amount.
Mr.. Butler said that the committee had urg-
ed Mr. Goold to give an explanation, but all
the reply he made was that the money was
gone-wasted away day after day in unsuc-
cessful business. The creditors could see as
well as the committee how 100000 could waste
away in so brief time.
Mr.. Butler also called attention to the fact
that the mortgages of the property above refer
red to were executed in June, 1872, May, 1873,
and October 1S74,-all to Mr.. Stephenson-but
were not put on record until the day before
Goold suspended business. The holding back
of these gave certain amount OF credit. He
also obtained quite sum of Portland banks
the day before tie failure, and within few
days of suspension he had obtained checks OF
the Cumberland Bank amounting to sic, 700,
$1,000 of the First National, $1,000 on the Trad
ers', and $4,000 cash for the brick yard.
In regard to the matter of Mr.. Clements, he
said that Mr.. c. stated to him that he let him
have money from time to time, Oh which he
was to receive per cent, that at first he had
collaterals, but as these became due he allowed
him to take them away, as he had confidence
in him. At one time he had $4,000 of securi-
ty. Goold told him frequently that he would
get the colaterals whenever he asked for them
Goold wanted Clement to go into partnership,
and at one time he thought of it, but finally,
last September concluded not to do SO. He had
never received dollar of money from Goold.
Mr.. Clement being present, was subsequently
called upon and fully corroborated Mr.. Butler
statement, and asked him twice if he found
upon Goods books any evidence of his (Clem-
emit being. connected with the business of the
bank, to which Mr.. Butler replied in the mega
tive.
of "a mil said
that simply put, the case was that Mr.. Goold
had loaned two dollars where he had borrowed
one, and in no case paid a higher rate of inter
est than he received. One could draw his own
conclusions. If there was no ground for direct
charges, there was at least room for grave sus-
picons.
William E. Gould, Esq. another of the COM
mittee, being called upon, said that Mr.. Butler
had gone over the main portion of this bad
affair. He had been to Boston to find Mr..
Goods accounts because be could not find them
| here. At the Everett National Bank he was
shown all that the institution had His &C
count at the bank was hard one, particularly
| the past three months. The officers of the Ev-
| erett Bank had informed Mr.. Goold that his
way of doing business was not good banking if
| indeed it was fair dealing The bank, howev-
| er, had used him remarkably well Mr.. Gould
| said that the proprietor of the Portland Bank
| had stated that $4,000 had been paid the ex-
| press company for carrying money. Mr.. Wins
| low had furnished him statement showing
| that the whole amount of money paid for ex-
| press charges was 1920. lie also stated that
| his telegraph bills amounted to $50 day. He
| had not yet obtained an exact statement Of the
| charges on tbis account, but thought that was a
| very high figure. At BEST the interest received
| on loan of $4,000 and the last year nearly
| $4,000, for which he paid no interest, should
| have been sufficient to have paid express and
| telegraph charges. There were no losses OIL
| paper which could be found except that of the
Kmball note. [Some one suggested Governor
Kimball, and Mr.. Witham of the Argus, who
| was one of the mourners on the occasion,
amended by suggesting Commissioner Kim
| ball. He further found that Mr.. Clements
loan aggregated $32, 600 in round numbers, but
| there is nothing to show where it went or for
| what purpose it was used. They looked over
| the discount book and found that nearly all the
notes of $500 or over could be accounted for
| Don't find what disposition was made of the
money which came fiom the loans The First