The Portland daily press., 1876-02-15
BANK OF PORTLAND.
New and Interesting DeveIopments-A
Witness tells where the Money Went.

1eSLerUdy uloiulhS eAiS A'-1f> Va - VI eA'-AAN
case was continued in the District Court.
Frank T. Jones was recalled, and testified
that he furnished special information of the
suspended ratings of the Bank of Portland to
the First National, Casco, Canal, and Nation
al Traders banks.
John o. Winship was recalled, and stated
that he was related to Goold who was his
fathers cousin.
Mr.. w. L. Putnam then opened for the de-
fence. He commenced by saying that the
testimony for the defense would be drawn
largely from the books and accounts of w.
N. Goold. The failure at the bank was
known in Portland on the 4th of May, 1875,
although the bank went to protest on Satur-
day, May l. Mr.. Clements first heard of this
on (the 4th) Soon afterwards there was a
meeting of the creditors, at which Mr.. Glenn
ents was present. A very excellent commit
tee was appointed to investigate the affairs of
the bank. w. N. Goold was present, and there
stated that the statement of MIR. Clements
was true in every particular. The committee,
after investigation, reported that they were
unable to satisfy themselves in relation to
the affairs of the bank, and the cause of
the deficit, and finally proceeded to institute
proceedings in bankruptcy against Goold.
On the 22d July, 1875, Mr.. F. J. Rollins was
selected as assignee. However painful it is to
Mr.. Clements to be subjected to these charges
and accusations, especially to this one of hav-
ing robbed this bank, tits movement of which
he cannot complain, because it is one which
he, himself has brought about, and one,
which, under all the circumstances, am glad,
for his sake, has been undertaken, so that if
these charges and accusations are not true,
as we believe, he may be fully acquitted by a
court of justice and his character be set right
in this community. The assignee has given
the matter full and thorough examination,
and has brought to the attention of the court
such testimony as would sustain his petition.
While we expect him to make an independent
and impartial examination, we do not expect
him to present our side of the case. In the
course of this defence, it will be my
duty to reflect very severely upon
w. N. Goold. 1t is not matter that affords
me any pleasure, for my relations with him
have been pleasant. I was attorney of Second
National bank, of which he was cashier, and
gave him my confidence as did the other
officers of the bank, and Mr.. Clemments, and
the community at large. Whatever I may be
compelled to say in relation to Mr.. Goold
does not originate from me but himself. In
his sworn examination before the Register
he has answered and confessed that he de-
hberately conspired with Clements to de-
fraud the creditors of this bank. Although
some of the charges am compelled to bring
against him are of a criminal nature, there
can be no accusation, which, in moral point
of view, will be graver than this which he has
assumed for himself. The only question in
this case is, whether the result of this inves-
tigation will involve in this same depth of
disgrace gentleman, who has also borne a
high reputation in this community.
On the 25th May, 1875, Mr.. Goold was
made an assignment to Mr.. J. H. Drummond
in which he assumed to dispose of the
assets, which he now says were the assets of
the partnership, as his own individual assets.
In the course of the bankruptcy proceedings,
it became necessary for Goold to file sworn
list of his creditors, and on the 22d June,
1875, he filed list of his creditors, under
oath, in which he names Clements, as his
creditor, for the amount of which we claim
against his estate in bankruptcy. On the I'd
August, 1875, Mr.. Goold filed sworn aft.
davit with the Register, stating that Moses
B. Clements became partner with him on
or about Jan. LIST, 1874. Up to that time
Goold had always stated under
oath and elsewhere, that Clements
was his creditor and not his partner. The
total deficiency of the Bank Of Portland will
be shewn to be from 100000 to 100000. The
apparent deficiency is more than that, owing
to the fact that Goold falsely entered on his
books his capital as $4,000, whereas he only
put in $4,000 and that was borrowed on a
mortgage carrying interest at the rate offs per
cent. The bank was doing losing business
from the beginning, and the first year did not
pay its running expenses. Goold was living
at the rate of $4,000 year, and at no time
was the bank gaining. Allowing what was
paid for re- discounts, his private expenses,
and other matters, somewhere from $4,000 to
$4,000 of the deficiency can be accounted
for, leaving from $4,000 to $4,000 to be ac-
counted for in some other way. The result
of our investigation seems to indicate
that if w. N. Gould had come forward and
told exactly where this money had gone, he
would have confessed a crime. In other
words he would have been compelled to have
told that he was. defaulter to the Second
National Bank to the amounn of over &c.
900, and that that deficit was the foundation
of the greater part of these discrepancies.
I think when your Honor looks at this thing
you will be convinced that this bank was a
fraud all through, fraud upon the public as
we'll as upon Mr.. Clements. An examination
of the books, 1 think, will show that the money
NAN Aoo ~ Al WIZ uiACSoioa ny tu0 ObuoE
side. 1t is not possible that the whole amount
of money drawn out of the bank can be &C
counted for, but enough to show that it would
have been impossible for Mr.. Clements to take
out $4,000 without leaving deficit much
larger than it is to-day. We are dealing with
book accounts kept in an intricate manner, and
so it is impossible for counsel to anticipate
what may turn up, but it seems to me that an
examination of the books will show that Goold's
account of the disposition Of these funds is not
true.
As to the matter of partnership-Mr Glenn
ents was out of business. He was in some
specnlations and was endorser for certain gen.
tlemen, but these transactions required no
money from him, and he had money lying idle.
w. N. Goold arranged with Mr.. Glenn ents that
he (Clements,) should deposit his money in the
Bank of Portland, and if he liked the business
he should become partner. Matters went on
in that way, Clements increasing his deposit
right along almost to the day of the failure, and
having no other place of business he remained
about the rooms of the bank, but never formed
partnership with W. N. Goold.
Mr.. Putnam then discussed the law of part
nership at some length.