The Portland daily press., 1876-02-12
BANK OF PORTLAND.


of w. N. Goold, petitioner to dlsallow the
claim of Moses B.Clements, proved in bank
ruptcy against the estate of w. N. Goold,
came on in the United States District Court
before Judge Fox yesterday morning.
NJ. M. Butler appeared for the petitioner,
and Hon. w. L. Putnam, and T. H. Haskell,
for Clements.
The case excites great interest, as it is
agreed that this trial shall be a final determ-
nation of the cause.
Mr.. Butler read the petition and answer,
and in his opening stated in substance that
of the Bank of Portland June "a, 1872, the
business continuing till May 4, 1875. In
October, 1872, he purchased the assets of the
Second National bank for $4,000. Moses
B. Clements made deposits from Deem
Der 80, 1878, to December 30, 1874,
which then amounted to $32,9S4.47 and
from this amount no sums had been drawn,
and upon it no interest had been paid. This
money was put in with view to Mr.. Glenn
ents becoming partner, and was the avails
of notes belonging to Clements and dis
counted by him at other banks. Clements
also had another deposit called Especial"
amounting to $2,96s.41. The deposits in the
bank of Portland, aside from this deposit of
Clements, averaged $4,000, and amounted to
that sum at the time of the failure May 4,
1875, and, including the deposits
of Clements, at this time amounted,
in round numbers, to $4,000
During the existence of the bank of Portland
there came into the hands of Goold exceeding
100000, and the assets, as represented,
would amount to less than 100000, making
deficit of from 100000 to $4,000. 1t was
a noticeable feature that the bank paid its
depositors no interest, and had no serious
losses by bad paper or bad debts. The deficit
would be accounted for by proof that Glenn
ents had withdra wn from the bank, by way
of loan, $42,O70, for which memorandum
had been given (Which he, after the failure
gave up to Clements) and by losses, and
extraordinary expenses, and dwindling away
of assets.
The assignee had no notice of the with
drawal of the deposit by Clements, until
Goold made the statement that Clements was
partner in the bank of Portland, and had
withdrawn his deposit, giving memorandum
therefor to him, which he gave up to Glenn
ents after his failure, saying that he, Goold,
desired to make clean breast of it. This,
HIop,ap+ dan;ed Goo1d cove +be rorfporsb; ~,
with Clements wasiformed in May, ElS74,
although there was no formal writing, and no
witnesses to it. Clements denies this and the
questions at issue are:
1. Were the original intentions of Clements
carried out, and was he in fact partners
2. Has Clements so acted as to make him
a partner as to depositers and creditors of
the banks
8. Did Clements draw out his deposits
In either case, the action should Sprevail,
and Clements proof of debt should beI ex-
plunged.
The examination of witnesses proceeded
as follows:
LeUi r. Hoyt. I reside in Portland and
deal in furniture. was a depositor at the
bank of Portland during all the time of its
existence, and balance was due me at the
failure. got discounts there from time to
time; was frequently in the bank; in 1874
used to see Moses B. Clements in the bank
very often, most always in the small office.
On one occasion only I saw Clements tend
ing during Goods absence; in the summer
of 1874 when went into the bank with,
note of 5000 or $3.50 to be dis
counted. 1 asked Mr.. Kicker, the clerk
if Mr.. Goold was in. He told me that
Goold was in Boston. asked him if Mr..
Clements was in. He said he was in the
small office. Mr.. Kicker called him out, and
I asked him if he would discount that for
me. He said "Yes, we will" That was all
in regard to that note. 1t was discounted
there. In September 1874, took note of
Frank L. Foss for $500. met Clements on
Preble street one day short time before 1
sold to Mr.. Foss and asked him if sold to
Mr.. Foss if he would discount that note for
me. He told me he would. When I took it
to the bank Mr.. Clements was not in. I,
passed the note to Mr.. Geold and told him I
spoke to Clements about this note, and he
said he would take it. Goold said GAIL
right" and took it. Both these notes were
paid. Foss's note was renewed in part. The
Foss note was on four months-renewed
twice in part. After September saw Glenn
ents in the bank quite often.
Cross-eIGnsined by Putnam.-I can't
give the precise date of the discount
of the first note. 1t was a note endorsed by
Asa Hanson and Franklin J. Rollins. There
was no question about the note; it was per-
fectly good. The meeting about the Foss
note was on Preble street. Clements was
walking; met him on my way up from the
stable.
Odd you tell Mr.. Clements that Mr..
Foss had said to you that MIR. Clements
would endorse the note for you or take it
HIMSELF
Al did.
I did not say any thing to Clements about
his endorsing for me. l told Mr.. Clements
that Mr.. Foss had said he would take the
note on my giving an endorser. I gave Asa
Hanson as an endorser. The note thus en-
dorsed was perfectly good. When it was dis
counted at Sthe bank, it bore my name,
Mr.. Foss's and Mr.. Hanson's. I have
been depositor with the bank of Portland
from the beginning. My deposit at the time
of the failure was about $500. The balance
of my deposit had averaged from 5000 to
$500. Not more than that. l was present
at a meeting of creditors at City Hall. I
knew there had been committee to investi-
gate the affairs of the bank. Don't remem-
Der of anything being said about Mr.. Glenn
ents being partner at those meetings; don't
remember whether knew the partnership of
Clements was discussed at those meetings.
first mentioned these facts last fall.
I knew last spring who the committee
were to investigate these affairs. One
of the committee was Mr.. Ingalls,, my next
neighbor. Don't remember to whom 1 first
communicated these facts, communicated
these facts to Ear. Rollins, Mr.. Butler, Mr..
Ingalls,, and to Mr.. Hamlin. Don't remember
of stating them till last fall. There was no.
thing to bring them to my mind before. I
have given the exact language as
near as 1 can recollect; would not
swear to the words. 1 am confident Mr.
Clement said tive will discount the note"
Never had any transaction with Mr.. Clements
before this. Had seen him in the bank in the
small room went behind the counter in the
bank sometimes; frequently saw sew
eral of the depositers behind the counter
Mr.. Stephenson, Mr.. Best and others. Don't
think anybody was in the bank when
discounted the note. Mr.. Kicker must
have heard it. I stood at the gate; Mr.. Glenn
ents came out of the side room. Mr.. Kicker
stood at the desk, where he received deposits.
was there very short time. Mr. Kicker
y ~