The Portland daily press., 1878-10-03
CONSPIRACY.
ATTEMPT TO DEFRAUD A BANK
RUPT's CREDITORS.
JShn o. Winsh!p tana Others Under
Arrest.


William 81. Leavitt of Windham, for the sum
of $4,000 Ga the fourth of May of the same
year Mr.. Holland made another mortgage for
similar amount and secured by the same
property teethe same parties. Both these mort.
cages were recorded May 10th. On the 81 of
July following Messrs. 81. B. & 81. M. Hart
and Messrs. j. w. Perkins & Co. of this city
filed petition that Mr.. Holland be adiudged a
bankrupt, alleging that these mortgages were
given in fraud of the bankrupt act. The hear
Ing on this petition was begun before Judge
Fox on the ODD day of August. and was con-
cluded on the 25th, when Holland was adjudged
bankrupt and Byron D. Verrill, ESQ.,, ap-
pointed assignee. During the progress of the
hearing Holland and the mortgages claimed
that the two mortgages were genuine and that
the money or large portion of it had been
paid over. To explain the disappearance of it,
or of $4,000 which was alleged to have been
paid by virtue of the last mortgage, Holland
relied on story of robbery. He testified that
on the afternoon of July 81 (the same day that
the creditors filed their petition in bankruptcy
SWEET and Lsavitt paid to him land this story was
corroborated by the other parties) $4,000 in bills
1t was too late in the afternoon to deposit it in
any bank and he put it in his pocket. That
night he started for New York on business. On
his arrival ia Boston he took rooms at the
Sherman House. Thu next evening, 10 COM
pany with friend. he went to the Common to
witness the fireworks or some other feature of
the Fourth of July celebration. While stand
ing there stranger accosted him and asked
him to change bill. Holland put his hand in
his pocket to comply, when it suddenly &C.
Cured to him that his bills were all large ones
and he told the stranger that he could not
change it. Soon after he found his money,
some $4,000, Che having collected $4,000 besides
the $4,000 paid By SWEET and Leavitt) was gone.
He advertised for the money in various ways,
but never found it.
Before the court adjudged Holland a bank
rupt, the mortgages took possession of the
property and attempted to sell it. and disposed
of some. The assignee then petitioned for an
injunction to restrain further sale, which was
issued, and the mortgages in turn asked to
have the injunction dissolved. Finally, in
March, 1877, the property was surrendered to
the mortgages on their filing bond for SIS, 900
to hold the creditors harmless. In May, 1877,
the assignee filed anott er petition before Judge
Fox to set aside the mortgages given to SWEET
and Leavitt, and this petition is still pending
The proceedings on the part of Holland and
the mortgages seemed suspicious, but no d.
rect evidence of fraud was obtained until late
ly. The discovery is said to be due partly to
the accusations of conscience and partly to a
quarrel between two of the coDspirators. Leav-
lit is the man whose conscience accused him,
and Holland and Winship the ones who quar-.
relied. 1t seems that Winship Became surety
for tailoring bill of Hollands and had to pay
it. Winship demanded the money of Holland,
and on his refusal to pay it, sued him. The re-
suit was that Holland dlvulged the secret MIS-
tory of the mortgages aud Leavitt corroburated
his story 1t seems that the last mortgage was
a bare-faced swindle put up by Holland, Win
ship, Leavitt and SWEET to defraud the creditors
of Holland. No money was ever paid and no
robbery ever occurred. The whole story as re-
lated in the bankrupt court was lie and cheat.
Winship is alleged to have been the man who
planned the job, the others merely carrying out
his directions.
At the recent session of the Grand Jury of
the q. S. Circuit Court the case was laid be-
fore them and as result an Indictment was re-
turned against Holland, Swett Leavitt and
Winship for conspiracy. There are four counts
in the indictment, the three first ones virtually
the same, the last alleging in addition that the
parties named above conspired to defraud
David Scull g. Co. of Philadelphia by purchas-
ing large quantities of goods of him while Hol-
land was in failing circumstances. The indict.
ment was kept secret for the purpose
presumably of arresting John o. Winship, who
was out of the city, and who rumor said had
got wind of it and fled. Rumor was wrong, how
ever, for Mr.. Winship returned home Tuesday
and was arrested yesterday, and has SO far
failed to get bail, which was fixed at $4,000.
Before arrest he was several times in the U. s.
MarshaPs Office and called on the District At
torney. The other parties have also been ar
rested
All the parties to the affair are we'll known.
Mr. SWEET was formerly postmaster at Windham,
Mr.. Leavitt is Superintendent of the Gorham
powder mill, Mr.. Holland has already been
sufficiently introduced, and Mr.. Winship is too
we'll known to need introduction. Much SYM
pathy is felt for Leavtt. who is believed to have
been dragged into the scheme against his will.
Winship will probably be arraigned on Monday
next, but the trial may be postponed until De-
cember and possibly April.
MR.. wINsHIp's STATEMENT.
Mr.. Winship was called upon last night at
the commissioners room in the st-office
building, where he was in charge of an off Ger
for q statement of thu case against him. He
said that the published account of the indict-
ment against him was substantially correct,
and all be cared to say was that whatever he
had done in thu case he had done in the
capacity of counsel AID he had no further in
terest in the matter. He said that he first met
Holland in this transaction, when the latter
came to his Office and asked if loan could be
obtained to assist him in carrying on his mill.
Mr.. Winshlp told him of several capitalists
who loaned money, add finally two Of those
named went out AMI looked over the property,
but did cot care to invest. Finally SWEET, who
had saved some few thousand dollars, made
Holland a loan of about $3.50. Soon after
more money was wanted and Leavitt made him
loan, and after that the two men together
loaned him sums at various times. Mr. Win
ship went into particulars in several instances,
showing where they got the money. At one
time SWEET purchased stock for Holland from
Deering, Milliken & Co.'s. Mr.. Winsh1p
agreed to act as counsel for Holland in his
bankruptcy, though it was understood between
them that if litigation arose between Holland
and SWEET and Leavitt he should not act, as he
was counsel for one Of the latter. Winshp
told Holland that unless he kept a cash book
Judge Fox would never give him a discharge
Holland swore that he had kept cash book,
but that 1t was lost. He said that he had it in
his bip pocket, and thought he lost it while
playing base ball. He attempted to find it, but
never did.
On the third of July. 1876, Holland came to
Winshp's Office and wanted to raise some $10,-
600 to meet note iii New York. From one
place and another he raised $4,000, which he
was to get checks for 1t SO happened that he
did not c,llect the money until a late hour in
the afternoon when the banks had closed. He
accordingly started for Boston with the money
in bills. In day or two he returned with a
story that he had been robbed On Boston Com
mon.
RafOra Holland waa adiudpaj n Ia nj rnpt tho