The Portland daily press., 1879-07-18
THE BIDDEFORD BANKS.
Condition of the National Bank
Still Unknown.
SAVINGS BANK READY TO RESUME
BUSINESS.
No Defalcation in Either of Them
Especial to the Press,7

BIDDEFORD July lI-Ihere is not much to be
added to your despatch of yesterday morning
about the affairs of the Biddeford Savings and
National banks. Judge Humphreys who has
been examining the latter bank has completed
his work but has not yet written out his report
Your correspondent had an interview with him
this afternoon but found him rather reticent.
1t appears from his statement that he is not
making the examination exactly in his official
capacity. The late Mr.. Chapman was formerly
treasurer of the Savings and National banks
and continued to i'll both these positions
until the statute Was passed forbidding the
treasurer of a savings bank of certain size to at
the same time hold the position of treasurer of
National bank. Mr.. Chapman had to resign
one Office and chose to abandon that of treas
urer of the National bank. Mr.. Goodwin was
accordingly elected Treasurer of this bank. He
was Treasurer in name, however, rather than
in reality as Mr.. Chapman continued to at
tend to the affairs of the bank as before, and
was virtually the Treasurer. When Mr.. Chap
loss to know what to do. He very wisely
decided to call upon Judge Humphreys to ex-
anime the bank, and that gentleman came to
Biddeford in response to his request, and not
by order of the government. He is in doubt
whether it is his duty to make any report to
the government at all. He will report to the
directors however in few days.
All he was willing at present to say about
the condition of the bank pending his report
was this: There had been no defalcation. He
had examined very carefully and could not
find the S1iobtact troa Of q tbipn
money had been lent to Mr.. Hobson however
than was iustiiable. What the amount was
he refused to state, but there is reason to be-
lieve from other sources, that $150,000 is not
far out of the way. Depositors in the bank
Mr.. Humphreys assured your correspondent
would lose nothing. Depositors can go on de-
posting money there without fear of any loss
He had given to the bank officers some sug-
gestions in writing, the substance of which
was that they had better open the doors of the
bank and resume business as usual. The sur
plus and profits of the bank amounted to about
$51, 900, but whether this was sufficient to
cover any loss which might accrue from the
Hobson transaction Mr.. Humphrey refused to
state
Inquiries of other persons about the condi-
ton of the bank developed nothing definite
The fact is that none of the gentlemen con-
nected with it except Mr.. Haines and Mr.
Chapman, knew much about its affairs They
were the controlling spirits and run it as they
thought best. One gentleman who apparently
knew the amount of the Hobson loans, did
remark that he could not conceive how Mr..
Hobson could prevail upon so strong
TIoi,, TO OBJ 1aro
amounts. 1t cannot be denied but that the
community is very suspicious that the Hobson
transactions will seriously affect the bank.
This results no doubt largely from the fact that
the bank officers seem slow to give the bottom
facts to the public. They are too reticent or
know too little. 1t would seem to be the true
policy to inform the public just how matters
stand Mr.. Bryant and Mr.. Jordan, the newly
elected directors. are both strong men fnan-
cially, and will undoubtedly do whatever is
possible to restore confidence and place the
bank on sound footing. One of their earliest
acts should be to let the public know its exact
condition.
The stockholders of the Savings bank have
filled the vacancies in the board of trustees by
the election of Carries Heard and E. W. Sta
pies. Joshua Moore has been chosen President,
and o. F. Page, Treasurer, in place of Edwin
Stone, whose election was only temporary to
enable the bank examiner to begin his work.
The condition of the bank is undoubtedly
sound. Mr.. Edwin Stone pronounces it all
right beyond shadow of doubt. 1t will re-
sumo business Immediately and unless there is
a senseless run upon it there will be no trouble.
AS said yesterday the bank may lose some
thing on the stock it holds in the National
Bank This stock cost about $40, 900 and its
par value is $32 800 The loss in this direction
cannot, however, impair the standing of this
bank. Bank Examiner Titcomb comedies in
this view. He says there is no sign of defalca-
ton. He has not estimated the value of the
securities and there is really no need of it as
they are undoubtedly sufficient to cover all the
banks liabilities. The late Mr.. Chapman left
all his property, estimated at $4,000, to the
bank for the purpose, as his will reads, of Sc
curing the bank against any loss from unfortu-
nate investments.
A prominent gentleman of Bddeford, was
interviewed in Portland yesterday, and said
that while he did not think anybody would be-
lieve that either Mr. Haines or Mr.. Chapman
had received any pecuniary benefit from the
transactions of the bank, yet there was strong
impression that they had carried Mr.. Hobson
to an extent on the bank funds that would Sc
riously impair its capital.
Judge Tapley said that it would be inn
proper for him to go into affairs with outsiders
at this juncture. The whole matter rested upon
the value of the securities which Mr.. Hobson
had placed with the bank for advances made
him. If their value was not sufficient to in
demnify the bank against loss then the bank
surplus would, no doubt, make up the defcien-
cy.