The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-10-19


the money by sale of the indorsed notes, the
proceeds of which were used by the promisors
and did not pass through It. Shaw & Bros.
hands.
verias were accommodation until the leather
had been delivered; and as on July 26th there
was an amount of such notes which had been
used without corresponding consideration,
GLASS them all as accommodation" and in
usinp the term accommodation i mean 1t to be
understood that it relates to all notes OF which
X. Sha y & Brothers used proceeds for their
own benefit directly; and by "drectly"
mean that the notes were sold by them, the
proceeds received by them aud deposited with
other moneys in their banks.
Accommodation notes appear to have been
first taken in August, 1882. They had how
ever for some time previous been taking notes
of William. e. Plummer and of John f. Mills,
the exclamation given me by Mr.. Deane, the
bookkeeper, being that the parties mentioned
were interested with Messrs. T. Shaw & Broth
ers in certain tanneres; and as the hides pur-
chased for the said tanneries were all in the
name of F. Shaw & Brothers, and they kept
an account with the tanneries only, these notes
were taken to cover the responsibility of said
Plummer and Mills for their proDortionate
part of the hides thus bought. No account of
these notes was kept with either of the parties,
but Messrs #. Shaw & Brothers tre tied them
as their own Payables Accepting this position
OF the Plummsr and Mills notes, the "accom-
mediation" notes appear to have been first TAX
en- in August, 1882, as already stated.
Suspense account. 13,005 2l
Interest and discount ac-
Espsnss eOSns accoant..... SSS SSS So 60
s5o8,674 Os
Balance ..........,.- 232,31o 30
s74o, 1884 A
Net amount of profits from Nov. L, 1879
Place in West Bridgewater free of mortgage
Own in Bank of Republic "a shares.
Brockton National Bank 80 shares.
The notes called leather notes, in anticipa-
tion of deliveries, were first received from G.
W. Copeland q Co., in November, 1882. On
July 20, 1888, there was ledger balance to the
credit of G. W. Copeland & Co.. of $226, 1914,
on which no leather had been delivered OF
this amount, S204033 81 were for notes not
matured, and $22 from notes which had
been paid by @. W. Copeland & Co. The
notes termed Accommodation" seem to have
been first given by G. W. Copeland & Co.
somewhere about April, 1883, and the state
ment made TO me by Mr.. Deane regarding
them is that they were demanded by f. Shaw
& Bros. to protect themselves for their accom-
mediation Endorsements of Messrs. Copeland &
Co.'s paper, which at that time amounted to in
the neighborhood of $500, 900, it being under
stood that these notes were exact duplicates OF
notes indorsed by f. Shaw & Bros, for accom-
mediation of G. W Copeland & Co., and to be
used by f. Shaw & Bros as occasion might re-
quire. On July 49, the amount of these du-
plicate notes received by r. Shaw & Bros, and
not matured, was 1891, ,073.70, thus making
total of $617 226 "a 80 the credit of @. w Cope
land & Co. On the other hand, on that date,
notes were outstanding which Messrs. f. Shaw
q Rros. had indoTsed for q. w. Copeland q
Co.'s benefit, to the amount of $612, ,293.87, so
far as have been able to ascertain.
1t has been very difficult to learn the accu-
rate amount of notes out bearing the indorse-
ment of F. Shaw & Bros, as the primary
source of information was in the memoranda
kept by Mr.. Deane, and he repeatedly assured
me he was not sure he had a list of all the
notes, inasmuch as Mr.. Shaw might have in-
,iorsed more or less without his knowledge.
However, by comparing with the books kept
by the promisors, and by the information
gained from the responses to the circular issued
by your committee, am led to believe that
we have pretty accurately arrived at the true
amount
I find f. Shaw & Bros. have been indorsers
upon notes where there was no understanding
bstween them and the promisors that they
should so indorse, the sole apparent considera-
ton being one-half the brokerage, as appears
by bills of sale. The accounts rendered by
the brokers show nothing more than list of
notes with memorandum of one-half the
brokerage, no discount being mentioned, and
the said moiety of brokerage not appearing
upon the firms cash book. am informed by
Mr.. Deane this went to Mr.. Fayette Shaw's
private account books-which have not seen,
and there being such books only coming to my
knowledge incidentally and just about as 1
was at the close of my Investigations. Whether
the promisor got any benefit in rate, or who
did profit by these Endorsements, does not
appear. When, in November, 1882, Messrs.
O. W. Copeland & Co. were called upon for
notes 10 anticipation of leather deliveries, f.
Shaw & Bros were indorsers upon their paper
about two hundred and fifty thousand dollars
($250, ,000), and find they made a statement
to f. Shaw & Bros, of which the following is
copy, viz: