The Portland daily press., 1883-09-03

The detailed deficiency account Of William
81. Phinney was presented. A large part of it
was read TO the meeting and the exhibit pro-
voked the following discussion:
Mr.. Winslow-we would like to hear that
read.
Mr.. Thomas-I suppose the drafts, etc. which
he took from the concern he made use Of for
his own private purposes, without ever enter
ing them upon the books of the concern.
Mr.. Thompson-Yes, think every piece of
that paper was unknown until after the failure
Of the firm, when William II. Phinney rem
dered in an account showing these figures
accounts which had never gone into the con-
cern, to 60 through the hands Of the book
keeper.
Mr.. Winslow-Have you traced out where
those we're negotiated?
Mr.. Thompson-We discovered where those
notes and acceptances were used from the
statements of the banks.
Mr.. Dewey-Were the notes deposited at the
bank to the credit of William H. Phinneys
private account?
There Is an account of Zanette & Co., which
he never rendered until after the failure of the
firm, and which was the first knowledge we
had Of these remittanoes. After that it was
merely matter Of looking into the bank &C.
counts and trying to locate it.
MIR. Winslow-That was all used at the
banks?
Mr.. Thompson-I am not sure, but / think
so. We can tell; we have means Of knowing
all that; but cannot tell from this sheet.
A list OF paper, amounting to $4,000, was
produced, the proceeds of which was used by
Mr.. w. ii. Phinney.
Mr.. Winslow-We would like to hear that
Mr.. Thompson.
Paper read]
Mr.. Thompson-Here is an instance Of some
paper paid October II, 1882, four pieces of pa
per, of 5000 each, and in the charge to bills
payable for the payments OF that paper, one Of
them was made $4,000 instead OF $1,000, rails
ing the amount $1,000. We carried,the So, 900
into the deficiency column. The first one has
been paid, the others are now outstanding.
Mr.. Winslow-Whst date did that COM
mence, Mr.. Thompson? What Is the first en-
try OF. deposit?
Mr.. Thompson-In May, apparently, of this
year.
Mr.. Winsow--That is all wanted to know,
to see how early the cussedness began.
With reference to $500 in scrip of the At
lantic Mutual Insurance Company, Mr.. Thom-
aslsaid that it was worthless. That Mr.. w. H.
Phinney received the money for that $500 at
the Canal bank, they (the bank) supposing
from his (Phinney's) statement, that it was
good enough
Mr.. Dewey-I have heard, as matter of re-
port, William Fl. Phinney's private account
aggregated among these banks for the last two
Have you any means of tracing II?
Mr.. Thompson Commencing November %,
1876, account of William II. Phinney at the
Canal bank, the footings of cash deposits and
18th, 1883, amounted to 81, ,065, 1855.
Mr.. .De@ey-According to that, he did the
business of the whole concern on his own ac-
count. How much was it for the last year, or
say the last twelve months?
Mr.. Thompson-For the last year it is about
$250,0OO. 1t is not separated by years; it is
continuous. / have taken from June 18th
back to the corresponding date in June,
1882.
Mr.. Thomas-Perhaps 1t would be we'll for
me to state, Mr.. Chairman, in regard to Mr..
Phinney's account, that Mr.. William Fl. Pbin-
ney did all the business at the bank. His
father, Mr. Phinney, who Is present, author
lied him to attend to 1t entirely. The cashier
OF the bank once suggested TO the elder Mr..
Phinney, within few months, that they did
not see him (Mr. Phinney) often at the bank.
and Mr.. Phinney's reply was, II have perfect
confidence in my son; anything that he does Is
all right. In regard to paper that lis discount
ed at the Canal cank, it is the same as at other
banks. The President or Directors know moth
ing about the paper after it had passed the
Board. The President hands in the paper, as
general thing, and it is a matter for the CASH
ier, or the clerks, where that paper should be
credited. Not one Of the Directors knew, or
could know anything about what Mr.. W. Fl.
Phinney's private accounts were. The bank
books are 30 kept now, and have been for
years, that only the balances each day are car
ried forward. All the directors know of the
balances is the balance that appears by their
account each day, whatever it may be. 1 do
not suppose there is president Of bank, or a
director OF q bank, here-there are some here
that knows anything about where the money
goes to in the account An account, though
not large, running along continuously, day
after day depositing and drawing, will in the
aggregate, at the end OF the year, amount to
large sum. Frequently gentlemen come in
and get discount, and say 10 the cashier,
want SO much carried to such an account, and
so much carried to such an account, and want
draft for SO and SO; and there can be no in
ferences drawn in regard 10 Mr.. Phinney's
account, whether 1t was carried one way or the
other. 1t was all done, and l have no doubt