The Portland daily press., 1883-09-03

in good faith, with his fathers acquiescence,
he having perfect faith in his son. The direct
ors knew nothing about it. If had known,
or had the directors known, that Mr.. William
ii. Phinney was having SO large an amount
carried to his private account, it would have
excited suspicion, although the statements
given by Mr. Phinney, which had last Sep
tember and June, showed, one Sl82000 and
of every kind-shooks, vessels and everything
of the kind. Ito Mr.. Edmund Phinney)-M
Phinney, in regard TO your son, fsuppose you
had perfect confidence in him to make such
appropriation of money? You never suspected
that he was using funds improperly?
Mr.. Edmund Phinney-I had not the least
idea that Will was using funds belonging to
the company until about ten days before we
failed. I had the most implicit confidence in
him.
Mr.. Thomas-Mr. Phinney SO expressed it to
our cashier.
Mr. Phinney-That is a mistake; made no
such assertions have not been in there lately.
Mr.. Thomas-I do not say it was within a
few months. Mr.. Somerby said that he said TO
you, 1--WE do not see you here very often" and
you said, William does my business. have
the utmost confidence in him, and anything he
does is all right"
Mr.. Phinney-That might have been last
year.
Mr.. Thomas-Mr. Jose is President OF a bank
Ito Mr.. josef Do you know how the cashier
appropriates the money after the paper passes
the Board?
Mr.. Jose--No sir, unless my attention is
called TO it.
Mr.. Dewey-If Mr.. William Fl. Phinney
brought in an acceptance for $4,000, payable
to Phinney & jackson, and simply endorsed to
Phinney & jackson, would your cashier pass it
to the credit of William FL. Phinney?
Mr.. Thomas-No sir, not without William
H. Phinney endorsement.
Mr.. Dewey-Would not the Board know how
was t, IA uh IL % and0read9
MIR. Thomas-No sir, do not suppose there
is president or director who knows how mon
ey is credited.
Mr. Dewey-If it was endorsed Phinney &
jackson, and then William n. Phinney, the
inference would be that 1t would go to Phin-
ney's credit?
Mr.. Thomas-lf 1t was endorsed.
Mr.. Jose-Many of these credits were car
ried to the credit of Phinney q Jackson, and
then drawn out by, the firms checks, Mr.. Will
for the firm, but using them for himself, ap-
parently.
Mr.. Dewey 1t appears by the account, his
private account aggregated about million
dollars, $3.50, 600 the last year.
Mr. Thomas-I do not suppose there is a di-
rector in our bank that had any sort of knowl-
edge of Mr.. William FL. Phinney' account.
Mr.. Dewey-I am only asking for informa-
ton. Two hundred and fifty thousand dollars
is pretty large bank account in one year, and
that it must have excited their suspicion.
Mr.. Thomas--It would have excited suspic-
ion II their attention had been called to it.
Have the committee made any estimates in re-
gard to the amount of indebtedness, and what,
in your Judgment, would be the assets?
Mr.. josef understand you correctly, you
ask If the committee have come to any conclu-
sion about the value of these assets.
Mr.. Thomas-Yes; what do you judge to be
the Indebtedness directly, and the Indebtedness
indirectly, and what do you judge to be the as
sets2
Mr. Jose--The committee went over the mat
ters pretty carefully, and came to these conclu-
sions. 1t is matter of Judgment of course.
We claim, Cuba accounts, collectible, S33, 900;
merchandise, $50, 2,0O0 bills receivable, $500;
ledger accounts, $500; making, in all, the
firms assets, in our judgment, to be SOL 900.
A portion of these accounts, $500 has been re-
ceived and is now in the hands of Mr.. Strout.
Mr.. Strout-The fact about that. Mr.. Chair
Phinney & jackson, and they brought it to our
office to know what should be done with it, and
l said it should be collected, and accordingly
we took it, and in order 10 collect it, it bearing
the name of the firm of Phinney & Jackson,
he endorsed it. When shat is pal ], that amount
such as clerk hire of this committee, it will be
turned over to the committee. 1t is wholly for
the creditors, less that amount.
Mr.. Jose-Under the authority given to us al
the meeting, this committee had authority to
employ experts and accountants, and upon
that authority we employed Mr. Rice and Mr.
Burgess, and had Mr.. Libby as counsel for u.s.
This was under vote of the creditors. All OF
the bills taken together amount to $269.15.
Mr.. Strout-I wish to say that have looked
them all over, and they seem to me exceeding.
ly reasonable and proper.
Mr. jose The committee, especially Mr..
Thompson, has devoted a good deal of time to
this thing and the details Of it, and in that ac-
500 for his services. The other members OF
the committee have made no charge for their
services, not having devoted so much time to
IL, and we think the creditors are indebted for
all these details very much to Mr.. Thompson,
whom we have employed an accountant IN this
matter.