The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-05-02
THE AUGUsrINIAN SOCIETY.
How $500. 600 in Deposit was Used
Hearing Before the Insolvency Court at
Salem.

How $500, 600 in Deposit was Used
Hearing Before the Insolvency Court at
Salem.
BosToN, May Lat Salem today the case Of
the Auguetinian Society OF Lawrence, which
failed recently owing SJ00.000 or more TO 703
deposstorz, came mp before Judge Choate of
the insolvency Court. Hon. j. *. Tarbox and
Mr. Courcey represented the society and z. T.
Bnrley and Col. j. p. Sweeney represented
some OF the creditors.
Father McAyoy President of the Society,
was pat upon the stand, aud he stated that he
did not positively know the history Of lot of
real estate transactions which counsel asked
bin about, and he did not approximately know
tho condition of the finances. His testimony
showed great ignorance of the affairs of the in
stitntion. he admitted that mortgages were
early given TO appeass clamorous depositors,
and particularly 70 the largest deposition.
Father Regaa, Treasurer OF the Society, said
that IN April, 1882. the church and school
house were mortgsged for $4,000. which
amount was used for meeting the interest on
deposits aud ia some cases for paying the prin-
eipal. He did not approximately know the
financial standing OF the concern. Three
Sll00 Was taken from Mr. Clifford and the lat
ter paid It this year; another for $500 was
taken fSom Mr. Miles and given to Mr., Norris,
deposition, and it was charged TO him on his
deposit book: the third for Sl600 was taken
from Mr. MeAvoy aud given 10 Mr.. McCabs,
another deposition, and charged 10 him on his
book in January, 1888. Father Reagan, in re-
ply TO questions, stated that he knew he was
giving preference 70 two depositofs that we're
rnmseliers over working girl despositors, and
thar he believed tbs action was right.
Some discussion here occurred upon tho le-
garand moral rights in these cases, and Mr..
Barley stated that he thought the working
girls have rights which even the Ca tholic cler-
gy are bound TO respect. Father Reagan said
the society 5 affairs were in kthe dark in 1881,
and In ,iuly Of that year man named Smith
Of Philadelphia was sent for to come and fix
up the books. He was engaged by reason Of
the clergymen recommending him as q compe-
tent book-keeper. This expert worked six
months on the books and then went away
completely broken down. He was a
very old man. II took these six months
TO show that he was incompetent, in
our estimation. Dennis Sallivan, druggist,
was next engaged, he beginning work in May,
1882 He had not ever kept books TO Father
Reagan's knowledge, bat be had heard that
Sullivan had taught bookkeeping Mr.. Bur
ley questioned Father Reagan sharply about
the result Of Smiths bookkeeping. whereup-
on he answered that there twas a result given
at the time but he had forgotten it; also that
no faith was put IN the result announced by
Smith. The iatter's full name was James II.
Smith. "Was IL not Henry Ba'' asked Mr.
Barley. 1T was H. B., or 3. H. ] forget
which, Immediately answered Father Rea-
gan. Further questioning brought forth the
answer that Smiths plSes Of residence was
Brynmarr Father Reagan also stated that
within two years he allowed suits TO go TO
Judgment against tho society, he preferrng
to make the society nay the costs of eonrt, etc.
IN additions 70 the principal sued for rather
than submit 10 tho demands made upon to pay
claim within one week or other specified
times which were given by the depositor's
lawyers He admitted taking 500 on deposit
from CorneNus Reardon on Jan. ?, 1888, and
believed then that the society could pay its
debts. It's unsound condition was not fully APP
parent TO him until a week later.