The Portland daily press., 1883-09-03

Chairman, that would like to say right here,
Mr.. Phinney calls my attention to il, that
there is certain minor help employed here. Mr..
Sargent has given what help he could, and the
property had to be taken care Of upon the
wharf. I suppose Mr.. Phinney would like to
nay that. OF course, il it turns out that this
draft is not honored, and is not collected, and
pay out the money, ! shall expect to receive
the amount out of the assets. l merely men
tion 1t, and IL there is no objection when 1t
comes up shall pay it.
Upon motion of Mr.. Dewey it was voted that
the bills Cor such help be paid
Mr.. Thomas said that some gentleman pres
ent wished to have the total amount OF liabili-
ties directly, and the amount of liabilities indi-
rectly, and the amount of assets repeated, and
the statement was read.
Mr.. Strout said that all liabilities would be-
come direct liabilities in the end.
Mr.. Dewey asked IL the amount Of nominal
assets given included Mr.. Edmund Phinney's
private property, and Mr.. Jose replied that it
did not.
Mr. Thomas-It is supposed that Mr.. Phin-
ney's property is sufficient to pay his liabili-
ties, is 1t not2
to make these up from, but we have taken
these statements from Mr.. Phinney himself
as to valuation and liabilities. The vessel
property MIR. Emery, one OF the committee,
took charge OF, and got the best information
he could as to the valuation OF that property,
Mr. Thomas-What is the balance? How
much does he own?
Mr.. Jcse-His private assets are S32, ,412. so;
liabilities, $22,706, direct or indirect. 1t nom
inally shows surplus of about $4,000. There
are some Offsets to that which would come in.
For instance, 1t may as well be understood
here: Here is a share put in here of the Port
land Lloyds. They claim they have got a
but which Mr.. Phinney says he does not owe.
them. They claim they can hold this firm
paper of Phinney Il jackson against this indi-
yidual property under their bylaws and regu-
lafions Mr.. Ford told me that he was acting
under legal advice, and that he had submitted
the whole thing to the best legal counsel in
Portland, and he claimed that he could hold it.
Mr. Strout-I do not think you quite under
stand Just how that is. The fact about it is,
this is voluntary association OF gentlemen
for insurance, on the basis OF the Boston
Lloyds, and they have an agreement between
themselves. by which the funds which any
individual may have to his credit-and this is
really what this is; that is how the valuation
is made up-that is, the funds that go to TO the
credit Of the individual are offset; they have
lien upon all those funds for all insurance ON
which they are liable. What the effect OF that
may be in law, is a question which, of course,
do not care TO discuss here, but it is not an
absolute claim upon the insurance company,
provided that article OF agreement is worth
anything.
committee had been heard, and asked if Mr..
Phinney had any suggestions to offer. Mr..
Phinney replied that he had none at all.
Mr.. Strout-I do not know what course this
meeting will be likely to take, but, of course,
the only proper way is to accept the report;
but there are some explanations which am
prepared to make to the creditors now, in rela-
tion to it, which somewhat change the apparent
result.
Mr.. Thomas-Wiil you please proceed.
x~s1t.~ Atxn&V VEowxwx Il
creditors at this meeting would probably want
some prope sition, some proposition from Mr..
Phinney, whether he intended to go into bank
ruptcy and close up the affairs in that way, or
some proposition Of what he can pay, going on
and collecting these matters himself. And
with that view I requested the committee, who
have treated us with great politeness, to let us
have the advantage of examining their report.
may say, gentlemen, when the creditors Sc
lected this committee, knowing their charac-
cerned, and SO far as Mr.. Phinney was con-
cerned, we have stepped right one side, and
the result of your investigation has come be-
fore us as comparatively new matter. While
Mr.. Phinney has been ready to answer any
question, SO far as he could, believe, so far as
i am concerned, / have not interferred at all.
Now, / asked the committee to let us have the
report made by the accountants, and they very
kindly furnished it this forenoon, though it
was important they should have it by O'Clock
this afternoon, and we have had from half past
10 to look it over, but my engagements were
such, and the amount of labor so great, that
found we could not make much headway in re-
ton to it.
Now, what wish to say in the first place is,
we did make an examination OF this matter
far enough to see the very thorough manner
in which the committee had investigated this
whole thing, and showed the immense amount
of labor that has been done, and it is matter
of surprise to me they could get 1t done so
cheaply as their bill shows. AT the same time,
we find in looking owe. this matter that there
are certain considerations, not exactly errors,
but certain considerations the creditors ought
to know. Take, for instance, the merchandise
account. That appears to be so, ,200.20. Take
the first item, S2,391 am not going to de-
tain the creditors by going all through this,
step by step. 1 am only taking the first ac-
count, and then am going to make a state
ment to the creditors for their consideration.
Mr.. Strout referred as an instance, to an
item of sugar shook valued at eighty cents,
and said that of course, Mr.. Phinney had not
had time to examine these shook, but that
he had informed him that they were in green
state, and he thought when they came to real
iZe upon them in the condition they were in,
some might be worth eighty cents apiece, and
some might be worth fifty cents. He referred
to an item OF 210 thick shook, included in the
st atement, which he said Mr.. Phinney did not
own at all. Referring to the account due in
Cuba, he said that some of them could not be
collected until the next sugar crop, and some
of them Mr.. Phinney did not think could be
collected at all. A very large part OF the assets
consists of foreign accounts. He referred to
an account of 81 ,562.41, of which Mr.. Phinney
had said the moment his eye rested upon 1t,
that he had very good reason to suppose Mr..
William III. Phinney had collected every dol
lar. This account was good If it existed, but
the chances were that it did not exist. He re-
ferred to other accounts which might and
which might not be collectible.
Mr.. Jose said that in making up the valua-
tion, the committee had left out the Chicago
lands entirely, as they had no means Of ascer-
tanning about them. A large amount of money
has gone there, but whether pledged by collat-
eral he did not know.
Mr.. Strout-I want it distinctly understood
that am not adversely criticising the commit
tee or their accounts. / am only trying to
show that these matters were put in very large
ly without any particular consultation with
Phinney. have stated enough to the credi-
tors for them to see the good sense OF the sug-
gestion which am about to make, and in
which know the committee will agree with
me. This is a matter which came before Mr..
Phinney for examination, Of course, and he
has only two or three hours in which to run
over it. 1t must be exceedingly imperfect
Now what Mr.. Phinney wishes is that the
creditors, or committee will be kind enough to
furnish him with the result of their labors, and
let him make thorough examination of what
he has got to pay with, or what he
would have in case the matter went into the
hands of an assignee. Now let me say, he
could not do that before this meeting. He
could not make any statement to the creditors,
either here or abroad, and most of them are
abroad, the most of them are not here today,
which would be satisfactory. He has got, in
some way, to find the funds to pay, II it is q
percentage the creditors choose TO take. He
has got to find what of the assets he can either
raise money out of and get loan, or that
somebody will take an assignment of and en-
dorse for him, unless he makes a proposition,
paying so much in cash, and certain amount
in unendorsed notes. While the committee
have used great good sense, and great industry
in this matter the final thing that is coming
is, for Mr.. Phinney, if he offers it, to find the
money and the wherewith to do it with. Now
you must remember these accounts are abroad.
Everybody who knows the Cuba trade,
knows, when a man fails, nobody can make SO
good settlement, and get so much out of it
as the man himself. Then the question is:
Shall his offer be accepted, or will 1T do more
good If he stops in business? If he goes on in
business and they believe in him, he can make
better settlements than anybody else. / do not
know what the creditors may determine, but
give Mr.. Phinney three or four days to look
over this thing carefully, with his bookkeeper,
accountants and friends and see what he can
do. What desire for him to do, If he can, is
to make a settlement and go on in business. l
believe that he can make a better settlement
for the creditors than they can get in any other
way. That is what he desires to do, and he