The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-07-20
PHINNEY & JACKSON.
Statement at the Meeting of Cred
itors.
An Investigating Committee Ap-
pointed.

The meeting was called to order at 8 p. m.
by MI. A. A. Strout. attorney for the firm and
Hon. w. w. Thomas, president OF the Can al
| Bank chosen president, and Mr.. W. Il. Gould,
cashier of the First National Bank, secretary.
Mr.. Strout then made the following state
ment:
The firm OF Phinney & jackson was formed
in 1889 and continued in the business of cooper
age and West India goods until August 81,
| 1880 when it was dissolved, Isaac Jackson and
Frank Q. Crocker retiring from the firm. The
business had been prosperous and both the
original partners were possessed OF hand
some property
| Previous to this dissolution, in August 81
1875, VIM. Fl. Phinney and Frank G. Croker
were admitted members of the firm. After
the retirement Of Messrs jackson and Crocker
the business OF the firm was conducted under
the name of Phinney and Jackson by Edmund
Phinney and VIM. III. Phinney until Oct. /,
| 1880, when G. p. Hosmer of Lpckport, N. ",
became special partner under the provisions
| OF our statute, paying into the partnership
| $4,000 An examination of the records shows
that the formalities prescribed by law were
complied with and Mr.. Hosmer has never
withdrawn any part of the capital stock paid
in by him. Under this new partnership the
bnsiness has been conducted until the present
/ time.
In the transaction OF their business Mr.. Ed
mund Phinney has entrusted the books and
correspondence of the firm to his son. William
Ii. Phinney, and has confined himself almost
| entirely to contracting for and selling cooper
| age and the outside business OF the the firm.
| Having the utmost confidence in the ability
| and integrity of his son, and resting secure in
the belief that the firm had the most
ample means to meet all their liabilities under
| any and all fluctuations of the market. he did
not dream that financial disaster could befall
concern that had stood without question for
more than twenty years.
A little over six months ago Mr.. Edmund
Phinney became alarmed about the apparent
want OF remittanoes from Cuba. He looked at
the books and found large balances due from
old and wealthy houses with whom he had
transacted business for many years. The ap-
psreut delay in forwarding money weighed mp
on his spirits and seriously affected his health.
Matters continued to grow worse, and the
paper of the firm continuing to mature, the
most strenuous efforts were made TO protect it.
Mr.. Hosmer, who had been the warm persoE al
friend of Mr.. Phinney for many years, lent his
name to very large amount, believing that
the need was only temporary and that the firm
had large resources. At last the crisis came
| and the firm had no more means with which to
take care of their paper, and the result of a
careful examination of their affairs and the
disclosures of William ii. Phinney show the
firm to be badly insolyent, as appears by the
summary statement. herewith submitted.
The reason for this condition must be told,
/ and is as follows as nearly as can be ascer-
| tained:-When William III. Phinney entered
the firm he was owing something on his own
account, but not very largely. In order to re-
lieve himself of this burden he was induced in
| an evil hour to embark in a speculation in
grain, In which he lost money. Eager to re-
cover himself. and hoping TO save what he had
put in, he used the property OF the firm to re-
place and make good his margins. The more
he struggled TO extricate himself the deeper he
became involved, until he grew desperate and
venturing all, he lost all, and his father was
ruined. These losses We cannot exactly state
at this time, but we believe they largely ex-
coed one hundred thousand dollars. We only
know that the firm have not met with any
very great losses in their legitimate business
and that their capital to very large extent
has disappeared. The manner in which the
| business was transacted made this use Of the
assets of the firm easy. William II. Phinney
had the entire charge of the books, letters, ac-
counts rendered aud finances. His father en-
! Trusted it all to him, with the confidence
| which father has in his son. Instead of u.s.
| ing the funds In the business Of the Arm he
used them in the vain effort to save himself
| from loss, and the fathers suspicious were
never directed towards William 81. Phinney.
| He believed the trouble arose with his Cuban
debtors and not in the reckless folly Of his own
child.
The assets of the firm consist OF merchandise
ON hand and balances due on account largely
in Cuba and appear on paper to be about
1925 1886 60. Their liabilities are in round
nambers S347, 770.11; contingent liabilities,
| SIG, 962.57.
| Their assets cannot be accurately stated be-
| cause many claims are made as to the mer
| chandise on hand, and apparent balances up
on open accounts will be swallowed up by ap-
plying them to bills payable of Phinney &
| jackson, held By these same parties who owe
| them. Nor do these estimated balances show
| what the firm have left with which to pay
their debts, as have said that much of their
assets consists in accounts in Cuba, the value
Of which must largely depend upon the dispo-
stion and abilities Of the parties there to pay
! them.
Mr.. Phinneg desires me to say that he
| places himself in the hands of his creditors
and is ready to do what they shall advise as
| best All the property he has left ia open to
| them. His books are also open to the inspec-
tion of such committees as they may appoint.
| He will afford them all the assistance in his
| power. He has lost his property but he re-
| tains his honor and integrity in this most dis
astrous hour of his whole life.
| Mr. Strout further added that Mr.. W. II
| Phinney held in his name lands in Chicago.
| There was deed Of trust to secure note to the
| Canal Bank and Mr.. Phinney pledged 1t to
| the Canal Bank for money advanced and the
| bank holds it. Under the advice of Mr.. Strout
| Mr.. Phinney had executed quit claim deed
| of the land to Mr.. Edward Payson who holds
it Ia trust for the benefit OF the creditors and
to prevent sacrifice.
| Mr.. Strout said when Mr.. w. II. Phnney
came back the other day it was evidently his
| desire 10 make thlng5 AZ Stralgub as ne cOul
after admitting his guilt He now lies fiat on
his back and unable to be present.
| Mr.. Tenure, of the firm Of Moses Taylor &
| Co., Of New York, seemed DESTROYS of ascer-
tanning what firms in Cuba owed the firm
| S151 900.
Mr.. Sargent, the bookkeeper mentioned the
| indebtedness OF several firms: Zaldo & Co.,
about Sl2O 900 or $4,000, Fuentes & Co. $780,
900, Zanetti & Co. about 5000, Rodrguezs&
Co. about SIS, 900.
! Mr. Tenure thought II the $4,000 or more,
claimed to be owed in Cuba good, it would
| be of course great help towards paying
| good dividend, otherwise the assets would
| have big hole Ia them
| President Thomas asked what further action
| should be taken.
! Hon. G. f. Libby moved committee be APP
pointed to ex amin Into affairs and report.
The President asked how that committee
shorld be raised and it was voted that he ap-
| point committee of three.
The President reported the names Of Fl. N.