The Portland daily press., 1886-09-24
THE DEFALCATioN.
was Forgery one of the Means Used
to Defraud the Bank?
MIR. could Turns Out To Have Been
Very Extensive Spectator.

Evidence is accumulating from various
sources which shows the extent and nature
of Mr.. Gould's speculations in the stock
market. If half what is indicated is true'
he has been one of the boldest and most per
sistent operators of the throng VINO make
and lose in the speculations OF wall street.
His operations are said to involve millions OF
dollars, and to effect them he seems TO nave
employed, not one, but many brokers IN
New York and Boston. This has probobly
been going on for some time. AS has been
stated the failure of George William Ballou
of New York, quite recently, affected him
very seriously, and it seems that his heavy
losses date from that event. Rumor also
SAYS that his methods with the books of the
bank to cover up his appropriations of mon
ey were bold and skillful. The report that
some of the records of the bank have been
mutilated or destroyed, is probably true.
1t has gained credence in view OF the mani
fest reluctance of the officers and directors
of the bank to deny it.
1t was said yesterday that the examination
had revealed the fact that there has been
forgery in connection with the defalcation.
To verify this report a representative OF the
PPEss saw the directors of the bank last
night at the close of business, and put the
question directly to them, whether any for
gerry had been discovered They did not
positively admit that any had been discov-
cred, but they were very careful not to deny
it, as the following dialogue which took
place will show:
Reporter Enquiry has been made at the
PRESS office as to whether there is truth in
the current rumor that forgeries have been
discovered in this bank examination, and
have been sent here to ascertain the truth or
| falsity of the report.
| A Director-"Therei is nothing new in re-
gard to the condition of things different from
the statement that has been made" "'
Reporter-"But it is reported that forger-
les have been discovered"
Director-"I do not wish to be quoted in
| in the matter"
Bnt none oft he directors would deny the
report.
Yesterday morning representative OF the
PRESS called upon Mr.. Wiswell and asked
him when his statement of the condition OF
the First National Bank would be finished
and il it would be sent to the Comptroller OF
the Currency before its publication in the
Portland papers. Mr.. Wiswell said that his
| duty was towards the Comptroller; that he
resigned his office some time ago, but that at
the request of President Cleveland and the
| Comptroller, has remained in Office until his
successor could be appointed. He should, he
said, report to the directors as well as to the
/ Comptroller, and the report would contain
several pages of comment on the condition
4 of the banks affairs. He should also advise
the directors to make the report public in
the daily papers, although, of course, that
would be optional with them.
There has been considerable doubt as tc
the liability of Mr.. Gould's bondsmen, il
view of the changes that have taken place
since the bond was executed. The following
paragraph, which is found on page 25 of the
instructions of 1884, of the Treasury De
partment, in regard to National banks
seems to apply to the case:
officers Bond-Although the bank is the samt
bank after extension before, it is necessary t6
renew the bonds of the officers, tellerS, etc. as, i
not DONE it would be difficult to hold the sureties
| as bondSmen signing before the extension c0ulc
not be held to have contemplated the existence O
| the bank for longer term than twenty years.
"A gentleman, III d poSltlOu w kuoW, ody
that the report that Mr.. Gould is defaultel
to the extent of $4,000 in an estate in which
a lady is interested, as intimated in tht
PRESS and in several Boston papers, has nj
foundation in fact. The only estate il
which such thing could have happened ha
been settled in the Probate Court, and wa
administered to the satisfaction of all con
cerned. The same gentleman also says tina
the report that Mr.. Gould speculated il
grain and flour is not true. His operation
took broader field, and were extended t.
railroad and other stocks.
A meeting is contemplated of the trustee
of the various Portland lodges of Odd Eel
lows, all of which are owners of stock in tn
Bank, to see what action, if sny, they will
take to protect their interests.