Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-11-03
WIDE OF The MARK.
elIIn'ormed Men Think Liabilities will NOT
Reach 100000.

Portland, Me, Nov. mo definite
information as to the extent Of the fail
ure Of Woodbury. < Moulton is as Vet
obtainable. The statement was made
were likely to be 500, 900 and that the
assets would be nothing. This state
ment IS regarded by Well-i informed fl
nancierS as very wide of the mark
1t seems probable that the money de-
posted with the firms by individuals
mas amounted to as much as 5000 900
or $230, 600. These deposits constituted
without much doubt. a large part, per
haps nearly all of the capital on which
the firm did its banking business. The
fact that an assignment has been made
indicates that this money has been
used up. or nearly so. The rate of in
terest paid for deposits has been 4 per
cent. More conservative banks have
paid but or 81. per cent
1t is not understood that Messrs.
Woodbury. & Moulton have discounted
notes, or in fact, loaned much money
any way. 1t is not understood that
they have dealt largely in bonds of
late. In the past they have put on the
market various classes of bonds, like
Western water bonds, which promised
we'll a the time. but which in the end
have not proved so sound. When these
were sold to customers the loss fell up
on the customers. Any residue unsold
remained in the hands of Messrs.
Woodbury. x Moulton and the loss has
been theirs. There are some signs in
dicating that they had considerable
amount of such bonds, and that they
have pledged some of these in various
banks for cash loans. 1t is believed
that at least one Portland National
bank has made such loan, and it is
quite possible that some banks through
the State may have done the same.
Probably the collateral was made large
enough in these cases to make up for
any impairment of its value.
IT seemed to be pretty Well understood.
yesterday. also. that the firm had under
written a large amount of the bonds of
the American Writing Paper CO.. prob
ably $50 900 or $l0U.C0U This company is
one of the trusts and It's securities We're
considered very desirable. ana are still
thought TO b. of und0ubted. though some.
what nuctuatiVe value. The American
taken by the public 50 the underwriters
had to take up the amounts which they
had underwritten. MesSrs. Woodbury. x
Moulton OF course had to take up what
ever they had engaged. and il IS probable
that this was an unexpected and embdr-
RAISING burden.
If in dealing in stocks they bought in
the New York market expecting a rise
which would enable them to sell out at q
profit. the present range Of stocks IS not
such as have assisted them. y future
rise. however. might result III a pront
that would accrue to the beneht OF the
depOSitorS.
of course it is impossible to yet know
ANYTHING as to what the depost0rs Will
receive. If they recover anything Inc
eases Of these depositors constitute the
most unpleasant feature of the failure.
4 large number of them are people Of
small means. who Were attracted by the
relatively high rate OF interest paid.
Many Of them were out -Of-toWn people.
1t Is not probable that there are many
large dcpositors, locally at least 1t was
rumored. today, mat the trustee 81 the
Trickey estate had a large sum of money
deposited there. 1t is true that me
Trickey estate had. when it came into
the hands of the trustee, considerable
number Of securities bought OF Wood
hr,rv (. Moulton ana of which the value
may be problematical. 1t may be also
that there was some Of the ready cash OF
The estate there when the trustee took
charge But that is not the trustee 5
bank of deposit.
II has also been stated that the secret
orders had large deposits there. The Ma
sons and odd Fellows have none; but 1t
is understood that the Red Men do have
a deposit