The Portland daily press., 1900-03-05

mssGin On leans bus thai wa not unusu.
al
Durias the Lao few months M. Free
uan.asked Mr.. Woodbury. what security
be had offered more than any other fol
loans.
/. NJ. Woodbury. said that he had more
Fort Smith bonds than any other sscuf.
rity aud had naturally offered more Of
these than Of any other kind.
81 understand you recall no instancs
where your firm was turned down In
your desire for losns," asked Mr.. Free.
man.
mo-" SAID Mr.. Woodbury..
"what banks In q year have asked you
TO reduce Jour loan within year, asked
Mr.. WoOdbury-"Ths Union Safe De.
posit &Trust ompany did but don't
recall any others. The Canal bank and
Portland National bank asked rs 70 In !.
Traders Merchants, Cumberland and
Portland Savings banks did not AJAX us 10
increase cur security or TO reduce our
loan. When the Cumberland hank re-
ducsd its capital stock we out down our
loan with them somewhat. We were Dor
rowing and paying and changing our
loans all the time. That was part OF
Mr.. Freeman asked Mr.. Vsrrill OF the
agreements made by tbs assignees sxtend
ed to individuals rs well rs with the
banka Mr.. Verrill said that the individ-
ual creditors had better security in most
instances than did the banks. Many In
dividuals bad endeavorsd to settle their
claims and keep their names from bstns
connected with the failure. There weve
many instances Of this kind. Ar. Yer
rill said that the security Of Individual
creditors had not been increased or
changed after the assignment.
Mr. Fresman said that he had no In
tention Of attempting 70 break up the set
tlements but he wanted to know how they
were made.
Nj. Verrili said that he would show
Mr.. Freeman anything about these settle
ments In private but he did not desirS to
discuss the matter In public.
Mr.. Freeman said that secrecy seemed
to be one Of the considerations Of these
settlsments. He didn't wish to break mp
somsthing about them. He said he did
not desire - say that thsss settlements
were either advantageous or disadvant-
sgeous to the creditors He didn't be-
lievs they were bus he wanted to see the
agreements before he made up his mind.
Mr.. FREEMAN then continued Mr..
WoodbuFy's examination and asked him
II he Was still living on State street In
the house he had lived In before the fall
ure This house had bean Transferred TO
the assigness and later - the trustee. he
had been asked to live In this houss,
without rent. to keep the house warm.
Mr.. Woodbury. said he was prepared TO
Mr.. Coombs said that Mr.. Woodbury.
had expressed desire to leave the house
when the trustee wes appointed and had
said that he couldn't afford to stay there
and pay rent. Ar. Coombs said he could
sell the house to better advantage with
Mr.. Woodbury. In ID than he could II the
house were empty.
turn and Mr.. Freeman asked Mr.. Wood
bury IL the coupon oolleotion account was
carried as part OF the cash. MIR. Wood
bury said that 1t was.
Mr.. Woodbury. said In reply to q ques-
tion by the referee that II might be pos
sible TO account for the deficit of ~. 7C0
In Woodbury. & Moulton's cash to some Of
into the packages OF coupons which were
marked as unoollectabls.
At this point the court tcok recess
until 2. 30 o'clock.
AFTERNOON HEARING.
At the beginning Of the afterno Don
hearing Mr.. freeman asked MIR. Wood
bury II he thought Mr.. Deering II he
were here, could explain the deficits Of
20, 100 ami changing In the banch OF cou-
pons. Mr.. Woodbury. said he thought he
could. He further said that he believed
Mr.. Deering could explain many things
which appeared on the books which he
Mr.. freeman now changed the course
of the examination snd asked what bal
ance the firm had In Canal bank on No
vembe LIST. Mr.. Woodbury. said there
was a balance OF fs60.45 and now there IL
q balance Of $7,05b o.. There had been
some blank checks in the book and when
the assignment was made there was 60
blank checks In this book, each OF them
stamped. The checks are not In the 10 x
now.
MIR. vsrrill said he thouaht these 90
blank checks had been sold to the bank
TOR the benefit or the estate. Mr.. Free
man said this would give the estate the
sum OF IS cents. O;her check books
where stamps were used were not torn
out. In this Canal bank oheokbook a
check, No. asl0, for Is, 600 had been can
csllsd, MIR. Woodbury. said. The check
drawn before this, No. 1909, was for
5000 and had gone into the cash OF the
frm. MI Woodbury. did not know this
for sure but he said he believed this was
checks ON this book which had been
drawn foe $1,000 and larger sums which
Mr.. Woodbury. thought had been turned
into sash. He didn't know just how he
could show this to be true but he was
certain that thess amounts went into the
ash or the cash would be short.
MIR. Freeman-1he cash was short
was 1t nots
MIR. Woodbury-Yes, but IL was short
the shortage was in the COUPON account.
Mr., Freeman-Thers might have been
some alterations In the books to make
this shortage appear In the coupon ao-
sount might there notf
Mr.. Woodbury. felt certain that this had
not been done. Within week previous
to the failure checks amounting to $1,000
or q little more were drawn every day on
the Caual bank. Mr.. Woodbury. said that
1t was usual TO draw 81 900 day to pay
coupons or to each checks and this was
specially true towards the end of the
month.
MIR. Freeman took upon another
phase of the examination at this point.
He asked Mr.. Woodbury. how many first
NOR tgags 6's Of the Crystal Watar CON-
pany bonds the firm had ut tho time OF
the failure and Mr.. Woodbury. said they
had ab0Dt Al O00 The IoWask thay ayJr