The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1900-01-26

1 RttttI Whtta aH1 ~ 61fto8t RsN@@&e*f -
$50. He said that the other Insurance.
policies he held had no other bsnsioisrJ
than the persons named In them.
In event Of the death Of the beneficiary
mentioned the rolicy IL payable to his
estate. There IL one endowment policy
which IL payable In about twelve years.
Q.-Are you aware that there 10 Law
which does not exempt policies on which
an annual premium Of over $40 Is paidf
A.-No
OIL there 4. such a law your sched-
ulss will have to be amended.
Ayes.
WHAT CAUSED THE FAILURE.
Mr.. York had row arrived ct she most
interesting point In the hearing. he
told In ans yer 10 questions the cause OF
the failure Of the firm.
Q-when did you first know that you
were insolvsntf
A.-oosober slst at the Gloss of business
hours.
Q-What was the nearest prior time
TO that that you ever came near to sus-
peoting you were insoiventf
A.-At the Gloss Of business hours,
October 3lst.
Mr.. York said that he had rsoeived the
notice Of the protest OF nots OF $1,000
only short time previous to the close Of
the banking hours. The notice came by
New York mail
Q.-whas hsppsnsd whom you open cd
this lsttsrf
AL felt very much disturbed that the
note for 1900 Was not paid. 1t was sim
ply an accom- mediation note but Its pro-
tsat meant the difference between solvsn.
oy and Insolvency with MS. wish to ex-
plain this matter entirely 90 that you
may understand IL. This protested note
WAS note Of the Crystal Water company.
which " a. endorsed By Woodbury. and
Mouiton. For quite . number Of years
We had large interest In the Crystal
Water company. We held 1000 shares of
the stock Of that company. In April,
1899 We received an offer Of sl5. 900 for
our holdings. The company had required
great deal OF attention 70 nnanoier and
We had found ID something Of burden.
We took the offer Of s25. 90 for the shares.
After o conferences with the gentlsmen
who represented the purchaser Of this
stock Mr.. Woodbury. was Informed that
all the bonds Of shis oompan y an bunting
In the aggregate TO $780, were to .
taken mp BY the new management and
refunded. We held ess, 900 Of the Crystal
Water oompany's second mortgage benes
ana about $50. 600 OF the frst mortgage
bonds. These We were told were to lie
called In and paid OF BY another issus
OF bonds. 1he people who bought this
stock did not desire to control the proper.
~ ct the time but asked US to continue In
the management Of tbs company. In
this connection the interest on the bonds
Of the CON pany came due. The o9mpany
did not have the money to pay this in
teIest and % Woodbury. and Moulton en-
dorsed the notes OF the company TO obtain
the money TO pay this interest
One Of these notes was for $4,000. coming
to maturity in thirty OF SIXTY dsya The
other note for $4,000 coming due In four
monthA
In the meantime the people to whom
the stock had been sold had gone to
Europe and said that they would come
back in the fall. Then they would take
up the issue nf the bonds and the man.
agemsnt of the company. In the mean
time We were to continue In charge and
tinanoier the company. The 5000 note
was met by the company by les accnmu-
lated earnings when IL came dus and We
continued In charge. 1t IL my belief that
the $1,000 note would have been met In
the same way II certain things he'd not
occurred In the meantime. The people
who bought control Of the company took
ovsr the management Of It shortly after
wards, about October LIST. They didn't
proceed to call the bonds Is few believed
they would do. When they took charge
we believed their plans in this. Don nootion
had changed. The first material evidence
We had of this was when they allowed the
note Of $1,000 to 60 TO protest and threw
upon Ms the floating debt Of the company.
We were the andorsers OF the com
pany's paper to the amount Of III, 900 70
SIS 900 and the whole s,tustion chan gsd
whom the note was allowed to 60 to pro-
test. II they had taken up the note ~
would have believed that they intended
| 10 carry Oub tnoiI ptons anu she Oonoo
would have been redeemed and refunded
and would have been worth to US one
hundred cents on the dollar. They did
nj take up the note and this saddled on
to US the floating debt Of the company
and made such . material differences In
the value Of our assets that the condition
Of insolvency was forced upon rs.
Mr.. Woodbury. was away and didn re-
turn until noon of the next day. received
the notice that the note Was protested.
II was only after . conference with him
on the first day Of November that We
came 20 the conclusion that We oouldn',
20 along. had this talk with bin about
noon on that day.
Q.-was It quite important that the
second mort gage bonds should DO re-
dsemsdf
Ayes It made a great difference q