Daily Kennebec journal., 1900-01-26
INTERESTING FACTS
Being Brought Out Concerning the Woodbury.
&M)ulton. Portland. Failure.

lpfltdni Me, Jan Z1.-SolnH inter-
esting facts were brought out at the
Woodbury. x Moulton hearing, this AZ
ternoon. Edward H. York was on the
stand under cross-eXamination. 1t had
been brought out. during the fore
noon. that a bond pledged as collateral
for a 500 loan by w. &. Emerson had
been put W by the firm as collateral
fer loan they made. After the cash
book. had been closed by Cashier Deer
ing. the record Of a transaction was
found in Mr.. York's handwriting,
showing that the bond pledged by Mr.
Emerson had been sold by him to the
firm for the amount Of his loan and
an overdraft amount in all to $1,000.
Mr.. York named as the limit Of the
time when this transaction was made,
Nov. G. 1t was shown that above the
entries made by Mr.. York on the cash
book. the private mark Cf the expert
auditors appeared. This was brought
eut tending to show that the transac-
ion must have been entered after the
auditors began their duties, which was
NOV. 16.
Regarding the cashier of the firm.
Edward F. Deering. Mr.. York testified
that he believed him to be defaulter.
He said at the time Mr.. Dcerlng re-
turned home after his six weeks alb
sence he met him On the train at Bos.-
ton hy accident. He talked with hlm
hut did not discuss affairs of the bank.
As soon as he got home ne went with
his attorney tn the city marshal and
notified him of Drcrng's arrival The
marshal said that he would station
noIiceman to guard the house. II" ad-
yieed that the trains be watched. he
made no complaint because he had no
evidence against Mr. DeerinE- Mr.
paering disappeared again that night
The firms connection with the cry
stal Wafer 20. and the Eamapo deal
,yara gone over at length. 1t was tn"
fact that the crystal Water 60 allow
ed to 90 to protest not" tor Si'o" en-
dorsed by the firm which it had been
testified was the immedlat T. cause ot
the failure. Mr. York gave detalltd
account Of this transaction.
The firm assumed the bonds of the
CRYSTAL Water GO. of Staten island
In this transa ctipn they Wor" gwen
-onO shares Of the rompau ny. Whlrh th"E
euhenpuently sold to = New YORK SNil-
,,icato for So "0n This syndIcHt" DIS
ro-.d If the stock in New 'rk l"'
s.n 600 Subsequent t. this transaction
INA CRYSTAL Water 40. was unable -
meet the July in rest on its bonds
The cnmpany expected to sell out I"
the Eanapo CO.. when it would b" ahic
IA meet its obligations. TO It'd" the
rnpr,nv over the time until tho Ram
apo deal should H. completed, tho bank
endorsed two notes for the company,
.n,. far $1,000 for 60 days. and the oth"r
FIR $4,000 for 90 days. This was 70 en-
,tIo IA rnmpany to meet its interest
on its bonds.
Tho connanv met the first note.
subsequently, the Ramapp deal fell
thrnnrh and when the second not" be
c,nn duo the company allowed II to
on to protnst. The fact that tn" com
,,anv allowed the note to go protest
n,,,end the firm L. realize that the
con,pany did not intend to call N us
bonds ana that they We're th'rtl"r"
i,snIvant The management " the
company which had been previously
in tho hands of Woodbury. * Moulton,
had been transferred to New YORK ana
hat firm concluded that the coihpih!
allowed the note to 90 to protest -
order to force them to buy pack the
central in order to save the owner "l
tbc company for the amount pad Tor
stock e,,,
~ INA time Of the failure Of the tlrm
bad pIaced as collateral Tor l'allS th'
second mortgage bonds OF the com
my to the amount of $SS,0oo, and
frs+ mortgage bonds TO the amount RI