Bank of Portland (Portland, ME)

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Suspension of a Banking House Early yesterday morning a report was circulated throughout the city that the Bank of Portland had closed its doors. This is not a national bank or one doing business under any charter but has been run by Mr. W. N. Goold, who, for several years, has been connected with the banks of the city, being cashier with the Second National when it closed up its affairs. Monday, Mr. Goold's paper to the amount of $17,000 was refused and returned by the Everett National Bank of Boston, although he has collaterals in that bank three times the amount of the drafts refused. By other parties it is said that the capital of the bank is but $10,000 and that it had deposits amounting to $40,000. There are a multitude of rumors afloat, none of which it would be judicious to print. Mr. Goold's business IS said to be somewhat extended, but those best acquainted with his affairs are confident that he can pay all his creditors dollar for dollar. Mr. Goold went to Bos" ton yesterday to arrange matters there and on his return it is expected that he will make a statement of his affairs. The matter produces no uneasiness, but is a matter of general remark, though the proprietor of the bank is not accused ef any intentional wrong and has the confidence of those of his creditors knowing him best. His depositors live in the vicinity and none of them have any considerable amount involved.

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STATE NEWS

The citizens of Waterford propose to celebrate the one hundredth anniversary of the settlement of the town, on the first day of Sept. next. There will be an historical address, and such other parts and exercises as shall be suitable for the occasion. The town Mother earnestly calls her sons and daughters, such by birth or former residence, to a home gathering and reunion; and to all who for any cause are interested in this memorial service, she extends a most cordial welcome. A free public dinner will be served, and no pains will be spared to make the occasion one of profit and interest to all her guests. A little child of Mr. Rowe of Buxton, was probably fatally burned Monday. The child was lying in its cradle-it was about seven months oldwhen a spark snapped out from the fire and set the bed clothes in flames. The child's screams were heard and the fire extinguished, but it is feared the child cannot live-[Portland Advertiser. Tuesday morning the Bank of Portland suspended payment. The event was quite unexpected to every one. The cause of the suspension, as we understand it, was that Mr. William N. Gould the manager, discounted several notes of a considerable amount recently, and telegraphed to a Boston bank asking if it would advance him money, giving these notes as collateral security. The reply was that it would, and he made nis arrangements accordingly. Subsequently it changed its mind and refused. Consequently Mr. Gould was unable to meet all demands. It is thought by Mr, Gould's friends that a satisfactory settlement of the affairs of the bank can be made, and that the creditors will eventually lose nothing. A full statement will be made at an early day, The Bank of Portland is a private concern, of which Mr. Gould is the head. It was formerly the Mechanic's Bank and afterwards the Second National, which surrendered its charter and sold out its circulation, and became a private bank. Its capital is about f $10,000 and its deposits about $40,000-[Portland Argus, 5th. Under date of Monday a correspondent writes "A fire broke out at noon to-day in the building on steamboat wharf, owned by the Messrs. Tilden, and used by them for putting up lobsters. The building was very seriously damaged, and a considerable loss was sustained in damage to stock and tools. There was some insurance on the property-[Whig. Captain Samuel Tarbox, a leading and one of the most influential citizens of Westport, died on Tuesday at the age of 62 years.

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PORTLAND.

Portland, May 8. It is expected that the Worcester and Nashua merchants will be invited to return the visit of the merchants ot this city, in July, when an island clam bake and a banquet at the Falmouth Hotel will be tendered.

Cleared. Schooner Joseph Oakes, Bangor; brig Isadora, Rionda, Cardenas.

Arrived. Arrived schooners Saginaw, Rider, Bath for Boston; Minnie Boyd, Kingsbury, Bangor for Boston. Steamer Nova Scotia, from Halifax, arrived at 5 o'clock, to take mails and passengers for Liverpool.

Portland, May 9. Arrived, Saturday, schooners Globe, Spurling, Gouldsboro'; Senator, Grant, Ellsworth; Concert, Parker, Bath; Taglioni, Gammage, Bristol; Chalcedony, Ingalls, Machias; N. Jones, Flynn, Machias; Fair View, Boardman, Machias.

Portland, May 9. Arrived, to-day, schooner Connecticut, Green, Bangor for Providence, leaking 1000 strokes per hour. Steamship Nova Scotian sailed last night with 15 cabin and 18 steerage passengers.

### The Bank of Portland.

The affairs of the Bank of Portland are very much worse than was supposed at the time of its suspension and it is rumored the dividend to the creditors will be very small. Mr. Goold has not yet made his promised statement.

Launched. A schooner of 220 tons, not named, was launched at Calais yesterday, owned in Calais and Boston.

### Schooner Ashore.

A despatch to the Argus says schooner John A. Tyler, of Calais, from Boston for Bangor, went ashore at Boothbay Saturday. No particulars are given.

### Fatal Accident.

Signor Wandanna, a sword swallower with Gibbs' Zoological exhibition, while performing at Calais last week, accidentally cut himself internally. Inflammation resulted and he died this evening.

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NEWS BY TELEGRAPH -TOTHEDaily Senneber Journal. PORTLAND. Manager Goold of the Bank of Portland, under Arrest. He is Charge with Cheating by False Pretenses. Portland, May 22. Mr. W, N. Goold of the :'ecently suspended Bank of Portland, was arrested Saturday afternoon on a charge of cheating by false pretenses. The charge was brought by the Bank of Cumberland, which states that on the 1st of May Goold got a check on the Everett Bank of Boston, for $14,000 cashed, representing that he had the money in that bank. When the check was sent to Boston it was protested, Goold having no money there. The latter stated that he had collaterals for $28,000 there, which he could draw against, and that he informed the cashier of the Cumberland Bank. Bail in $15,000 was provided by Mr. Goell, and he was released. Atrived. Sunday-Schooners Day Star, Davidson, Hull Harbor, New York; Alfred Broadbrook, Phillips, Georgetown, D. C.; Col Eddy, Day, Boston; Flora Grindle, Stanley, Boston; Willis Putnam, Eye, Boston; T. J. Trafton, Hoyt, Boothbay; Brillian, Meservey, St. George; Lucy Ann, Dighton, St. George. A Widow Claims her Mite. Portland, May 23. The widow of the late Wm. Boyd has notified the owners of the land on Atlantic and Waterville streets that they must pay her the widow's dower in the land they own. It originally belonged to her husband, but was taken on execution some 25 years ago. It comprised about ten acres which has since been built upon and owned by some one hundred and fifty different persons. She claims that property taken by attachment does not debar her from her rights to her thirds. Legal papers have been served upon many of the owners, including the trustees of a Methodist church.

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NEWS BY TELEGRAPH -TOTHEDaily Bennebec Journal. PORTLAND. Municipal Affairs. Portland, August 2. The City Council to-night appointed a committee, of which the Mayor is chairman, to make suitable arrangements and to fix upon a day to invite the city governments of Worcester and Nashua to visit Portland. An order was also passed directing the City Marshal to cause all tramps to be arrested as vagrants. Bank of Portland. A declaration was filed with the Register in Bankruptcy, General Fessenden, by William N. Goold, of the Bank of Portland, which recently suspended, that Moses B. Clements was his partner and has been since January 1, 1874. Through the Notch. The Ogdensburg Railroad will be opened through the Notch to the Fabyan House, Monday. Correction. Portland, August 2. The loss by the Alfred fire was exaggerated, as the stock, engine and boiler were saved. The loss will not exceed $3000. Burglary. Portland, August 2. The provision store of Mark Sheblees at Knox, Me., was broken into Sunday night, and the money drawer rifled of $350. No clue to the thieves.

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BANK OF PORTLAND

-At the examination of Mr. W. N. Goold, concerning the affairs of the bank of Portland, he distinctly stated to the committee of creditors that Moses B. Clements was not a partner in the business. Mr. Goold has now filed an affidavit with Mr. J. D. Fessenden, Register in Bankruptcy, stating that about the 1st of January, 1874, "Moses B. Clements, having before that time loaned money for use in the Bank of Portland for which he held collateral security in part, amended said security and agreed to go into said business, furnishing the money then in the Bank of Portland as part of the capital, and divide equally the profits and losses of said business; and that said agreement continued in force until the suspension of said Bank of Portland." He further says no contract was made in writing and there was no firm name adopted, but that all business was done in the name of the Bank of Portland. Mr. Goold now says he is advised by counsel that Clements was his partner, and asks what is to be done about it.

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PORTLAND

Examination of Moses S. Clements. The examination of Moses S. Clements, in regard to his connection with the Bank of Portland, which suspended last May, was held before the Commissioner of Bankruptcy, this afternooon. It had been alleged by some of the creditors, that he had drawn out of the bank just before the suspension, $41,000, largely exceeding his deposits; and also, that he was a special partner in the bank at the time of suspension. Clement denied drawing from the bank checks of certain dates and amounts enumerated and signed by him as special partner; never drew any amounts except those entered on his bank book. Goold never surrendered to him any checks or memorandum of checks that he had drawn on the bank. Clement explicitly denied all the charges brought against him. Examination not concluded.

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THE BANK OF PORTLAND.

Examination of William N. Goold.

The examination was continued at 3 p. m., yesterday as follows: Q-How long before the first check of $4,895 was drawn was this arrangement, spoken of in the foregoing answer, made. A-But a short time before. It was within a month certainly, Q-As I understand your statement of the arrangement it was made to enable Clement, and yourself if you desired, to obtain temporary loans of money from the bank from time to time, to be paid in a short time. Is this correct? A-It is. Q-Was it known or supposed between you and Clement, at the time the arrangement was made, that the bank was in a bad condition at that time? A-It was known to both of us at that time that the expenses of the bank were very heavy. We made no figures at this time in regard to the weight of the expenses. Q-Was it made to enable Clement to withdraw privately what he had put in, in view of any possible failure of the bank? A-It was not. It was a matter of borrowing. Q-Then your position is that this arrangement was not a scheme in contemplation of the failure of the bank to get Clement's friends out whole, but rather a method of borrowing funds from the bank? A-It was simply a method of borrowing. Q-Clement had three separate modes of doing business with the bank then as I understand. First he began Dec. 29th, 1873, to make his large permanent deposit continuing to Dec. 30th, 1874, amounting to $32,984.47, from which he withdrew nothing up to the time of the failure. Second, he had an ordinary deposit account beginning April 2d. 1874, and continuing till March 26, 1875, from which he drew from time to time in the ordinary manner, leaving, as appears by the books, a balance $2,968 41 due him at the time of the failure. Thirdly, independent of these two modes, he used to borrow of the funds of the bank from time to time, sums of money. by the checks which you have enumerated in your answer to interrogatory 24, none of which were paid, and which amount in the whole to $42,070. Is this correct, or, if incorrect in any particular, plase state the exact facts? A-It is correct. Q-Will you state also whether or not, from time to time, Clement, after he began to do business with the bank, got notes discounted in the regular ordinary way? A-He did. Q-State, whether or not, at the same time whilst Clement was borrowing money by means of the checks enumerated in your answer, which he never paid, as you say, he was making deposits from time to time in said general or special accounts? A-He was. Q-Calling your attention to the first check dated May 1, 1875, for $4,895, which was drawn for a $5,000 note discounted, please describe said note, who was the maker, to whom payable, its date as near as you can, and on what time it was given, and the rate at which it was discounted? A-I think Twitchell, Champlin & Co. were the makers. It was payable to Moses B, Clement. I do not recollect the date. I think the time was for four months. I do not remember that any rate was made on the note. Q-Judging from the amount of discount deducted, víz, $105, cannot you tell approximately the rate and the time the note had to run? A-Not knowing the date of course I cannot make the figures. Q-Was it discounted by you for Clement on the date of the check, May 1, 1874? A-I permitted him to draw against it. It was discounted at that time. Q-Then after discounting the note as above, I understand you to say that you took this identical note and raised money on it elsewhere which you let Clement have, and for which Clement drew his check of exactly the same amount and thus received twice $4,895 on the same note? A-I did not receive twice $4,895, but drew but one check, the note not having been entered on the books of the bank, the second $4,895 which he receive i being raised on the note outside of the bank. Q-From what source did you receive the money on the note? A-To the best of my recollection, from the Everett Bank of Boston. Q-Do you mear that you got it discounted there? A.-I think that I obtained a loan, leaving the note with others as a collateral. I do not recollect the amount of the loan. Q.-Are you sure that this note was not discounted for you by the Everett National Bank? A.-I think it was not at that time. I am not sure. The books of the Everett will probably tell. I am not sure but what it was discounted. Q-Then the transaction of your raising money upon the note is not entered upon your books? I mean the books of the bank. A.-I will ascertain and see. I do not recollect. Q-Do you know that the transaction of your discounting the note of Clement is not entered on your books? A.-I think it is not. I will ascertain and report. Q-Was the transaction of your discounting the note of Clement entered upon his bank book? A.-I do not recollect. I can tell by examining his book. On examination of a copy of his bank book, I should say it was very evident that it was entered. Q.-Why was it that it was not also entered on the books of the bank? A.-It was a common occurrence in the course of my business when parties presented notes for discount, and they were discounted, for me to figure the discount at once, and enter the avails on the credit books of the bank before entry on my discount book, In this case the entry was made in the same manner, at the time Mr. Clement presented the note. As his request for the additional amount borrowed was made before I had an opportunity to enter the note, and as he agreed to repay the amount borrowed in a short time, I did not enter the note, but let the matter rest. To the best of my recollection it was never straightened out on the books of the bank. Q-How did you manage on the books of bank in regard to the $105, the amount of the discount deducted? A. The matter never being straightened out on the books of the bank, the $105 was never called into account. Q-What straightening out could there be if there was no entry on the book? A.-I mean there was no entry on the said book Q.-This loan and all the others spoken of in answer to interrogatory 24 were understood to be of a temporary character, you say. This was made more than a year before your failure. Was this one or any of the others paid? If not, why not? A. They were never paid. Mr. Clement would make repeated excuses for not paying them. Q.-Why were they not deducted from as offset against the sums deposited previous to and during the time said loans were made? A.-Because of the arrangement between Mr. Clement and myself in regard to temporary loans. Q.-How could you manage to get along with your business with more than four times your capital and more than the whole amount of your deposits in Clement's hands not drawing interest? A.-By re-discounting notes for my loan whenever I had an opportunity and by making temporary loans from other banks. This was my principal method. Q-Were you not greatly pressed for money during the last year of your carrying on business, so that you were obliged to incur large expenses and adopt extraordinary means in raising money? A-I was. Q-Why then did you not then collect those temporary loans from Clement? A-I relied on Mr. Clement's promises to return the money which he made from time to time, having full confidence that he would do so. The reasons that he gave were principally that he wished to use the money a very short time longer, and in was inconvenient for him to pay it then, and similar reasons. Q-Did he know that you were paying one-quarter of one per cent to the Eastern Express Company to transfer money by telegraph on the morning of one day to meet checks drawn the day before on the Everett National Bank? A-He did. Q-Did you know or did said Clement tell you for what purpose he wanted so large a sum of money? A-I did not know; neither did he tell me. He stated to me at several different times that he was engaged in speculations outside, mentioning among them operations in sugar, mackerel, and, I think. in connection with a Capt. Bartlett in some West India venture.

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THE BANK OF PORTLAND.

Examination of William N. Goold.

The examination was continued at 3 p. m. yesterday as follows: Q-How could you conceal from the clerk, Mr. Ricker, the fact, if it was so, that Clement drew out so large a sum of money, and was a partner in the business of the firm? A-The tact that this money was drawn never appeared on the books of the bank. At Mr. Clement's request the matter of the partnership was concealed from the clerk until the papers could be made out. Q-Did Mr. Ricker keep the books, and was he in attendance on the bank when you were away or out of town? A-He kept the books most of the time with the exception of about a year, when Mr. Charles L. Goodrich took charge of them. Mr. Ricker kept the books during the larger portion of last year, and he usually took charge of the bank in my absence. Q-Could so large an amount of money be drawn in bills without being entered upon the books, without attracting the observation of Mr. Ricker? A-I doubt if it could. Q-When you were so pressed for money during the last years of business, did you remonstrate with Mr. Clement for drawing out so much money and repaying none? A-I did. Q-Why did you let him have more money after he had drawn out considerable sums which he had agreed to pay in a short time, before he repaid what he had already drawn? A-I accepted his excuses, not knowing his private affairs. I had the utmost confidence in his promises and ability to pay the sums borrowed. Q-Did Mr. Ricker make up the cash and keep the cash account? A-He usually made it up on the books from items I gave him. Q-Concluding this part of the examination concerning the partnership checks, I would ask you, if the story you now tell is true, what motive had you,-what possible advantage was it to you, to aid and assist Clement, who had drawn out the very vitals of the bank and had brought it to, or at least hastened its insolvency, in this scheme of iniquity? Your best friends, the depositors who had confided in you and had trusted their money to you, were to be cheated and defrauded.

A-In allowing Mr. Clement to draw out this money, I simply fulfilled the agreement I had made with him, and which had previously been given, without any intention or idea of cheat-ins, defrauding or injuring any of my friends or depositors or those having business relations with me. The only advantage I could gain would be that of a favorable settlement with my creditors, which Mr. Clement promised to make for me at the time these memorandums were given up to him. Q-Then it was to gain a favorable settlement with your creditors that you agreed to conceal the partnership and give up to be destroyed the evidences that Clement drew the money out. Is that what you mean? A-That was the principal object in view. Q-Passing to another subject in your answer to question 24, you account for the deficiency in your assets amounting to some $25,000 or $30,000 after taking out the $42,070 drawn out by Clement on a check you say it has been absorbed in the general expenses of the business. Now calling your attention to the profits you made by your purchase of the assets of the Second National Bank, and also to the fact that it appears by examination that you received in the two years and about ten months you were in business the sum of $10,567.08, by way of discount of paper, I wish to ask you how it is that the "general expenses of business" could absorb not only this remaining deficiency, but also all the profits of your business in so short a time? A-The latter part of the question answers the question itself. My general expenses, in which this deficiency was absorbed, were interest paid, transfer of money by express and telegraph, telegraphic dispatches, money paid for cashing checks, discounts and losses on mutilated currency, money accommodations from other banks and individuals, books, stationery, etc., clerk hire and rent, gas, heating, also living expenses for myself and family, together with money laid out for the improvement of my real estate; also losses on paper, legal and other expenses, that I assumed at the time of the purchase of the property of the Second National Bank, which was to liquidate part of my agreement in purchasing. Q-Did you keep any account of your expenses in losses on your books so that it can be ascertained? A-Only a portion of the general expenses. Q-You have already stated in the first part of the examination that your rent, clerk hire and living expenses were moderate during this time, that your losses and discounted paper were unusually small; now I wish to ask you in regard to the other items contained in your last answer. First, as to interest paid, paid to whom, and to what amount, and in regard to transfers of money by express. It has not been ascertained what amount has been paid for that. What did the expense of telegraphic dispatches amount to? How much for cashing checks? How much for mutilated currency? How much for accommodations from other banks and individuals? How much for legal expenses in regard to transfer of property from Second National Bank, and also for the improvement of your real estate? A-Before I can answer those questions I shall have to consult the books of the bank now in the hands of the assignee, and refer to telegrams sent from the telegraph office. I will consult them and answer. Q-You say that only a portion of those expenses are on the books. Please state in regard to the last question so far as it refers to that portion not on the books. A-I cannot give any of those items from memory.

The examination was suspended at this point.

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paper,

night

note. That was all. The note was discount-ed and paid.

Cross-examined.-C. A. Weston & Co. there deposited when I went into their employ July, 1874, and when I left were making all their deposits there. The first time I carried notes to be discounted they were not on my deposit ticket. Never entered notes on my deposit ticket. Don't know why Clements should look at the deposit check. When I went in the first time Clements was sitting at the table and had his hat on; had his hat on when I went in afterward, overcoat off. Did not have on same coat he has on now. Can get the date in March. I am positive Clements said "You may leave the note." He did not say he knew Knights. I never saw him in-terfering with the business of the bank at any other time. I spok of this at the store; also at store of F. E. Lovell. I was out of the employ of C. A. Weston & Co. when I spoke of this to Lovell.

Edward S. Hamlen. I reside in Portland; am member of the firm of F. A. Hamlen & Son, cooperage stock, &c. My firm was depositor in the bank of Portland; began in November, 1874, continued to do business there till the failure. Our deposits was $3,396.92 at the time of failure. Before becoming customers to the bank I had a conversation with Mr. Clements; can't give the date. It might have been a week before I began to deposit that I had this conversation. I met him on Exchange street. I told him I thought of changing my bank. He said "We should like to have, you come in there;" said he would use us as well as he could, and gave us the names of C. M. Rice and Dean Brothers, and Sise & Nevins, depositors, for reference. I did not go to any of them because I thought I could trust my money where Mr. Clements did his. He said every thing should be satisfactory; the paper should be discounted at 7 3-10 per cent, and if every thing was not satisfactory we were to let him know. I have stated all I remember of the conversation. In three or four days, or a week, or sooner, we become depositors. We kept a deposit of from $1400 to $3000. Our average balance was $2000 or $3000 and have had there $14,000; have had notes discounted there; most of our deposits were notes discounted. I was there sometimes two or three times a week and sometimes two or three times a day. Mr. Clements, mostly, was at the bank when I went there. I have been there when he was not there. He was sometimes in the small room and sometimes in the other. I never did the business with him, when I discounted paper. He has generally seen it. Once I asked Clements if I could be accommodated in discounting a short piece of paper as a temporary loan from one to five days. He said "Yes, he thought I could, but I had better see Mr. Goold." I saw Goold and he said, "Yes." I saw Clements on Cross street, he had just come out of Twitchell & Champlains. Clements looked over the reports and advised about my customers, and said the rate book was not always reliable. This was in December, 1874. At this time Mr. Clements was in the small room. When I went into the bank they sometimes asked me to come behind the counter-sometimes Mr. Goold and sometimes Mr. Clements.

Cross Examination. We had not Russell's reference book at our store. I went in there to satisfy myself about the paper I should take. When Mr. Clements and I looked at the book together, I had no notes with me for discount-I considered it was for his information as well as mine. I did not tell him that it was. I have been hard of hearing from infancy. When I saw Clements on the street, he did not get very near me in talking; it was not necessary. I will bring in my checks on the bank of Portland. Mr. Clements never told me that he was a partner. We only passed on Cross street and were together only a few minutes. I can't recollect whether I could hear that day better than to-day. On Cross street Mr. Clements said I could have the short loan but I had better see Goold. We talked about nothing else there. I read in the newspapers about the creditors meetings. I was at a meeting of creditors in Winship's office, and at City Hall. I can't fix the day when I first told these conversations. I had a conversation with Clements and Goold together about the change in the ratings. I received no interest on my deposit, nor was I to have any.

At this point the Court adjourned until 3 p. m.

Edward S. Hamlen recalled-I was in the bank and asked what about the change of rating. Goold said, "Buy all the checks you can at 95 cents on the dollar," and said "Arn't that so?" and turned to Mr. Clements, and Clements nodded his head, but did not speak. A day or two after, I was talking with Clements. He said "Jones has been trying to find out their condition. He don't amount to anything. When he finds out anything from me he will know it." Jones is the Portland agent of Russell.

Cross examined-This conversation was shortly after the disrating of Goold, I was notified of this by J. H. Hamlen. This conversation with Clements was in the side office. My business with Clements that day was to find out why the bank was disrated. I think Clements said, "We are all right." I am pretty positive he said "we.' I have not recalled this conversation till to day. I named it to Mr. Butler today, and once before since petition in bankruptcy was filed. I communicated none of these facts to the Committee of Creditors. I understood that that committee was investigating the question of partnership. (Deposit book put in by defendant.)

Albion T. Sawyer-I reside in Portland; am in the produce business. In 1874 was a member of the firm of Sawyer & Tufts. That firm was a depositor at the Bank of Portland in 1874, and continued till the failure. Then our balance was $413.01. About a week before the bank suspended I saw Clements at the door, talking with somebody. I asked him to come in. He did so. I asked him if he was interested in the Bank of Portland? He said "that he had more money there than any other man. He said "the bank was all right." We had not been depositing there much after the disrating. "That it was all right. Mr. Goold had not been into any speculation to lose anything, and was an honest man, and that we should be safe; that he had access to the books at any time he chose." Don't know as he said how often be looked at the books. This was April 23, 1875. The next day I deposited $408.81. May 3, '75, Mr. Tufts made a deposit of $200.

Cross-examined-This is the same conversation at which Mr. Tufts was present. Deposit book produced and put in.

Benj. J. Willard-Reside in Portland. I have been accustomed to deposit in the Merchants National Bank. I had a conversation with Mr. Clements. I can't recollect all the conversation. I think, if I recollect right, that Mr. Clements said he would like for me to go up to the Portland Bank to do business; that he was doing or going to do business there, or something to that effect. I told him I had been treated well at that bank and I was going to stop there. He said that was right. This was sometime before I heard of the failure; can't fix the time; it was in the spring; can't tell the time; it was on Commercial street.

Cross-examined-Mr. Clements and I have been friends; own vessels together.

William H. Sanborn-Reside in Portland. Am clerk with Geoorge H. Whitney; was a depositor in the Bank of Portland: was in Second National Bank; continued up to the failure; then a balance due me of $226 and six cents. In the winter of 1874 I used to see Clements in a store up town and say to him that I may want some money to-morrow, and he would say we shall look out for you. I used to meet him often in Mr. Cheney's grocery store. I saw him after he had gone down with Carter, and asked him if he had left the bank, and he said his interest was there just the same. He said before he went away he used to see the balances about every morning when he was in the bank. This was after he went down the street. After the suspension he said to me that he, before he went down on the street, used to see the books and they had nice balances every morning. I used to see Mr. Clements in the bank in the side room, and in the other rooms, sitting at the table sometimes.

Cross examined-The conversation at Cheney's store was in the evening; I traded there and Clements called in; I am sure I gave the exact language: I am sure that Clements said

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what it grew out of

As near as I can recollect Goold said that it had come out on the Mercantile Agency books that he had suspended, and he went on to give the cause of its so coming out, as owing to a mistake of the man making up the books, who got in the word suspended instead of special rate. He then went on to say that if any man had any fears about the bank, they might come in and get their money. This conversation was in the presence of Mr. Clements, who stood a little back of Mr. Goold. Mr. Clements made this remark, "Yes, we are good for anything brought against us." Mr. Clements had said nothing before making this remark. I made LO reply to Mr. Clements. Had known Mr. Clements previously. I had a conversation with Mr. Clements in April, 1875, in the presence of my partner in our counting room, at our store; I can fix the date as April 23, 1875, by my pass-book. Mr. Clements came in and we spoke of the Bank of Portland, and said we had had thoughts of going out of it. Mr. Sawyer asked Mr. Clements if he was interested in the bank, and he answered that he was. I then asked him how much he had in there and he said more than any other man. One of us asked Mr. C. to tell us whether the bank was safe or not. He said that he believed it was; that he believed that Mr. Goold was an honest man, aud that everything was right and straight. Mr. Clements said his business on the wharf took most of his time then SO that he didn't spare much time in the bank and left it with Mr. Goold to manage. He said that the books of the bank were open to his inspection at any time and he believed everything was-right and straight, and that if he didn't he shouldn't leave his money with Mr. Goold. On the strength of this conversation we deposited in the Bank of Portland next day, and we continued to deposit until the failure of the bank, making our last deposit at 10 minutes before 2 on May 3d, 1875. On cross.examination he said in substance that he had never doubted Mr. Clements's financial ability; the date of the conversation at the bank was Feb. 15, 1875; Mr. Goold didn't tell him which agency had reported him failed; there was a man there whom he did not know, and he was there when Mr. Clements made the remark he testified to; Mr. Clements was writing; Mr. Goold took his book; Mr. Goold gave some explanation of the report which wit ness said he did not distinctly remember.

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BANK OF PORTLAND.

Another Day's Proceedings Before Judge Fox in the U. S. District Court.

The proceedings Saturday opened with the testimony of Thomas F. Jones, called by the petitioner. Mr. Jones said, I am the manager of Russell's Mercantile Agency in this city, and have been, since March, 1868. The ob- ject and aim of the agency is to gather all the information necessary to obtain some definite idea of the standing of business men. De- tailed information is obtained from which a certain rating is given to represent their com- mercial standing. The books containing that information are sent to subscribers and sup- posed to be used by them only.

Almost every wholesale dealer in this city is a subscriber to the agency. I have here a book which contains all the information that I can obtain in regard to parties, which is then put into the form of a report. The exact words of parties may not be recorded, but the substance of all the information that can be gathered is in this book. Sometimes I might get exactly the words of the party, and some- times only the substance.

Question-You may refresh your memory from that book and state whether or not in 1874 you had any interview with Moses B. Clements, relative to his connection with the bank of Portland?

Answer-Sometime in May, 1875, I should think from the 15th to the 20th, I went to the bank in consequence of an inquiry made of me, to know if Moses Clements was a general partner in the concern. I saw Mr. Clements, and in answer to my inquiry if he was a gen- eral partner, he replied that he was, and that he was considered holden for the liabili- ties of the concern. The previous rating of the Bank of Portland was in our book "Bank of Portland, See Wm. N. Goold," which would imply he was the individual man of the concern, and it was rated at that time from five to ten thousand dollars. That stood there until July, 1874, when upon Clements's statements to me in regard to his own personal responsibility, the rate was changed and it was rated over fifty thousand dollars. We have letters in our books indicating whether credit is fair, good or very good, etc., and we rated the bank in July, 1874, D 2, which would indicate over fifty thousand dollars and good credit, while the rating in March, 1874, was F 24. indicat- ing over ten thousand dollars and not quite so good credit as 2.

In answer to the Court-I don't think that at the first interview I notified Clements of the object and purpose for which I called upon him, and that I intended to print this in our books; but he knew me and the nature of my business. At this first interview he repre- sented that an advertisement should appear by the first of July; it did not, and in No- vember he gave an explanation, that the rea- son why he did not advertise was that he was connected in some operations with Twitchell, Champlin & Co., and that his name was loaned considerably in the street, so that it would not lend a great deal of strength to the concern if he did then be- come a partner. He then promised that it should appear by the first of January, but it did not appear, at which time I notified them that unless there was some advertisement by which I could be fully satisfied that Clements was a partner, the rating of the concern would be reduced or suspended. February almost expired and nothing was done, so I wrote to Russell, requesting him to write Clements, to obtain some letter from him acknowledging or denying the partnership with the bank of Portland, and he obtained a reply which I have. Witness then read the following letter;

PORTLAND, Feb. 2, 1875. Messrs. E. Russell & Co.: Yours of the 2d instant came duly to hand. The bank of Portland was started with the capital of $10,000, and increased the amount, I should think, $8,000. I don't know that I am at this time liable for any of its transac- sactions, although I have $30,000 deposited in the bank, in the expectation of joining Mr. Goold in its business. Respectfully yours, MOSES B. CLEMENTS.

In our weekly sheet, the bank of Portland appeared with ratings suspended. On these weekly sheets, we put nothing but what we regarded as unfavorable information. Cross-examination-The ratings are made in Boston from my detailed statements which I send to Edward Russell. In February when I received the letter from Russell, I notified the First National bank and the Casco bank that we had special in- formation, and requested them to call before our weekly sheet came out. There is noth- ing on our published books that would show that Mr. Clements was a partner. I did not understand Clements to say that he contem- plated partnership, and if he did become a partner he would advertise. I think I did have a good many conversations with Goold. I think I had had conversations with him about the rating of the bank.

Question-Are you positive that Clements did not use the following words, "When I become a partner, I shall advertise?"

Answer-I think no such statement was made.

Question-Didn't he tell you he should not advertise until he made up the capital he was to make up?

Answer-That might have been one of the reasons. I am not sure but he did say he had put in so much money, and he was going to contribute a certain amount more, and as soon as he got cleared up with certain opera- tions he was then in, he would put in the capital and advertise. I think he did not say to me that he was examining the affairs of the bank with the idea of going in as a part- ner.

Question-Can you recollect whether or not on the 20th of May, 1874, Moses B. Clem- ent stated to you that he had $27,000, on deposit and was examining the affairs of the bank with the idea of going into the bank as partner, and if found satisfactory would ad- vertise as such?

Answer-I do not recollect that he made any such statement.

I have no recollection of telling Daniel W. Ames that Clements was not a partner of Goold's and never was.

George Ricker was called by the petitioner. He said, I reside at Saccarappa. I have been clerk of the bank of Portland until within a few months. I went there June 24, 1872, and remained there until the suspension of the bank. I am a nephew of Mr. Goold. I kept the books. I simply made entries as I was di- rected by Mr. Goold. I know nothing in rela- tion to the relation of Clements to the bank, except that Clements was in there. I under- stood he was to be a partner at some time; far- ther than that I know nothing about their af- fairs. Clements gave me to understand so, when he first came there. I do not know whether that intention was carried out or not. I never had any communication from them in that respect. Was present when Jones made enquiries, but did not hear the conversation.

I remember the fact that the credit of the bank was increased on Russell's books, but I did not know the reason. My salary the first year was $500, second year $600, and the last year $1000. Charles Goodrich kept the books at first. Mr. Goold made entries on the book very rarely, only when I was away. I usually made up the cash every night. I made up the cash from what there was in the drawer and slips and cash items. 1 recollect an item of between thirty-three and thirty-four thousand dollars charged to the Everett Bank in 1873. It was made up of cash items in the drawer, which had been accumulating from time to time, and Mr. Goold told me to charge it to the Everett Bank.

Hon. J. H. Drummond was then called, who testified that he had seen Mr. Clements in pri- vate consultation once with Mr. Goold, between the time of the failure of the bank and the meeting of the creditors.

J. O. Winship, counsel for Mr. Goold, testi- fied that Mr. Clements had half a dozen private vate conversations with Mr. Goold in his (wit- ness') private office during the week between the failure and the meeting of the creditors.

The court then adjourned till Tuesday morn- ing at 10 o'clock.

SUDDEN DEATH.

Albert Merrill, esq., a well known lawyer, died yesterday afternoon of heart disease. He left his boarding place on Free street a little past noon and went up on Winter street to make a call. He had not been in the house but a few minutes when he complained of not feeling well, and in an ins-

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Leaving to be accounted for say $25,000. Cross-examined at 5 p. m.-This $25,000 I cannot account for in any way. The following questions were then asked by the court: Q-You have seen that schedule of checks which Goold says he paid Clements? A-I have. Q-Have examined carefully the receipts and disbursements of cash on these dates when it is claimed the amounts were paid to Clements? A-I have. Q-From the best examination you have been able to give, can you or not tell from the books whether these sums were or were not paid out? A-From the money in use in the bank at that time he could not have paid those sums. Q-From the examination you have given to the condition of affairs of the Bank of Portland, you say that he could not have paid those amounts? A-It is my conviction that he could not have paid those amounts. Q-How do you reach that conclusion? Suppose for instance on such a day Mr. Clements drew his check for $3000, what was there upon these books that would satisfy you as a business man that he was not in a condition to have paid out that $3000? A -Because the resources were deficient to meet the liabilities on the 1st of September, 1874, by about $50,000. At the time of suspension he was short about $62,000, so that only about $12,000 could have disappeared between Sept. 1, 1874, and the failure, May 4, 1875. Q-What period of time did these checks cover? A-They run from Sept. 15, 1874, to sometime in April, 1875, excluding the check for $4895 given in May, which is produced here. Alfred B. Winslow testified that the Eastern Express Co. transferred by telegraph for the Bank of Portland from Dec. 26, 1874, to May 1. 1875, $394,000, for which that bank paid onefourth of one per cent., amounting to $975. The deposition, of Geo. E. Carr, cashier of the Everett National Bank was read, showing the manner of transacting business with the Bank of Portland,

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BANK OF PORTLAND.

A Valuable Schedule-The Testimony Yesterday.

The following is a detailed statement of the irregularities found in the accounts of the Bank of Portland: 1872. June 24, Cash charged to Everett National Bank

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The Rice farm in Kittery has been in the possession of the Rice family for a period of 224 years, and in the family burial lot lie seven generations. Near by the lot is growing a rose bush known to be over 200 years old. This estate was once owned by Sir Fernando Gorges and deeded by him to the Withers family, and in 1652 it was given as a marriage dowry by Thos. Withers to his daughter Mary Withers on her nuptials with Thos. Rice.

W. N. Goold, the missing manager of the suspended Bank of Portland, writes from St. John, N. B., to the Bank's assignee, enclosing his gold watch and chain, saying that they belong to the estate, and promising to send the value of his bosom-pin and finger ring. He intimates that he will not come back. Mr. Goold is about 35 years of age, and is a native of Maine He made many friends in business, and they are slow to believe that he had betrayed the trust reposed in him by them.

The farm buildings of C. D. Cummings, West Waterville, were destroyed by fire Saturday night; loss about $1600; insured $1200.

Post Office established-Damariscotta, Abram S. Gamage, postmaster.