Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1843-02-10
Report of the Committee up
ora the affairs Of the Essex
County Bank.


Your committee, appointed at the last
session Of this General Assembly, "to inves-
tigate the situation and concerns Of the Bank
OF Essex County, to ascertain the manner
of the transfer of the stock of said bank to
foreign purchasers, the Liabilities and res
possibilities of each officer of said bank
since the incorporation thereof, and to a.
dept and pursue such measures by suits. or
Otherwise, as said committee may deem ex-
pedlent, to protect the safety fund and the
public from loss in consequence of the fail
ure Of said bank to redeem its bills. and
to correct frauds, if any may be found to
exist" respectfully report
That, in attending to the duties assigned
them, they have availed themselves of all the
light which the books and papers of the bank
now IN the hands of the receiver, and the
testimony of the president and cashier.
would throw upon its transactions, and they
believe they cannot better carry out the
views of the General Assembly, than by civ
ing a history of the leading acts of the bank
from the time of its organization to the
termination of its business.
The Essex Bank was chartered at the Oc-
tober session of 1882, with a capital of S40,-
600, divided into 1000 shares of $40 each.
subject to the provisions of the safety fund
act of 1881, requiring that fifty per cent. of
its capital stock should be paid in, previous
TO its making any discounts.
The books were opened by the commits
s%Ioners, the stock subscribed in proper form,
and the first board of directors duly elected.
On the 18th day Of April, 1888, one of
the bank commissioners certified that 800
600 had been paid in as capital stock. a.
greeably to the requirements of the char
ter.
On the 10th day of April, 1893, the bank
commenced its operations, at which time
the cashier charged himself with the capital
stock, consisting of a certificate of a de-
posite of specie in the Grafton Bank So
900, current bills SS,537 and specie 81
463, amounting in the whole to 800, 900.
On the same day Sl7, s45 of the capital
stock placed in the bank as aforesaid, and
on the 22d of the same April S40O more of
said stock was taken out of the bank. Inv
some of the stockholders, substituting their
private notes therefor, leaving only the sum
of 81 ,755 and the notes of the stockholders
for the sum of SlS,245 to secure the re-
demption of the bills of the bank, which
were thereafterwards to be put in circula-
ton. OF the above sums taken from the
bank, John Dewey received Sl5, AGO, and
Thomas Carlisle received 81 500, they be-
ing the principal owners of the stock.
The first bills of the bank were prepared
for emission on the 9th day of May, 1888,
up to which time no loans or discounts were
made to persons other than the stockholders.
in the manner above described.
In consequence of the loss of that part
OF the discount register which contained
the transactions of the bank I'D TO JuIy.
1888, your committee are unable 10 ascer-
tain on what security the discounts to stock
holders were made, but from the statements
OF Greenlief Webb, one of the directors.
they are led to the conclusion that no Sc
curlty other than a pledge of the stock was
required.
Your committee would here remark, that
from the manner of keeping the books of
the bank, they have been unable to asccr-
tain the time of the payment of the above,
or any other of the notes of the bank, EXCEPT
they find that John Dewey paid 50. 900 on
his note above named, Aug. |, 1898. and
they are thereby precluded from ascertain
ing all the liabilities and responsibilities ofl
the officers of the bank at any given time
during its existence.
1t is worthy of remark, that for several
years after the bank went into operation. il
labored under embarrassment in the redemp-
ton of its bills, and was frequently obliged
to obtain loans in Boston and elsewhere.
sometimes at a high rate Of interest, and
that many of its individual loans were ex- ,
travagantly large, considering the amount of :
Its capital. In one instance they find a .
loan was made to John Dewey of SI5, 100. !
This was Feb. A., 1884, at a w%ell-remem-
bered time of severe endorsements in the ,
money market, and at a time when the bank =
was very much embarrassed In some in \
stances large loans were made without adj /,
eequate security two loans were made to :
Norton, Carlisle 81 Co.. of Buffalo, N. Y. !
OF $4,000, which were protested Nov. Is. =
1886, and April %, 1887, which are still y
unpaid and are probably uncollectable.-
There was also loaned for the benefit of per- c
sons residing in Portland, Maine, So. 100 =
which was protested July "a, 1887, and q
passed into the hands of the receiver, who y
compromised with the endorsers on the T.
of twelve and one-half per cent. 9
The dividend book of the bank exhibits +
the dividends of the bank as follows:
July d, 1885, S $1,000
Jan. IL, 1886, 1000
July 1886, 600 n
March III, 1880, 1000 W
The last of the above dividends was made Of
the stock as it was owned August 10, W
iS3S, of which John Dewey, received SS47, al
Thomas Carlisle SIP, although said m
Carlisle, as a member of the firm of Norton. re
carlisle 81 Co., was then indebted to thel
bank in the sum of 81 300. and the note e,