Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1843-02-10

- ~ HDAhH W hittlOiS, COIlDOSeu Oh JODn
Dewey, Greenlief Webb, and William Hay
wood, Jr., IT was voted "that John Dewey be
allowed and paid $500 for his services as
President of the bank from April Is, 1893.
to Aug. IL, 1893, and for balances of inter
est on his deposites up to the last date"
which sum was subsequently, allowed to him :
and although there is no evidence that said
Dewey had previously received any thing
Tor his services, except when abroad on the
business of the bank, your committee are
given to understand that the above vote. to-
gether with the dividend of March IL, 1899.
were the means adopted to give the sellers
OF the stock the pretendedly accumulated
surplus before mentioned, in compliance
with the contract with Mack g. Townsend
On the 18th and Goth days of August and
18th OF Sept. 1888, the bank loaned to Mack
a. Townsend $50, 000, about one half of
which was loaned on the paper of Mack.
Patterson 81 Co., a firm composed of Mack
q townsend and one Thomas ]. Patterson,
who was then and still is a responsible man,
and the residue on the paper of Mack g.
Townsend a part of the debt of Mack. Pat
terson d. Co. was afterwards paid, and the
remainder, with the paper o Mack g. Towns
end, was renewed, and afterwards formed a
part of their notes of SOC, 440 hereinafter
described.
II was agreed between the officers of the
bank and Mack & Townsend, at the time of
the above loan, that Mack g. Townsend
should place funds in the hands of some per-
son IN the city Of New York, for the re-
demption Of the bills of the bank.
On the 18th Of August, 1893. Mack g.
Townsend executed a bond of 500, 1000 TO
the bank, TO secure the bank for loans made
or TO be made to them, with several ~sureties
residing IN the western part of the State of
New York, who, there is reason to believe.
were wholly irresponsible at the time.
On the 10Th Of Sept. 1898, the directors
voted an assessment OF IS. on each share of
the stock of the bank, and on the 24th of the
same september a like assessment was voted.
The stock ledger shows a credit Of a.
'SU on account OF the first assessment, but
no other entry appears on the books in rela-
ton to 1t, and no mention is made of the
second.
The issue book shows that SIO7. 600 of
bills had been prepared for emission, 800
lOO were prepared after the sale to Mack g.
Townsend, from blanks furnished by them
S2S,229 of which passed into the hands oil
the receiver, leaving s79,37I in circulation.
The bank was e%njoined by the chancellor.
on the 18th day of October 1889, and its eE-
fects passed into the hands of a receiver NOV.
4, 1889.
From a statement of the receiver it ap-
pears, that when he took possession of the
bank, ITS outstanding bills were S79.37I; of
that sum $4,000 had been pledged for the
payment OF a loan and have since been re-
turned to the receiver, and S5,7 40 have been
delivered to him by Houghtons g. Co.. bro
kers of the city Of New York, as redeemed
bills, exhibiting an actual circulation of
S70,60I.
1t was proved before your committee by
the cashier of the bank, that the bank sent
$4,000 10 said Houghtons & Co., after the
sale TO Mack d. Townsend, to redeem the
bills OF the bank, that he subsequently de-
manded the redeemed money ofthem for the
bank, but they refused to let him have il
saying they should sell it TO pay the liabili- |
ties OF Mack 81 Townsend to them. and
your committee have strong reasons to be- |
lieve that a large amount of the bills present.
ed to the receiver by pretended claimants /
been redeemed with the funds of the +,
bank, and 1t is clearly proved that a large a. |
mount OF the bills presented to the receiver
Tor payment, were presented by persons 9th I
er than the real owners, and your commit $
zee are not satisfied that they were so pre- a
'ented for any honest or honorable purpose. I
One of the Houghtons appeared before q
committee and requested to be examin- r
"a, out before the examination closed, he ut O
cry reused TO answer questions put to him. Q
calculated to ascertain the amount of money v
edeemed by them with the funds of the y
'ank, and how much money thus redeemed. "
he had caused TO be deposited with the re- n
'elver IN the m of other persons-and
aid he could not tell the amount of money Il
edeemed by them, or the amount of funds b
ecelved by them to redeem bills with, with O
n the sum of 5 1000. !,
lie however admitted that they had been n
Employed by Mack 81 Townsend to redeem Il
he bills, and that they had received funds to tc
considerable amount, both from Mack a. b.
townsend and the bank, and that when thew k
eceived the bills OF the bank that were not h,
. be put in circulation, they punched a hole 81
them. II
A large amount of the bills deposited with vi
ne receiver, have holes punched THROUGH b,
lem, and some of the packages appear not bi
} have been separated since they were ty
unched in the manner described by Hough- vi
is now in the hands of the re- III
ever a package of $1,000 which was for
'arded by the Houghtons g. Co. and depos- m
ed in the name of one j. w. Martin. re
Mack d Townsend's notes are in the BY
ands ofthe receiver TO the amount of 500 dc
40, all of which bear date March I6. 1889. of
!cept one note of So, 900, with no security te
hatever except said 100000 bond, which tn