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

"a El0lIh
paper or bad notes then in the bank. an,
also composed a part Of said assets, and M
on all which said dividend was declared, an,
the object of the peculiar manner in whicI
it was so declared, will be perceived whel
the circumstance Of the transfer of tn
stock, which undoubtedly led to the final
Of the concern, are stated.
The first board of directors was compose,
of John Dewey, Greenlief, Webb, Chapil
K. Brooks, Josiah b. Hall, and John S
Wells, who severally lodged their respectiv,
bonds with the Treasurer Of the State, 70
the sum of $4,000 each, with one suret,
to each bond, who were mostly irresponsible,
men all the bonds subsequently executed
except a part of those in 1889, have suretie,
of undoubted responsibility, John Dewe,
was elected first president, and continued
such until Sept. II, 1888, when Greenlie
Webb was substituted.
Your committee find that, as usual. there
were many transfers of stock, but the princi
pal portion of it luctuated between John
Dewey, Greenlief Webb, Thomas Carlisle
and Norton, Carlisle g. Co, of Buffalo, N.
T., although Norton, Carlisle g. Co, were
indebted to the Bank at the time of the
transfer Of their stock, contrary to the pro.
visions Of the act OF incorporation.
In the summer of 1893, ii. Bradley. ESQ.
OF Burlington, who was then Bank ~Inspec.
tor, received information that some persons
from the state Of New York, we're attempt.
ing to purchase the stock ofthe Essex Bank
He Immediately went to GuildhalI to attempt
to prevent the sale, and received an assur-
ance from John Dewey, who owned mos,
of the stock, that no such sale should be
made without his consent. Sometime after
wards E. S. Townsend, of Palmyra, N. Y,
called on MIR Bradley with letter of intro
ductlon from DR.. Dewey. Townsend wish
ed Bradley to give his consent in writing TO
a transfer of stock to him by Dewey, but he
absolutely refused, and Townsend left, say
ing he could not obtain the stock.
On the nth of August, 1888, John Dew
ey transferred to Thomas Carlisle 700 shares
of the stock of said bank, who on the same
day transferred 400 shares to Isaac f. Mack.
OF Rochester, N. Y. and 400 shares to said
f. S. Townsend. In March 1889. Carlisle
transferred to Mack l4I additional shares
which, with a shares obtained from other
made Mack and Townsend the
owners of the whole stock Of the bank. save
80 shares. For several years before the a.
bove transfer, and ever since, said Carlisle
has been reputed a Bankrupt, and has not
possessed any visible estate either real or
personal, and it was in proof before your
committee that Dewey negotiated the sale to
a. Townsend, and received the pur-
chase money of them for the shares preten-
dedly sold them by Carlisle, and your COM
mittee have yet to learn for what good mr.
pose this roundabout method was adopted
for conveying the shares of Dewey to Mack
and Townsend, but they feel constrained to
say that they can regard it in no other LIGHT
a mere arti6ce to protect Dewey from
liability, and also to avoid the imputation of
broken his promise to Mr. Bradley.
Your committee are satisfied that when
and Townsend bought the stock, they
knew that the notes and funds called CAPITAL
stock were for the most part of no value.
md that the assumed sum of SIS.S2O sold
hem as capital was mostly fictitious and
alse, and that they intended at the time of
purchasing said stock, to raise the credit of
he bank, which was then at a low ebb by
edeemlng It's bills promptly in the city of
New York, Tor a short time, and then TO
lood the country with them and let the bank
and that they were only prevented from
uiiy concentrating their plans by their own
allure, which took place soon after.
The bargain between Dewey and Mack
nd Townsend was privately made; neither
he public, nor the officers of the Bank. nor
ny other person that your committee have
cen able to find, knew of the terms and
onditions of the sale of said stock until the
ank had wholly failed to redeem its bills.
'hich took place Aug. IA, 1889.
The terms of the sale were, as your COM
littee are we'll satisfied, that Mack and
'ownsend paid $50 for each share of 500.
ne vendors to retain all the accumulated
lrplus, estimating the entire debts Of the
ank as solvent and collectable.
Your committee have no means of ascer-
lining with absolute certainty the time and
lode of payment for the stock purchased by
lack d Townsend, but are well satisfied
lat payments were made at the time of DUR
base in the bills of banks, other than the
ssex, borrowed for that express purpose,
that the loans thus obtained were after {
ards paid in the bills of Essex bank. I
AT the time of the sale, the bank had I
i4,9O7 of its bills in circulation, and owed I
her sums of money, and had its Vaults in r
'ecie :
1919 Os Il
bills, 1000 90
orders, 60 on +,
in Market Bank, Boston, 99I GA 1
Amounting to 2,57O 721p
The residue of its effects consisted oflt /,
ties and accounts, more than SI2, 900 of c
hlch were and still are hopelessly bad, and v
the remainder several thousands of dollars il
IRE very doubtful and still remain unpaid,