The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-01-12
THE GREAT BANK DEFALCATION
IN VERMONT.
Further. Interesting Particulars - The
Cashier Escapes with $65, ,OOOo

Cashier Escapes with $65, 900.
A correspondent of the Boston Journal gives
the following particulars of the bank defalcation
in Vermont
''The Missisquoi Bank was chartered in 1850,
and went into operation, think, in the spring
of 1861. Mr.. Henry HOWes, now of the Sixth
Auditors Office, Boston, was Its first cashier
Upon the organization OF the ST. Adams Bank
three years later, Mr.. Howes was called to the
cashiership Of 1t, and Mr.. Hubbell, previously
teller in one of the banks at Burlington, was
chosen cashier OF the bank at Sheldon. He car
ried to the position good name, and enjoyed
the confidence of all who knew him. as a worthy,
competent young man. There was no possible
occasion to doubt his integrity, nor was there
ever, until his strange disappearance eight weeks
ago, and then, so far were the bank directors
from having any suspicious Of wrong on his part
that, having made cursory examination of his
accounts and finding everything correct, they so
announced publicly, to keep good the credit of
their bank and to allay the fears of bill-holders
Here it should be stated that the directors in
this examination acted in the utmost good faith.
There was no disposition ON their part to uphold
for little time an insolvent institution by de-
ceiving the public; but such was their conf
dence in Mr. Hubbell and SO nicely were the
frauds concealed, that they themselves were de-
celVed until within the present week, when,
through some unknown cause, suspicious of the
unsoundness of the bank gained ground rapidly.
and bill-holders, mostly farmers and produce
dealers from the eastern section of the county,
bills redeemed. The run thus made proved
more than the bank could stand and carry on its
business. This led to further ana more ex-
tended examination, with the results herein
named
Il learn from gentlemen of unouestioned re.
liability-men who have seen the books of the
bank, and who therefore speak advisedly-the
following facts THAT the defalcation as above
stated, amounts to about sos 900; that the EN-.
bezzlements have been mostly in small sums
and have been gong on for years; that they
have been concealed by every conceivable spe-
cies of CunniDgly devised false entries and foot
ings; that the assets of the bank are more than
sufficient for the redemption of its bills; that
Hubbell probably carried away with him about
twenty-five thousand dollars; and that the largest
single abstraction was in United States bonds
ordered in the name of the bank short time
before he lett, but never accounted for by him
after they were received,
"By the laws of Vermont every needed protec-
ton is afforded to bill-holders. Directors are
made individually responsible for the redemp-
ton of the bills, and are required to give bonds
accordingly. The directors of this bank are gen.
tlemen OF undlsputed integrity. Some of them
are well known to the mercantile profession of
YOUR city and New York. Their names are as
ioloWs:-Alired Keith, r. j. SAKE A. NJ. Brown
William S. Green, Homer F. Hubbel and Jas
par Rand. They are all men of means, and will
shrink from no responsibility which this new
and painful pfase OF the affairs of their bank
NAV impose upon them. Bill-holders may regard
themselves as perfectly sure to have their bills
redeemed, ana are cauIloned against selling
them AT a discount to spectators, Young Huo-
bells manner of life has in no res pect been such
as to awaken suspicions of anything wrong. He
has never been dissolute. His only popularity
has been his excessive and sometimes singular
provision of comforts for family and personal
use. As before stated in your columns, he is
every way respectably connected in life. He
has a wife and one child His father, Homer E.
Hubbell, has been many times, and deservedly,
honored by the sufirages of his town and
county,. and is in every respect pure and up
right man, t.,.'u&