The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-05-24

to say not word to anybody, but keep
still and watch things and keep the presi-
dent informed.
When the account came from Boston in
March. for the preceding month, noticed
credit on February 10 of 5000, for which,
on looking on the banks book, found no
corresponding charge. l found that about
the nineteenth of January, 1877, Mr..
Brown being informed by his brokers in
New York that more margin was required,
and being short of funds, took blank not
commonly used by the bank in its regular
business, and which bore no printed num-
Der, and filled out the same in favor OF one
of the partners of the firm which was spec
ulating for him to the amount of 5000 He
did not enter it in any manner on the books
of the bank, nor pay for the same in cash.
He signed his name as cashier and duly
forwarded 1t. In the middle of February,
| 1877, he received a check from the same
parties and forwarded this to Boston for
the banks credit, hut making no entries on
the books of the bank, except the one re-
| ferred to. Immediately on learning this l
notified the president, and was told, as be-
| fore, to keep still and watch things.
Very soon after this the cashier and an
| intimate friend went to Perkinsville, the
residence of the president, and the cashier
by telling some of his property, and by the
aid of the president indirectly, was enabled
| to raise funds sufficient to redeem the
| bonds. He went to New York, returned
with the bonds, and restored them to their
| proper packages.
| The cashier for several years has loaned
money west to various parties. The COM
mission-twenty-five dollars per thousand
he used mainly for his own use and bene-
| fit; informed the president of this, and
was given to understand that this was one
of the perquisites allowed him, and sup
| posed it was 30 understood by the other di-
rectors, but within few weeks have learn
ed that the other directors knew nothing
| of il. This has amounted to over a hum
bred dollars year, and the last commission
taken by him that | was aware of was
| April 80, 1877, as notary acting for the
bank. 1t was the cashiers duty to look af-
ter maturing loans and protest all Endorsed
notes not paid when due. He has always
done this TO far as / know, in every in
stance, until May d. 1877, when note of
$500, Endorsed by him, came due. This
note was put in with the past due notes,
without protest or waving protest, and
thereby the bank loses the benefit of the
Endorsement. The indorser was paid the
difference between len per cent. and seven
and three-tenths per cent. for 80 indorsing.
| At the time it became known about his
returning the bonds MIR. Brown stopped
payment on his personal debts, which, &C.
cording to his statement to me, amount to
over $50 000 He used his position as
cashier TO borrow money of parties at q
small rate of interest, giving his private
note for the same, some of which money
have reason 10 believe would have come
into the bank on deposit. Since that time
he has made no effort to obtain just set
Element with his creditors, but has secured
his friends and relatives.
Up TO the 10th of May, 1877, the presi-
dent, Samuel Afford, jr.. and his sons
names, as principals or indorsers, were on
notes owned by the bank, which, together
with funds in his sons possession belonging
to the bank, in all amount to over sixty
thousand dollars. Besides the twenty-three
thousand dollars of the notes of the firm in
Boston, of which the son is a member, thit
son has had from last December up to May
Is large amount of money in his posses
, sion belonging to the bank. That on May
Is he had over fourteen thousand dollars
which is siulplg rh2rped in account to hin
sending him money that he was to purchas,
notes with it, but he has only done so in ,
|. few instances. This lays on call, and il
drawing five per cent. interest.
Both the president and cashier have dur
ing this time talked to the Oliver director.
that times we're hard, and so many firm.
falling, that they were afraid to loar
money. | heard the cashier say, wher
asked by certain person what that charge
on the ledger to his son meant 'Oh, that
ia only an indirect loan to this firms name >
On the 18th day of May, 1877, the stock
holders held meeting at the banking
| / una
questions about the reports that were cir
culating l answered such questions as
were asked truthfully, bat did not tell the
whole truth, the whole g DRY. The presi
dent and cashier at the close of the meeting
Informed me had no business to answer
the questions. / was then dismissed forth
with and was given to understand that
three OF the directors, including the presi-
dent, were in favor of my dismissal, and
two directors were opposed. l have been
previously threatened with Imprisonment
and loss of situation if l divulged by vari-
Gus parties.
Our state bank examiner coming here in
the midst Of the reports that were afloat at
the time, stopped in the bank not more
than one hour, coming on the afternoon
stage one way and leaving south the came
afternoon. He did not make a thorough
examination, and took mainly the cashiers
statements,
(Signed) FRANK H. Brown.
State of Vermont, Windsor county,
| Springfield, May 21, 1877.
Frank III. Brown above named personally
appeared and was sworn as to the truth of
the foregoing statement by him made and
subscribed to before me,
| (SeaD HENRY CLossoN,
| Notary Public.
| AFFIDAVIT OF SAMUEL ROLLINS.
| With Mr.. Browns affidavit called upon
MIR. Samuel Rollins, whose bond was taken
by Cashier Brown flom the package. The
| following affidavit was made by Mr.. Rol-
| Inns this evening:
SPRINGFIELD, Vt, May 90, 1877.
l, Samuel Rollins, do certify that have
seen the statement made by Frank ii.
Brown, and that the came is true so far as
1t relates to myself in regard to the missing
bond left by me as collateral for a loan
from the bank to June. That soon after
the cashiers return from the centennial l
went into the banking room and said to the
cashier that was in while he was away to
obtain loan, and the teller could find only
the one hundred dollar bond in my pack
age, and asked him what it meant Hesi-
tating he replied that the five-twenty bonds
were to be called soon, and thinking to
save express charges he carried this bond
to New York city and deposited the same
in the First national bank there, subject to
his order with other bonds. / repeated the
question, "With other bonds?" He re-
piled, Eyes, with other bonds" / then re-
quested him to have 1t returned. Within
few days / met him on the street and he