Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-05-17


THE ARREST OF THE EX-PRRsIDENT OF THE
MERCHANTS NATIONAL BANK OF WHITE
| HALL-LARGE AMOUNTS INyoLyED-RE-
| VARIABLE LITIGAToN-HlsrORY OF THE
CASE.
In March, 1875, the old bank OF White
hall was recognized under the United
States banking law, and formed into ma
tional bank under the name of the Mer-
chants national bank of Whitehall, with a
capital of $50, 900. E. W. Hall was a
director from the organization, subsequent
| ly its vice president. and in January, 1877,
became its president. and continued presi-
dent for period of about six months. At
the time of his election, 1t is alleged, he had
become very largely indebted to the bank
for Legitimate discounts, and, as is claim
ed, made and directed by himself upon
paper very largely made by irresponsible
Observation-Disclosures, brothers-in-law and
in-law-and in many instances made
to cover in form large Overdrafts made by
him, it is claimed nlawfully. and all of
which paper, it is charged, was when made
utterly worthless, and still remains SO, many
of the parties going into bankruptcy short
ly after. where they still remain. Although
this condition of affairs was at the time OF
his election attracting the attention and
| exciting the distrust OF the stockholders,
| they were to some degree QUOTED by Halls
procuring from his wife, and leaving with
| the cashier, as pretended security, formal
assignment of $50, 900 of the Crown Point
iron company stock. This step had the
effect to make things easy for the time
being. and his election az president was
thereupon secured. But his transactions
continued to be of 50 doubtful character
as to excite distrust and to demand his re-
mOval, and he was Ousted IN about six
months after his election. An examination
| Of his account revealed the astonishing fact
that he was then indebted to the bank in
| about 100000, made up largely by over
drafts made by him, and for which the
bank held only worthless, or compare
lively worthless. paper. made almost
wholly without any consideration By ire
sponsible relatives and dependents of Hall.
and which he, with the passive consent of
the cashier under his influence. had in form
| entered as discounts, and to cover up from
time to time the overdratts made by hin,
amounting. it is claimed, by the bank, to
an embt zzlement by the president of two
thirds of the entire capital OF the bank. The
bank. however, still remains able to pay its
obligations and continues business. This
Indebtedness remains to-day, aggregating
over $1,000 Hall and many if not all the
makers OF the fictitious paper going into
bankruptcy. The bank, on the public col
lapse of its president, naturally turned to
| the supposed security in the assignment of
ha ill., cam haf ntap
toned, and brought suit to fOreclose upon
it. They were met and confronted at once
with the sworn answer of the wife, to the
effect that her husband fraudulently OBJ
tanned her signature of assignment and
| without consideration, and with the express
understanding that the paper was only to
be used for the purpose Of securing the cleo
ton of Hail, her husband, II. president. and
was, in fact, when left at the bank, a fraud
on the bank and its stock holders. This suit
| is still pending. In October last Hall filed
his voluntary petition in bankruptcy before
Register King. His schedules and exami-
nation revealing an Indebtedness of some
$500, 900. nearly or the whole amount of
which purports to be for money borrowed
| from various persons scattered over Wash
ington county and elsewhere, and had
from the bank and within very short time.
lie does not pretend to have sustained any
| losses of any considerable amount while his
inventory OF sale, assets and property which
he generously proposed to devote to the
comfort OF the bank. and the numerous re-
naming creditors, is stated by him to be
one Jersey bull, $50, one old lumber wagon,
$40, one dump cart, SIS, nominal inter
est in two old billiard tables, bar and fix
lures in Halls hotel, and which he solemnly
prays may. alter paying the lawyers and law
H. 49, l..
the amount of $500. 000-and not excepting
the bank. Shortly before going into bank
ruptcy, Hall, as he testifies. drew himself at
his " barn or carriage house" mo rtgages
from himself to his wife for some $40 800 on
the Hall opera house, Anderson hall, etc.,
and covering all the real estate be claimed
to own, as security for money alleged to
have been had from his wife. His wife,
connected with one of the wealthiest fam
lilies on Lake Champlain, a lady of culture.
has been on the ragged edge of the wit
ness stand for some weeks. and subjected to
a sharp and rigorous examination in regard
to these mortgages as well as other matters.
The mortgages were all produced by her,
and during her examination respecting them
the court adjourned for the day, and she,
her husband and counsel left for home,
taking with them the mortgages.
On their return, next court day, it was
announced that all of the mortgages had
been stolen. 1t would appear from her ex-
animation, and the other parties, that Hall
LETT home the day before the documents
were stolen, leaving them at home. and that
a certain millner of Whitehall. to whom
Hall conveyed house and lot shortly be-
fore his difficulties openly eliminated.
spent the night at his house, and accompan-
led Halls wife to court the next day; that
she took from the house and carried to and
into The cars, and kept in her custody until
the train was nearing Troy. Mrs. Halls
satchel in which the missing mortgages
were, and then she handed the sstchel to
Mrs. Hall that the ladies took and rode in
separate seats, nearly or quite the whole
distance; that nothing else was taken
from the bag, and yet Hall, his wife and the
milliner, under the most rigid examination,
deny all knowledge of the whereabouts OF
the missing papers, and of any agency in
their disappearance. The mortgages had
been recorded, but it is said the papers on
their face leave evidence of fraud and fab
rication, while the records Of course leave
clean countenances. falls examination Is
set for the eth inst, at Whitehall. Mean
time it is alleged that he continues to roll
in his carriage and reside in a $4,000 stone
castle erected by him, and claimed, We un-
derstand, by his wife.-IrOy Times.