Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1880-06-23

rough estimate places the forgeries at $3.50, 600
with every probability that the case will grow
worse as 1t develops. All Mr. Wates visible
property in that region has been attached, and
suits have been commenced by the stakeholder.
against the directors on the ground that they had
been culpably negligent and were therefore re-
sponsible.
This state OF things in the bank had been made
possible by the autocratic manner and the villain
Gus cunning OF S. NJ. Waite, assisted by the i'm.
picit confidence reposed in him When the di.
rectors made their examinations they were shown
this forged paper which bridged the gulf in the
assets Of the bank, and II any unwelcome ques
tons were asked by any director. he bulldozed
into silence by volley Of cursng and vitupera.
ton. The board of directors was practically a
cipher in the management OF the bank After
the retirement OF the president in January, 1879
Mr.. Waite was elected to that office, and on one
pretext or another had prevented the appointment
of cashier, In general maintaining that It was
not necessary, rs he could perform the duties OF
that office himself and save one salary lie had
two clerks whose duties were confined to strict
routine work. His reasons for desiring the non
appointment of cashier have become painfully
have commenced some fifteen years ago when he
helped brother out Of some irregularty in
Chicago. He s thought to have paid some $40, OOC
to $4,000 on this occasion, and many now think
that he used the funds OF the bank for this pur-
pose His forged use Of Mr.. Amidon's name
seems to have commenced In 1868. lie has fur
nshed the means for paying the legal expenses in
the great organ suit of Riley Burdett against the
Estey Organ Company, which has been pending
for several years. A verdict was rendered by the
United States district court In favor OF Burdett in
the spring. for 100000, but the Esteys appealed to
the United States supreme court and thus STAYED
of payment for several years. 1t is thought with
the proceeds Of this verdict he had hoped to
the deficit in his accounts The legal expenses in
this suit may have amounted to S75 900 Adding
to this the money supposed to have been fur
nshed to his brother in Chicago, there is still a
large sum to be accounted for which it is conjec-
tured he has lost In speculation in stocks.
The bank was chartered in 1852 and was con-
verted into the national system in 1862. Mr..
Waite was its first cashier and n b. Wiliston its
first president, Mr.. Williston retired from the
presidency in 1879 Withdrawing all his interest in
the bank at the importantly Of his son-in-law, the
Rev DIR. George l.. Walker, whose suspicious that
all was not right had been awakened. Mr.. Will
lston is an aged man, and the forecast Of his
son-in-law has saved him from trying ordeal,
The circulation OF the bank was $4,000. This is
secured by bonds deposited with the government.
The capital stock is $500 00O-a total loss. De-
posts were ga 600 and it is expected that enough
will be realized from the assets of the bank pay
depositors without. assessing the stockholders.
The loss will fall heavily on many stockholders,
whose entire available means were invested in
this bank.
Later developments give good grounds to fear a
large fraudulent issue of stock Large amounts
OF stock have been used in New York and other
places ~ collateral security for loans The stock
book is In a badly mixed condition and large
blocks Of stock are missing from it. Mr.. Waite
was fifty-hve years old lie has been largely in
terested In railroads, and was director in the
Vermont Valley and Connecticut River roads lie
was public-spirited citizen, had held all the
local offices, and had represented his town in the
legislature.
A reward OF 50 900 has been offered by the d-
rectors OF the bank for Waites arrest. Linus NJ
Price, who closed up the affairs OF the CONNER
cial National Bank of Saratoga and the Washing
ton County Bank OF Greenwich New York, ar
rived from Washington Monday night to take
change OF the crippled bank rs receiver. lie will
collect all assets and pay off the creditors three
months being allowed for proof Of claims, after
which they will he disallowed, Mr. Price expects
to conclude his labors within this period, after
which permanent receiver will be chosen, and
all matters pertaining to the bank be immed-
ately drawn to close, unless some new discover
les are made by the expert. Nothing has been
heard Of Waite's whereabouts, although detec.
tives profess ability to return him to Battleboro
II. C. Willard, local druggist one of the bank :
directors, filed petition in bankruptcy on Mon
day, His liabilities are set at $4,000 assets,
5000.