The Portland daily press., 1880-06-17
THE BRATTLEBORO BANK.
President Waite's Defalcation
Over $25O,OOO.
BOSTON AND SPRINGFIELD BANKS
VICTIMIzED.
Populations Extending Over Several
Years.

BRATTLEBoRO, June 16.-The rumors upon
which the dispatches were based concerning
the insolvency of the First National Bank of
Brattleboro, were more than realized this
morning, although thorough investigation
had not begun. Enough is already known to
warrant the etatement that the loss will reach
upward of a quarter of million the forgeries
OF the president, S. M. Waite, who has un-
doubleday left the country as the directors be-
lieve and taken large sum of money with him,
how much can only be determined by a long
and searching investigation, which will be be-
gun on the arrival of Bank Examiner Hem
dee, who will also act as receiver for the pres
ent.
The forged paper includes Taunton Locomo-
tive Works about $12, 900 and other amounts
varying from $4,000 to $4,000 on other par
ties and corporations.
1t is rumored that the Springfield and Bos-
ton banks have been victimized.
The bank was chartered in 1852 under the
name of Windham County Bank, with Waite
as cashier. 1t was the first bank in the county
to change to a National Bank. In 1879 public
confidence in the bank was somewhat shaken
by suspicious robbery of Government bonds.
Waite has been president of the bank since
1878. Efforts have been made to have CASH
Ter appointed, but Waite insisted that none
was needed, and the directors allowed him to
have his own way rather, as they affirm, than
have row.
For year after year he has practically run
the institution without the dictation of any
one. Waite had board of directors who
thought him honest and highly esteemed him,
and they had neither time nor disposition to
unearth the corruption which it is believed
extended over period of ten years.
The Bank Examiner rscently notified Waite
of deficiency in his check fund and Waite
asked for a week to make up the deficit. On
the following morning he left his house at 3
O'Clock and has not been seen since. He wrote
from Portland saying, "Shall quit the coun-
try" Detectives think he committed suicide.
His books are badly garbled.
A number of stockholders are ruined by the
collapse, and the feeling against the directors
is very strong and several suits have been filed
against them. Not more than $12, 900 is left in
the bank and the defalcation is variously es-
tlmated at from quarter to half million.
Waites brother was involved some time ago
crooked financial transactions in Chicago
which were settled by S. M. Waite paying $70,-
600, which probably came from the bank fund.
He leaves wife and five children.
The method by which the irregularity was
discovered Mr.. Hendee declined to make pub
lie. The details may be made known at no
distant day. Col. Waite, as he wos Familiarity
called, was born in Newfane in 1925, and be-
fore the Vermont and Massachusetts railroad
was built to this town was largely interested
in the express and staging business. He rep
resented the town in the legislature in 1868
staff during the war, and in fact was the local
managing power for the Governor. He had
held nearly all the local offices of trust in the
community and at the time of his fall was a
director in both the Connecticut Valley and
Vermont Valley railroads. He was member
of the school board. His public spirit had
won him many warm friends.