Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1880-06-25

iaOUEr OF THE DEFALylrIoS SAID To l
So1o DDD

! ANU ~ W lltt bl.t AL Nil''N oAID 10 lie
S259,01
Further particulars Of the great dcfalca-
ton of Col. s VI. Wailc of the First National
| Bank Of ETattleboro are rs follows: The
bank was chartered in 1852, by the name of
the Windlam County Bank, and commenced
business a year later, with n. B. Willston
/ president, and Silas VI. Waite, the present
defaultcr, cashier. the latter becoming presi-
dent Jan /, 1873. 1t had continued to re-
tain public confidence until 1872, when it was
said 10 have been robbed of a large amount
Of Government bonds, belonging mostly to
special depositors. Suspicion was aroused
over the manner Of the robbery, which was
| in midday, since which time confidence has
been more or less shaken, until the stock was
finding forced sale al s., although numer-
Gus statements made it ratont that the stock
should bring more than par. At a special
investigation, April 90. the loans and dis
counts were placed at S36l. .1l9; capital
stock, S300,000; surplus, 500 undi-
vidcd profits, S1,1l1; and individual de-
posils, sol ,112. 1t appears that of the latter
!
$50, 600 and $4,000 This statement was
sent TO the stockholders, and, being attested
by the directors, what suspicious there We're
were temporarily satisfied. Efforts have
been made to have cashier appointed, but
Mr. Waite has insisted TIA: none was need
cd. and thC directors haze allowed him TO
have his own way rather, IS they affirm, than
have a row. For year after year he has prac-
ticallv run the institution without the dicta-
tion Of any one. The defalCatiOn is Gclievcd
to date back fof more than 10 years, when
Il brother of President Waite got into finan-
cial irregularities in a Chicago bank or insur-
ancc company which. it is said, were straight
cncd ont by the payment OF so, 900, the
funds coming from the Brattleboro Bank.
Naitc's modc Of procedure was, it seems, to
place these fraudulent notes before his direct
ors Gall except one bearing the name Of one Of
the directors. and rest his claim to the solv-
! cncy nf the lank on these. The directors not
/ being particularly convcrSlnt with banking,
accepted them as proof that all was right
and not until two or three weeks since
did they attempt TO acqUaint themselves
with the worth Of these securities. About
this time Examiner Hcndcr, while miking
his usual tour of Inspection, discovered II
DISCREPANCY in the check fund in New
York. This led to inquiries, and one week
ago ficntcc returned TO this place, and,
it is supposed. notified Waite Of his reveal
iious Waite was heard to ask Mr.
| Ilcndac if hr could h. allowed one
week to make NJ the deficit, and it Is sup
posed that this was granted, as Waite on the
| following morning arose at :j O'Clock, bid his
wife GOOD bye went to the room of his chill
dren To take last look at them, and in an
swcr to the anxious query Of his wife, re-
| piled that he was going to New York on
| bank business. He must have taken the
O'Clock train, rs he WIS next heard from at
Boston, where he wrote Charles Waite, his
nephew, at the ETcvoar; llousc, New \ lork,
Of his wrongs, and urged that his brother
for whom he had probably used the banks
! funds occasionally, send money to his fam
| ily. Upon the receipt Of this Charles W al'e
put the detectives upOl his track. at the
same time telegraphing his uncle To come 10
| New York, where he would make
M the deficiency. The next tidings We're
from Portland. where he wrote: ''Shall quit
/ the country" \ telegram from the detectives
last night, says; Think We are on the right
track Probably self-dcstruciion." Ccriii-
/ Gates of stncl, have been issued. for which as
vet there has been no record found and a
double Issue will undoubtedly he uncarihed.
| The books of the institution are badly gdrb-
! led. which Will require many days 10 I'M
ravcl. if, indeed, such a thing is possible.
| The present board of directors consists Of
y. VI. Waite. J. VI. Tyler. at present menu
/ her Of Congress from this district, +. y.
Nash. ". +. Richardson. H. c. Willard
Of Brattleboro. Warren Parker of Pat
ney. Addison Whitehead of Vernon. ". Il.
Richardson of Chester and E. j. .Amlon of
l!ins,ialc. Two Of the number claim 20 have
never qualified. Suits have been brought
III, I. M
who claim a dCr.'liciion Of duty. Several
stockholders are known TO have lost their
all by this collapse, and the feeling against
the directors is very strong. 1t is believed
that some of the directors atc also
| financially ruined nhl that another
county bank suffers by the loss
Not more than S10.O pr Sl2,000 in funds
were left in the bank, which leads 20 the hr-
lief that Waite has taken large sum. 1t is
difficult to get at the exact loss al present,
hut it is varioaSiy estimated At from
$3.50. 900 TO S.j05.GG). ~ ali events it
is the largest dclllcatinu AMI loss ever
known in this section \ suit was brought
against Waite, Tuesday. i'll behalf OF the
bank, claiming @23a,Ua0 AMI attaching
every visible scra? # property that eau
he found. This silt was followed by
oilers in !chaf of the stockholders ard
agains: j. VI. Tyler Henry {. Willard, /. y
Nash AMI W. +. Richardson alleging that
they are responsible in measure for the de
falcaiion: that il was due to their irattcn-
ton to duty that Waite was able to effect
his crimes that they had regularly certified
to statements Of the banks condition of
whose correctness they knew nothing and
have thus deceived and Influenced stock
holders To retain their stock in the bank.
| Some ten vta,s ago Riley Burdett of Erie,
| Pa. hogan suil against j. Esicy x Co, organ
manufacturers OF this place. for infringement
| of patent. This suit was litigatcd from
/ year TO year, until Waite, by an arrangement
with Mr.. Burdcti, assumed the financial
| obligations since which time it IS he.irved he
has used the bank money to pay attorneys
| fees. which have leen extremely large. Last
| S2rin. the disific; c..'''i rendered a vtr'llct
| FIR plaintiff for : I'D. Geo, which sum Waite
may have expected To cover the leaks in the
! bank. Int the Estry+ appealed to the nltcd
States supreme Court, aud, whatever aniici-
patton Waite n.aV have ca,CrtIinrd, the final
settlement Wa dyit;ie! IT, his great dclri-
mcnt.
Mr.. IIcndcc, tn Na,i1nl bank examiner,
is now in possession ui the Fms, National
| Bank. and is mallirg a thorough aad care
full examination, which will rvcal, at the
\ the earliest possible day, tii" exact condition
OF the banks affairs.
Col Waite as he was ilniiiarly known,
was born in Ncwllnr in lNl5, and in pre-
railroad times was Er1cly Interested in the
express and staging b;isur-s tie rcpr, Scnt-
ed the town in 1856; AMI 'Gi an! was a mem
her OF GOV. liolnrcoks stall ,iunug the war.
lie ha,i held nparlv all of the local Offices of
trust in the community. ani al ih" iliHc OF
his fall was director in both the tunnccll-
cut Valley anl Vermont Valley railroads,