The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1880-06-23
THE BURsTED BANK.
Full Particulars of the Wrong Doings of
President Waite, of the First National
Bank of BrattIeboro-His Forgeries Will
Amount to Half "A Million Dollars.


President Waite, of the First National
Bank of BrattIeboro-His Forgeries Will
Amount to Half "A Million Dollars.
BRATTLEBoRo. W., June I6- 6-The rumors on
which yesterdays dispatches were based con-
cerning the insolvency of the First National
although thorough investigation had not
begun at 2 O'Clock. Enough is already known
to warrant the statement tHat the loss will
reach upward OF a quarter million OF dollars,
through the fOrgeries of the President, S. NJ.
Waite, who has undoubtedly left the country
and. as the Directors believe, taken large
mined Dy searching Investigation, which
will he begun on the arrival OF Bank Exam.
ioer hendee today. and who will act as Re-
cludes Connecticut River r Il for about $50, 900;
Frederick Billings, $4,000; Trevor w. Park,
taunton Locomotive Works, about $1,000
c. Anndon, OF Hursdale, $4,000; Vermily &
Co, OF New York, S75,0y0, aud others, whose
ton proceeds. How much of this paper has
been used by Waite as collateral upon which
he may have raised large q cunts for tndi
viduaI use, the Directors are unable to say
but rumors that the springfield and Boston
banks have been victimiZed in this way are
current The bank was chartered in 1852 un
der tue name of the Wtndnam County Bank
and comm eRced business a year later with N
b. Williston, President, and Silas NJ. Waite,
the present defaulter, as Cashier. The most
prominent men in the couutry were made
Directors, and IL was run under the State
charter for about ten years. 1t was the first
bank in the County TO change 10 q National
over other Banks in the vicinity
fora for time, being for several years Govern m
confidence of the public unriils7l. when 1t was
said TO have been robbed of a large amount of
Government bonds, belonging mos tly to
special depositOrs. Suspicion was aroused
over the manner of the robbery. which was In
midday since which time confidence hos been
more or less shaky, until Its stock was finding
forced sale at s., slthoush numerous state
ments made IL patent that stock should bring
more than par. At a special Investigation on
April %, the loans and discounts were pl sced
at S36l,ll9. The capital stock was $50 900, with
surplus of $4,000, undivided profits, G,lll,
that OF the latter the Vermont Saw
ings Bank had between $4,000 and
$4,000. This statement was sent TO
Directors, suspicious were temporarily salts
fed. Since January, 1878. Waite has been
President of the bank. Efforts have been
has insisted that none was needed, and the
Directors allowed him to have his own way
For year after year he has practically run the
Tor six years, the Directors have refused TO
qualify, and the result has been that yearly
changes have taken place, until Waite has
foup a set of men, some OF whom are widely
known and esteemed for their hOneS'y and
business capacity, had not the time or dispo-
Sition to attend to the affdlrs OF the bank. The
corruption is believed to date back more than
ten years, when 1t is alleged q brother of Pres
ident Waite got into financial irregularities
in Chicago bank Insurance company,
which, II is said, were Strengthened out by the
payment of $4,000, The fuIios coming from the
Brattleboro Bank. Wai'es mode Of procedure
was, 1t seems, to place these fraudulent notes
before his directors (all except one bearing the
name of one of his Directors who at times was
presently. and risk his claim to the solvency OF
the bank on these. The Directors, not being
particularly cOnverSant 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 Hendee, while making his usual
the checks fund in New York. This led TO in.
quiries, and one week ago Hendee returned
t. this place, and 1t issupposed notified Waite
of his revelations. Waite was heard TO ask
Hendee If he could be allowed one week
to make up the deficit, and It
is sugPosed this IVA was ,gg7'o1tssa g7r'antsed,
morning arose at 8 o'clock. bid his wife go d.
bye, and in answer to her query replied that
he was going TO New York ON bank business.
The next tldlngs were from Portland, where
he wrote, '.Shall quit the county," A tele-
gram from detectives last night says: "ThtnE
we are on the right track; probably SELL ie-
struction." Certificates OF stock have been
issued for which as yet there has been no
record found, and a double issue win undoubt-
tion are ba1Iy gaTbled. Toe present Board of
Directors consists of ). NJ. Waite. j.
M. Tyler tat present a member of Con-
Nash, w. F. Richardson, II. o. HIlIard, of
Brattleboro; Warren Parker. of Putney; AZ dbl
son Sc CSl %hi,shead Of Vfrnon W. Riehnrdson
Two of the members claim 10 have never
qualified.
suils have been brought against these
Directors by the stockholders, who claim
derelectiOn of duty. Several stockholders are
knowa 10 have lost their all by this neglect,
and the feeling against the Directors is very
strong. 1t is believed some OF the Directors
are also financially ruined and tnat another
County bank suffers heavy loss.