Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1881-06-17


be an offence. And therefore, II the trans
action has taken place, there is no further
defence TO DO offered But in common JUS
tice TO Mr.. Waite, who has been made the
subject Of endless charge and report and
SANDER in the public prints and otherwise in
respect to all this matter, something should
be said outside Of the question Of his techni-
cal guilt of the offence charged in these
counts. II has been widely circulated, and
undoubtedly widely believed, that he has
embezzled the funds Of this bank or convert
ed them TO his own use, prohted out Of the
business at the expense Of the stockholders
ruined the bank, and occasioned very great
loss to them. That Is not true and this oc-
casion ought not to pass without its being
emphatically and publicly declared that IL is
not true, and that the plea Of guilty OF these
offences that are technically charged in this
indictment comprehends nothing more.
This bank was organized in 1864 upon a
nominal capital OF $500, 900. That capital
consisted of $3.50, 900 in cash and what was
called $3.50, 200 more in the assets Of the old
Windham County bank and the stockhold-
ers entered into an accommodating been
principally the stockholders OF the former
bank-that they should not be called upon
TO make up the $50, 600 capital any further
than their interest in the stock of the old
bank went. Within a year, out of the assets
of the old Windham County bank-which, as
/ have said, were called $3.50, 00O-over
$780, 600 proved loss, reducing the actual
capital OF that bank at it money value, at
the date Of the first dividend declared, to
about the sum Of $l93, 500 and from that
date, 1866, that was the actual capital of the
bank. Upon that actual capital the bank
went on declaring dividends semi-annually,
first at tho rate of per cent per annum,
then 7, and finally G dividends upon a noun
inal capital of $500, 600, to DO earned upon a
real capital of less than $1,000 Now an
arithmetcal statement will show that every
stockholder in that bank received by the
way of these dividends, before the bank
failed in 1880, not only as dividends at the
rate declared, s, and 6 per cent per an
mum upon tho actual capital, but enough
more in the additional dividends to pay him
back his entire capital and a good deal more.
So that, starting with the actual capital of
the bank, and opening an account between
each stakeholder and the bank from that
time down TO its failure, it will be found that
every one of them has received back his
share in the actual capital That is to say,
he received back what bis stock was actually
worth TO start with, with dividends upon it
at the rate / have mentioned, and consid.
cradle amount more. The amount overpaid
to the stockholders in the gross believe to
be over 100000.
Now, where did that money come from
1t is plain enough that it never could have
been earned in legitimate banking business
in that period, on such a capital. No bank
in this country has declared such dividend
as that. No business man supposes that any
bank could do it. 1t was furnished out OF
the property, or by the extraordinary exer-
tons, of Mr.. Waite, who undertook, most
unwisely and unfortunately for himself, the
| desperate task-the hopeless task, as il turn
ed out of carrying that bank through, and
bringing its stock out at its nominal instead
of its real value During that period of
years, with the considerable private property
that he had to start with, and the extnordin-
airy business ability that we all know he pos
sesses, he carried that bank along and brought
out the financial result that have stated.
And Of the truth of that statement 1 enter
| tain no doubt at all. He toOud have brought
| the bank out but for series Of misfortunes
beyond his control. They engaged early af-
ter their organization in the manufacturing
business at Chicago. 1t was not known to
| the world that the bank was Interested in it,
of course. They were making money in this
| business, money enough to have replaced
their losses, looking for their profit in the
neighborhood where they made the loss but
for the Chicago fire, which struck that whole
business away and all their interest in it.
| They then lost thirty thousand dollars in the
| robbery Of the bank some years afterwards,
| which has in various forms engaged the at
tention Of the court and were likewise made
liable in a number of thousand dollars to
special depostors whose property was also
taken at that time.
But, without going into particulars which
would be interesting and important if that
were the issue which the court were now en-
gagged in trying, it is enough for my purpose
to say, that, out Of all this ruin, the respon-
dent, so far from realizing or trying to realize
a dollar, has actually, by the means have
stated, paid to the stockholders, in the effort
TO carry the bank through, this very large
sum of money.
The history of these cases. as your honor
is aware, usually is that the money of the bank
has been dissipated by its officers in extrava-
giant or profigate living, or else it has been
exhausted in speculations that have turned
out unfortunately Nothing of that sort is
true in this case The plain and simple life
of this respondent and his family is known TO
the community in which he lives and il new
er has been charged that he has invested the
money of the bank in a speculation of any
description. Certainly he has brought moth
ing away, because he stands here to-day utter
ly destitute and poor and the true financial
history of that concern, in its substance
though not in details is what l have stated.
| hhAi ASN ho hdu buNhG anu VIZ
lations of the banking act, of which he stands
charged to-day, were committed by him, not
with the design of defrRuding anybody or
making any profit out of them, but in the
desperate effort to save the stockholders, and
save the bank from the ruin that came upon
it. As he has remarked, the consequences of
the failure fall upon him alone.
And therefore repeat, that, if ii we're nee
essary to sustain this indictment that it should
be shown that the respondent had defrauded
anybody, had tried to defraud anybody or
had in any way profted by the criminal act,
the prosecution would fail. And while your
Honor may regard this as irrelevant to the
question now before the court in one sense,
in another sense, it seems TO me, it is not ir-
relevant. 1t is important, it seems to me, In
passing sentence in this case, that your Honor
should be made aware Of the extent of the
guilt of the respondent-kow he became in
volved in the transaction, what were his mo-
tives, and what was the result. And il is but
just to him that some statement should be
made, inasmuch as, frankly admitting the
truth, and saving the government the expense
and trouble of trial, he has waived the OPP
portunity that would be afforded by a jury
trial of having the true merits of the case
exposed. 1t is only due TO him that the con-
tradiction-and the emphatic contradiction
should be given TO the charges and reports
that have been 30 widely made and circulated
against him. He is guilty of what he has
pleaded guilty to this morning, in its exact
and technical sense and he is guilty of moth
ing else.
Now, a single word with regard TO this SEN
tence; perhaps without necessity. AS your
Honor is aware, this offence is made misde-
meanor by the statute. It is not punishable by
imprisonment with hard labor, but simply by
imprisonment in such jail in the state as your
Honor may please to designate for that pur-
pose. The minimum punishment, as 1 under
stand the statute; for each of these offences,
is five years. OF course it is not in the judi
cial power of the court to reduce the sentence
below that period if it were, we should ap-
, peal to your Honor's discretion in that partic-