Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1883-03-02
KATTES TESTIMONY.
lStenographcally reported for THE PHRNIx by He
SEA mann. Jr.. of Wilmington.

Geographically reported for The PHOENIX by Ho-
SEA MASH, Jr., Of Wilmington
Col Haskins in direct examination of Mr. Waite:
Col. HasknH showed waite statement-book Of the
Windham County bank, and asked him whether the
statement OF July, 1864, was a true statement.
A. It was made up as understood the affairs to be
at that time.
q. As you understood the actual condition of the
bank to be at that time?
A. don't know the actual condition Of the bank OF
that time. 1t represents what understood the papers
aud books Of the bank showed its condition 70 be-
2. When did the Windham County bank cease to do
business as an Organization2
A. As an organization, in 1864; but for our own
convenience kept statement along for a time TO
straighten out its assets.
Q. Now turn to the weekly statement as made Feb
II, 1865, and you may state what that represents.
A. Statement OF the condition Of the First National
bank.
Q. The capital stock is represented as 100000.
A. don't think that is legally correct.
book made?
A. Along towards the close Of 1865.
Q. Was the book all written by you?
A. think 1t was.
OF the directors. State whether they ever saw 1t to
examine It?
A, Yes
Q. State whether at the time this statement was
made to which your attention was last called It e1-
hibted the true condition Of the First National Bank
Of Brattleboro as you then understood it to be.
A. 1t would be the condition Of the First National
bank OF Brateboro as its papers and assets received
from the Wndham County bank and its stock ledgers
represented II to be.
Q. Will you answer the question whether 1t was the
true condition as you understood IT.
e. stated distinctly that 1t was the actual condition
OF the bank as ts assets and paper, which had been
accumulated through the Windham County bank
showed 1t to be.
Q. state whether in poin. Of fact 1t does represent
the true condition Of the bank
A. don't think the bank was worth az much cash
as that paper says. don't think it could have been
converted into cash and made that amount.
Q. Who Of the directors knew that that statement
was not true exhibit OF the bank the 18th Of Feb
ruary, 1865 ?
A. i don't think any of the directors knew that /.
was not the true condition. They must have known
1t was not the cash valuation.
Q. Who Of the directors knew it did not represent
the cash valuation?
A. don't know whether every one Of the board did
but large majority Of the board had every piece
Of paper that came into the bank. The books will
SHOW who was present at each weekly meeting.
2. Can you state from your recollection who Of the
directors knew that that statement, made on the
l2th OF Feb 1883, was not a true representation OF
the cash value Of the bank?
A, don't undertake to state what the directors
Knew II would be an mpossibility to tell how much
man knew when he left.
Q. Then you can't say they actually knew that state
ment didn't represent the whole cash valuation Of the
bank?
A. don't suppose there was a man on the board 80
big fool as not to know that paper could not all be
collected.
Q. How often did the directors meet from the for
mation-until considerable ways into the national
bank?
A. The rule was once a week. After while the d.
rectors became very slack. They then made an ar
rangement TO meet once month, and they arranged
that those who didn't come should pay a hne. be-
eve that Sawyer, who WAS collector received quite
little till OF money. The president got in the habit OF
putting on his coat and going out just before the
meetings were held, and one director would d;op In
and hnd no one, and would go out, saying he would
return in few minutes; ana the result was one
would be present.
Q. And the whole care and responsibility Of that
bank was thrust upon your shoulders?
A won't say the management was thrust upon my
shoulders but whether or not they got discouraged
= And you spent large share of your attention
A. did when In Brattleboro 1t rather required
my attention.
The examination of Waite continued in regard to the
oNerdrait OF Mr.. EAson and other minor matters.
His Evidence for she Defence.
c. b. Eddy, counsel for Waite, asks:
O. lwant to call your attention to this record where
the agreement Is recorded signed by the old stock
holders OF the Windham County bank. State II you
can how that happened TO be drawn up and why that
clause happened to be in there in relation to
sessment being made on account Of the windhAm
County bank stock.
A. As remember now, 1 drew up in the first place
rough draft, after talking with the directors and
stockhoders Tor the purpose Of changing the Wind
nam County bank into q national. The project was
opposed at hrs because no bank in this vicinity had
done IT, They finally conceded to my views, and
drew the hrst draft of the agreement Had consulta-
ohH WIN hlrkand, who was one Of the directors aud
lawyer altered it under his suggestion and it
was submitted to other stockholders and directors.
one morning Lafayette Clark came into bank. He and
his father represented good deal of stock and we
thought good deal Of his judgment--so much that
tried to get him as one OF the drectors lint he de-
clined. Willison and Clark took this paper and con-
suited some time over it. What passed betW cen them
don't know, but Williston brought it to me and said
MI Waite, Mr. Clark would like to have this altered
said You understand It is not made up; / don't
care what you put into it." Mr. Clark came along
Williston said, "Tell Mr. Waite what you want" He
says, 'Supposing the assets OF the WIndham County
bank don't pay its liabilities and come out only $780,
900 Do you think it will come out SO ?" Said /:
"Mr: Clark, we have good deal of bad paper predi-
cateu upon western names. know q took them
because we could get ten per cent" Wiliston said
suppose you put in that the stockholders Of the
Windham County bank shall not be assessed to pay
anybody beyond the amount they have got in here"
said, Very well, and wrote the clause in question
and submitted the same to Clark and he said ''Thats
II etacty, II you viii put that in will sign; II not
had rather close up the bank wen, close it up"
sad II don't care what you do with it," My I'M
preston 49, we held some 100000 Of paper that
called doubtful called about IS per cent Of the cap
ital at that time not worth cent We held consider
able more paper that had accrued In our Western
which had formerly been paid promptly:
but It fell on our hands, and struggling along
with fair assurance that it would be paid.
=. HOW was it in fact about quite portion that you
called good which turned out bad?
A: About 100000 OF that paper went to the dogs.
waite here explained in regard to the Offering book
IN which an account Of all the notes discounted thro
the week was entered. 1t submitted to the drec-
Iors at their meetings. good deal Of the paper
aken without any one passing upon 1t Waite and
Willston, and great deal was taken by Waite him
self without saying word to anyone.
waite continued:
l had taken the paper (meaning the bank OF the
Western Fire and Marine insurance company OF Chi
sago, OF which my brother, W. H. Waite WAS secreta-
cashier. They made bad failure. We car
ried at one time immensely OF this Western pAper-so
much that got little disturbed talked with VIII
hhtoh ne SAID II have great faith in your brother"
q State whether Mr.. Wiiston knew OF all these
Western loans.
A. 1t is not possible for me to swear that any one
knew Of all Of them. / made the loans but with the
general understanding that they did know Williston
iaid to me, II would not loan money here II 1 could
VOID 49, as you can get ten per cent instead Of six out
naH Wuaa uulna he hNUaa
ines came-in 1860. Our paper was well met out
mere. IL was met In such way that it almost
impossible TO have Withdrawn the funds home without
great saerihce, on account Of New York exchange,
,tc' The last loans were taken in 1854. supposed
men that everything would come out all right. / cal
ulated this Western Fire and Marine insurance COM
amy was all right. got a notice sometime in the
all OF 1854 that they had gone down. struggled for
year or two TO the best OF my ability, and went out
nee or twice to secure ourselves; but got
lollar Of 1t.
@ State whether, besides these Western loans, there
A. There was lot OF paper which went to make up
ur assets OF local loans Ny impression is that that
to $40 900 think 1t stood In the assets OF the
ank for about $4,000 or $4,000. Nothing was ever
eal1ed upon all this paper.
Waite now testified In relation to a transaction in
he oil regions Of Pennsylvania where he sent Sawyer
his agent and where he himself stopped on his way
ack from Chicago and, together with mAn named |
lhhAmon, purchased q section Of land, he In pay
lent Tor his part drawing draft on New York on ac-
cunt Of the First National bank Of Brattleboro for
eAaAlho nc phlu tue DARK Rlen ne got nome, |
Though the books do not indicate 1t and 1t is contain
in the specifications OF the plaintiff. This transAc-
on was 20 help Sawyer Waite claims and he expect
4 10 realize no beneht from IT,
In answer to further questions relating to the West
IN Fire and Marine insurance company Waite stated
lat the company was organized as an insurance com-
any to dodge some technical point OF law and that
icy really did banking business.
Y: Have you any recollection of the amount Of pa
or heiu py thAt insurance company at the time Il !
ent down.
A. II was pretty nearly SOS 900.
- uhor. L.. A-t.. - 49,
sldf ~ F-F''
A. guess generally against the insurance company.
y Notes by your brother as secretary Of that COM
A. Yes aud think notes Of his individually.
g. Did that company fail on account OF defaeatious
your brother
A.. Not eIAety. The claim against him was finally
Ted at f125, 600. '
e. Did you furnish any funds to settle those claims
ainst your brother2
A. Well, can't exactly sAyI did
y Did the First National bank Of BrAttleboro3