Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1883-09-28

THE ST. Adams BANK NOTWITHSTANDING
BBAINERD AND FIVE OF HIS BROTHER DmEC.
TORS IN THE TRUST COMPANY INDICTED by
THE GRAND JURY.
The grand jury for Franklin county came
into court last Friday and reported they had
found % true bills against the officers and d.
rectors of the st. Adams Trust company for
violations of the provisions of the charter.
The grand jury found "a indictments against
President Lawrence Brainerd for msappro-
priating, diyerting and misspplying trust
funds. Nineteen of these indictments are
founded on loans made either to himself or to
the Norwood lumber company, of which he
is president aggregating in amount S2I, 600.
One is for loaning S2j, 600 to Bradley Barlow
on $50 shares of Vermont national bank stock
as collateral, without the certificates of stock
being duly transferred, aud four are for loan
ing various sums of from 5000 to $500 to
other directors. A joint indictment of Presi-
dent Brainerd, Charles Wyman and E. A.
Smith was also found for approving of such
loans as the finance committee of the trust
company. Indictments were also found and
reported against A o. Branerd, E. p Brain
erd Charles Wyman and H. Brainerd for
borrowing various sums of money while di.
rectors of the trust company. Herbert Brain
erd has not been director for three years.
one thousand dollars when director of the
trust company. Papers were served Friday
afternoon on Lawrence Brainerd A. o.
Brainerd and Charles Wyman, and bail was
furnished in each case The aggregate
amount of bail required of Lawrence Brain
erd was $4,000, A. o. Brainerd and d. Gill
more recognizing to this amount as bonds.
men. The bail of A. o. Brainerd was fixed
at $1,000, his bondsman being L. G. Greene ;
Charles Wyman's bail was fixed at $1,000,
Albert Sowles going on his bail bond. No
indictments were found against the other d.
rectors, S. G.. Holyoke or H. w. Hatch. 1t
did not appear to the grand jury that any
other directors participated in the transac-
tions or had any knowledge of them, they be-
ing, probably, mere figure heads in the insti-
tuition. The grand jury, on rising passed a
vote of thanks to States Attorney A. A.
Hall for the faithful manner in which he had
! performed his duties.
| The indictments against Brainerd and his
directors are based on these sections of the
trust company S charter That no loan should
be made directly or indirectly to any director
or officer or employG of said corporation ;
that said corporation should be subject to all
the provisions of sections % to 81 of chapter
sc of the General Statutes, and that any
| president, director or other officer of said
corporation who shall misapply or divert the
money, funds or other trust property confided
to and accepted by said corporation from the
purposes and objects prescribed by this act,
or who shall participate in such misapplca.
ton or diversion, shall on conviction thereof
be punished by imprisonment in the state
prison not to exceed five years, and be
fined not to exceed $1,000, or either of said
| punishments, in the discretion of the court.
The states attorney will move for trial on the
indictments at this term of court, but it is
said the counsel for the accused will file de-
murrers on the ground that their provisions
were abrogated by the general law regulating
savings banks and trust companies subse.
| quently passed. The receiver of the trust
company thinks dividend of 80 per cent is
assured to the depositors at the start and
finds $5O5, 900 of assets, which he hopes ia
realize on, to pay $3.50 600 of liabilities with.