Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-08-10

million of dollars. Mr. Brainerd is quit
hopeful that the Trust Company will be abb
10 r, sumo business shortly. Nearly all th
- have IL deposited in the Trust Company, q
that in case of the failure of that company +
meet its liabilities the class to suffer will b,
those the very least able to afford 1t
t The depositors In both the Trust Compan,
and the bank are naturally fearful Of losinl
their savings and deposits, and all sorts o
rumors are current, but until Mr. Hendee ha
completed his investigation nothing definit
can be ascertained
Tuesdays Ncws-Currcnt Rumors.
Bank Examiner Hendec was busly cpgag
. ed Tuesday on the books Of the Vernon
5 National Bank, and until he finishes his
work there will not be much to say about thu
} concerns affairs. We hear however, thai
depostors arc offering their books at fifty
, cents on the dollar and the Messenger says
> that it is feared by the majority Of people in.
terestcd, that an investigation will reveal o
worse state OF affairs than at first reported.
The statement that the bank examiner
considered the loan of the banks funds
to the amount of $4,000 to the South
eastern road good loan turns out to incor-
rect. Neither the comptroller nor the ex-
aminer approved of the loan, but suggested
that it was too large and ought to be re-
duccd.
In regard to the Trust company, the Mes
senger says that the great uneasiness is based
on the fact that so little is known dcflnitel "
concerning its affairs, and as to how deeply
President Branerd is involved with Mr.. Bar
low. Mr.. Brainerd refuses to make any de-
| fail ntn to tI.. ian NJ hn
company, and nothing can be known of it
till the National bank masters are straightcn-
cd out. Several merchants are placed in Il
bad condition by having drafts made upon
| them payable at the suspended bank and
business generally is rather mixed.
An associated press despatch from st. Al
bans says. president Branerd of the Trust
company says the depositors will not lose
much. The latter are not so hopeful. The
Trust companys llast statement showed
2l00 dcpositors with deposits of 100000.
Several railroad men, including Governor
Fairbanks, held conference to-day at MIR.
Barlow's residence"
MONTREAL, Aug. 1.-The Barlow failure
has created no embarrassment here thus far
Two banks are said TO have some of the in
solvents paper, but are amply secured. The
Canadian Pacific railroad has a claim against
the Southeastern for s l,250,000 for money
lent lately, but is fully secured by 81, 1916, 900
of the first mortgage bonds. 1t is reported
that the Investment Association has suspend
ed from loss by the failure, but it is. not con-
firmed.
The New York Times on tho Failure.
The failure of the Hon. Bradley Barlow's
bank at St. Abons shows how speedily
speculation in railroads may sweep away
the hard earnings of the most successful star
route contractor The explanation given
also shows that Mr.. Barlow's experience as
contractor did not teach HIM how to con-
duct bank with due regard for contidipg
dcpostors. What right had this national
bank to discount rairoadpaper to an amount
exceeding its deposits, aud TO make loans
upon railroad bonds which the market re-
jected The fact is that the bank was part
of Mr. Barlow's private estate, as those
will remember who recall the Star-routc in
vestigation of 1875. In those days Mr.. Bar
low was the king of the Star mail service,
engaged in developing the country. The an
nual pay for his routes was more than ST.
10000 and his libcrallty and generosity
were sometimes severely taxed by inquiring
persons whom he found it necessary to paci-
| fly. Pnenomenally fortunate as q mail car
rer, he seems to have failed as railway
owner probably because he found the meth
DDS by which he built up large fortune as a
contractor in the service of the Postoilice De-
partment not applicable to the management
of a railway.
The Latest Developments.
Mr.. Hcndec has not yet concluded his OK
animation of the books of the broken st. AL
bans bank, and in the meantime nothing very
definite can bc said of its affairs. The Ms
senger says that it is informed that nothing
has been found as yet 10 change the opinion
heretofore given. by officers of the bank
that dopositors will be paid in full The Mes
senge,'s information" is very different from
that which we receive. Well Informed peo-
pie say that there is no earthly probability
that the depositors will be paid in full. 1t is
certainly puzzling question as to how the
bank can pay anything when its largest asset
is lot of railroad securities which have no
market value whatever
Public sentiment of st. Adams is very
kindly and sympathetic toward Mr.. Barlow,
but quite the reverse toward Mr.. Lawrence
Brainerd. That gentleman keeps very
close mouth and no information whatever
can be got out of him. 1t was said that on
Monday he assigned foi the benefit of the Trust
company all his property, the aggregate value
of which was 100000. The fact is, we are
told Mr.. Brainerd does not possess property
to onc-quarer of that amount. We under
stand that he owns $40, 600 farm and a
$50, coo lumber business at Norwood, N. Y,
aud that is all. The Messenger says "There
has been, of course, no failure of the Trust
company merely suspension of business
consequent on the trouble in the Vermont
National bank. The State inspector of fin
| ance made an examination of the company's
funds the middle of July and expressed him
self as satisfied with the condition of affairs !;
| and the treasurer states that, from what he
| knows of the company's business, he believes
the depositors can be paid in full in the
| course Of time"
Hon. Charles Dewey, State Inspector of
Finance, decided to postpone examination
| until matters in the Vermont National bank
were settled but he spoke somewhat en-
\ couragingly of the situation, and expressed a
| conviction that if things were not hurried,
| and they were not forced to IL settlement at
once, the Trust company would be able to
pay dollar for dollar, or nearly So