Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1883-08-10
The Details.


The Details.
ST.. Adams, Aug. G.-This morning whom
the hour arrived for opening the doors Of the
Vermont National bank n card was put in the
window with tho single word CLOSED" there
on. A few minutes after . o'clock a number
of business men attempted to gain admission
to make deposits, but the door was locked
and none Of the officers OF the bank were
visible. The closing Of the bank created
considerable excitement and some Of the
largest depositors in the bank showed no lit.
tie CONSERVATION. Paper OF the Southeast
ern railroad to the amount Of $500, 600
has been discounted by the Vermont Nation
al bank, though the capital of the bank is
only 500, 900. The loans were made on the
bonds Of the Montreal. Boston and Portland
railroad and on paper having Mr.. Barlow's
indorsement. MIR. Barlow says the loan was
considered good and safe one at the time
both by the bank examiner Hendee aud the
controller Of the currency. The directors of
the bank also approved OF the loan. The
deposits in the bank are about $3.50 600
Mr.. Barlow states that be had made no pro-
vision for his family and that he and they are
left absolutely penniless. The floating liza
blities of the Southeastern railway are now
stated to be $500, 600. Barlow's other debts
amount to large sum, but the amount can
not yet be ascertained. Barlow owns S17j,-
600 OF the 500, 900 capital stock of the Yer
mont National bank. Bank Examiner Hen
kee arrived in town to day to take charge of
the bank. The First National bank Ia in no
way affected nor is the Central Vermont rail
road mixed up in any way with the failure
A run on the First National bank was feared
this morning but the danger Of this is ev.
IDENTIFY passed.
The st. Adams Trust company has also
suspended, but it is hoped that it will be on
ly temporary The only way in which il
can be affected by Mr. Barlow's failure is
through it's president and largest stakeholder
Lawrence Brainerd, who is indorser on Mr.
Barow's paper to u considerable amount. Mr.
Brainerd has made an assignment Of all his
property, OF the estimated value OF $780,
600, for the benefit Of the Trust company
The condition of the Trust company, as
shown 10y the last report of the Inspector of
Finance. WAS as follows: Capital paid in,
500 600; due depositors Si9i 1870 50; in
terest, SlG2, l22 OG total liabilities, $780,
373 %. The Trust company has over 22OO
depositora, many of whom reside in town
II is learned that the Canadian Pacific rail
way company has a contract with Barlow for
the conditional purchase of the Southeastern
road few months ago Mr.. Barlow made a
loan Of the Canadian Pacific for his road
amounting " = t-'NsVbht hul hClONlltu the
bonds Of the Southeastern railway, to the
amount Of 81, $50, 600, as collateral. A CON
tract was drawn up and signed about this time
between the Representatives of tue two roads,
which gave the Canadian Pacific the option
of buying the Southeastern at any time with
in two years by paying a balance Of something
over s., 800, OOO in which event Mr.. Barlow
was to apply the ! i, go, 900 on the purchase
and with tho s2,d0oOOO complete the sale.
On the other hand it was stipulated that the
Canadian Pacific could demand the payment
of their loan to Mr. Barlow on short notice,
aud in case of his failing to meet the payment
the Canadian Pacific could take measures to
foreclose on the mortgage bonds held as col
lateral. 1t was this balance of - 900 900
which Mr.. Barlow expected the Canadian Pa
cihc would pay here on Saturday, and, failing
to receive it, the crash came
ST.. ALBANs, Aug. :. The only financial in
stituton doing business in st. Adams to-day
is the First National bank The president,
Edward A. SOwles, states that the bank has
had no transactions with the Vermont Nation
al for over year, and that they hold none Of
Mr. Barlow's paper.
Bank Examiner Hendce says the report in
circulation, that the Comptroller of the Treas
ury and himself considered the loan of $780,
600 made by the Vermont National to the
Southeastern a good and safe one, is incor-
rect. He says they tacitly approved of the
loan at tine time it was made, providing tho
collateral was sufficient, but subsequently con-
sidered the loan an excessive one, and recon-
mended that it be reduced.
The effects of the Barlow failure are more
noticeable here day which is weekly mar.
ket day. Everybody is much depressed, and
the feeling grows that an examination will re-
veal the bank and trust company officers to be
in bad condition. Instead of the customary
marketday activity, business is at a stand.
still. Bank Examiner Hendee is at work on
the books, but nothing particularly new has
been developed as yet. President Brainerd
of the trust company claims that the deposit
tors will not lose much but the depositors are
not so hopeful.
The Messenger says it is feared by the ma
jority of people interested that an investiga-
ton will reveal a worse state Of affairs in the
national bank than was at first reported In
regard to the trust company the great uneasi-
ness is based on the fact that so little is def
nitely known concerning its affairs and as to
how deeply President Brainerd is involved
with Mr.. Barlow. Mr.. Brainerd refuses to
make any statement as to the condition of the
company. Several MERCHANTS are placed in
bad condition by having drafts made upon
them, payable at the suspended bsnk and
business generally is rather mixed
ST. ALBANs, Aug 8. This has been an
other day of suspense and anxiety among de-
positors in the Vermont National bank and
St Albans Trust company. The delay in
making known the condition of the affairs of
these financial institutions has had a tenden-
cy to lessen public confidence in the state
ments made by the officers and directors that
the depositors would be paid in full when a
settlement was effected. There is ray of
hope for an improvement in the situation in
the fact that Bradley Barlow and the directors
of the Canadian Pacific railway are in New
York, and that possible compromise or set
Element of existing complications may be
brought about between these parties Gov
eTnor Hendee hRa not yet completed the ex-
animation of the Vermont National bank, but
intimRtes that he has found nothing to
change his opinion which he expressed yes
terday, to the effect that depositors would be
paid in full
Considerable unfavorable comment is made
by depositors in the Trust company on the
silence of President Brainerd regarding the
affairs of that institution. His refusal to make
any definite statement of the amount the
Norwood Lumber company owes the Trust
company for borrowed money, and also to
state the amount of paper money he has in.
dorsed for Mr.. Barlow, is not interpreted in
very favorable light The ability of the
Trust company 10 pay depositors in full de-
ponds largely on the action taken by Mr..
Barlow's creditors against President Branerd
as ndorser of Mr.. Barlow's paper,
Finance Inspector Dewey, now examining 1
the Trust oompany's books, is inclined TO the |
belief that the depositors will be cared for as
he thinks the only trouble is Brainerd's in
dorsemont for Barlow, which may be met /
without wrecking the company. A receiver
foS the Vermont National bank will undoubt- /
edly be Amounted when Examiner Hendee /
completes his WORK there Barlow's absence
is looked upon favorably, ana tho issue of his /
attempt to obtain relief Il anxioualy awaited.
A rumor has found considerable circulation 4
that he is negotiating with Vanderbilt in rela-
tiop 70 the purchase of the Southeastern sys-
tenn. -
BURL NaToN, Aug. y. The Free Press of |
to-day says Well Informed people say thet