New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-08-07
HEAVY BUSINESS FAILURES.
A CRASH AT ST. ALBANS, VT.
BRADLEY BARLOW GOES DOWN AND CARR
lBr TELEGRAPH TO THE TRIBUNE

BOSTON, Aug. 6.-Residents of Vermont, especially
those living in Franklin County, are greatly DIS
| turbed to-day over very serious failures at st.
Albans. dispatch to The Journal from st. Adams
announces the failure Of one of the most widely
known men in the State. Bradley Barlow. president
and owner of the Southeastern Railway and presi-
dent Of the Vermont National Bank of St. Abans
With the failure of Mr.. Barlow comes also that of
the Vermont National Bank and the ST. Albans
Trust Company. The failure involves all of Mr..
Barlow's property, and also considerable amount
of money loaned by individuals and banks for his
railroad operations Persons interested in the South
| eastern Railroad line are on his paper to large
| amount, Mr.. Barlow's paper went to protest
| in Montreal last week, and to-day
the Vermont National Bank of st. Adams closed Its
doors. TheJoundl correspondent visited Mr. Barlow
this morning and learned the particulars given
below regarding his failure.
Mr.. BARLow's STATEMENT.
Mr.. Barlow said: 80 far as am concerned the
failure Is very bad one have literally nothing
| left. An assignment has been made to tho Vermont
National Bank Of all my property for the benefit Of
| depositors The immediate cause of my failure
is the unsuccessful result Of my negotiations for the
sale of the Southeastern Railway to the Canadian
Pacific road l expected up to within few days
that the syndicate would buy the Southeastern.
Ny expectations not being realized. I became
| cramped in my financial transactions. The
| paper of the Southeastern has been
| discounted by the Vermont National Bank
| to large amount. About 1890, 900
has been discounted for the Southeastern from
| time 10 time by the bank. This loan was made on
the bonds of the Montreal, Boston aud Portland
Rslroad as collateral and on paper bearing my own
| indorsement"
| Mr.. Barlow says the loan was considered good
! and safe ono at the time, both by Bank Ex-
aminer Hendee and the Controller Of the Currency.
The directors ofthe bank also approved of tho loan.
Mr. Barlow had hopes up to Saturday night Of
being able to raise money on his bonds to take up
these notes in tho bank Being disappointed in
this he Land the situation before the directors and
| they advised suspension. Mr. Barlow says tho
deposts in the bank are about 1890, 0OO and that
he believes this would be sufficient to pay all de-
positors in full All no has s at the service of the
bank.
AN UNFORTUNATE INVESTMENT.
Mr.. Barlow has invested personally nearly one
| million Of dollars IN the Southeastern Railway and
had tho utmost confidence that the business of the
| road would make IL q profitable investment He
took the road when 10 was badly run down and had
no equipments worth mentioning. The road has
been supplied with steel rails aud ballasted. new
engines aud cars werc bought, new shops and sta
first-cass condition. All these improvements have
| rendered necessary large expenditure Of money.
Several years ago the bonds Of the Southeastern
were issued for 81. 750 000 but were never put
the market or sold. Mr.. Barlow retaining them all.
The Southeastern was consequently obliged to
borrow money for much Of this expenditure,
the earnings being sufficient only for ordinary cur
rent expenseS. Negotiations for the sale Of tue
Southeastern Railway to the Canadian Pacific
which broken off last week. have been pond
ing for tims and At the tims that the report
appeared IN THE Tribune to the effect that the sale
was considered good rs made, the probabilities
for its tranfer were the brightest
The negotiations for the purchase of the road were
continued and were nearly consummated on Satur-
day last aud Mr.. Barlow had every reason to be-
lievc the syndicate were acting in good fath.- The
necessary legal documents for the sale and transfer
of the property had besudrawn up. and the diroc-
tors negotiating the sale in behalf of the
Canadian Pacific assured Mr. Barlow they were
ready 10 pay the money for his road,
something over 50. 100000 The Canadian Pacific
Company however. declined TO make the purchase
for some unexplained reason. At one time Mr.
Barlow refused an oacr of $3700.000 for the
Southeastern from the syndicate. The Grand
Trunk Railway has also had the purchase Of the
road under consideration and IL is not improbable
his railroad property worth 81 00o. 600 to-day. aud
II he could realize this amount he would be relieved
from his financial troubles and have q handsome
surplus.
II the Southeastern is not sold il is probable
that the appointment OF q receiver TO run the road
will be necessary. The Southeastern has done q
largo business and Is an important
link IN the Montreal and Boston Air Line
via tho Lowell Boston. Concord and Montreal and
Passumpsic railroads. The main limo extends from
Newport VT, to Montreal, 100 miles, with
branches from S0rel to Sutton Junction, and from
Stanbridge to St Guillaume. system embracing
nearly 800 miles Of road. Tho Southeastern has
bonded debt OF 81 900 900. aud the floating debt OF
the company Is about half million dollars. The |
company owes its employees nearly $4,000. being
three months In
THE FAILURE OF THE BANK.
so far az the affairs of the Vermont National Bank
are concerned it is believed that the depostors will
lose nothing From the last published report OF |
the condition Of the bank at tho close OF busi-
ness May I, it Is learned that its main |
RESOURCES were as follows; Loans and |
discounts 1902 005 90; 7oycr-drafts, Sl7o,390;
United States bonds to secure circulation %IO,ooo;
due from approved reserve agents. $3s,3S7 7s; |
banking houses S. 900; other real estate. S24,OOO
current expenses aud taxes paid $2,207 III bills
OF other banks :Sl04, 500; fractional paper cur
rency nickels and cents. S760; specie-gold coin,
$40, 1000; silver coin 1892 70; legal-tender notes.
SlO.00O; redemption fund with United States
Treasurer 49, 150 total. $67S, ,632 20. The liabil-
ties we're: Capital stock paid in. 100000; sur
plus fund, $25, 900; undivided profits S1O,44l ss;
circulating notes received from Controller S63OoO
individual deposits subject to check, $s9.7lo u
demand certificates of deposit. $205, l44 sf due to
other national banks. $329 ST. notes and bills re-
d iscounted. $50 900 total, $67S. 032 20
The St. Adams Trust Company has also suspended,
but II is hoped that the suspension is only tempo