The Middlebury register and Addison County journal. [volume] (Middlebury, Vt.) 1883-1885, 1883-09-14

he has taken this step to protect the de-
p~ositors in the Vermont National. Should
President Brainerd be put into insolvency
the transfer of his property. recently
made to the Trust company will be null
flied and the broken Trust company will
receive only such dividend as the estate
may pay outside creditors. Receiver G.
w. Rich left for Northern New York
this morning, accompanied by President
Brainerd and a lumber expert, to inves-
tigate the condition and extent of the
Norwood Lumber company"
The editorial column of the Rutland
Herald contained. the other day, the fol-
lowing statement of the way in which
the st. Adams Trust company was man
aged THE charter SAYS there shall be
seven directors who shall be stockholders
to the amount of $1,000 each. Some of
the directors have not a dollars worth of
stock. Out of Il total of $4,000 the
largest item is represented by loans on
personal security on about Sij0.000.
which includes large sums loaned to di-
rcctors-a flagrant violation of the char
ter. a correspondent says: The as
sets include a quantity of shares in the
| st. Adams rolling mill, II now insolvent
institution in which A. O. Brainerd Ca di-
rector OF the Trust company and Her
bert Brainerd Gan eX-director) have great
interest. Then there are a number of
shares in the st. Adams Gas Light compa-
ny, of which Mr.. Il. a. Smith, IA director
in the Trust company, is an officer. A
manufacturing concern in Pl~attSburgh.
in which Mr.. Lawrence Braincrd has
doubtless an interest. seems to have had
a loan and put up their stock us collat-
eral. How much these various securi-
ties are actually worth does o appear.
For this outrageous violation of the plain
obligations which attach to the officers
of Il trust company there does not seem
any adequate punishment under the law.
The whole property of the Norwood
lumber company, which owes the trust
company S3l2, 900, is estimated from
100000 to Sl50,000, but the records in
the Office of the clerk for st. Lawrence
county show not less than $50, 900 of
preferred claims for freight, insurance.
accounts, acceptanccs, and for money
borrowed of individuals i'm that vicinity
and of the banks in Malone and Ogdcns-
burg. These debts the assignee is direct
ed to pay in full. and then, If there is
anything left, it can be applied on the
Norwood lumber company notes held
by the st. Adams Trust company. Now.
even if the Norwood property should
sell for 100000. the trust company
would only get $4,000 for its advance of
six times that amount, but there is nc
sort of prospect that it can be sold for
any such figures as we have named.
There was an equally well equipped and
advantageously situated lumber cstab-
lishment formerly near ~Chatcaugay. n.
y; it failed and the whole property,
which "a estimated at a much higher
value than that now placed upon the
Norwood property, was finally sold for
50. ZOO, according to our informant, who
is a gentleman of high business intelli-
gence and who lately visited the locality
of the lumber establishment we refer to,
The chances are now that Il sale of the
Norwood property will leave little OF
nothing to replace the st. Adams trust
%company's cash.