The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1883-06-27
The Case OF ]. M. Haven.


Brief mention was made last week OF serious
charges against J, NJ. Haven Of Rutland. pro-
nrietor OF the Bates Honse and treasurer OF the
Rutland railroad. These charges related 10 an
over-issue OF Rutland railroad stock bv Hsven
while treasurer OF that road From the Rut-
land Herald we condense the following state
ment: On saturday suit was commenced
against Joel M. Haven by the Rutland railroad
company, In which all his real estate. hotel
hotel furniture, horses, etc, were attached
The sum demanded In the writ IL 500 600
This claim is for a deficiency in the funds of
the comnany, Of which Mr.. Haven was treas
urer. Other writs were afterwards SERVED In
favor OF other creditors. A hill in charcerv
has also been brought by the Rutland railroad
company against Clement & Sons for the pnr-
pose OF obtaining the surrender and caucella-
ton OF certificates NJ Rutland preferred stock
sold to them by J. NJ Haven at time when
he owned no such stock. and for which he
furnished certificate which was an over-issue
They are enioined from disrosiug OF the GER
titicate until the question Of their validity Ia
determined. IL Is thought that for two or
three years past he has been accustomed to
make sales OF non-existing stock and issue GER
tihcates therefor. afterwards renlacing the
shares nv purchases in lower market. sneak
ing OF this course of dealing as Selling stock
short" As soon as the fact WAS known 70 the
directors, his removal wasquietly effected. and
Mr.. James II. Williams, president Of the First
treasurer for the last two months. The hooks
have meanwhile heen thoroughly examined
and the history OF the over-iasups ascertained
as well az the devices by which they were con-
cealed. This examination also brought m the
surface the misuse Of the company funds
which successive Investigations by expert ac-
countsnts had failed to Disclose Il IL under.
stood that MIR. Haven was alone responsible for
the transaction in question. After the attach
ment OF SATURDAY., deeds were delivered and
pnt on record from j. NJ. Haven tn C. W
Clement and ]. A. Mead, conveying his prom
ertv to them. The real estate embraces the
Bates honse and the extension with livery sta
hle on Willow street and the Sprague block on
Merchants row. and the Bates house cottages
(so-called), being the former residence Of
Mr.. Haven on Main street; also the Pine Hill
farm and Pratt farm. with other lots in Rut-
land village, and farm in Mount Holly. etc.
He has also carried on q shirt factory an cleo
trio light company and has been enga ped in
the propagation OF fish and various other en-
ternrises none Of which appear to have been
profitable Mr.. Ravens course is great sur
prise To his friends. and Ii Is hoped he NAV be
able to explain. ifsuch explain ton be possible,
the present bad aspect OF affairs friend OF
MIR. Haven says he has large amount OF. prop
| erty which is ample to make good anv loss
| He transferred large portion OF It to trustees
to make good the over-issue and was ready to
mortgage everything he had to nay any loss IN
the road or individuals. An interview with
| one Of the firm Of Clement G. Sons. the largest
stockholders of the road, developed the fol-
| lowing statement: Last fall and winter the
| stock dropped from about twenty-five tn four
teen and notwithstanding that committee nj
| the directors made an examination OF the
books and pronounced everything all right we
| were convinced that there was trouble in the
| office. We were refused permission to exam
| ine the books and Immediately nrocured an in
| junction against the president. B Page, and
the treasurer, j. NJ. Haven, restraining them
from interfering with our examination. We
had four men at different times making the
examination and they all reported the stock
| over issued. This examination occurred in
March or April and lasted some weeks. and
since that we have been doing all we could Ia
have the stock replaced. part of it has been
replaced. we understand. and the over-ssue
has been reduced from 1894 shares to about
2,4OO shares. 1t is difficult to say, but IL we
have any of the over issued stock, II IL less than
one Thousand shares All stock is issued by
the president and treasurer jointly. The over.
issued stock was not all issued to Mr.. Haven
Some has been made to other parties and in
situations. The president claims that he Is moi
a party to the over-issue, but signed the Ger
tificates in blank.