Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1883-08-10
The Collapse Viewed from "a BurIing-
ton Standpoint.
From the Free Press

IRON tue free Press.l
The failure of Bradley Barlow has long
been anticipated. 1t was generally under.
stood that he had embarked all his resources
in his Southeastern railroad, and the shaky
financial character of that enterprise was
widely known But that Mr. Barlow's failure
would lead to that Of the Vermont National
bank of st. Adams Of the St Albans Trust
company, and of a man reputed AS wealthy
as Lawrence Brainerd, was wholly unexpect-
ed by the general public. The combined
failures must result in widespread loss and
trouble, and will undoubtedly rank among the
most disastrous in tho history of the State.
There are some points about them that de-
mAnd examination.
First as to the National bank This was
for all intents and purposes Mr. Barlow's
private property and he seems to have so re-
garded it. OF its capital stock of 5000, 900,
he owned Sls7, 600, leaving only an insignif-
cant amount for the six gentlemen who with
himself constituted the board of directors
The banks deposit we're, Mr.. Barlow says.
about $3.50, 900. Mr.. Barlow becoming finan-
cially involved the directors advanced him
1919, 900 on bonds Of the Montreal, Portland
& Boston railroad. The sum was very much
larger than the capital Of the bank and al.
most as largo as the entire amount of its de.
posits. The Montreal, Portland & Boston
and runs from Montreal 10 Sheldon, in this
stale. Its bonds have absolutely no market
value whatever. They may intrinsically be
worth par, but at the present moment they
are absolutely valueless, and have been so for
a long time past So, therefore, the directors
of the bank appear to have advanced nearly
all its funds, aside from its capital stock, on
wildcat securities to man notoriously in
volved, financially. The result is that the
bank is ruined, its capital is lost beyond all
hope, end its depositors will have to endure
a long delay and, probably, a final heavy
loss The whole thing shows the glaring
evil of running National bank on the one,
man principle. As to the St. Adams Trust
company its affairs have not at the moment
of writing, been made very clear Mr. Law
renee Brainerd its president, has made an as.
signment of all his property for its benefit
however, and from this it would look as if its
funds, too had gone into Mr. Barlow's ill.,
starred speculations. II such proves to be
the case, the thing is even more fragrant than
that of the National bank. The care of the
money belonging to the working and poorer
classes is a sacred trust, and its investment
ought to be surrounded with every possible
safeguard. Too great caution cannot possibly
be used. These facts are too familiar and too
obvious for argument. And yet the manag
ers of the st. Adams Trust company appear
to have been as loose and careless in their
methods TO use no stronger language) as those
of the National bank. According to the last
report of the State Inspector of Finance the
company had deposits of $i9l 1870 and of
ito 2295 depositors, 1910 had deposits not ex-
eeeding $3.50 in each case Tho majority of
these people, therefore, were of the poorer,
hard working olasa-the clFss legst able of
all to suffer from a failure OF the Kind. It is
sincerely to be hoped that Mr.. Brainerds dis
calmer of any serious trouble for the com
pany will be verified
AS to Mr. Barlow personally, he has borne
for years financial burden under which
most men in tho primo of life would have
staggered, and borne it bravely. But the ex-
pe1leats he has adopted, which have led to
the present trouble ct Ct. Adams, call for the
seyerest condemnation Mr. barlow 10 him
self the greatest sufferer, no doubt, but that
fact is but slender consolation for those peo.
pie who have lost their little all through his
trRnRaotionB ~