St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1883-08-10
Failure Of Bradley Barlow
HE MAKES AN ASSIGNMENT VERMONT
NATIONAL BANK AND TRUST COMPA-
NY OF ST. ALBANs CLOSED.

for the benefit of the Trust company,
of which he is president.
MIR. Barlow estimates his personal Ii
abilities at $500, 900, and states that he
is endorser on the paper of the South
eastern railway company for 1900, 900
more. The floating liabilities of the
Southeastern road are about $500, 900.
The st. Adams Messenger reports
Mr.. Barlow rs saying: "The report of
my failure is true, and so far rs | am
concerned personally it is a very bad
one. have nothing left. If no one
was to suffer but myself | could stand
1t, but there are others involved who
are on my paper and loaned me money.
| have made an assignment of all my
property to the Vermont National
bank and everything that have is at
the service of the bank. The immedi-
! ate cause of my failure is the unsuc-
cessful result of my negotiations for
the sale of the Southeastern railroad to
the Canadian Pacific railway. | eX-
pected the Canadian syndicate would
buy the road and that my financial
strlngency would be relieved thereby.
In this | was disappointed"
HOW THE BANK BECAME INVOLVED.
The paper of the Southeastern rail
way company has been discounted by
the Vermont National bank to the
amount of S3l9,000. The bank holds
the bonds of the Montreal, Portland
and Boston railway as collateral and
also holds paper endorsed by Mr.. Bar
low. Mr.. Barlow says he was in hopes
to raise money on his bonds to take up
these notes, but his expectations not
being realized he laid the matter before
the bank directors Saturday night, and
after considering the matter they ad-
vised suspension of the business, and
the bank was accordingly closed Mon
day morning. Mr.. Barlow thinks
this was the wisest course. He SAYS
that the bank has sufficient to pay the
depOsitors in full. The deposits are
about S33O,0OO. Mr.. Barlow has made
no provision for himself and family,
and says he is absolutely penniless.
| The loan of $4,000 made by the bank,
| MIR. Barlow says, was considered q
good one by the directors as well as by
the comptroller of the currency and
Bank Examiner Hendee. Mr. Barlow
states that he has invested nearly ST.
100000 in the Southeastern railway.
He is the greatest sufferer by the fail
ure and appears to be very much de-
pressed in spirits. The books and af-
fairs of the bank are said by the Off
GERS of the bank to be in good cOndi-
ton.
The following is list of the officers
of the bank. Directors, Bradley Bar
low, E. 0. Brainerd, F. A. Metcalf. H.
g. Edison, b. b. Smalley, A. b. Chaffee
and c. n. Bishop. Bradley Barlow,
president; F. A. Metcalf, vice-presi-
dent c. n. Bishop, cashier S. b.
Morgan, teller. AS Il consequence, the
people of st. Adams, aware of Mr.. Bar
lows financial troubles, withdrew their
deposits, and we understand that few
OF them had any money in the bank.
THE ST. ALBANS TRUST COMPANY.
The suspension of the st. Adams
Trust company, it is hoped, will be on
ly temporary. The only way in which
it is liable to be affected by Mr.. Bar
lows failure is through its president
and largest individual stakeholder,
Lawrence Brainerd, who is an endorser
of MIR. BaTlOw's paper to a considera-
BILE amount. Mr.. Brainerd has made an
assignment of all his property of the
estimated value of 5000 for the
benefit of the Trust company. This
property consists of his numbering bus
mess in Northern New York, which is
being run at large profit, and real es-
tate, etc, of great value. Unless Mr.
Bralnerd is unduly pressed by the
creditors of Mr.. Barlow, on his en-
dorsements, there is no reason to doubt
that his resources are sufficient to meet
all his liabilities to the Trust company.
and also all of his liabilities as endOrs-
er for Mr.. Barlow
The Trust company is Differed as
follows: Directors, A. o. Brainerd, E.
\. Smith, +. p. Brainerd, Charles Wv
man, ). &. HOlyOke, l.. Brainerd,
Henry w. Hatch. Lawrence Brainerd,
president ii. E. Burgess, treasurer.
According to the last published report
its capital was 100000 and its depos-
its S476,l77, while the number of its
depositors was 2l40.
HOW 1T HAPPENED.
A despatch to the Burlington Free
Press from st. Adams SAYS: For some
time past negotiations have been pend |
ing for the purchase of the Southeast |
ern railway by the Canadian Pacific.
With the avails of this purchase Mr.. |
Bradley Barlow expected to meet his |
liabilities, some of which were urgent |
and pressing. These negotiations fell |
through and Mr.. Barlow being unable |
to relieve himself from the demands, |
has failed and his paper gone to pro-
test. A meeting of the directors of
the Vermont National Bank of which .
Mr.. Barlow is president was held early .
this morning and it was deemed expe-
dent and for the ultimate best inter
est of all depOsitOrs and others to sus-
pend temporarily. This was done, the
doors were closed and Il placard con
tanning the portentOus word "clOsedr
WAS placed in the windows. The bank
officials say this was done solely to
prevent run on the bank when it be-
came known that Mr.. Barlow had
failed. Mr.. Barlow has made an as
Segment of all his property to the
bank and as far as he is personally
concerned he is left in penniless stu
alton. 1t is confidently stated by those
connected with the bank, who ought
to know, that the bank will he able to
pay all its depositOrs in full. The de-
pOsits amount to abOnt S345, 900. The |
bank has discounted the paper of the
Southeastern railway VIRTUALLY Mr..
Barlow to the amount of S319,OOO.
This is secured by the bonds of the
Montreal, Portland and Boston railway
as collateral. This amount represents
a loan made by the bank to the South
eastern railway. This loan was con-
sidered good investment by the di-
rectors OF the bank and the security
was deemed ample. The loan was
only made after full consideration by
the bank. Mr.. Barlow has invested