The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1883-11-07
st. Adams Trust Company.

The literature OF the failure of the st. AL
bans Trust Company has already become volu-
minous and each week adds to its bulk. The
Messenger during the past week has published
a statement furnished by Lawrence Brainerd,
from Norwood. Mr.. Brainerd shows, as the
result of careful figuring" that will be
"proven correct by the closest scrutiny" that
he had to his credit on the company's books,
January 1, 1888 s127, 5O3 II This sum has
accrued from a balance of S54 5S4 So in 1878
by yearly additions of from about 50 400 in
the latter year to about $4,000 for the year
ending the first day Of January last. On the
face of the statement this would appear to be
some portion, II not all, Of Mr. Brainerd's
share Of the profits of the business since the
formation OF the company in 1877. The state
ment further shows that Mr.. Brainerd valued
the original purchase of real estate at $147,-
TAB "a; that lumber personal property and ex-
pense which have gone into the purchase since,
with the accretions OF interest, swell his share
in the capital Of the company to 1868 100 80.
The " statement" as showing anything that
will throw light on the questions which most
interest the depositors, is generally regarded as
conundrum which defies successful answer.
With statements which follow, viz: that he in
vested $40 900 in rolling mill stock which he
lost. that he has paid to Mr. Barlow loan of
$780, 600, that he has paid his current expenses
for the last eight years, the motive in publish
ing the showing would seem to be apparent,
some sort of an explanation OF the use made
y
1t may serve such purpose but can hardly be
regarded as adding strength to the moral as
poets of Mr.. Brainerds transactions In this
connection it is claimed that the original pur-
chase of Norwood property amounting to
| S123 600, was made by Mr.. Branerd with money
outside of funds borrowed from the trust
company.
| The total amount of the Norwood paper in
the trust company is $4,000. The depos-
itors' committee, the Messenger says, take this
i Is A-1 t.
| deavoring to show that the Norwood lumber
company owe him $685. 1872 Sc, and that that
amount-exclusive Of preferred claims-is all
| the trust company can get out OF 1t by virtue
| of the assignment, Notwithstanding the fact
that the company hold notes to the amount OF
| 1913 900 against the Norwood property; and
that If the property should happen to bring
more than that amount, the balance would
| have to be divided between Brainerd and Col
ton, in case the other notes Covering the differ
ence between $263. 722 80 and 1913, 0OO) are
not valid as against the Norwood property.
It is not thought that this view of the matter
affords much comfort to the depositors. MOI
| do good lawyers believe that the collection OF
paper officially signed or endorsed by the Nor.
| wood lumber company cannot be enforced
against any company property which may be
| left after preferred claims are paid. The Nor
wood property will be sold at auction to-day
Receiver Rich and committee of the deposit
itors will be on the ground to protect their
interests. 1t Is not believed that they will sui.
fer the property to be sold for less than $500
600 All accounts agree that it is a magnifi-
cent property, that there is possibly but one
company that has better plant. The profits
OF the mills for the last year are crediby
shown to nave been very large and highly
remuneratve. 1t is the great bulk OF the
property, the money required for purchase and
the capital demanded for its subsequent profit
able operation, that constitute the great OBJ
stacles in the way of successful sale. Praise
is given Mr., Cotton on all hands for his man
agement and great sympathy is expressed fol
the destruction which his interest in the prop
erty must undergo. This sympathy is in
creased by the fact that 1t is said the book,
financial office of the company, within SO 0O(
of money enough to pay what was due to Mr.
Brainerd.
In explanation of Mr. Brainerd's reluctance t
show his hand, 1t is said that he has never beer
a man OF even respectable means The money
he inherited is said to have been lost in bat
ventures. He has been sailing under false col
ors, conducting great enterprise, and livinl
extravagantly on the money OF the men
women and children whom he has duped
These who have seen him recently say that h
bears the stamp of the late trials in his fright
fully altered appearance. So great mora
wreck Is seldom Witnessed nor one which car
ries In its train such sad consequences. It l
not believed that he will voluntarily return I,
Vermont, IT, indeed, he should survive Il
meet his trial when it is called. The Messen
ger reports that a carload of furniture belong
ing to him, billed to a son-in-law in New York
and which was awaiting shipment at st. Al
bans, bas been detained by the sheriff. TIL
above, we believe covers in hrief, the develop
ments in this scandalous matter during tn
past week.