The Windham County reformer. (Battleboro, Vt.) 1876-1897, 1884-04-11

The First National Hank ofSs. IHs,ps
Coos Down in the Wreck OF s,nass-
cial Disaster--StOcl< Speculation tha
Cause of the Disastcr-ReiIer ,ssat
EepOsttors will suffer No Loss.
ST. ALBANs, VI, April 10.
st. Albans has met with another financial
disaster, which has shaken it from cen.er to
circumference. refer to the failure of the First
! National bank, which closed its doors Tuesday
morning. When the news Of the failure first
\ became known the excitement was great,afmt
matters have now cooled down, and an'cxam
/ ination into
THE CAUSES wHIciI LED 10 rHs DISASTER
have been pursued with careful scrutiny. so
far as can be learned stock speculation Was at
the bottom OF the trouble, in which the pros-
| dent Of the institution seems to have quite
| heavily ndulged. These speculations have not
been confined to Wall street., but he has invest
ed more or less in the butter trade. The bank
has carried financially several produce dealers,
the president sharing the profit and loss in the
| business with the dealers. The recent failure
| of II. W. Marshall 4 Co.. the Boston prodnce
dealers. involving the bank to the sum OF $l0,-
600, which sum Marshall owes the First Ma
| tiona l.. G. Hall, another st. Adams butter
| buyer, is said to owe the bank $1,000. That
| President Sowies Is financially embarrassed is
evident from the fact that he has failed to pay
| over to the vestry OF st Lnhe'S church the
amount of the income, $500, derived from the
legacy of $1,000 left by the late Hiram Bellows.
This sum was due in 1885, and although re-
peatedy urged to pay over the amount Mr.
Sowles ha: refused to do so.
now Ir has BEEN OPERATED
The First National bank has been run in the
interest of the Sow les family. There is branch
bank in Swanton, that is known as the National
Union, with capital of $4,000. Cashier Al
bert Sowles of the st Albans bank, is president
of the Swanton bank, and the brothers are di-
rectors. The announcement of the suspension
of the First National caused considerable eX-
cltelnent III SwantOn, and resulted 10 run OH
the National Union. The bank on Monday had
deposits amounting TO $50, 900, which was $780,
600 less than it had last October. Within one
hour after the National Union opened Tuesday
morning, all Of the available cash in the tills
was paid out the supposition being that Presi-
dent SOwles had drawn out the funds TO take to
Boston, to help pay the drafts OF the First Ma
tional. Those who could get their money ap-
peared to be satisfied until the bank could pro
cure funds from Boston.
HOW THE TROUBLE BEGAN.
The trouble at this bank began about two
months ago, when run was made upon it the
public confidence in the institution has been de-
cning ever since. Soon after that run Gov
Hendee prevailed upon L. A. and Albert Sowles
to put into the bank, for its benefit, collatcrals
of the nominal value of about Sll0, ,000-wOrth
in cash probably from $50, 900 TO $4,000. The
deposits, it is understood, have now run down
to $2l5,000 and there is said to be no appa(ent
reason why they should not be paid in full.
The banks last statement showed assets of
s27S,S56, including S3Sl,000 of loans and dis
counts.
WHAT THE CASHIER SAYS
Cashier Albert Sowes seems confident that
depositors will suffer no loss. He says that at
the time the trouble first began, the bank had
over S490,OOO deposits, and that SINCE then
S27S,0O0 of this had been paid over to deposit
ors. lie will not say that the closing is only
temporary, as that cannot be determined till
his brother E. A., returns; heis expected daily.
Il. A. Sowles and @. A. Burton owe the bank
considerable, and the latter will come e time
on 5000 -w9..a of paper it viii ieip ilatters a
good deal. If this had been done before, he
says, present disaster might have been avoided.
He says the bank has had everything to con-
tend against since the failure of the Vermont
National and the trust company.
THE BANKS TRUE CONDITION.
The nominal assets of the bank are about
$4,000, including 100000 in United States
bonds to secure circulation. Messrs f. A. and
Albert Sowles owe the bank $4,000, and they
are endorsers to the amount Of $50, 900 Oscar
A. Burton is on paper held by the bank to the
extent of 900. 1t is known that the Sowles
brothers have been financially embarrassed for
several monthss The bank has been managed
as family affair for many years. The late
hiram bellows was president 1Of long tme,
and since his decease Mr. i. A. Sowles has vir-
uay controlled the institution He was made
Executor of the Bellows estate, and has exer-
Used autocratic authority in bank matters,
nce the decease OF Mr. Bellows. The assets
Ire not ''quick" and it will take a long time to
ettlc up the concern. The stockholders of the
Institution are L. A. Sowles $40,000 Albert
owles, $4,000; Mrs E. A. Sowles, S40O00
lerritt Sowles, $4,000; o. A. Burton, G. w.
'oster and B. c. Ball. $1,000 euch; the balance,
bout $4,000, is owned by two sisters of SoTles
here is no expectation that the bank will
esume business again An investigation is iI
.ogress.
ANOTHER BANK DRAWN UPON.
There was a run on the National Union bank
! Swanton Wednesday, the SOwleS brothers
,ing largely interested In that as well as their
Albans bank. Depositors have drawn cut
SO, 900 in the past 10 days. The directors held
meeting Wednesday, evening and they declare
lat the bank will be able to pay depositors in
III with few days time. There is confidence
the Swanton managers Of the bank, the
)wlescs being the parties distruSted.
IN EXAMINATION IN PROGRESS.
Government Hendec is making an examina-
N Of the affairs OF the bank. He thinks the
positors will be paid in full. Comptroller
nox has been notified of the suspension and
he deems the situation such as to call for the
pointment of q receiver, one VIII be appoint
!. Governor Hendee SAYS that possibly the
nix may be allowed to go into voluntary IL
laton. The assets of the bank are such
at they cannot he realized on at once, and it
ny require some little time TO pay depositors
amount due them.
THE PRESIDENT EGGS FoRBEAIlANCE.
President Sowles is out with letter begging
6epositors to forbear, and saying that the
nix has assets enough to pay everything if il
let continue business. He proposes to sell
4 900 of stock at Examiner Hendee's appris-
to have the hank re0rganized and proceed
III business. The opposition meets with no
or because il does not Offer stock enough to
st the Sowleses from the control, and Il il
ir personal losses which have brought about
failure. The Union bank at SwaBton will
I through. The doors were opened Wednes-
7, but nothing was paid To depositors. The
oslts are $4,000 and the bank has Sl11,000
rood short-timc paper to meet them with. Il
rs bnt little OF the st Adams hank paper and
>Ci;rcd by collateral. CLANT0N.
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II Cox showed in his recent speech that of
total number ofpersons employed in 1880 in
protected" cupatiOns-nameig, the man