The Middlebury register and Addison County journal. [volume] (Middlebury, Vt.) 1883-1885, 1885-07-24
FRIDAY, JULY n, 1885.

FRIDAY, JULY n, 1855.
BUSINESS is business. and we should eX-
pect as much promptness among banks
as other honorable business men when
matters turn out differently than they ex-
pccted.-S 1LbdpS Messenger.
Our esteemed contemporary INDUCES in
the above remark and lot more of a like
character because some of the banks
which lent Bradley Barlow money, and
took as collateral for the loans stock of the
now failed Vermont National bank refuse
to pay the assessment made upon that
stock by the comptroller of the currency.
The Messengers English is bad but its
logic is worse. Its only strong point is its
troversy. Cynical outsiders often aver
that college students choose as subjects
for orations those about which they know
the least. Perhaps the Messenger follows
the same plan in selecting the topics of
its editorials. The facts in the case of
the Middebury bank-and they are es-
sentially the same in the other cases. that
of the Baxter National of Rutland eX-
cepted-are as follows: In 1879 Bradley
Barlow borrowed of the bank $4,000
and gave as collateral the same amount
of the stock of the Vermont National
bank. From 1879 to about the time the
Vermont National failed Mr.. Barlow paid
the taxes on this stock and received the
dividends upon it, He included it in the
inventory of his personal property re-
turned to the listers and swore to the
list. Then he transferred the stock in
question to his son-in-law, Mr.. Metcalf.
who has since sworn that it was his.
Recently the comptroller of the currency
levied an assessment of 100 per cent on
the stock of the dcfunct bank; and the
receiver, Bank Examiner Hendee. has
brought suit against the banks which re-
fused to pay the assessment. If this
bank should pay the assessment would
lose not only the original loan but also
$4,000 more. 100000 altogether. The
Baxter bank was Mr.. Barlow's creditor
W IIic dulOuHl VI SlO'uuU, Dut HIS nOue
was endorsed by Bradley b. Smaley of
Burlington. who paid 1t. He, however,
declined to take the stock the bank still
has the $4,000 of Vermont National
stock. The caDital stock of the banks
that refused to pay the assessment-the
First National. the Merchants National
and the Passumpsic Savings bank of ST.
JOhnsbury; the Baxter National of Rut-
land, the First National of Brandon and
the Middlebury National-has been at
tached by United States Marshal Henry
in the suits brought by Receiver Hendee
to enforce the assessment. The National
of Vergennes and the Bellows Falls Say
ings bank paid the assessment. The
ground of the refusal of the rest is, that
they did not in fact own the stock. but
held it merely as collateral to secure
loans to Mr.. Barlow. The issue involved
has never been decided. That it is an
important one requires no demonstration.
If all who take national bank stock as
collateral are liable to assessment to the
amount of the stock so held in case the
bank fails. there are great many per-
sons in the country who would like to
know it. The national bank stock of the
United States amounts to nearly five hun
dred millions of dollars, and every one
who holds a dollar of this vast sum as
collateral is interested. Such men as
Hon. Luke =. Poland and Gen. Stewart
l.. Woodford of New York believe the
liability of the Vermont banks mentioned
may fairly be questioned. We will adj
init that their opinion is as nothing COM
pared with the Messengers. 1t is true
that Mr.. Poland has been chief Justice of
the Supreme court of Vermont and Gen.
Woodford United States attorney for the
leading district in the nation; still. the
public will give little heed to their views
when the Messenger disagrees with them
on points of law.