Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1893-12-01
BOGUS BANK AT BARTON.
1t Came Near Being StillbOrn,
hut u Had an Interesting History,
Nevertheless.

But u Had an Interesting History,
Nevertheless.
There is probably no doubt that the
baldest attempt at fraud and swindle on
a large scale, which has ever been put up
in Vermont, was the estate bank" scheme
at Barton which has been nipped in the
bud this week. Abodt two months ago
there began to be intangible talk about
starting state bank at Barton, which,
next to Newport, is the principal town in
Orleans county. Soon after application
for charter for such a bank was filed with
the county clerk and with the secretary of
state, as is provided by that section of the
state laws which authorizes the organiza-
tion of state banks. The capital stock was
to be $4,000. The incOrporators named
were Thomas G. Brewer of New York,
Charles \. Brewer and John J. O'Farrell
of Burlington, Joseph A. Lord and Thorn
as j. Brewer of Rutland. No such persons
as those named live in Burlington or Rut-
land. The use of these.names was to get
around the requirement Of the law that
three-fourths of a banks incorporators
must be residents of Vermont. T. &.
Brewer claimed to own $50 of the 800
shares and was the organizer of the whole
scheme.
Soon after the charter was granted w
w. Miles of Barton, a well-known lawyer
and states attorney of the county. received
letter from Brewer, written from New
York, stating that he represented a New
York syndicate which was going to start a
state bank in Barton, and asking Miles to
secure banking rooms \ copy of the
charter was enclosed. and as everything
appeared to be all right Miles secured the
rooms.
The first man to appear in connection
with the new bank WAS Francis Heine.
whom Brewer had engaged as cashier. He
was obtained by advertisement in a New
| York paper. and never knew Brewer until
a few weeks ago. Before he accepted the
| position as cashier Brewer made him fur
| nish bonds to the amount of 5000 Brew.
| or told him that Joseph A. Lord, a wealthy
! New Yorker living in Rutland. vas presi
! dent OF the bank, and showed the cashier
! President Lord's bon for $4,000.
llene waited nearly two weeks for Lord
! but on Monday of last week Brewer ap
| peared on the scene, stating that Lord was
| dangerously i'll and that the bank would
be opened without him. All the banking
fixtures were arranged. The books had
previously arrived and the safe was at the
depot, but had not been brought to tn,
bank. No money had been supplied tC
start the bank, but Brewer notified all tn,
banks in the vicinity by circulars that tn,
state bank Of Barton" was open for bust
ness. 4 big display advertisement wa,
sent to all papers in the vicinity asking foi
| deposits and other business.
The day the bank opened Brewer mad,
Heine certify 10 nine checks of $500 each
telling him that he had deposited the so,
600 capital stock of the bank with III,
American lnvestmen. company, Ii Beaver
street, New York, company OF which
Brewer claimed to be treasurer
Brewer then returned TO New York
| leaving no money TO run the bank with
lleine found the freight unpaid when h,
went to the depot for the safe. Examina
tion of the stationery which had been sent
showed that on ii were printed the name,
of Lawyer Miles and q. ID. owen. tn,
leading merchant Of Barton. as directors
| Both had agreed with Brewer TO bccom,
directors. but no election had been held
and neither held any stock. 4 check fol
$50 came through the National bank at
| Barton for collection, and Mr.. owen CAV,
| Hcine the funds 10 pay 10. Olhcr check,
came which went To protest. Miles. over
and lleine saw that they had been dupcd
and Brewer was telcgraphcd for. He came
from New York. Some Of the account,
have ii that when he arrived he tried {,
make Heine certify 10 $1,000 more in check.
and used pistol to enforce his demands
However this may be he was arrested aut
sent to jail at Newport. Just as he ar
rived there bail came by telegraph from
George b. Morris, an alleged New Yorl
lawyer. Brewer was released and promptly
! skipped. He is described as a young mar
less than so years old, and a glib talker.
The New York papers. which have beer
investigating in that city, find that Brewer
| and Lord have removed from the addresse.
given to parts unknown, and Their. is NJ
such concern in the city as the American
| Investment company.
There is no doubt that the whole affair
was a scheme OF Brewer and his pals il
New York to get bank on paper, with
semblance of legal existence, and ther
float a large amount Of certified checks anl
letters OF credit, realizing on them in any
way possible, and skipping with the pro
ceeds. 1t will be strange if a good dea
more such paper than is now known OF
! does not come To the surface. lIeine APP
| pears to have been an innocent party Il
the fraud.