The Windham County reformer. (Battleboro, Vt.) 1876-1897, 1894-10-05
WILMINGTON SAVINGS BANK.
STATEMENT FROM THE CREDITOR,

STATEMENT FROM THE CREDITOR.
In Answer to the REFORMER Comment
| How They Claim n Shortage of Over
$3,OOO-A Complicated Matter.
| While it is generally known that the audi
tors of the Wilmington Savings bank have
been engaged during the past few weeks in
searching Investigation of the affairs o
the bank and the progress of sucl
investigation has been reported tC
| the trustees from time to time, not until now
has the investigation seemed to be complete
enough to warrant public statement from
the auditors, although sufficient some time
| ago to call for the summary dismissal OF
| Treasurer Willard who ''resigned" ut the
unanimous request of the trustees made al
| their meeting Aug. 81.
July 9TH last the auditors were informed by
the treasurer that his books were ready fol
| tho regular semi-annual examination and
commenced their work completing the same
| on the 7th of July so far as the verifcation OF
the assets and liabilities of the bank with the
statement of the treasurer was concerned
While the expenses had proper vouchers and
| the interest due July 1st was correctly ac-
counted for, the surplus did not appear to be
| gaining as it should and careful examination
of the day book revealed ''interests received
items which were severely criticised for not
showing the sources from which the interest
came. This neglect to explain items of inter-
est received appeared to the auditors as hard
ly eXcusable as the treasurers attention had
been previously called to the matter and am
pie opportunity exists in the day book for
such explanations, which had always been
made, not only by Mr.. Wizards predecessor
but by himself until 1896 when for
some reason. only apparent to him
self he began to enter ''interest
received" items without any explanation.
81 ,xrritip, fI,o
on the line intended for the explanation with
out explanation of these items it becomes al
most if not quite impossible to fully trace out
and verify the interest account. The auditors
criticism were met by the treasurer with u
carefully prepared statement in which the in
terest that should be accounted for between
the semi-annual periods was apparently bal
anced by the ''interest received items, and
the earnest assurance on his part that if his
books were passed this time the interest items
should be properly explained in the future.
This might have secured the signing of his
report had not the auditors discovered that
an item of S2OS. was included in this state
ment which had been accounted for in the
earnings for the six months ending January
lst last. this entry made January 1st,
showed an erasure under the words ''in-
terest received as though the explanation
had first been written and afterwards for
some obscure reason. erased. This item. lie.
Quoted, the treasurer was short that amount
according to his own statement, and after an
Intellectual attempt to convince the auditors
that the item was properly included in his es-
timate, he claimed he must have made II mis-
take last January, and clipped off and entered
some coupons before they were due and car
ried the same as Il cash item until they were
due which to make partly up for a deficiency
of interest credited February. 2S. he
was at that time. although he
or M his assistants in thp hank ponI
tell what the coupons were or remember
having counted them in making up the cash
during the two months. About this time the
auditors adjourned their work awaiting re-
ports from the Western loan agencies and
Boston and Brattleboro correspondents In
showed that the February % coupons which
were sent there for collection could not be
combined in any way to make $20S, the near
est being $210, and the treasurer then con-
cluded that another mistake had been made
in that item and that It should have been en-
tered $210 instead of $20S. The amount Will
lard credited the Sayings bank February %
a, -siIlts.rst received was Sz4o.yV,; winch i.
increased by S210 would amount to $456.5O,
and it appeared that there was due and sent
the Peoples bank at that date $571.50 of in--
terest coupons: hence accepting the treasur
er's explanation about the $2OS item there
was yet a deficiency here of Sl15. The treas
urer forced to an explanation of this, then
produced $115 in cash which he said was Il
surplusage discovered in his cash at the time
the coupon remittance was made and had not
been able to tell from what source it came.
He then said he had S19S in all, surplus cash
that he could not account for. This was some
three weeks after he had knowledge that the
auditors suspected a shortage III his interest
accounts and was the first time the auditors
or any of the trustees ever had an intimation
that there was dollar of cash in the bank
that could not be accounted for. In fact not
very long before this, the treasurer. in con-
versation with one of the trustees had given
him to understand that he had always made |
his cash balance. Charles Barlow, the clerk |
who has been in the bank during business |
hours every day since the fourth OF January, |
md who keeps one of the principal books |
from which the balances must be obtained |
before the cash can be made up and |
Who would consequently know if the cash at |
INV time did not agree with such balances.
never heard of any Sll5 overplus cash until |
nquired of by the auditors and SAYS that |
Turing the time he has been in the bank there
lave been but two cash discrepancies of any
and that in both cases the error
vas soon found and corrected.
The suspicious of the auditors now became
thoroughly aroused and the treasurer was
-iven to understand that the whole interest
ccount since he had commenced putting
own unexplained ''interest received items
would be investigated.
The 31st of July. two or three days after
he treasurer had informed the auditors of
l9S surplus cash, Inspector of Finance Du-
,ois, visited the bank and during the eXami-
alton the treasurer produced a package of
675, in bills. which he claimed ,came into his
ands in amounts ranging from $50 to S150.
ut he could give no dates except that it was
catered along for several years before the
rst of January. This added to the Sl9S,
efore produced made 1878, which never had
cen accounted for in the treasurer's state
lent. Upon the departure of the inspector
he auditors continued the Investigations.
'urther failures to duly credit interest col
,cted were found, and upon request the in
pectOr met the trustees in consultation and
citing partly upon his suggestion an expert.
:. II. Pratt of the BrartleborO Savings Bank.
'as secured to examine the books. Nothing j
ew was discovered by Mr.. Pratt but the :
ndings of the auditors up to that time were ,
Dnfirmed. After the examination by Mr.. .
raft the auditors continued their work and /
lore omissions to credit interest were dis ,
)vered. =
During the progress of this examination it =.
as discovered that the New England Loan
Trust Co., had been credited just before the ,
xaminaton of the bank by the auditors, July 4
1913 and Jan. 1894 with 1862. which was
larged back Immediately after the eXamina-
on, and a credit was given the company
une 30, previous to the present examination
1927, for the apparent purpose of making I
he bank books agree with the books of said :
,mpany, and about which the treasurer !,
,uld give no information. Investigation a
lowed that the n. +. Loan & Trust Co.. in +
s92 sent the bank loan which together with u
terest was charged the bank at $1,000. and .