Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1895-03-15

which are part of our town and village
history. The reference is to the wreck of
the First National bank, Mr. Waite's suit
against the Estey Organ company, and his
career as a prominent and dominating fac
tor in the business and social lie of Brat
tleboro.
Wreck Of the First National Bank.
While rumors and suspicious of the un-
soundness of the First National bank had
long been ahOat, it was a staggering shock
to which Brattleboro awoke on the morn
ing of Wednesday, June Ii, 1850. when it
first become generally known that 5. NJ.
Waite had fed, and that the bank, of which
he was cashier and president, was hope
less wreck.
This bank was originally organized as
the Windham County bank, under the old
state bank system, and began business in
1858 with n. b. Williston as president and
5. NJ Waite as cashier. In the summer
of 1864 it took advantage of the national
banking law and became the First National
bank of Brattleboro. As national bank
it began with a capital of 500, 600, which
was finally increased to 100000. Mr.
Williston remained as president of the
bank until January, 1879, when he with
drew, and Mr. Waite was elected bis sue
cessor, and from that time on, until the
final crash, acted as both president and
cashier, contriving under one preteXt or
another to prevent the introduction of any
new official who might discover and dis
close the actual condition of the institution
The stock was largely held in Windham
county and in adjoining towns in Windsor
county and New Hampshire.
While an interesting chapter might be
written detailing the various opinions held
in regard to Mr.. Waite's operations and
the soundncss of his bank, it is enough to
say here that his personal friends and sup
porters believed in him almost implicitly,
and that it was the determined action of
Bank Examiner Geo. W. Hendee which
precipitated the crisis and revealed the
true condition of the banks affairs. Mr..
Hendee, on his first visit here as examiner,
was suspicious Of one or more items of the
list of assets presented by Mr.. Waite,
frankly told him so, and gave him GER
tain number of days time to produce proof
that his assets were as claimed. Before
the expiration of the time fixed, on the
morning of June 10, Mr.. Waite left town
by the early train, telling his family that
he was obliged to go to New York on bank
business. He did not return as expected.
The next Monday the directors of the bank
learned that Mr. Waite had informed his
nephew in New York, in incoherent letters
sent from Boston and Portland, that he
was in trouble. A hasty examination of
the banks affairs was made, the cOmptrol-
Ter of the currency was notified, a reward
of 5000 was offered for Mr.. Waite's ap-
prehension, and Mr., Hendee took charge
of the banks affairs until the appointment
by the comptroller of Linus NJ. Price as
receiver 1t was proved that Mr.. Waite
assets of about 100000 consisted almost
entirely of forged paper. The capital of
the bank had been entirely dissipated and
an assessment of 20 per cent upon the capi-
stock was levied, and was paid by those
stockholders who were able to do so, al
though percentage of this was afterward
returned to them. In not few cases the
wreck of the bank took the little all of
those who held the stock, and in others
meagre incomes were disastrously reduced.
The receivers investigations showed
that there had been large overissue of the
banks stock, the number of such shares
being fixed by him at 1173. In his report
Mr.. Price stated that ''during the rs years
of the national banks existence Waite S
account had been charged with $3.50, AGO. 7S,
an average expenditure by him of over $685.
600 during the whole period, while con-
siderable sums used never appeared in his
account. This money was used in various
directions, and covered the purchase and
improvement of the Brattleboro Gas
works, the cost of the Hinsdale bridge, and
/ probably all other property now or at any
other time owned by Waite" No charge