Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1896-11-20
"a MILLION Or MORE GONE"

A Financial Crash for CIaremont and
well Is Abroad and Little IL Known
About the Immense Sums which He
Invested for Others.
"A Million or More Gone, Heavy Loss to Small
Investors Of Sullivan County, N. H." were the
startling head lines under which the Boston
Herald Of Thursday reviewed the record Of John
L Farwell, for many years the financial king Of
western New Hampshire, who is now travelling
through southern Europe for his health 1t has
been known for several months that an immense
sum of money handled by Farwell was in a bad
ENHANCEMENT, including $3.50 belonging to the
Episcopal dioces-, but few people outside Of Sui
Ivan county had little idea of the serious side OF
the case until the Herald told the complete story
Mr.. Farwell was expected to return Sept 1, but
did not come. Hundreds OF people, including
widows and orphans want to know where the
money they ntrusted to his care has gone, and
also IL the reports 30 generally current on the
streets true, that they have lost nearly II not
quite ALL they placed in his hands TO invest for
them, either as chief OF the savings bank or as
guide and financial adviser at per cent per an.
mum for all who were willing TO place confidence
in him.
In speaking Of the amount involved the Herald
says: Here are the figures; In the Sullivan insti
tuition for savings, 81 100000 in trust funds and
personal friendly investments ct two per cent per
ennum per investment, $500 900. Every cent of
that has been out Of sight since John L. Farwell
savings bank has been hidden for much longer
time.
or this total Of 81. $50, 900 some is coming back
How much no one can tell until John l.. Farwell
gets through travelling for his health. 1t Is hoped
that from 20 to 30 per cent OF the total amount
will be realized on the immense amount Of for.
midable promises to pay which have been found
among the effects Of the gentleman in Europe.
IL is doubtful, however. according to the best n.
nancial information TO be secured in the town, II
30 great an amount is realized. One quarter Of
the whole amount 25 per cent, would be most sat
isfactory to 80 out of 100 OF the unfortunates.
One quarter Of ST. $50 900 is &437 800 Therefore,
IL all that amount is saved then loss to the p-o.
pie in Sullivan county will not be more than 81
2l2,bO0. Comparatively few investments were
made from outside Sullivan county, and nearly all
the people who had Investments through Mr.. Far
well WIRE In moderate circumstances.
Mr.. Farwell a man in whom explicit conf.
pence was placed. His father was the founder of
the Sullivan Institution for Savings. and Mr.. Far.
well grew up in the bank and for many years had
been its executive head He gained a remarka BILE
reputation for skill in placing money. and he
guaranteed six per cent int rest and received two
per cent for his work in selecting the mortgages.
AS In many other cases all went well for time,
but with reduction in rates and hard times
among the farmers in certain parts Of the West
conditions changed.
There is evidence to show that in some cas-,
Mr.. Farwel descended to irregularities in indorse-
ment OF notes and he settled with one woman
rather than to have the facts become known In
court When the defaults became numerous Mr..
Farwel evidently tried TO stave of disgrace and
It is intimated that he like others robbed Peter
| to pay Paul"
Rumors that all was not right started run on
| the sullivan Institution for Savings late last year
aud the bank had to suspend business, but NIT un.
til $500 900 had been paid out to amorous depos
| itors
After the closing OF the bank Mr.. Farwell made
a brave effort TO take care OF the business which
| had been placed through him and said that he
only needed time to straight-n out everything
| He appeared to breGging down in health and
| last July he went abroad l1r what was announced
to be two months stay. when Mr. Farwell Is
10 return nobody seems to k1ow. The Herald
| claims that certain attorneys threaten TO have
| him arrested in case he returns The Herald
says; Lawyers who had been given claims to
| investigate began to receive reports fro~s 'hs
| West. In some cases investors who supposed
| they held moi tgages on property in the West
| found that the loans h I'd been paid and that the
| money had not been handed to them, and that nc
| new security had been receive e"
| In addition to tn Episcopal funds elsewhere
| spoken OF the school funds of Claremont are alsC
| involved. No one knows today the exact stand
| ing Of the Stevens fund of $1,000. The Tap
pan school fund was $50 900 and $50 900 which Is II
| town bonds Is intact, but the other $1,000 like
| the Stevens fund cannot be discovered at present
! There is also some question about the Fisk libra
| ~ fund OF 5000.