The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1899-03-01
THE BRADFORD BANK.
Inside Facts Regarding This
Institution.

pany, suit pending in the United States
Circuit Court, began at Hotel Low Feb.
81. Testimony is being taken before
John II. Mimms, Esq, OF St. Adams, spec
ial examiner. The orator is represented
by Messrs William M. Stock bridge and f.
j. Hutchinson OF Boston, Gilbert A. Davis
of Windsor and John b. Pickett Of Brad
ford w. b. G. Stickney Of Bethel repre-
scented the defendant.
The witnesses examined and to he ex-
amined are John b. Hale and Horace w.
Pailey of Newbury; W. $. O. Celley Of
Fairlee; l. II. Hale, Dudley X. Andross, e.
G. Sawy er and John II, Watson Of Brad
ford and Ebert o. Leonard of st. Johns
bury, sll former trustees OF this bank, and
Fred w. Farnbam of Copperfeld, one #
the assignees in insolvency of the Ev.Cop-
PEI field Mining Company, and ex-Govecn'
or Farnham.
John b. Hale is the receiver of this bank
and its last president. He hadbeen under ex-
animation all day. During the afternoon
session an adjournment was taken to the
bank. The books and papers OF the bank
were produced, and some interesting de-
velopments startled those interested. 1t
appeared that from May ], 1896, to May /,
1897, e o. Leonard ran the bank on "a con.
tract price OF $1,000 year and certain ex-
penses; that the bank in 1896 bad $4,000 of
the assets invested in the Ely mine and
had possession OF the mine. The bank had
negotiated a sale of it to the Ely Copper
field Mining Company, July %, 1895, for
SOL, 00O taking the note Of the latter COM
pany for that sum and discharging all it's
claims against the mining property.
This company was organized by Mr..
Straine and Mr.. Leonard with capital
stock of 81, 900, 900 and Immediately issued
5000, 900 of bonds secured by mortgage OF
its entire mining property The Bradford
bank accepted one half these bonds as Sc
curty for it's SOL 900 note and the other
800, 900 OF bonds were turned over to Mr..
Straine as his property; the bank officials
thus accomplishing the brilliant financial
enterprise OF getting one half loaf in pay
ment for the whole loaf which they had
owned.
Mr.. Straine was the owner Of sixty -four
shares of the stock OF the Bradford bank
and in the autumn of 1897 demanded an ex
animation of the books and papers OF the
bank. He sent his attorneys, Messrs Stock
bridge & Davis, to the bank to make the
investigation. These gentlemen were re-
fused access to the books and papers and
finally at the close Of banking hours were
turned out. suit is now pending IN
Orange county court against K. o. Leonard
the clerk, for refusing to show the books tc
Mr.. Straine's attorneys.
The bank got into dsrepute and matters
with it went worse and worse. An ass ess
n ent Of 500 on share was voted by thu
trustees, to bolster up its falling fortune s
The stockholders demanded an investiga
ton and committee for that purpose wa
chosen. The trustees, pending. this inves
tigatiop, charged to profit and loss $25 800
being one-half of its claim against the Ell.
Copperfeld Mining Company, and charged
to the same account variety of other items
But what is more particularly interestiD
Just now is the fact, that these trustees
January 81, 1898, on the very last day of tn
: banks existence prior to the appointment
of receiver and the issuing OF an injunC
ton by Chancellor Tyler in proce edings
equity that were set on foot by these tru'
tees on the night of January 81, paid then
n selves as follows:
j, B. Hale, services to date, trustee, 81
L. e. Kimball services to date, trus.
W. e. 8. Celley, services to date, trus-
tee,
, E. G. Sawyer, services to date, trus-
u d. X. Andross, services to date, trus- =.
tee, IL
E. o. Leonard, services to date, trus'
w. W. Goodwin, services to date,
treasurer,
. A. G. Bliss, services to date, clerk,
III. T. johnson, services to date,
clerk,
a payment was made to j. Fl. Watson
50 1872 OF, a trustee, in full for his service
as attorney, to date.
This suit of Straine against the Brsdfor
bank is a bill in equity to recover damage
oil VI q OanR IOT llb lhlluEb W Cdlly Oub
partnership agreement with Mr.. Straine
to the Ely. Coppertield bonds, to prevel
the sale by the bank OF United Telegra
bonds, held by it as collateral for NJ
le Straines notes and to prevent the sale
le Mr.. Straine's stock.
@ Judge Wheeler has enjoined the bar
% officers as pray ed for. Mr.. Straine CLAIM
i that the bank officials have conspired
~ ruin him for the purpose of getting back u
Ely mine property and that Mr.. Leona
has been the principal agent OF the bank
nd its whole enterprise.
nv There is great interest in Bradford ov
- this investigation, and groups OF interest'
ai stockholders and depositors can be seen
ID the streets discussing the situation.
WEDNESDAY
The day has been entirely occupied in Il
examination of John B. Hale, trustee al
H.. receiver, and with the books OF the defun
bank. The developments have been OF .
re gravest importance, and are the subject
~ discussion throughout this community.
- appeared that in January, 1898, K.
IN Leonard, trustee, clerk and manager, al
no at one time treasurer, overdrew his accou
to the amount OF about $500. This W
n fixed up on January 3, 1898, by two not
r. signed by his wife, Irene l.. Leonard, o
OF $3,O75, secured by two bonds OF the \
ne Jional Life Insurance Company as collatt
al, and one for $1,000 with Ely-Copperfe
Mining Company bonds as collateral.
OF September, 1897, this mining company u
been adjudged insolvent, assgnees sppoiI
ed and its bonds were then not OF gre
value. These notes remain unpaid in
,e- hands OF the receiver. 1t further appear
that the bank held Mr., Leonard's notes
ef the amount of $3,277 %. MT Hale was u
ed able to recall any knowledge of this ov'
~ draft
,r- The purchase of United Telegram CO.
n. pany bonds by the bank to the amount
$50, 900 was discovered on the books al
n. the numbers OF the bonds were duly
all corded. An unexplained matter, 80 far,
y" that among the assets OF the bank is nj
of .S12 900 dated July /, 1897, signed
Horace s. Homer, with twenty-five
these same United Telegram bonds as C
WIS lateral. These bonds are for $500 each, a
no are registered in the name OF Il. o. Leona
ow under date of May 90, 1896; they do not
ter pear to he transferred, and yet on comp
als ing them by number with the bonds p
chased by the Bradford Savings Bank a
Trust Company the numbers and amour
e's are Identical
re-. 1t appears that Mr.. Straine's sto,
40. six y-four shares OF the par value of S64
Vas was sold by the trustees, January 10, Is
nv to John b. Arnold of Providence, Il.
all - hat IA