The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1899-03-01

The progress OF the investigation ha been
necessarily SLOW, ~ many objections have
been iutetpOsed wi eu the production Of pa
per was called for. IL appeared that Hor-
ace r. Bailey and William e Celley In
September, 1897, were appointed by the
trustees as auditors to audit accounts, and
did audit and allow a bill OF services and ex-
psnses for e. o. Leonard to the amount OF
81 566; their report was accepted by the
trustees but Mr.. Hale testified that no such
| bill OF 81 566 can now be found in the bank
and the witness did not know the items
hat made up the bill, or what had become
OF the bill. This certainly had the element
OF novelty about 1t. Strange that the pres
ident and receiver can not produce the
items OF bill Of that magnitude.
Mr.. Hale testified that the attorney OF the
bank was not paid salary but according to
| his work, and was allowed to bring and de-
fend suits according to his discretion, and
that, he Mr., Hale, left the whole matter of
the banks litigation to the attorney. Loans
to the Copperfeld Mining and Smelling
Company (secured by mortgsge) to the
amount OF $4,000 were shown, and $4,000
| 10 Mr.. Kaigen, with e. M r. Krause as en-.
dorser On this $4,000 no interest had
been paid since 1893, and the bank, in 1896,
naturally wished to unload, and did dis
charge its mortgages when the Ely Copper.
field Mining Company was organized, and
took the deed of the property az stated in
report Of yesterday's hearing.
Charles A. LamsOn, of the United Tele-
gram COMPANY, is here az an interested
spectator, and full of Information a. to the
affairs Of that company.
1t il apparent that this investig ration will
be quite prOtracted, and as was remarked
on the street here, "rhere is no knowing
where lightning will strike
THURSDAY.
The hearing OF Straiue v. Bradford Saw
ings Bank aud Trust Company has occupied
the entire day, and Receiver James b. Hale
has been under examination by Attorney
Stock bridge.
The interest in the developments contin-
ues unabated and EXPLANATIONS, not all of
them pious, are heard upon the street as the
different facts brought out are narrated and
discussed. The deposit account of K. o.
Leor ard from January l, 1896, to January
l, 1898 was obtained and IT was found that
with an overdraft OF S16 IL, January l.,
1896, these overdrafts continued in an
ascending series until they touched high
water mark Dec. l., 1897, at S6504 70. On
January /, 1898, it had been reduced to
1928 ", and this was wiped off January
3, 1898, by the two notes of $4,000 90 and
S3075 90 respectively, signed by Iene L.
Leonard. These notes remain unpaid.
Receiver Hale, for all the time OF these
overdrafts trustee, and for part OF the
time the president Of the bank, could re-
call no vote Of the trustees authorizing
these overdrafts or ratifyipg them after.
wards. There Is no record of any such
notes. Mr.. Hale professed almost absolute
ignorance of these overdrafts, but thought
that at least once he personally did object
10 it. AS yet he has been unable to find
any items of expenses amounting to 81, 500.
68 for which MIR. Leonard had been paid
that amount in drafts up to September IA
, 1897.
Mr.. Hale, under the advice OF counsel
, refused point blank to produce bills OF ex
penses and documents that orators solici
3 tors called for, and was notified more thar
once that applications would be made Il
: Judge Wheeler to compel him to prOduc,
8 these documents. We do not undertake tt
: say who is right about this production.
J., The solicitor for orator went into 6
y lengthy examination about the appearance
OF George M, Dickey, Esq ostensibly al
!. the attorney Of John B. Arnold, about The
q purchase OF Mr.. Straine's sixty.four share
!, of stock. Mr.. Haes memory seemed to b
. very much in fault about 1t, but he admitted
It that Mr.. Dickey had made and presente,
= to him as receiver bill against the banl
n for these services, which he had declined t
g. pay unless directed to do so by Chancello
l. Tyler. Mr.. Hale refused to produce MI
Dickey's bill. Mr.. Straine claims this sal
10 of his stock was sham.
1t was further developed that at no tim
~ had this bank had trial balance made eac
month as required by theVermont Statutes
10 nor had it had its affairs investigated by
committee of not less than three OF its o
ID hcers.
II was brought out that, in June 1896, NJ
70 Hale was informed that Mr.. Straine was
dangerous man, that he believed this info
10 nation to be correct, and never changed b
mind on that matter and yet afterwards
10 and three others OF the trustees went
30 Boston, met Mr.. Srraine at the Parkt
House, and on July %, 1896, entered I'M
36 the contract of that date with Mr.. Strain'
at discharged all the claims Of the bank on Ii
of Ely Copperfield mining property, and toe
es the SOL 900 note, with 100000 OF the FL.
Copperfield Mining Company bonds as co
d lateral.
es Mr.. Hale testified that in his iudgmer
a this SOL 600 note was thereby amply secu
az ed and these bonds good safe investmen
Mt proper to he sold by this bank, but admi
m ted that the bank had made no effort to sc
r. them, so far as he knew. 1t is for this II
Of glect in view of the terms OF this contract
July 20, 1896, that the orator, Mr.. Strain
TX is seeking to recover damages. 1t furth
rs appeared that instead OF trying to sell the
to bonds this bank, in February, 1897, broug
he suit in New Jersey against Mr.. Strait
rd for S13, 900 and endeavored to attach M
in Straine's stock in the United Telegra
Company. This suit is one of a series
or attacks on him by this bank that N
ed Straine claims were designed to cripple al
on ruin him. On the other hand, the bar
claims that it was doing nothiDg,more thl
it had a right to do in order to collect
Ultimate debt that it had against M
he Stralne.
adj The handsome brick block of the Bra
ct ford Savings Bank and Trust Compal
he stands as a monument to the memory
of this financial wreck. In the early days
1t its existence, this bank was content to 7
D. main in more humble quarters, its 6
nd penses were small its management consery
MT tive, its fidelity unguestioned, its truste
as were in fact, as we'll as in name, truste
es the deposits OF widows and orphans, as W,
ne az those of business men were careful
la looked after, and handsome surplus W
ar kept on hand; but the old, reliable M
Id were displaced and the results are know
In Horace W. Bailey of Newbury, was
ad trustee and president at one time, but
ut resigned. Judge Gleason OF Thetford W
,at trustee at one time but he got out. Pre-
he ident Chapman died in 1885, and his ests
ed is embarrassed by litigation over his Il
to bility on the bond of the former treasure
In George P. Arthur-and 80 goes the woef
or tale
Among some of the interested spectato
m to-day were some gentlemen who, on Jan
Of airy 81, 1898, the last day that the bal
nd kept open doors, came in and made th'
re- daposits In the ordinary way trusting