The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-03-27
RUTLAND BANK FLUNDERED
The Merchants National, Formerly One
of the Strongest Institutions In Ver-
mont, On the Verge of Ruin-Its Doors
Closed-&351 200 Due DepOsitors-The
Cashier Under Arrest-Deceived the
Bank Examiner.
Bank Examiner.

Rutland, VT, March 26.--With it's
doors closed fast, and it's cashier,
Charles w. Mussey in Jail, having con-
fessed a shortage of $145,000, the Mer-
chants National bank of this city, for
merly one of the strongest institutions
in the state, stands tonight on the
verge, of ruin, unless it's stockholders
come to it's assistance and help the re-
naming assets to pay off the s351 900
| due its innocent depositors. Mussey
confessed his guilt In the early hours
of the morning to the entire board of
bany at the earnest solicitation of a
local detective, who traced him to the
New York capital when he failed to ap-
pear before his employers late Satur-
day afternoon. He remained in close
detention in the bank all day, practic-
ally under arrest in q civil suit brought
by the bank for $50, 900, but tonight the
United States authorities, after an ex-
animation into the bank affairs, for
mally arrested him on a charge of en-
beZzlement and lodged him in the coun-
ty jail.
1t Is understood that the United
States circuit court has placed his bail
at 100000. Coincident with Mussey's
confession came the closing of the mu-
steal store of H. Mcclure, jr, the busi-
ness of which, according to the confess
sion of the cashier, has been supported
t,rbo ;,, vi do Df ha
bank. Mussey's story of his peculations
from the bank has very familiar
sound, beginning as they did nearly
six years ago with comparatively
small amount and gradually increasing
until the amount became too great to
remain hidden. Still, even the ma
tional bank examiner, D. d. Muir, was
deceived by the cashier only few
months ago, the entire deficit being
made to appear good through large
number of forged notes which Mussey
inserted.
Mussey told the directors to-day that
he loaned Mcclure $4,000 six years ago
and that the amount was returned.
Since then, however, other loans were
made without the Knowledge of the di-
rectors until the ball rolled up to the
sum half as much again as the entire
capital stock of the bank. Still the di-
rectors remained in the dark, and would
have been there to-day If one Of their
number last week had not heard from |
an outside source of Mussey's loans to
Mcclure. The inevitable day arrived |
last Saturday when Mussey was called |
before the board and asked for the
banks assets
Mussey put on bold face and at once |
offered to go across the street to the
safe deposit vaults for the securities.
The directors waited an hour for him
and then sent for a detective. The
cashier went from the bank to his house
where he took a few hundred dollars
and then left the city. The detectives
caught up with him yesterday in AL
bany and had little trouble in persuad-
ing him to return without extradlt1on
papers He arrived here at 2:45 a. m.
and once more faced the men who for
many years had trusted him implicitly.
The directors in the meantime had
learned of the shortage, but none were
ready for Mussey's statement that the
total amount was $145,000. While the
directors had already decided to close
the bank, none of them was prepared
for such large shortage and Mussey's
statement was received with conster-
nation. President j. A. Mead, who is a
well known business man besides being
the head of the State Trust company,
which happily is. not affected was ex-
reticent to-day as to the con-
dition of the bank, but admitted that
the stockholders might have to be as
sessed.
This forenoon, after Mussey had made
MS confession the directors instituted
/ suit against him for $4,000, attaching
Ill his property, which unfortunately is
1ot extensive. In the meantime the
oank examiner arrived and spent the
balance of the day in examining the
1ooks This afternoon sufficient evil
lence was found to lead to an arrest
md a warrant was issued by the local
court. Mussey was taken quietly over ]
O the jail and will be arraigned to-
morrow before the United States COM ,
missioner Late this afternoon Bank 6
Examiner D. D. Muir was appointed :
emporary receiver of the bank. ,
The Comptroller Notified. G