Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1900-04-05
RUTLAND BANK FAILURE.
Cashier Mussey Embezzled $l45, 900
of Its Funds.

land, has confessed to misappropriat-
ing the banks funds TO the amount
of Sl45, $50, and TO falsifying his ac-
counts to cover up the deficit. In his
confession, which he made last week
Monday morning to the directors, he
incidentally admitted forgery, to
deceive the national bank examiner.
The bank has, as result, been
forced TO close its doors, and the
comptroller OF the currency has APP
pointed ID. ID. Muir, formerly of Lin
coin, Neb., temporary receiver.
The president of the bank, DIR. John
A. Mead, began to suspect that all was
not well, and some time ago he called
for Mr.. Mussey's resignation as CASH
Ter and director. This Mr.. Mussey
agreed to do, but as DR.. Mead was TO
be out of town, Mr.. Mussey continued
his work.
Saturday, DIR. Mead wired TO the
directors to meet him at the bank in
the afternoon as soon as he reached
Rutland. The directors walked into
the bank in body and demanded
that the cashier produce the securities
and books Of the bank. This he did,
but soon after he made an excuse to
leave the bank, went home, took what
money he had, went TO the station
and took a train for Albany, n. Y.
The directors found that affairs
were in a muddle, and when Mr..
Mussey did not return they began
looking him up. They soon got trace
Of him and wired to Albany. The
cashier had gone to Albany to con-
suit with his brother-in-law, and re-
turned with him to Rutland without
Intervention on the part Of an officer.
When the two men reached Rut-
land local officers arrested the default
er and took him to the bank, where,
in the presence of the directors, he
made full confession.
Mr.. Mussey's statement was pitiful
in the extreme. According to his
story the affair began about six years
ago, when NJ. A. Mcclure, Rutland
music dealer, applied to the bank for
loan Of 50, 800. This the directors
refused to grant, but Mr.. Mussey, in
pity, gave the money without the
proper authority, expecting that il
would soon be paid. Mcclure, soon
after, asked for another loan, saying
that il he did not get it ne must lose
everything, and would be unable TO
pay the first note. The second loan
was granted, only to be followed by
more requests for help.
The cashier, by a clever system,
successfully deceived the directors
when they made their examinations,
and even deceived the national bank
examiner. The last examination was
made March by Examiner White
hill. Mr.. Mussey says that at that
time he forged the names Of promi-
nent business men of Rutland to
notes amounting to sl45,O00, and
destroyed the notes after the eXami-
nation was made.
Mr.. Mussey surrendered notes
signed by NJ. A. Mcclure to the
amount Of Sl45, $50, and the directors
have attached all of McClure's prop
erty, as we'll as that of ii. o. Edison,
who indorsed Mr.. McClure's notes.
The bank is capitalized at 500, 900,
and the statement issued Feb. 10 gave
the resources as S576, 8O2.73, and the
liabilities as S373,4l9.26, not includ-
ing the surplus of $500, undivided
profits Of S2,ss3.47, or capital of
100000.
Mussey remained in close detention
in the bank all day Monday, practical
ly under arrest in civil suit brought
by the bank for $50, 900 but at night
the United States authorities, after an
examination INTO the bank affairs,
formally arrested him on a charge of
embezzlement, and lodged him in the
county Jail.
Ii is understood that the Fidelity
Guarantee company of Baltimore,
which went on Mr.. Mussey's bond as
cashier of the bank, has taken steps
to prosecute him. II. o. Edison has
resigned his position as director ofthe
State Trust company.
Mr.. Mussey prepared each noHlll
on different sheets of paper lists OF
bills payable and at the head of each
sheet he had noted in shorthand in
vented by him the amount that he
was short. and after the directors had
checked off the various notes he man
aged by referring to shorthand notes
TO change the figures so that when the
directors few minutes later began
the process of adding the columns the
footings included his shortage.
When asked how it was that he
could deceive the bank examiners, Mr..
Mussey said that that was easy. His
practice was to make out a list OF
fictitious notes properly signed by
prominent business firms and indors-
ed by the forged names of men OF
financial responsibility and properly
stamped. These were inserted among
the proper assets of the bank for the
inspection of the examiners and were
afterwards taken out and destroyed.
1t is the opinion of the officers OF
the bank that the depositors will not