Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1900-03-27
$l45,000 SHORT.
Cashier of Merchants National
Bank, Rutland, VT,
Under Arest--Confesses to Embezzle-
ment and faIsifying Accounts.
Bank in Hands OF Receiver-Great Surprise
10 Business People.

w. MuSSty, IN jail, ndNlIlS tohltSStu
a shortage Of 5000. the Merchants
National Bank of this city, formerly
one of the strongest institutions in the
state, stands, tonight, on the verge OF
ruin, unless its stockholders come 10
its assistance and help the remaining
assets to pay off the 1851 900 due its de-
positors.
Mussey confessed his guilt in the
early hours of the morning to the ell
tire board of directors, having come
back from Albany at the earnest sollc-
itation of a local detective, who traced
him to the New York capital, When NJ
failed to appear before his employers.
late Saturday afternoon. He remained
in close detention in the bank all day
practically under arrest in a civil sun
brought by the bank for $4,000, but
tonight. the United States authorities
after an examination into the bank ar
fairs. formerly arrested him on
charge of embezzlement and lodged
him in the county Jail. 1t is under
stood that the United States circuit
court has placed his bail at $lOO,OO0.
Coincident with Musseys confession
came the closing of the musical store
of H. A. Mcclure, Jr.. the business OF
which according to the confession of
the cashier. has been supported wholly
or in part by the funds of the bank.
Mussey's story of his peculations
from the bank have 4 very familiar
sound. beginning as they did nearly
wears ago with a comparatively small
amount and gradually increasing until
the amount became too great to remain
hidden Still, even the national bank
examiner D. d. Muir. was deceived by
the cashier only a few months ago. the
entire deficit being made to appear
good through a large number of forged
notes which Mussey inserted.
Mussey told the directors. this morn
ing. that he loaned Mcclure $4,000, six
years ago, and that the amount was
returned. Since then, however. other
loans were made without the knoWl-
edge of the directors. until the ball
rolled up to the sum half as much
again as the entire capital stock of the
bank. Still the directors remained in
the dark. and would have been there
today. if one of their number, last
week, had not heard from an outside
source of Mussey's loans to Mcclure.
The inevitable day arrived. Saturday.
when Mussey was called before the
board and asked for the banks assets.
Mussey put on a bold face and at once
offered to go across the street TO the
safe deposit for the securities. The di-
rectors 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 hum
dred dollars and then left the city.
The detectives caught up with him,
yesterday. in Albany and had littl"
difficulty in persuading him to return
without eXtradition papers. He arriv-
ed here at 245 A. NJ. and once more
faced the men who for many years had
implicitly trusted him.
The directors in the meantime had
learned of the shortage, but none We're
ready for Mussey'S statement that the
total amount was $li5.0 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 conSterna-
ton.
President J. A. Mead. who is q we'll
known business man, besides being the
head of the State Trust Co, which
happily is not affected, was extreme
ly reticent. today. as to the condition
of the bank but admitted that the
sessed.
This forenoon. after Mussey had
made his confession. the directors in
stituted a suit against him for $50.0o0
attaching all his property. which un-
fortunately is not extensive. In the
meantime the bank examiner arrived
and spent the balance Of the day in
examining the books. This afternoon.
sufficient evidence was found to lead
to an arrest. and warrant was issued
BY the local courts. Mussey was taken
to the Jail and will be arraigned, to-
morrow before the United States com
missioner
Naturally the closing Of the bank,
which occurred this morning, i'll fact
the doors did not open at all. caused
tremendous sensation in this city.
and for some hours the street was
crowded with anxious depositOrS. But
the closing of the banks doors sunk
almost into insignificanCe when it b.
came known that the cashier was in
custody within the walls of the bank
and that he had confessed to the ire
mendous shortage. Speculation then
became general as to what had become
of the money.
The closing Of McClure's music store
accounted for part of it, but ii is gen
orally admitted here that the store had
ben run on far less than $4,000 dur
ing the past six years. Many persons
found themselves unable to reconcile
had gone into the business with what
was known Of the volume Of that bust
ness. Additional explanations are
looked for within a few days
Later this afternoon, Bank Examiner
Muir was appointed temporary receiv-
er of the bank. Following is the syn
opsis of the report OF the condition Of
the bank made to the comptroller OF
the currency under the call of Feb. ~
1900: Liabilities. capital, 100000; sur
plus and profits. $33S3; circulation
s2l.S7o. Resources. loans and dis
counts. 1851 .363 other assets including
cash. $115.436.
Mussey has lived in Rutland all his
life. He is married and has one son il
Brown University. His connection
with the bank dates back some - OF
20 years. having risen by gradual step:
to the position of cashier.
The officers of the Merchants Ma
tional Bank are as follows: President
A.