Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1900-03-29
$146,OOO SHORT.
That is the Extent of Cashier
Mussey's Defalcation in
Rutland.
BANK IN HANDS OF RECEI YER
d. d. Muir of Lincoln, Neb., Temporarily
in Charge Stockholders
Will Save Depositors From Any
Loss-No Motive For Cash
ier's Procedure.

| Rutland, March &c --Rumors OF trouble
with the Merchants National bank and Of
! the disappearance OF Cashier &. w. Mus
| sey were afoat all DAY yesterday but Rut-
| land was scarcely prepared for the gem
une sensation which was q, velopcd by
! the investigation OF the director 1t was
! found that tho funds We're short $4,000.
The bank met with heavy losses. chiefly
through Western paper some time ago and
/ last summer It was found necessary to
make an assessment of 20 per cent on tho
capital stock, and $50 coo was paid In dur
ing November 1899. This put the bank on
| its feet again and everything went
smoothly until about two weeks 60, when
an Albany draft for $4,000 went to pro-
test. Cashier Mussey explained this by
saying that the storm delayed him in get
| ting his funds to Albany to meet the
draft.
4 Last Saturday noon draft for about
$500 was presented at the bank here by
a New York broker Mr.. Mussey told him
/ that the directors would have meeting
! about o'clock when the draft would he
paid He then took the train for Albany.
There lie found friends and returned with
ono of them on the sleeper Monday morn
ing He was arrested upon arrival Ivy
| Deputy Sheriff Stcarns but was set at liD-
! crty upon giving bail to the amount OF
so o00 and is now at his home in this city.
Cashier Mussey is under surveillance by
,
upon which he was arrested this morning
was in a civil suit brought by the bank.
| The examination of the books of the
bank which was ordered by the directors
as soon as Mr. Musseys absence was
known, showed that notes to the amount
of about $4,000 had been cashed by Mr..
Mussey without the knowledge Of the 9TH
or bank officials. These notes were signed
by NJ. A. Mcclure and II. O. Edison of this
city Col. Mcclure is a local dealer in
music and musical supplies. and, while he
has a fair business he owns very little
property. His notes for any large sum
would not be considered bankable He has
been prominent in State odd Fellowship
circles. Mr. Edson's property. real and
personal will prohally not amount to
over 5000. All of the property of both
Mcclure and Edison has been attached,
but will he utterly inadequate to meet
these notes.
COL Mcclure is reported to have said
that he had had all of the money taken
from the bank and had lost il in his bust
ness. The amount of mis- business, so far
as can be learned, does not bear out this
assertion, and the statement is not gener-
ally credited. 1t is surInised that one or
all of the three men concerned In the af-
fair have lost heavily in stock speculation,
but this fact has not been established.
| The taking of money from the bank
through these notes has been going on for
several years, but Mr.. Mussey has sue
ceedod in preventing any suspicion on the
| part of the directors or national bank ex-
amners. During the last year three diff
| ferent bank examiners have gone over the
! books thoroughly, the last one about two
weeks ago. and nothing wrong was re-
ported. The cashiers scheme, whatever
it was. was certainly clever. 1t is certain
( that the directors would not have con-
scented to cash Col. McClure's notes for
any but a small amount, had they known
/ of ii. 1t is understood that Mr. Mussey
admits that he is responsible for the mon
ey That the bank has lost.
ID. ID. Muir, a banker of Lincoln, Neb.
! has been appointed temporary receiver
and the Merchants Bank will undoubtedly
wind up its affairs. 1t was established
about 10 years ago and has always oCcu-
pied its present quarters in the old Bates
House block. The late j. \. Baxter was
president of the bank until within a few
years, when he resigned and was succeed
ed by DR., j. a. Mead. president of the
Howe Scale Works. Mr.. Musscy has been
cashier OF the bank since its organization
and has always enjoyed the respect and
confidence Of the community. He was
quite prominent socially and a member Of
| the T.. +. O, of Elks, The situation, as
! shown by the books of the bank is a
complete surprise to the whole city. Mr.
Mussey was born in Rutland about A.
years ago and has always lived here. He
has "A wife and one son. who is a student
at Brown University. His father lives with
him. No motive for MuSsey's part in the
transaction has yet appeared.
The capital stock of the bank is $4,000
This with the assessment which will
probably be ordered is expected to be suf-
fcient TO save depostors from loss. Be
low is the last statement of the bank
made Feb. 10, 1900. 1t was sworn to by
Cashier Mussey and attested by n. p
Kingsley, +. c. futile and II. H. Brown
directors
RESOURCES
Loans and discounts. S3el 257 Il
OVerdraftS, secured and unseCur-
ed ACKNOWLEDGEMENTS. los .