Middlebury register. (Middlebury, Vt.) 1886-1937, 1901-04-19
A SIS, 900 SHORTAGEM F. WALKER DEAD.
FARMERS NATIONAL BANK OF YER
GENNES LOOTED.

The Cashier Charged with Misappropria-
tion of the Funds-Bank Closed Satur-
day and Now in Charge of Government
OHciaIs.
Vergennes, April 17-David Henry
Lewis, cashier of the Farmers National
bank of Vergennes, is short iu his ac-
counts all of $4,000, and the amount
may touch higher figure.
The first knowlege of anything being
wrong in the cashiers transactions came
Saturday evening when information was
received here from the office of the comp
troller of currency in Washington that
j. L. Sullivan of that department had
been appointed temporary receiver.
This information came as shock to a
community that for over twenty years
had reposed every confidence in sup
posedly trustworthy man. Since last
Monday Special National Bank Examin-
er John b. Cunningham, whose head
quarters are in Boston, has been at
work on the books of the bank. He
came here on instructions from the
comptroller's Office in Washington.
April 3 National Bank Examiner Frank
l.. Fish, of Vergennes, went over the
accounts of the bank and his report to
the comptroller showed a shortage in the
funds of this institution. This examina-
ton of the banks accounts was the
regular semi-annual work of the national
bank examiner for Vermont. Even
with the arrival of Special Examiner
Cunningham no one believed that it
meant the INVOLVING of the cashier; In
fact, it was looked upon as meaning but
slight discrepancy IN figures which
would be quickly adjusted and place the
bank right in every way before the
community.
From the developments of the past
week it appears that one of the directors
who lives IN New York city has suspect
ed that all was not right with the bank,
and two hours after the arrival of Special
Examiner Cunningham Fl. w. Leroy, a
director, entered the bank and was
much surprised to find a government
official in charge. Since this time the
directors of the institution and Mr..
Cunningham have been making a careful
examination of the accounts of the bank
They worked early and late to bring
about an understanding of the bank s
position. This was not arrived at until
late Saturday evening.
The principal reserve agent for the
Farmers National bank Is located in
Boston, and 1t has been discovered that
this account has been largely overdrawn
and further that the customary reserve
fund of Is per cent of the banks de-
posits has largely disappeared. Within
the past three weeks the banks drafts to
quite number and for quite large sums
have been protested. ut is believed that
the protesting of these drafts is what
aroused the suspicious of the New York
directors. who are Col. Walter Scranton
and III. w. Leroy, and which was the
cause of the latter's making hurried
trip to Nergennes. The other directors
are Col. y. F. Dunshee of Bristol, Lieut..
Gov. Martin F. Allen of North Ferris
burg, ii. w. Tracy of Shelburne, and
Cashier Lewis.
The bank has had some four hundred
to five hundred depositors, most OF
whom carried small accounts. The ag.
gregate amount of deposits will reach
$4,000, and for the past year there has
been perceptible decrease in the
number of patrons carrying deposits
subject to check.
Early in the week it was the belief OF
the directors that, with the assistance OF
Colonel Scranton the affairs of the banl
could be tided over without the closing
OF the doors, which, however, has moi
been brought about, and the bank wa:
not opened for business this morning.
1t is the hope ard the belief of those
most vitally interested that the bank will
be able to pay to its depositors and stock
holders one hundred cents on the dollar
When Cashier Lewis realized that Ex
aminer Cunningham was rapidly becom
leg familiar with the condition of thing,
he turned over to the credit of the banl
collateral to the amount of S25, 900. Tn,
examiner has further found securite
and collateral that will raise the bank
credit TO $4,000. In case the indebted
ness reaches no higher figure than SIS,
600, 1t will be reduced to $40, 900 by tn,
action of Cashier Lewis and the findin,
of the further collateral of $4,000.
Mr.. Lewls's salary as a cashier of tn
bank was $500 and as treasurer of tn
Natiopal Horse Nail company 500
From 1898 to 1900 he received SllOO
year as commissioner of state taxes. O
this latter amount he paid j. w. Ketchur
$500 as clerk. Mr.. Ketchum also assis
ed in the clerical work of the bank. II
resigned late last September, aftt
having been elected to the gener,
assembly. Walter b. Dalrymple hs
been teller of the bank since last Decen
ber. He was Immediately preceded b
r Howard j. Hill, who held the positio
from December, 1898, to the time of h
resignation last December.
The Farmer National Bank was O
ganized in 1880 with a capital of S75, 90
e The principal promoter of the organi
!, alton was Col. Walter Scranton, wi
was then resident of this city. /