The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1901-04-17
BANK WRECKED.


The doors Of the Farmers National bank
OF Vergennes are closed and the institution
is in the hands OF j. I. Sullivan of Wash
ingtoD, ID, O., as receiver.
Bank Examiner Frank L. Fish, during
an examination OF the bank on April 3, dis
covered a shortage In the cash, and further
investigation which has been conducted by
Special Examiner John B. Cunningham,
indicates total embezzlement by the
cashier, ID. III. Lewis, of $4,000. Alter
the discovery of the dsfalcation the exam.
liner secured the return of $4,000 to the
bank,
Until more complete investigation into
the acts Of the cashier Is ade IL i5 impos-
sible to state what loss, IL any, will accrue
to the depositors. IL is not believed, how
ever, that the loss to the depositors will be
large.
Cashier Lewis is at his home in Vergennes
and has not been arrested. The rumor that
others are involved in the affair also adds
to the possibility OF further startling de-
velopments.
AS soon as the news became known in
Vergennes, the enormous embezzlement
was the only topic OF conversation. How
has 1t been possible for a man in such
small bank, guarded by its directors and the
national bank examiners, to secure such an
enormous sunni This question is unan-
swered and none OF the bank or government
officials will speak upon the subject. Con-
versation since the closing OF the bank dis
closes the fact that among the banking
fraternity the crisis is not matter OF gen.
eral surprise as some OF the leading bank
men had called the attention OF the proper
officials to the institutions condition and
the need OF an investigation some time ago.
Too implicit confidence in one man and al
lowing him practically entire management
OF the banks affairs is given by financial
authorities as contributing cause to the
banks failure.
1t is thought that the amount Of the de-
falcation will be about S75 900. The bank
had capital stock OF 100000 and the last
report showed that it had deposits subject to
check to about $50, 900 and time deposits for
about the same amount. 1t is thought that
not only will the entire stock be wiped out
but that in addition the stockholders will
be heavily assessed.
1t is reported that Mr.. Lewis has turned
over to Special Examiner Cunningham for
the bank the sum OF $4,000 Mr. Lewis
remains at home and has turned over to
the bank officers his entire holdings Of
stock. His sureties are ga d to be good for
$4,000 and his bondsmen for as much
more.
The bank was organized in 1880 with Col.
Walter Scranton OF East Orange, n. j., now
at the head OF the Lackawanna Steel and
Iron Company as president. The present
officers OF the bank are: President, Col
n. +. Dunshee Of Bristol; vice president,
Lieut.-Gov. M. r. Allen OF Ferrisburg; di-
rectors, N. f. Dunshee, Col. Walter Scran-
ton, ID. II. Lewis, II. w. Leroy Of New
York city and II, w Tracy of Shelburne.
Mr.. Cunningham says Cashier Lewis de-
ceived the bank officers, and that Lewis
alone was responsible for the wreck. The
exact method which the cashier employed
was not described. TIE populations are
understood to cover long period, and the
funds appear to have bee taken in small
amounts to cover living expenses.
ID, III. Lewis has been a member OF both
branches of the legislature. For some six
or eight years past he has been a prominent
candidate for State treasurer.
In 1898 Governor Smith appointed Mr..
Lewis State commissioner of taxes, and he
was a candidate for reappointment in 1900.
Cashier Lewis OF the wrecked Vergennes
bank has furnished $25. 900 bail for his ap-
pearance before United States district court
at Windsor, May d. and has heen released
from custody. Friends in Vergennes be-
came surety for him.
All the deposits M de a. the bank on Sat
urday were placed in sealed envelopes and
will be returned upon application by the
depositors. The gross amount OF Cashier
Lewis embezzlement will nearly il not
quite reach 500 900 and covers long term
OF years. One of the officials will disclose
the method adOpted to cover up the detai ca
tiOn but Special Examiner Cunningham
states he has never found another method
like Mr.. Lewis in his career. He Is now
auditing the books Of the bank and an otfi =
cial statement OF their condition is not like
ly to be presented for some time.
The most significant statement concern
ing the length of time that Mr.. Lewis has
been conducting his embezzlements was
made by man closely connected with the
inYesiie aUion. He said "For fifteen years
Mr.. Lewis has covered up each year small
embezzlement. 1t seams to have grown
upon him until it became rs much part OF
his duties az cashier as the receiving and
entering Of deposits. II seems hard TO say
this of u man who has been trusted by ev-
cry woman in the community and also
hOnored in high offices by his State, but, in
the light of developments IL is quite evil
dent that to take that which belonged to
the bank was a habit"
No new light has been thrown on the pur-
pose for which Mr.. Lewis has been conduct
ing the embezzlements. He has had only
himself to support since the death OF his
| wife about two years ago. His salary as
cashier of the bank was 81 800 and as treas
urer OF the National Horse Nail Company
| S7O0 From 1898 to 1900 he received 81, 100
a year as commissioner of State taxes. OF
| this latter amount he paid j. w. Ketchum
! $500 as clerk. Mr.. Ketchum also assisted
| in the clerical work of the bank. He re-
signed late last September after having
been elected to the General Assembly.
Walter b. Dalrymple has been teller OF the
bank since last December
1t ia related about town that when Cash
| ier Lewis was aware that an examination
was TO be made OF the banks accounts by a
special government inspector, he went tc
the National Bank of Vergennes, located
| a few doors south of the Farmers National
Bank, and succeeded in borrowing a GER
tain amount of securities, claiming that
they would be returned within few hours
If this story is correct, it would appear
that Mr.. Lewis thought to cover his defal
cation by making use of temporary loan
The relator OF the story further says tina
these securities were not returned as prom
ised and that an official OF the National Banl
of Vergennes was obliged to call upon Mr.
Lewis before they were returned to the
lender.
VElR nE GUrNkgg