St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1901-04-24
The Vergennes Bank Failure.

The examiners are still at work on the
books of the Farmers National bank of
Vergennes, and have given out no state.
meut. Some attempt has been made to
mix romance with criminal cunning in
this robbery but no confirmation of the
rumors can be secured. 1t is true that
for some months past Mr.. Lewis has
been somewhat intimate with Mrs.
Francis P. Hulett OF Concord, Mass.
She is reported to be wealthy. The old
charter of the bank expired this month.
Last summer President Dunshee and
Vice President Allen, with other direc-
tors, favored winding up the bank, as it
had earned but 4 per cent, and the stock
was not marketable. Cashier Lewis
urged the continuance OF the business,
and said if the capital stock was reduced
from SIS, 900 to 100000 it could be
made to pay per cent. He was so per-
Sistent that the other directors agreed.
They applied for the renewal of the
charter in September and for permission
to reduce the capital stock. Comptrol-
Ter Dawes sent an examiner from Cal
ornia, who reported the bank sound,
and the comptroller personally gave
VicePresident Allen the new charter
when the latter visited Washington.
The one hundred per cent assessment on
the capital stock will work real hard
ships IN some cases.
1t is said that fast living in the form
Of wine suppers to his business and
political friends have been included in ex-
travagant customs and great liberality
it they could be fully known would par
TALLY explain his use of the money, but it
seems extraordinary that he should have
spent nearly 100000 in this way. Since
last October the bank officers figure that
he has taken $4,000. The shortage has
been growing steadily the last fifteen
years. Between So, 900 and $4,000 has
been used annually. The regularity OF
the yearly deficit would favor the asser-
ton that Mr.. Lewis simply lived beyond
his income.
As to Cashier Lewis methods of cover
ing up this immense robbery and the
manner in which it has been used, it is
generally reported that he has failed to
give credit for large amount of deposits
made, putting them into his own pocket.
In this way the books can not be made
to show the shortage.
I. E. Holiday, OF New York, represent
ing the American Surety Company,
which bonded Mr.. Lewis, for $4,000,
has paid the temporary receiver check
tor the above sum. Mr.. Holiday said
he was satisfied that the embezzlement
was clean steal. He will be present at
the trial of Lewis in the United States
circuit court at Windsor, May 81.
Some Caustic Comments on Banking
Methods and Bank Examiners.
A Vermont bank examiner has at last
discovered something before the rest of
the state knew it. Astonishing II Barre
Times.
The reticente maintained by the Off
GERS of the bank and others in a position
TO speak with authority, is so pronounc-
ed that it is too early to comment on the
affair at length. However, if there has
oeen fault on the part of any one, there
is but one course to pursue. 1t can be
stated in this connection that the condi- |
tion OF the institution had long been the
subject of suspicion among leading bank
ers'- Burlington Free Press.
What have the different bank examin-
ers been doing at Vergennes for the past
10 years. We have heard it said that |
the government does not require the ex,
amiuer to foot the columns of figures on
the different books. IT this is true
then of what use are bank examiners.
we believe bank examiner should be a
man OF some banking experience and an
expert book-keeper. There certainly is
screw loose somewhere and the sooner it
Is tlghtened the more valuable bank
stock will become.-[W Waterbury Record
Again the question is pertinently
Tt,i Do the examiners examine
within a short period of time three
neaVy bank defalcations have pushed
Inelr way to light by their own magni-
Iuue. The bank examiner has been the
.ast and least agency in giving them
publicity. His function in the cases has
oeen rather that of coroner sitting in
augment, after the act, on the remains,
amer than that of a watchful, discern
ng agency to find fraud and wrong and
jacquard the interests of investors and
iepositors. In the case OF the Farmers
y, national Bank at Vergennes, the latest
disclosure, the disaster has been accumu.
atlng under the nose of the bank ex.
:. who is resident of that pioneer
''y OF Vermonr.-[ Montpelier Journal. |