The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1901-05-29

| ulAr with MS constituents,
| John W. KetChum was born in Buffalo,
N. T., in 1868 and located in Vergennes in
1894 and received his education In the pub
| lie schools OF New York. He has been a
member OF the Vargennes city council, was
| teller in the Farmers bank for one year and
was elected Representative from VergenncJ J
In 1900. He Is publisher OF the Ver9ennes
Enterprise and manufacturer Of hen feed.
In outline, the connection Of Lieut-Gov.
Allen and Representative Ketchum with
| the downfall Of the Farmers bank, it is al
| legged, Is as follows:
When Ketchum was teller OF the bank he
| is said to have continually gone to Cashier
Lewis and warned him that Mr. Allen was
crooked and to look out for him, and vice
versa, TO have gone to Mr.. Allen and
warned him in the same manner about
| Lewis. But, in spite of all thia IL ia charged
he raised Mr.. Aliens deposit So 800
Ia one year over the amount actually de-
| posted. Growing bold in the cJnnivings
| he began his peculatlons at the low fyure
OF S25, and the sums increased until 5000 or
S3OO at ttme were taken. While Ket CHI
um mas occupied an unpretentiOus resi-
| dence, yet he has INDUCED In other luxu-
ries which caused much comment among
his acquaintancas, - they could cot UNDER
stand now the revenue from his egg-produc-
Ing food and a country paper could be made
to meet his expenditures, and be had no
private fortune, as he came to town few
years since as a common laborer.
lt is claimed that Lieut. .-Gov. Aliens ex-
PLANTATION of his position in the affair is
even worse han the offence alleged. Il is
Claimed shat he explains the 50 600 over de-
posit credited TO him by 5ayiug that he did
not know how much money he had in the
bank, but kept drawing nevertheless. An
other singular feature is his alleged borrow ".
ing OF 5000 from Burlington bank IS a
loan for the Farmers bank. This $500
was entered on the Farmers banks books
as deposit by Gov. Aliens daughter,
Later it was credited TO his own account
aud he checked out 81 000 Of 10 and Cashier
Lewis used the remaining $1,000. When
the note in the Burlington bank became
due 4 was met with bank funds, but in
stead OF charging Gov. Allen or his daugh-
tor with the 5000, it is credited to her &C.
count again, and again checked out by Gov.
Allen.
This deal gave Mr.. Allen So, 900, and while
1t Is now not known just how much he mas
overdrswn, 1t IL believed the sum will!
amount TO between $4,000 and $4,000. The
queer part OF his explanation is said to bs
thatr while he was checking out the sums
he should claim that he did not know at
any time that he was Overdrawing his &C
count.
1t is expected that both Mr.. Allen and
Mr.. Ketohum will be arrested by United
atates Marshal Field some time today,
1t Is stated on good authority that Lieut..
Gov. Allen courts the fullest Investigation.
1t is understoon that he claims that, il his
eccounts st the Vergennes bank are not
straight il is because they have been lug
gled by the defAulting cashier. Duriag all
the years Lewis has beel cashier OF the
bank Lieut., Gov. Allen has never kept a
pass book. When the cashier told him his
account was overdrawn he has made it
good, without questioning his account,
Lieut. Gov. Allen is anxious to have an ex-
pert examination of his personal account
at the bank, and is said to have no fear as
TO the result
BURLINGTON, Nav 27-J. w. Kstchum
was arrested at Vergennes by U. s. Mar
shall Field this forenoon on charge OF com.
plcity in the Farmers National bank
frauds and embezzlements under the re-
cent indictment Of the United States grand
jury at Windsor. At the hearing before
the United States court sitting in this CITY
his bail was fixed at S5,000 Mr.. Ke chum
wss held in custody pending the arrival OF
security on the 4:20 train this afternoon.
VERGENNEs, VT, May N.-Lieut. Gov.
Allen, vice-president and director OF the
Farmers national bank, and j. W. Ketch-
umi representative in the LEGISLATURE were
arrested this morning on an indictment
charging completely with Cashier Lewis in
wrecking the bank on an indictment found
by the United States grand jury last week,
charging completely in embezzling and falsi-
lying accounts.
BURLINGTON, May 27.-Gov. Allen will fur.
nish bail AZ his home in Ferrisburgh The
amount ia not at this time known. In an
interview this morning Gov. Allen express
ed himself as confident regarding the out
come He says the Allen estate owes the
bank S4,O0O, be owes it about S3,0 900 on pa.
ptr, ! n aboat 50 600 on overdrafts.
Representative John W. Ketchum was
unable to raise S5, 900 bail ON Monday and
was committed to Ohitteuden county Jail.
There he will have to remain until Wednes-
day night at least for Clerk OF the United
Vnh hnfAr
whom the bail would be given, went this
morning to Brattleboro and will not return
until Wednesday night.
At the Jail last night Mr.. Ketchum, while
not feeling strictly "at home" was COM
posed In his demeanor and said that he was
confident he could secure bail without
serious difficulty. He was glad to converse
with his visitors, and incidentally amused
himself By talking "horse." When eau.
toned against tipping his chair back upon
the stone floor OF the Jail Office he re-
marked that his life was insured for some-
thing over S24 900 which wouldn't be bad
thing for his fam ly to receive. The cell in
which Ketchum slept last night is one of
those used for women and the better class
of prisoners upon the second floor.
When told in the afternoon that a rumor
was current that his account was found
to be short $4,000 he said at isn't my ac-
count. My account is all right" When
asked II he made the figures Ia the blank
DOohs WnlCu tAlSeu Lieu -GOVornOr Aliens
account $3.50 he admitted that he did
but said II didn't do 1t intentionally"
Lieut Gov. Allen promptly furnished the
$4,000 bail required and was in custody
only few minutes. The bondsmen were
the neighbors and friends of Mr.. Allen who
OF their own free will offered to become his
bondsmen. In fact more offered their SER
vices in this respect than were needed. The
names OF the bondsmen for Lieutenal Gov
ernor Allen are John e Palmer and Judge
I'll Il. Baldwin OF Monkton, s. O. Palmer
and Frank A. Lewis OF Charlotte, John s.
Wheeler, DR.. George b. Collins, Daniel
Kimbal, Stoddsrd Martin and Carlos s.
Martin.
In regard TO the screpancy Of $40 eco
between his claim OF what the Aliens owe
tho bank and what has been published that
the bank claim5 they owe $4,000. Mf
Allen says that 10 will DO satisfactorily ex-
planned when the time comes TO DO 80. The
lieutenant-goveruOr stOutly asserts his inno-
cence OF the charge preferred ag inst him.
He also stated that never to his knowledge
was he benefited by uhe money obtained
from the Burlington Trust Company, but
would not say more as he did not court a
newspaper trial.
The 1iantenant ogovarror bea hoo,, tto ~