Middlebury register. (Middlebury, Vt.) 1886-1937, 1901-05-31
VERGENNES BANK CASE.
Lieut.. Gov. NJ. +. Allen and j. w. Ketchum
Arrested for Completely.

| Ferrisburgh and j. w. Ketchum of
Vergennes, proprietor of the Vergennes
Enterprise and allied papers and also of
the Empire Egg Maker company, were
arrested on Monday on indictments
found against them by the United States
grand jury, which recently held its
session at Windsor. They are charged
with completely in the wrecking of the
Farmers National bank of Vergennes.
Lieutenant Governor Allen was placed
under $4,000 bail, which was promptly
given. j. w. Ketchum was unable to
secure $4,000 bail at once, and was placed
in the Chittenden county Jail.
The specific charges are aiding and
abetting Cashier Lewis on the part of
Governor Allen, and making fraudulent
entries on the part of ketchum.
a Burlington Free Press reporter
drove to the home of Lieutenant Govern.
or Allen at North Ferrisburg Monday
forenoon and was welcomed by him in
the genial way by which he is so well
known. After having introduced the
reporter to his wife, Mr.. Allen i'm
mediately entered upon the discussion of
the affairs of the bank and the indict-
ment that had been found against him.
In answer to the question of how. much
was the Indebtedness of himself and the
Allen family to the Farmers National
bank he replied that the amount was
about $4,000, S2S00 of which was an
overdraft, the rest being secured by
collateral security.
While this conversation was going on
United States Marshal Fred A. Field of
Rutland was announced and on being
brought in to the room he served the pa
pers on Mr.. Allen, who read them and
told the amount of bail required, which
was $4,000.
Not often does an officer have so quiet
a time or is treated so courteously in the
discharge of his duty as Marshal Field
was in this case. On the arrival of Mr..
Field at the depot at North Ferrisburg
he found team awaiting, which the
lieutenant governor had sent down to
meet him.
The indictment against Lieutenant
Governor Allen states that he aided and
abetted Cashier David Henry Lewis in
fraudulently securing loan from II. w.
Ward, treasurer of the Burlington Trust
Co.. of Burlington, without the consent
of the directors of the bank and that the
money was converted to Mr.. Aliens
own use with the corrupt and fraudulent
intent to iniure the banking Institution
and that the loan was paid from funds in
the bank and that Allen was benefited
by this amount and that he did wilfully
counsel, persuade and abet David Henry
Lewis in so unlawfully and fraudulently
misapplying the sum of S5025.
At two o'clock Lieutenant Governor
Allen met his attorney. Hon. Seneca
Haselton and George +. johnson of
Burlington, clerk of the United States
district court, and gave bonds for his
appearance at the term of United States
circuit court to be held at Rutland in
October.
The bondsmen were the neighbOrs and
friends of Mr.. Allen, who of their own
free will offered to become his bonds
men. In fact more offered their services
in this respect than were needed The
names of the bondsmen for Lieutenant
Governor Allen are John +. Palmer and
Judge III. Il. Baldwin of Monkton, ). c.
Palmer and Frank A. Lewis of Charlotte,
John S. Wheeler, DR.. George b. Collins,
Daniel Kimball, Stoddard Martin and
Carlos ). Martin.
In regard to the discrepancy of Sl0,-
600 between his claim of what the Aliens
owe the bank and what has been pub
lished that the bank claims they owe,
S22 900. Mr.. Allen says that it will be
satisfactorily explained when the time
comes to do so.
The lietenant governor stoutly asserts
his innocence of the charge preferred
against him. He also stated that never
to his knowledge was he benefited by
the money obtained from the Burlington
Trust company, but would not say more
as he did court a newspaper trial.
The lieutenant governor has been the
recipient of many messages from all
sections of the state expressing sympathy
with him and the hope that he would be
fully exonerated from the unfortunate
conditions in which he is placed.
In response to an inquiry as to whether
he had said that II his account was short
it was due to false entries in the books
of the bank, Mr.. Allen stated that it
was so. He further said that had he
had any desire to compromise the matter
to the least degree he never would have
been arrested. But being state official
he feels that it is his duty to undergo the
fullest investigation in order that even a
suspicion shall not be left against him
and the reputation of the state be left
untarnished.
of New York, brother-in-law of Col.
Scranton and who holds $4,000 of the
stock, had made an assignment. This
rumOr has not been verified, but it is
stated on good authority that the di-
rectors of the bank understand that Mr..
LerOy's finances are in such a con-
dition that he cannot meet an assessment
Oh his stock. This of course cripples
the resources for the depositors of the
bank by $4,000.