Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-05-28
GREAT SENSATION
In the Farmers National Bank
Case, vergennes, Vt.
Lieut.. Gov. Allen and Rep. Ketehum
foth Under Arrest
Charged With Aiding Cashier Lewis to Wreck
Bar k..Both Deny u.

'cI6eHleS, W., May St.-LIeut. HOVs
M. F. Allen, vice president and director
of the Farmers National Bank which
recently suspended here, and ]. w.
ketchum, representative to the Leg
islature from this place. were arrested.
today, by United States officers under
/ indictments charging them with COM
plicity with Cashier d. II. Lewis in
wrecking the bank. The indictments
were found by the United States grand
jury at Windsor, last week. There are
two counts in each case, charging COM
plicity in embezzling the funds of the
bank and with classifying the accounts.
Lieut.. Gov. Allen will be given q
hearing at Ferrisburg, his home. dur
ing the day. The United States off,
Gals will go to that place for the pur
pose. Mr.. Ketchum was taken to Bur-
lington after his arrest for a hearing
before the United States court in that
city.
These developments in the bank case
were not wholly unexpected as rumors
involving the names of both men have
been in circulation in this city. since
Friday, when the United States grand
jury reported three indictments against
Cashier Lewis, charging embezzlement
and making false entries.
1t was understood that these rumors
had become so strong that the lieuten-
ant governor visited Windsor. Satur
day, to investigate the matter but
could ascertain nothing.
At 1890 this forenoon, Fred Field of
Rutland, United States marshal.
reached Ferrisburg from Burlington.
He visited Lieut.. Gov. Allen and form
ally placed him under arrest.
1t was announced that the clerk OF
the United States court. George +.
Johnson of Burlington, would come to
Ferrisburg during the day and hold r
hearing at which bail would be fixed.
Lieut.. Gov. Allen manifested no par
ticular surprise at being arrested. He
declares that there is absolutely no
grounds for the action and that he ia
perfectly willing to have the case in
vestigated in order to prove his inno-
cence.
Nothing can be learned, definitely,
as to the facts on which the indictment
is based. The belief most generally
expressed is that it involves overdrafts.
Deputy United States Marshal Jos.
Stoddard of Rutland, came to Vergen-
mes after MIR. Ketchum. AS soon as the
warrant had been served. preparations
We're made for taking the prisoner to
burlington and a hearing was held
during the forenoon. Mr.. Ketchum
pleaded not guilty and bail was fixed
at $4,000
MI Ketcham denies that he ever
had any connection with the Farmers
National Bank. Cashier Lewis of the
wrecked bank, formerly was state COM
missioner of taxes and Ketchum was
HIS clerk. During his relations with Mr..
Lewis the clerk occupied one office at
the bank. but 1t is positively denied
that he had any handling of funds OF
the bank or was in any way connected
with the institution.
At present Mr. Ketchum is proprie-
tor of newspaper plant. from which
several papers are published.
Mr.. Ketchum has lived here only
few years and but little is known Of
his life previous to that time. He is a
young man and quite popular.
The work of investigating the cOndi-
ton of the Farmers Bank practically
has been completed and it appears that
the total shortage is about $54.313.
Receiver James Sullivan of the bank,
has placed an attachment upon all the
property of Lieut.. Governor Allen and
also upon the estate of Norman ]. AL
len, his father, of which the son is adj
miniStrator.
During the afternoon. Lieut.. Gov.
Allen was given a hearing at North
Ferrisburg before Clerk George +.
Johnson and without going beyond the
preliminaries, bail was fixed at $4,000.
furnished by townsmen of Mr.. Allen.