Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1902-04-24
Revealed by Governments Wit
nesses in Case against J.
w. Ketchum.
RECKLESS WITH BOOKS
Seldom Did Cash in Farmers National
Bank Balance-Teller Hill Made Dis
honest Entries Same - Lewis
and Ketchum-Dsfence Part
ly Reveals Its Plan.

~ Reveals Its Plan.
Rutland, April 22.-The rotten condition
of the books of the Farmers National
bank OF Nergennes was fully exposed to-
day by the government at the second
days trial of John w. ketChum OF YER
gennes. charged with completely in wreck
ing that Institution. The exposures were
OF startling nature and showed that by
the various methods Of padding" by re-
duclng depositors accounts or recharging
checks and other false entries, that the
actual standing Of some Of the deposit ors
and the true condition of the bank could
not be ascertained from the books within
thousands Of dollars.
Inc details of the dishonest manipula-
tons were told by the various witnesses,
among whom were the ex-cashier, ex-
teller of the bank and the lieutenant-gov-
ernor OF the State. The showing made by
the governments witnesses was decidedly
good. although by the cross-examination
OF Teller Hill 1t was established that all
three Of the bank employees had made in
correct entries on the books. Just before
the court adjourned for the night Attor-
ney Cushman stated in part the grounds
on which the defense was working.
Ex-Cashier D. Fl. Lewis arrived at IT,
II
l." Morgan of the House of Correction
shortly before nine o'clock and Mr.
Ketchum and Lieut.. Gov. Afien appeared
soon after. All seemed to be In good spirits
and the respondent spoke in Joking way
of his excellent appetite and ability 20
sleep soundly at night
Judge Wheeler appeared at 9:15 o clock
and after the formal opening of the dis
trtct court and the calling Of the jury.
which had been kept together over night.
the cross-eKamination Of Mr.. Lewis was
continued from Monday afternoon by At
torncy Cushman. The methods of handling
the checks after they we're paid by the
bank was explained in detail by the ex-
cashier who seemed not little pleased
to once more handle the banks books
which held many pleasant associations for
him.
lie said the cnuUSs w. not cancelled at =
ter being paid. aud that arrer icing "a
tered on the records they were filed away
Between the time they were paid and tho
time the entries were made. the checks re-
manned on sticker, easy OF access to
the bank employees
IT. speaking Of the balancing OF cash.
which used to take place each noon, the
witness said he always did this work when
at the bank, but reiterated several times
that he was not always there.
DO you remember many instances when
the cash didn't balance?" asked Mr. Cush.
man.
Yes sir"
How frequently did 1t balance?"
More often than otherwise"
1T was quite a novelty to have the cash
balance was 1t not?"
Yes, SIR"
I'm regard to the posting from the Jour
nal to the deposit ledger, Lewis said there
were times when 1t was not done every
Day He later said that ketchum often
posted the books and told Lewis they were
all posted when he returned
When two persons were posting If you
called off and the clerk made the entries
all the means he would have of the check
numbers and amounts to put on to the
ledger would bewhat the caller said. would
It not?'
Il suppose it would"
so the accuracy OF the entries on the
ledger when two were working on the post
Ing would depend on the amounts and
number being correctly given?"
Yes"
Nv nat other prccaution except an arrow
head spindle on which the checks were
kept. was there to prevent their being en-
tered more than onoe?"
None"
Lewis said neither Mr.. Quinlan or Mr.
Allen had pass books and in reply to Mr.
Cushman's question Was there a time
after Mr.. ketchum came into the bank
when Mr.. Quinlan's pass book was written
up by Ketchum and returned to Mr.. Quinn
lan?" The witness said: Il recollect no
such transaction.
One of the cash slips used al the hank
was put in evidence by the respondents
counsel after it had been explained in de-
tail by Mr. Lewis. He said that although
nothing on the cash book of the bank
would show why the cash didn't balance
1t would probably be explained by the cash
slip. lie attempted to give the meaning
of the various Items on the slip, but could
not account for two or three of them.
Did you." asked Mr.. Cushman sudden
~, have practice of carrying your per-
sonal bills In your cash items of the slip?'
Lewis hesitated a minute and looked at
the questioner as though in doubt whether
to answer or not. Finally he said, yes,
sir"
| II you paid a taior's bill. that bill ap-
peared in the cash items in the bank?"
Until l made out a check and took 1t
up"
Mr.. Martins examination in rebuttal
showed that Ketchum had access to the
checks on the spindle.
when he had access to the books and
in your absence posted them, who had the
handling OF the checks?"
"Ketchum."
state whether or not at all times when
Ketch was In the bank he had access
10 the cnecKS ana DOCKS!
| AT all times"
Attorney Cushman ELECTED the informa-
| ton that Lewis was left alone In the bank
| at noon between the time the checks were
posted on the journal and entered on the
deposit ledger. Tho final question Of the
respondents counsel to Lewis and Its ans
wer were:
Then 1t is SO that he. (Ketchum). had
no authority in the bank except to do
clerical work under your direction?"
Eyes"
Lewis left the stand at 1920 o'clock and
was apparently relieved to do So He re-
NAMED in the court room the rest of the
morning, part Of the time in converse ton
with his son-in-law, Spencer X. Kinds Of
Vergennes.
TESTIMONY OF II. J. HILL
Howard j. Hin Of Bristol. who followed
| Lewis at the witness stand. said he had
been teller of the vergennes bank from
July, 1898 to February. 1901, that he was
familiar with the books and handwriting
Of the bank employees Ex-Gov. Ia j.
Ormsbee of Brandon. who is entered as
. special assistant prosecutor in the Yer
ho tail,