Daily Kennebec journal., 1908-12-17


ier OF the bank, was arrested on !"
-anarge of being defaulter. The trou-
hle was discovered by National Bank
Examiner n. S. Bean of Manchester
in the course of a periodical eXamina-
tior of The accounts of the institution
varnev was arrested by United States
Marshal Eugene p. Mute OF Farming
ton, n H., acting under the directlon
of United States District Attorney T.
w. Hoyt of Nashua, both ofhcials nav
ing been summoned here by Examiner
Rean. After his arrest according !"
Statement made by W. >. IcbnetS'
president of the bank. Varney made Il
confession. admitting that ne had YAK
en q large sum from the bank. winch
had been lost in specializing. he sa'o
also that he alone was responsible Tor
the defalcatiOn. which had Deen ac-
cumulatine. for the last six years. VAR
new was given hearing here late TINS
afternoon before United States Com
missioner Burns F. HOdSman 81 con-
cord He pleaded not guilty and fur-
nished hail Of SIG. 900 for his appearance
before the United states district court
ut Portsmouth. the third Iuesday IN
March His hondSmen were John T. w.
Han, a business man Of Dover and
uncle of the cashier and DR.. John f..
Willis Of .3omerswOrth.
I'm rrportins the trouble to the comp
troller of the currency. Examiner Bean
said that the defalcation amounted 10
$S5. .0CO, but that. in his opinion the
bank was solvent. He stated also lnat
the directors had said that they We're
una bic to make up the impairment ana
haG requested that the examiner take
charge with a view to lquidatlng the
| affairs of the institution. Late today
| Mr.. Bean was appointed temporary
| receiver by the comptroller.
The, latest statement of the finances
| of the bank made in September. 1903,
was as follows: Capital. $10o.onO; sur
plus so, O,256; deposits, $220.244; loans
and discounts. S214.931; cash and eN-
changes. S26.95'.
| The officers of the bank are: W, ;.
Tebbatts. president. and the following
directors: W. s. Tebbetts. G. II. Wells.
| p C.. Bates, Chas. f. Harmon. g. fred
| c;nms sidney f. Stevens and w. ).
| Lawson.
| Narney is 80 wears old. He IS mar
/ ried ana has one child. a son of 10
|
| nrsw,rtb for II years and was one OF
the prominent young men OF the t'tS.
| He WAS II member of many frateTnai
organizations and had served the city
| two wears as city treasurer ne"
! treasurer was chosen three years ago
| when the city election resulted IN u
| change in the administration. NarlleS
| ,iid not live ostcntatiously. He recelEea
;, salary of $500 from the bank. out or
| which he was required to pay Two a.
! sistantS. 1t was known to his frlends
that he was deeply interested III the
stock market. but it is said that ahere
was nothing to show that he was IN
vo,ye0 beyond his means in any trans
actions.
| The life of the cashier has been GU
| riouslv associated with bank dllli-
! cultias. although in no case previously
| had the slightest reflection been cast
upon his name. Upon completing ms
| education in the schools Of the ne1Sh-
boring city of Dover, y. H.. where ne
was horn, he entered the Dover Ma
| t;onal Bank as clerk. In 1895 tins bank
and the Dover Five Cent Savings Bank
which was identified with it. were
wrecked by Isaac F. Abbott. who was
cashier of both institutions and who
committed suicide after the discovery
of a shortage of $97595. Two years lat
er yarnov was called to Somersworth
to become cashier of the First Nationai
Bank. formerly the Great rams "a
t;onal Bank. whose cashier. Joseph r..
Stickney, an aged man, had peei '.ui
dared in the bank offices. The murder
er Joseph Keller. who IS now SERVING
| , farm, in the state prison at Concord.
hastily robbed the bank, securing ABOUT
s43OO After Varney had become set
tied here he purchased the house 1or-
merlv occupied by Cashier StlcKhey II
| was at his house that he was arrested
| nv the United States officials today
Varney was only 2s years old when
chosen to the position of cashier. but
| he undertook the duties with energy
and ability that greatly pleased the Of
Gcers of the institution. The bank neV-
| er fully recovered. however, from the
| setback which followed the Stickney
| murder, although Varney secured Tor
if the handling Of much of the business
of the Great Falls Manufacturing Co..
with it's large payroll OF cotton niiii
operatives. Some of the business men.
moreover who at the time of the stick
nev tragedy transferred their accounts
to the SOmerswOrth National Bank. the
ONLY other bank in the city. did not
change back again after Narney be-
came cashier of the First National.
Examiner Bean has not revealed the
method employed by Narney in cover
ing up the defalcations for six years.
hut ii is understood from other sources
that he employed two sets of books.
one of which was submitted to the ex-
aminer on his visits to the bank. and
the other kept by the cashier privately.
TIE unexpected appearance of the ex-
amner this week at a time when there
was 10 chance to introduce the decep-
tive books led to the disclosure of the
shortage.
In statement issued late TODAY
President Tebbetts said Examiner
Bean had informed him that the bank
was probably solvent and all depositors
would be paid in full. Narney has not
been taken to Jail but remains in Gus
tOdV of United states Marshal Mute