Spirit of the age. [volume] (Woodstock, Vt.) 1845-1913, 1908-12-19

Somersworth, N. H.-A tremendous
sensation was created here Dec. l6,
and with ramifications in Dover and
in Berwick, Me, Just across the river,
when it was learned that Fred M, Var
ney cashier Of the First National
bank, was under arrest on a charge of
embeZzling the funds of the bank, and
that he had confessed that he had ma
nipulated the books and funds OF the
institution the past six years, until
the former were In .muddled condi-
tion and the latter were depleted by
at least $S5,00O.
The streets are filled with rumors
which place the shortage in the bank
at much more than $S5,0O0, but from
the meagre Information which can be
secured from those closest to the af-
fairs of the institution 1t is understood
that they do not think the defalcation
will exceed the amount named by the
cashier.
Varney spent the greater part of
the day going over the books with
Pres. w. S. Tibbets and National
Bank Examiner Norwin S. Bean of
Manchester, and showed them how he
had doctored the books so that the
president, the directors and lne bank
examiner were kept in ignorance OF
the situation until the recent visit of
the latter.
Varney solemnly assured the presi-
dent and Mr.. Bean that his pecula-
lations would not exceed about $685.
900. Dealing in crooked finance on
so considerable a scale, he couldn't
tell exactly how much he had made
away with, but he thought $S5,OOO
was about the figure.
Cashier Varney, who apparently is
holding nothing back, now that he has
admitted being a defaulter, further
stated to Mr.. Bean that no other per-
son connected with the affairs of the
bank had either part in or knowledge
of what he had been doing. He pro-
fesses now to be anxious to do all that
he can in helping to straighten out the
tangled mess, and his services are be-
ing availed of so far as possible.
Cashier Varney has refused so far
to make any statement to the press
concerning his trouble, and Kivel &
Hughes of Dover, who were retained
by him as counsel, were unable to
make any statement in his behalf.
In addition to the shock which social
and financial circles received when the
arrest of Varney became known, the
business men and others who had de-
posits in the bank sustained most
embarrassing jolt, and the holders of
the stock, who are pretty sure to be
called upon for a heavy assessment,
possibly as much as 100 percent, feel
the blow heavily.
Coming just before Christmas, when
the merchants were increasing their
bank balances against the coming of
the bills at the new year, their embar-
rassment is likely to be more severe
than at almost any other time Of year.
There were considerable number
of women stockholders, and not few
of the smaller stockholders in the
bank had the savings of years repre-
sented by their certificates These, 1t
is rumored, will be unable-at least
some of them-to meet an assess mant,
which seems to be assured. Indeed,
it was said by one of the directors in
the bank that it was doubtful if there
were enough stockholders able to pay
an assessment of 100 percent to make
up the deficit
According to the latest statement of
the banks condition, made Dec. 4, and
showing its condition, or purporting to
show it, at the close of business on
Nov. q, the bank then had surplus
OF 500, 900. Cashier Varney was under
bonds of $4,000, furnished by the
American Surety company, and assum-
ing that the bank actually did have a
surplus of $4,000 the surety com.
pany's $4,000 would still leave $45,-
900 to be made good, figuring that
varney has told the truth as to the
mount of his peculations and that the
hortage Is not above $4,000.