The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1915-10-11
JURY IND|CTS
GEO. G. AVER|LL
Former President of Vermont National Bank Charg-
ed with Making Entries Intended to Deceive =
No Claim of Any Misappropriation-W H. Proc
tor and G. |. Durham to Be Sureties

A sensation was caused today, espe-
cially among those who had not been
aware that the action was under con-
sideration, by the arrest of George c.
Averill, former president of the Yer
mont National bank, on an Indictment
charging him with violating a federal
statute prohibiting the making of en-
tries on a bank books with the inten-
tion to deceive
The federal grand jury in session in
Rutland last week, returned an indict-
ment against Mr.. Averill Saturday
morning, under the section of the
statute above referred to, but not
charging any misappropriation of the
funds of the bank or any action involv-
ing the bank s security or depositors
United States Marshal Arthur P
| Carpenter of this town served the war
rant shortly after s clock this morn
ing in Mr.. Averill' S home, and on the
II O'Clock train Mr.. Averill started for
| ST. Johnsbury to furnish bail before
| United States Judge Harland B. Howe
for his appearance for a hearing at an
| adjourned session of the federal court
in Rutland, which begins Nov. so. He
was accompanied by Mr.. Carpenter, At
torney Hermon E. Eddy, who is di-
rector of the bank, and William H.
Proctor, who viii be surety for the
amount of the bail. George L. Dun
ham, head of the Dunham Brothers Co.,
also will sign the bail bond, but Mr.
Durham was unable to go to St. Johns
bury today. The amount of bail that
win be required by Judge Howe is not
known.
Statement of Counsel.
Following the serving of the warrant
the following statement was issued from
the Office of Mr.. AveriIl's attorney,
Clarke C. Fits:
"There is absolutely no charge nor
claim that Mr.. Averil has ever misap-
Epropriated or taken or misused single
dollar of the banks funds. The bank
is one of the strongest in Vermont, and
one of the strongest in the country. and
has grown immensely under his admin
istration. Mr.. Averill's s methods Of
handling the affairs of the bank have
been known to the government officials
in previous administrations, but they
are not approved by the present off,
cials and the indictment is based on
their views of the duties of bank Off
GERS
''It is purely technical in that there
is no claim of misappropriation in any
10 H. IL oIS
has lost dollar. Any claimed error.
or misstatements, in the reports to the
comptroller, are not matters which have
been at all concealed from the govern
ment officers, as it has all been plain
on the books Of the bank.
Mr. Averill and his friends court tht
= fullest inquiry into his management
and are ready to meet the issue when
ever and however it is required. -
,, For some days it had been known b,
: numerous persons in Brattleboro tha
i an effort would be made to have th
:. grand jury indict Mr.. Averill, an,
: while the jury was in session a numbe
!. !. of Brattleboro persons were summone,
to Rutland, but they were not used
I Proceedings before the grand jury ar
strictly private and no one has righ
to state whether any Indictment
found until after the papers have bee
served, so it was not known except t
the officers whether Mr.. Averill ha
been indicted until Mr.. Carpente
served the papers this morning.
Kelliher Starts Proceedings.
I For some time, it is said, the govern
ment officials have known of Mr.. A,
| erill S system of keeping the accounts G
I the bank, but have not regarded it q
\ warranting federal interference. Las
/ fall National Bank Examiner J. l
4 KelGher of Montpelier found entrie
\ which We're not in accord with wins
4 he construed the statute to require, an
! as a result the proceedings to secuI
l an Indictment were started, chargin
4 false statements on Sept. >, 191
/ end at other times. That these pr
I ceedings were under way was flll
/ known by Mr.. Averill
4 a statement of just what the entire
1 were on which Mr.. Kelliher based h
4 objections could not be easily told, 1T
in substance they had the effect, i:
said, of making tho reserve and d
/ posits appear slightly larger than In,
] really were.
Not only is no claim made that an
body benefited from these entries, b,
II Mr. AVerill 's attorney and hank q