The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1916-05-09
DIR. SMALLER LAYTON
A WITNESS TODAY
Said as Director He Was Ignorant of
the Real Condition of the Bank as
Reported by Mr.. Keueher - other
Directors to Testify.
Especial to The Reformer.)
BURLINGTON, May 9.


J, II. Kelleher of Montpelier, national
bank examiner, in the Averin bank
case today by c. c. Fits, the defend
ant s attorney, failed in an attempt to
secure from the witness an admission
that he had designs upon the presidency
Of the Vermont National bank to sue
ceed George G. Averill
The witness said that Mr.. AverilI S
resignation was demanded by the comp
troller Of the currency upon statements
made in the examiner S report. of the
bank s condition.
DR.. Shailer Lawton. director. testified
later in the day as to his ignorance of
the real condition. as reported by Mr.
heIleher Other directors viii appear
upon the stand during the afternoon.
James II. kellchcr of Montpelier, ma
tional bank examiner, had bad two
hours yesterday afternoon when he was
undergoing a rapid fire cross-exanfina-
tion at the hands of Clarke c. Fits. at
| torRev for the defense Mr.. Fits as a
cross examiner is some man and Mr.
kellcher wriggl2d in the witness chair
and hemmed and hawed to considcra-
bic degree under the rapid fire ques-
tIonS hurled at him III quick succession
| by the attorney for the defense. They
came so fast that the veteran court re-
porter, Jack Mimms. called a halt sew
eral times SO that he might catch up.
When court adjourned on Saturday
it was left hv order of Judge Harrrf
that Mr.. Kelleher must bring in to
court Monday afternoon his report Of
the condition of the Vermont National
bank to the comptroller in July, 1914.
| kellehe" claimed that this report was
confidential and couldn t be used in the
ease. Judge Hand thought otherwise,
| however, and the report was on hand
when court came in yesterday after
noon.
| The defense in asking for this sought
/ to show by its contents a favorable re-
| port on the bank s condition on the dav
! examined and that many entries such
as had been made on the books on his
/ later visit had been made IN 1914 and
indeed had been the custom for sev-
! cral years, proving in the mind of the
I defense that if the bank was all right
on the earlier date and the methods Of
! bookkeeping used by Mr.. Averin were
all right then. they were all right later.
The report, which was read in part
IN the conduct of the trial. showed that
Mr.. kelleher reported the condition of
! the bank to be all right in July, 1914
| Mr.. Fits examined the witness mi
nutely in regard to certain entries on
the books of sums charged to Concord
and credited to Shawmut banks. the
fgurcs being reversed a dav or two
later. These sums reached into tho
! thousands. Witness said he didn t see
these figures on the books when he ex.
amined as he didn t look for them. He
. "a OF al :
on the day before he examined the
books.
I Mr.. Fits drew from Mr.. Kelleher the
admission that the resources of the
| Vermont National bank on March 80
| 1910, at the time of the last examina
tion were more than So 900 900. Witness
admitted he did not know of a single
day named i'll the Indictment against
Mr.. Averin when the bank was less
strong than the above sum.
Mr.. Fits questioned the witness as
to the conversation he had with Mr.
Averill on the day of the last exdmina
tion and when the examiner said hC
found the alleged false statement on tn,
books of the bank. Witness said he
asked Mr.. Averill about certain trans
, fers to Shawmut and about certain un
, signed cashier S checks and also as t,
, certain cash items in the footings o1
+ the day S accounts. In explanation
the witness stated that Averill told hin
J that the transfers had been made t,
make the bank reserve appear create
than it really was. That the cashier
checks belonged to him for none,
which the bank owed him for commits
sions ON business secured, etc. Four o
these checks were unsigned, one wa
drawn to the order Of Mr.. Averill am
one to the Vermont National trustee
Counsel for defense brought out il
: the cross-examination that there wer
! unsigned cashiers checks in the Yer
: mont National as early as 1905 whiel
were still outstanding when the last eN
I animation Of the bank was made BY Nh
kelleher. These unsigned cashier
checks had been reeonciled from yea
to year by all the bank examiners. MI
Fits also brought out in the eross-ex
animation that in all but one or two pc
Y riods mentioned in the indictment tn
hank 3 reserve was a little more tina
the legal requirement Is per cent O
i the total depositsl, even without tn
q checks which it il alleged Mr.. Avert
Z used in bolstering up his reserve by
} system of charging and crediting sepa
d rate banks.
q An adding machine is now being use
IN computing various items of evidenc