The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-05-07
Mrs. Woodruff Demands Re-
turn of Bond and
Mortgage ;.
TWO BRATTLEBORO
BANKS DEFENDANTS
Also Charles G.. Staples and President
OF Vermont Last Block Co.-Says
Company Was Represented to Be
Financially Sound.

AA4~AAS1o43y
An action in equity has Just been
brought in the United States district
court for the district of Vermont by
Mrs. Genevra W. Woodruff of New York
city against Cashier Charles G. Stanles
OF the Vermont National bank as
trustee for that bank and the Peonlps
National bank, also against the two
banks and against Oscar A. Woodruff
OF New York, president of the Vermont
Last Block Co. of Brattleboro and
relative of the complainant. The Last
Block Co. is in bankruptcy.
Mrs. Woodruff, through Attornors
Chase d Chase of Brattleboro. asks +bo+
the court order the defendants 70 ra-
assign ass m 10 her mortgage and bond for
eln,ooo which she assigned to them as
eoilateral security for loans bv tho
pahks TO the Last Block Co. She saws
Inat she Is 79 years old and DURING an
'hc periods mentioned in the complaint
was afflicted with defective eyesigbt
- mat It was practically impossible
1of her to decipher the contents of M
pcrS presented to her for signature.
her assignment of the mortgage and
pond IS dated Feb. 4, 1916. and is madn
on condition that no action shall be
taken hereunder for a period of AT
iedSt three years from that date. unless
necessary TO protect the mortgage as
signed @ and the security afforded by If
ne document sets up that before
fep. I, 1916, Mrs Woodruff was the
oWher o OF a mortgage in the sum of
s!o,Oo0, with bond as collateral
gwen by Mrs. Genevra w. Hogan and
secured by real estate. 1t alleges that
peIore Feb. I, 1916, for the purpose of
iiiuuclng her to part with the physical
possession Of her bond and MORTGAGE
ana 70 execute and deliver an ASSIGN
menf Of them in favor of Mr.. Stanles
q trustee, the two banks together with
lhe Last Block Go. and Oscar A. Wood
run caused certain representations to
De made to her One was, in substance
she SAYS, that the Last Block Co. was
d solvent corporation in good financial
standlng, able to respond to all its
deots and obligations, but for the pur
pose OF holding its then bank credit. in
connection with its profitable business.
anu merely as matter of form. il was
oesired to have her deposit the bond
ana mortgage as security for the pay
,heht or certain previous loans by the
nahks to the Last Block Co. She saws
u was represented to her that all the
ioans We're amply secured by mortgage
len on all the real estate and pron-
efty o1 the company, said mortgage be-
ing prior hen, not subject to anv 9th
er encumbrance; also that the loans
were further secured by certain de-
posts OF collateral security. including
railroad and other stock.
Mrs. Woodruff alleges that II was
Iurther represented to her that she as
sumed no actual risk, but that as a mat
ter OF form, the deposit of the mortgage
ana bond and the assignment were de-
slred, according to banking custom. to
provide surety over and above the actin
a. security necessary to pay all the
aeo,S' already IN the possession of the
BANKS. She states that, relying on
these representations she caused To no
deliVered to Mr.. Staples, as trustee.
the bond and mortgage and ASSIGNMENT
thereof
According to her information and be-
lief, Mrs Woodruff asserts, at the time
these representations were made tbe
ueIehdaht banks and Staples knew
that the Last Block Co. was not solvent
and not IN good financial standing and
Knew that the representations were
fraudulent and without basis in fact. BY
reason OF her confidence in the repre-
Sehtatlons, the complainant saws she
was induced, without any consideration
Whatever, to deliver the bond and mort
gage to Mr.. Staples and to sign an in
strument assigning them, which instru-
ment she IS Informed was prepared bv
the defendant banks and their attor
neys, by means of which she is deprived
of her right and interest therein.
1t is alleged by Mrs. Woodruff that
on the date she signed the assignment
the Vermont National bank held n GER Z
tam deed of trust or mortgage given bv
the Last Block Co. to Mr.. STAPLES as
trustee, covering its real estate. and
certain chattel mortgages covering its
personal property, the bank s beneficial
interest being $4,000; also that the
Peoples National bank had a beneficial
interest to the extent of $4,000. GOV.
cred by certain deed of trust or mort
gage. also chattel mortgages given to
Mr.. Staples as trustee covering the
company s personal property.
Thereafter, without notice to her
Mrs. Woodruff alleges, although Mr..
Staples still had possession of the mort
gage and bond, on Feb. Z, 1916. he
caused to be recorded in the town
clerk S Office here a Last Block Co
mortgage to him as trustee, solely for