Farmers National Bank (Vergennes, VT)

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Episode Information

Episode UID
247501216
Episode Type
Suspension โ†’ Closure
Bank Type
national
Bank ID
24750 national
Charter Number
2475
Start Date
April 15, 1901
Location
Vergennes, Vermont (44.167, -73.254)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b464c3b94d47f11d

Response Measures

None

Receivership Details

Depositor recovery rate
71.5%
Date receivership started
1901-04-13
Date receivership terminated
1906-10-01
OCC cause of failure
Fraud
Share of assets assessed as good
76.6%
Share of assets assessed as doubtful
13.1%
Share of assets assessed as worthless
10.3%

Events (5)
1. April 29, 1880 Chartered
Source
historical_nic
2. April 13, 1901 Receivership
Source
historical_nic
3. April 15, 1901 Receivership
Newspaper Excerpt
The controller of the currency has appointed J. T. Sullivan of his office a temporary receiver for the Farmers' National Bank of Vergennes, Vt.
Source
newspapers
4. April 15, 1901 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large embezzlement/misappropriation by cashier D. H. (David H.) Lewis (reported $90,000; later accounts cite larger sums) led examiners to close the bank.
Newspaper Excerpt
The bank did not open for business this morning. Bank Examiner Fish ... The controller of the currency has appointed J. T. Sullivan ... a temporary receiver for the Farmers' National Bank of this city.
Source
newspapers
5. May 27, 1901 Other
Newspaper Excerpt
Lieut. Gov. M. F. Allen, vice president and director of the Farmers' National bank which recently suspended here, ... were arrested ... under indictments charging complicity with Cashier D. H. Lewis in wrecking the bank.
Source
newspapers

Newspaper Articles (21)
1. April 15, 1901 Evening Star Washington, DC
Article from Evening Star, April 15, 1901

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Bank Cashier's Account Said to Be $90,000 Short. TROUBLE AT VERGENNES, VERMONT Farmers' National Bank in Hands of Government Examiner. DOORS CLOSED TODAY VERGENNES, Vt., April 15.-Cashier D. H. Lewis of the Farmers' National Bank of this city was arrested today on a charge of misappropriating the funds of the institution. The bank did not open for business this morning. Bank Examiner Fish, who was in charge of the bank, explained that it could not be told whether the doors would be opened or not until Receiver Sullivan of Washington should reach here some time today. Mr. Lewis was taken into custody at the home of his married daughter, with whom he lived in apartments over the bank. Mr. Lewis expressed some surprise when the marshal announced his errand, but was of the opinion that he could secure bondsmen readily. The controller of the currency has appointed J. T. Sullivan of his office a temporary receiver for the Farmers' National Bank of Vergennes, Vt. Bank Examiner Frank L. Fish, during an examination of the bank April 3, discovered a shortage in the cash, and a further investigation, which has been conducted by Special Examiner John B. Cunningham, indicates a total embezzlement by the cashier, D. H. Lewis, of $90,000. After the discovery of the defalcation the examiner secured the return of $25,000 to the bank. Until a more complete investigation into the acts of the cashier is made it is impossible to state what loss, if any, will accrue to the depositors. It is not believed, however, that the loss to the depositors will be large. The last published statement of the .condition of the bank bears date of February 5. According to this statement the deposits then amounted to an aggregate of about $68,000. The rediscounts and the bills payable aggregated $16,000. It is believed the statement was inaccurate in several items. The capital of the bank is $60,000 and its surplus $6,000.

2. April 16, 1901 The Sun Wilmington, DE
Article from The Sun, April 16, 1901

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RANK CASHIER ARRESTED. Official of Vermont Institution In Trouble and the Doors Closed. Vergennes, Vt., April 15.-Cashier D. 11. Lewis of the Farmers' National bank of this city has been arrested by United States Marshal Field on a charge of misappropriating the funds of the institution. The bank did not open for business. Bank Examiner Fisk, who was in charge. explained that it could not be told whether the doors would be opened or not until Receiver Sullivan of Washington should reach here. The arrest of Mr. Lewis, while not unexpected in some quarters, was a surprise to many people here. He was mken into custody at the home of his married daughter. with whom he lived in apartments over the bank.

3. May 15, 1901 Evening Journal Wilmington, DE
Article from Evening Journal, May 15, 1901

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MANY BANK DEFALCATIONS DUE TO BOOM IN STOCKS Washington, May 15.-The recent epidemic of bank defalcations is chargeable by Treasury Department officiais to the speculative boom that has been agilating the country. Since the stock market began to go up no less than seven cases of defaulting bank officials have come to light, in four of which the banks concerned have been forced to suspend. It is expected, too, that the crash of last week has involved others which have not been heard from. The cases are: The First National Bank, of Niles., Mich., whose cashier, Johnson, took about $100,000, which he lost in "bucket shop" speculation; Lemars National Bank. of Lemars, O., which was forced to close its doors because of a speculating vice-president; Farmers' National Bank, of Vergennes Vt., which was wrecked by the defalcation of Cashier Lewis, amounting to more than $100,000; First National Bank of Vancouver, Wash., whose cashier, Canby, lost $81,000 in speculation, wrecking the bank, and then committing suicide, along with President Brown, of the same institution; in the First National Bank of Birmingham, at Pittsburg, A. J. Schroth, who was in charge of the individual ledger, ran through $35,000 belonging to the bank before he was detected; in the Third National Bark of Pittsburg, Bookkeeper Siedel was found to be short $36,000. Both of these last named banks are strong institutions, and neither was weakened seriously by the losses. The latest case is that of Teller Flower. of the Hibernian National Bank, of New Orleans, who nas been arrested, charged with a shortage of $36,000. He states that his downfall is due to speculation on the New York Stock Exchange. The bank is sound and will recover most of the money from the teller's bondsmen.

4. May 17, 1901 The Billings Gazette Billings, MT
Article from The Billings Gazette, May 17, 1901

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SOME WERE CAUGHT. It would, indeed, have been remarkable had not some of the banks of the country been caught in the maelstrom of last week through the mistaken notion of their officials that they were safe in using the funds entrusted to them for the purpose of increasing their private fortunes by taking a "flyer" on the exchange. Since the excitement has aied out seven officials of national banks have been found out as having "gone wrong," according to reports from Washington. While all the details have not been learned as to what the officials did with the money they took, it is the opinion at the office of the comptroller of the currency that in every case speculation in some form is responsible* for the shortage. Four of the banks have been compelled to suspend. With the exception of one case, all the defalcations came to light while the bull boom in stocks was on, when many of the speculators were making money and apparently believing that there was no end to the advance in prices. The comptroiler's office believes that others will be heard of, cases where some of the officers or employes of the banks used funds illegally. The affected banks are scattered over a large area of the country, showing that the fever for suddenly getting rich was not peculiar to any one section. As shown by the figures obtainable the total of the seven shortages is $438,000. Of this shortage the largest amount IS charged up to the Farmers' National bank of Vergennes, Vermont, which is reported to have a discrepancy of $150,000. Away up in Washington state a bank, the First National of Vancouver, is behind $81,000. Of course, none of the men responsible for the shortages intended to steal the money. They expected to use it for a few days only, until they could unload, and then make good without anybody knowing the least concerning the transaction. They were simply weak men, who could not resist the temptation to gamble, a weakness with which many Americans, unfortunately, are affected, and who are every ready to grasp at the illusive opportunities presented on the stock exchanges to suddenly and easily grow wealthy, not having the patience or ability to accumulate riches in the legitimate way.

5. May 27, 1901 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, May 27, 1901

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CHARGED WITH BANK WRECKING. Two Prominent Vermonters Accused of Serious Crimes. Vergennes, Vt., May 27. - Lieut. Gov. M. F. Allen, vice president and director of the Farmers National bank which recently suspended here. and J. W. Ketcham, representative to the legislature, were arrested today by United States officers under indictments charging complicity with Cashier D. O. Lewis, in wrecking the bank.

6. May 27, 1901 Arizona Daily Citizen Tucson, AZ
Article from Arizona Daily Citizen, May 27, 1901

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Bank Wreckers Arn't Democrats. VERGENNES, Vt., May 27.-Lieutenant Governor Allen. vice-president of the Farmer's National Bank,Which recently suspended here, and J. W. Ketcham representative in the legislature were arrested today charged with complicity in wrecking the bank.

7. May 27, 1901 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, May 27, 1901

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BANK WRECKERS ARRESTED. Lieut. Gov. M. F. Allen of Vermont Has Been Indicted. Vergennes, Vt., May 27.-Lieut.-Gov. M. F. Allen, vice president and director of the Farmers' National bank which recently suspended here, and J. W. Ketchum, a representative to the legislature from this place were arrested today by United States officers under indictments charging them with complicity with Cashier D. O. Lewis in wrecking the bank.

8. May 28, 1901 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, May 28, 1901

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EX-LIEUTENANT GOVERNOR ARRESTED. Charged With Complicity in Wrecking a Vermont Bank. Vergennes, Vermont, May 27.-Lieut. Gov. M. F. Allen, vice president and director of the Farmers National Bank, which recently suspended here, and G. W. Ketchum, a representative to the Legislature from this place, were arrested today by United States officers, under indictments charging them with complicity with Cashier D. Q. Lewis in wrecking the bank. Allen was released on $10,000 bond.

9. May 28, 1901 Bryan Morning Eagle Bryan, TX
Article from Bryan Morning Eagle, May 28, 1901

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Charged With Complicity, Vergennes, Vt., May 27.-Lientenant Governor M. E. Allen, vice president of the Farmers' National bank, which recently suspended, and J. W. Ketcham, a legislative representative, have been arrested by United States officers under Indictments charging them with complicity in wrecking the bank.

10. May 28, 1901 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, May 28, 1901

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ARREST OF BANK DIRECTORS. Lieutenant Governor of Vermont Taken in Charge by Officers. VERGENNES, Vt., May 27.-Lieut. Gov. M. F. Allen, vice president and director of the Farmers' National bank, which recently suspended here, and J. W. Ketcham, a representative to the legislature from this place, were arrested today by United States' officers, under indictment, charging them with complicity with Cashier D. Q. Lowis in wrecking the bank. The indictments, which were found by the United States grand jury last week, are in two counts, charging complicity in embezzling the funds of the bank and falsifying the accounts. Lieut. Gov. Allen will be given a hearing at Ferrisburg, his home. Mr. Ketcham was taken to Burlington and at a hearing he pleaded not guilty and bail was fixed at $5,000.

11. October 4, 1901 Middlebury Register Middlebury, VT
Article from Middlebury Register, October 4, 1901

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Wrecker Farmers' National Guilty on Bank One Count. former II. Lewis of Vergennes, National bank of David of the Farmers' making false that place, books at the entries District cashier on the pleaded bank's guilty to court in session this of United States Wednesday's RutWheeler city vesterday. and says was sentenced by Judge seven land Herald. of Brattleboro labor, to at years' Hoyt H. imprisonment, correction. without The disposal hour of the house occupied of little over half people an outthe case witnessed by few jury. The and was members of the grand dozen words did In making side respondent the the entire proceeding. not somewhat utter a agitated, but his plea in he appeared watched the progress grew calmer and He was evidently to case intently. but kept up Powers of the end. H. made a strong plea, surprised of the at the H. sentence, District Morrisville, Attor- which his attorney, answered by officer. was briefly Martin, the prosecuting house as soon sentenced and was The ney J. prisoner L. left the court immediately taken as house of correction. Atto the docket was understood called, torney As soon Martin Lewis as the stated was that ready he to was plead held. to David H. on which he Mr. one of the counts conversation with was After a he short added that Mr. Lewis charge of to plead the books of the ready Powers entries guilty on to the Martin making false bank. Mr. National of Lewis' counagainst acquiesced Farmers' in other the counts request nol prossed, the resel that the be consolidated and that a nolle spondent and Judge Wheeler made. ordered to then the called prosequi entry be was pen on The respondent and arraigned on the the entries prisoners' of making false cashier of that charge the bank while his place books of When Lewis took he quickly institution. decidedly nervous. but although his regained he was his composure, and indistinct and at firm. first He voice was husky strong and immediately grew to the charge and then in his sat pleaded guilty listen intently to the plea answer to Powers and its behalf by Mr. Judge Powers Attorney He said down Martin. in part: spoke by in at some some desire length. considerations which I There are the case the connection with court, believing that a to most submit favorable to the the plea facts will which arise I have, from re- in recital Mr. of Sulliyan, the bank's did not plain ceiver. part, from First. when this respondent the hortage owned at the leave the state Second, he bank was discovered. true state of his overdraft. personal up at once to acknowledged the his and account and he has made complete the bank In addition The loss to responample restitution. to about $26,000. The through the aid of $25,000, leaving in the sum He had been amounted and dent. paid of friends, procured cashier 20 the shortage for nearly of $1000. years with While a salary overdrafts latterly of $1500 a year. did not draw out his In were being made was he due him a balance the salary and there point of fact the bank respondent every has of $9500. not only paid actually back to therein $10,000 about dollar. but addition. has His bond of been paid 88500 the in surety company has attached in a and with his personal property bank's receiver, which to 1 should suit in favor realize of somewhere the from $3000 as $5000." Judge Powers closed with a plea for soon a Mr. t in part light District sentence. Powers Attorney was Martin seated arose and as follows: in slow. distinct as tones, desire spoke to urge the court to "I have no or extreme loss penalties. to the Whether impose Lewis hard has made I cannot the say. I un- the bank good or upwards not, of $100,000 somewhere. of funds have is due to How much of I am derstand actions bank's of that the respondent this sum gone guilty to unable violating false the to say. a United He States has pleaded statute here to by deny making that 825,- and I'm not his account, been paid in this case is 000 entries. has that after on put in dis- for I apprehend will be a claim it was that sum on that is which posed of there loan. the But grounds neither that to here merely a The false entries of guilty are nor Lewis there. entered a extend plea over many Mr. They to keep bad enough. many. His duty was they should years- the books -too of the bank dollar where on hand. Inbe and guard that every the money has checks been have left stead of Time and again the books unguarded. over and over of on these false been charged While not all of them entries are his pen. of the bank. by Mr. Lewis, some He also false reports to the bank in regard 1 the stockholders Under the law he standing; reports are made distinctly from of the comptroller truthfully. is sup- and to its to make these untruthful and deceivposed they were bank show a want Instead ing. due The fidelity books on of the the part offense, of the a violation cashier, of mind a serious the law.' to my and a violation and of Mr. Martin of Both duty Mr. briefly Powers in answer from the to court. quesspoke from one another among or other g t The tions former again stated Mr. Lewis had things fifteen been that he thought entries for about reflection Wheeler falsifying years. After the delivered a moment's the sentence in

12. December 13, 1901 Windham County Reformer Brattleboro, VT
Article from Windham County Reformer, December 13, 1901

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Attorney Frederick B. Deberville of Middlebury died suddenly Tuesday from an overdose of bromidia, administered by himself. Thomas Flaherty and William Carroll, acquitted last week of robbing the Essex Junction postoffice, have been rearrested on a charge brought by the state's attorney of Chittenden county. Louis Sassi, one of the Italian anarchist group arrested at Barre a year ago, charged with complicity in shooting Chief of Police Patrick Brown, is again in custody, held pending an investigation as to his sanity as he has been very violent of late. Barre is much interested in a proposed new line of railroad to run from Rutland through Barre and Montpelier to Hardwick and Newport. Granite manufacturers and business men are at the bottom of the project, their shipments amounting to $3,000,000 annually and increasing 20 per cent each year. It is rumored at Vergennes that Frances Pearson Hallett of Concord, Mass., who was reported as engaged to D. H. Lewis, the defaulting cashier of the Farmers National bank, has brought suit against the receiver of the bank for recovery of $25,000 furnished Mr. Lewis for payment to the bank. H. H. Powers of Morrisville will be attorney for Mrs. Hallett, and the charge will be that the money was secured under false pretenses. The grand jury at Middlebury listened for several days last week to testimony on the charges against young Nelson Jones of Shoreham for procuring an abortion on Ida Fosburg of West Rutland, who died at Jones' house in Shoreham where she was employed. Many witnesses were examined. Miner Jones, father of Nelson Jones, died at a Middlebury hotel Monday night from illness brought on by anxiety over his son's case. He gave his testimony the preceding Thursday. James Buck of Hardwick was captured in a swamp near Greensboro Pond last week Thursday and jailed on suspicion of murdering his wife, several days before. Mrs. Buck was found by her children unconscious, her head battered to a jelly. An iron bar lay near the bed. As Buck was known to have left home and sent the son and daughter home saying that their mother was sick, he was suspected of the crime. He confessed to buying liquor the day before the murder, and that he struck her but does not claim to have killed her. A special grand jury will investigate the case. The suit of J. H. Livingston, publisher of the Bennington Reformer, against ex-Gov. C. S. Page of Hyde Park, for $1000 for political editorial work during the congressional campaign in the second district in 1900, was thrown out of Bennington county court Friday by Judge John W. Rowell, on the ground that the claim was illegal. The judge referred in scathing terms to the condition of affairs which was shown by the testimony. A verdict for the defendant was ordered. The plaintiff testified over and over again that he was hired for a money consideration and supported the candidacy of the defendant because of what he was paid and letters were introduced to show the nature of the understanding between the two men. Judge H. H. Powers, counsel for Livingston, filed exceptions to the ruling and will take the case to the Supreme court, as he stated, to have the status of such cases definitely settled. It is certain that Livingston secured $100 for his services.

13. January 31, 1902 Vermont Phล“nix Brattleboro, Bellows Falls, Ludlow, VT
Article from Vermont Phล“nix, January 31, 1902

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# State Agricultural Society. The Vermont State Agricultural society at the annual meeting held Rutland Tuesday elected these officers: President George Aitken, Woodstock; vice presidents, C. J. Bell of Walden, George W. Hooker of Brattleboro, Dr. Seward Webb of Shelburne, T. M. Deal of St. Albans; secretary, C. M. Winslow of Brandon; treasurer, J. W. Parker of Quechee; directors, three years, M. H. Miller of Pomfret, H. R. C. Watson of Brandon, E. Selden of Burlington, J. L. Bacon of White River Junction, P. W. Clement of Rutland and Charles C. Dow of South Newbury. A committee was appointed to confer with the Rutland County Agricultural society with a view of holding a joint fair at Rutland. Twenty-two new members were elected. Joseph Carroll, 19, a switchman, was passing through an open train at White River Junction Friday night, when it closed catching him between the bunters and crushing him so badly that he died in a few hours. The comptroller of the currency is expected to soon declare a 25 per cent dividend for the depositors of the Farmers' National bank of Vergennes. Two similar dividends have been paid. The suit for $25,000 of Mrs. Hallett vs. Frank L. Fish, receiver of the bank, is set for trial in the United States circuit court Feb. 2. The Vermont Botanical club's annual business meeting was held in Burlington Saturday. Officers were re-elected, including president, Ezra Brainard of Middlebury College; secretary, Prof. L. R. Jones of Burlington. The two days' summer meeting will take the form of an excursion to the islands and points of interest along Lake Champlain.

14. January 31, 1902 Middlebury Register Middlebury, VT
Article from Middlebury Register, January 31, 1902

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Middlebury, Vt., Jan. 28, 1902. THIRD DIVIDEND OF FARMER'S NATIONAL BANK. It is reported in Vergennes on excellent authority that the comptroller of the treasury is about to declare another dividend to depositors of the Farmer's National bank. There has already been paid since the failure two dividends, each of 25 per cent, and the third will be for the same amount. It is thought that the case of Mrs. Francis Pearson Hallett vs. Receiver of the Farmer's National Bank of Vergennes will make no difference with the paying of this third dividend. In this suit, it will be remembered, Mrs. Hallett seeks to recover $25,000 advanced to Cashier Lewis. Former Governor E. J. Ormsbee of Brandon is retained as counsel by the receiver. Papers were filed in the case on Jan. 4 and the hearing is set for Feb. 2 in the United States district court.

15. February 6, 1902 Herald and News Randolph, VT
Article from Herald and News, February 6, 1902

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# State of Vermont. Its News Condensed and Rewritten for Our Readers. Mrs. C. Holcomb of Monkton, aged 50 years, took her first ride on the cars last week. Montpelier will entertain the Vermont Spiritualist association again next year. Morrisville will endeavor to secure the next convention of the State Sunday School association. Elbert Hubbard, editor of The Philistine, at East Aurora, N. Y., lectured at Lyndonville recently. Indications point to the renomination of Dr. Donley C. Hawley for mayor of the city of Burlington. There are said to be thirty-eight widows and widowers within a radius of two miles of East Topsham. About 50 rural delivery routes in the first district have already been established by Congressman Foster. The annual officers' school of the Vermont national guard will be held in Burlington Feb. 18, 19 and 20. The annual meeting of the Vermont State Dental society will be held at the Berwick House in Rutland March 19, 20 and 21. Plans for the erection of an elaborate new summer hotel in Wilmington are being carefully carried out by Maj. F. W. Childs. It is said that there are at this time 25 cases of Cuban itch in Burlington. The disease is the same that was first mistaken for smallpox. Orville H. Richardson of Montpelier has discovered a vein of ore on his land that looks like copper and he is to have an analysis made. H. P. Sherwin, for twenty-one years sexton of the village cemetery at Bristol, has resigned. During his term of office he has dug 625 graves. Barre veterans of the Spanish-American war are about to organize and apply for a charter from the National Spanish Veterans' association. The International mill at Newport has closed for the winter because of a shortage of lumber. Some 25 hands are thrown out of employment. The statement has been made that there are more lumber mills within a radius of fifty miles of Morrisville than any other place in the country. The cost of maintaining the schools of Burlington during the past year has been $63,971.64. The estimated value of the school property is $334,700. While scraping the ice on Otter Creek near Middlebury last week, preparatory to trotting, the ice broke and four horses, valued at $800, were drowned. Judge Wheeler of Brattleboro gave decision in 11 Chinese appeal cases recently in all of which the orders of deportation by the commissioner were confirmed. First citizenship papers were applied for by sixteen foreigners in Montpelier last week. The applicants hailed from Spain, Sweden and Italy. They were from 21 to 38 years old. Dr. and Mrs. W. Seward Webb and Miss Frederica Webb of Shelburne have been visiting the earl of Minto, governor general of Canada, at Rideau Hall near Ottawa, Ont. Capt. Geo. W. Gatchell, U. S. A., at one time instructor at the Vermont academy at Saxton's River, has been transferred from the 19th to the 24th company, Coast Artillery. Last week the co-operative creamery at Waitsfield paid its fifth annual dividend of six per cent. The average price paid patrons for butter was 19.21 cents a pound for the past year. It is thought that the case of Mrs. Francis Pearson Hallett vs. Receiver of the Farmers' National bank of Vergennes will make no difference with the paying of this third dividend. Editor A. F. Stone of St. Johnsbury has gone for a three months' trip in California. J. W. Sault and Walter Husband will constitute the editorial force of the Caledonian in his absence. J. A. Stewart of the firm of L. & J. A. Stewart, tin can manufacturers, of Rutland, was fined $20 and costs of $9.35 Thursday for kicking Richard Lloyd, a 16-year-old boy in his employ. The dairy school, which has been in progress at the Experiment farm at Burlington, closes this week. There was an attendance of over 50 students and the course has proved very profitable. Guy Hammond Abbott, '02, of St. Johnsbury has been elected captain of the Dartmouth baseball team to succeed L. D. Varney, recently suspended by the athletic council for professionalism. The jury in the ejectment case of M. Quinn against the rental committee of Rutland Council, No. 232, Knights of Columbus, brought in a verdict for the defendants, with costs. The plaintiff appealed. The directors of the Y. M. C. A. at St. Johnsbury have hired C. S. McGown as secretary for another year and presented him with $100 for his efforts in the recent food fair, which was a great success.

16. April 24, 1902 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, April 24, 1902

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mman: "The new book showed nothing but the balance on hand.' "Yes." "You don't know very much about your checks, do you?" "I know it was a very hard to in the bank. For the had ind them called last matter year time and time again and was I old they were laid away some where and couldn't stop to find them." "For the the Mr. speaker Martin: last year? "Well, it might have been for the last wo or three years.' F. L. Fish was recalled and testified that all of Allen's and Quinlan's checks were, is n far as he knew, in the large bag. put ernment. evidence a short time before by the govGOVERNMENT EXPERT TESTIFIES. C., Frank R. McCormick of Washington. D. followed Mr. Fish and said he the of to examine the books by ice. He the government department of the was bank. sent juswent through the books and checks with Mr. Platt and had made a partial ist, Mr. which covered the items taken up by Platt in his previous testimony. by "State whether any item was given Mr. Platt incorrectly? "I followed his testimony closely and compared it with my list, but did not see was all ut Mr. everything Cushman's right. cross-examination showd back that witness's examination extended only three years. His remaining testimony was largely in regard to his sociation with Mr. Platt in the examina- asion of the bank. PRES. DUNSHEE'S EVIDENCE. President N.F. Dunshee. of the defunct bank, was the next witness sworn. "You are the president of the Farmers' National Martin, bank of Vergennes, asked Mr. "I was," Mr. Dunshee responded dryly "Did you in any way have knowledge that false entries were being made on the bank's books? "No sir. "Was the employment of John W. a Ketchum by the bank brought before meeting of the directors at any time?" was.' "What was the conclusion at that time: Mr. Dunshee explained that the directors Ketchum was by but that the bank had $100 Lewis, for thought paid employed Ketchum his assistance in that Ketchum did work in was elected to the bank until He He said he Legislature, institution. the said the other directors of the were Walter Scranton of New bank of New York, M. F. Henry W. Tracey of Lewis, Leroy Allen, York, Shelburne, H. D. W. H. who was elected to succeed C. W. Read, who died in 1897. Mr. Martin in conclusion asked "Did authorize or consent to the false entries you being made on the books of the bank?'' "No sir." Brown The cross-examination by Attorney the was of interest. Mr. Dunshee nually. books of the bank were examined said anthe "At what time while Ketchun was in the bank did you or the directors examine books?' "In January of each year." 899?" "Did you examine them in January, "I think so." "Did you as director or the other January?" ors make any other examination except direc. in "No, sir, I don't think EO. of "You the made a thorough examination 1899?" books at the January meeting in "We examined all the books." Mr. Dunshee proceeded to tell how the examination was conducted. The out a list of the notes and counted the money and made it and with they compared deposits cashier positors. the notes and the books of the de"Did you compare to see if the deposit accounts were correct or if they had been padded thousands of dollars? "O no, sir. "Did you examine the books themselves to see if the balances were correct?' "No don't think so.' Mr. Dunshee : said a dividend of two meeting. cent was declared at the January, 1899 per "You knew at the January meeting that the bank was running short of funds didn't you?' "I did." "You knew that the teller and clerks had been sent out among the depositors to get in money?' "I did not. "How much of the embarrassment of bank in respect to paying checks did the 1899?' know of at the last of 1898 or the first you of "I didn't know anything about it until a short time before the bank closed." "At the annual meeting in January, 1901, another dividend of two per cent was declared? "Yes sir. Witness stated that he first found out the bank was several thousand dollars in the hole when it was examined by an ex. pert and closed. "Didn't you know prior to the examination by Mr. Fish of a shortage?' sir.' replied the former claimed there was short. made up a statement to age The "No and cashier purporting president. no true condition of the show the bank." Withnessthought thisstatement after ing presented to the directors was taken beby Lewis to New York to show Mr. Seranton. He thought Tracy, Allen, were at the meeting himself hired. when Lewis Ketch- and um was He acknowledged that he signed the reports made to the comptroller of currency made out by Lewis in 1899 and 1900. 'Did you know that during Ketchum's in the bank the of the were overdrawn directors service accounts largely "Yes sir, the books showed it. as a rule they were at the time of the overdrawn Witness said January not meeting. He thought his own account might have been a little. yours one of them I don't think so.'' "Was "Well, "Do you know that the statement to the comptroller said that none of the directors accounts were overdrawn "Well I don't know as they were." DIRECTOR TRACY EXAMINED. The court refused to allow the cross. examination to proceed farther along this line and after filing

17. May 28, 1902 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, May 28, 1902

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# CONDENSED DISPATCHES. One dead and fire seriously if not fatally wounded is the result of a locomotive explosion in Manchester, Va., Tuesday. The accident occurred on the tracks of the Atlantic Coast Line, the engine being attached to a local freight train. Fire at Springfield, Ont., Monday, caused a loss of $50,000; only partially covered by insurance. The principal loss was sustained by the D. W. Hendric department store at $25,000 and the Methodist church at $15,000. Seven other firms were burned out. The maritime prefect at Cherbourg has issued a notice of the loss, May 23, of 3 fully charged torpedo from the Frenca cruiser Admiral Trehourart in Cherbourg roads, constituting a serious danger to navigation. A reward is offered for the removal of the torpedo. Louis Creighton, the colored man who, it is alleged, April 9, assaulted Richard Powell, inflicting injuries which resulted in his death, was arraigned at Cambridge, Mass., Tuesday, and was held in $5000 for the grand jury. Manslaughter was the charge preferred against the defendant. Five hundred damask weavers went on strike at Philadelphia, Tuesday, for higher wages, closing a number of mills. It is contended by the strikers that their wages have been reduced 40 per cent. in the last 12 years, and although increases have been promised a number of times, the promises were never fulfilled. Bertha Condon of Boston, was arraigned in court at Brockton, Mass., Tuesday, on a charge of assault with intent to murder Morris W. Quinn of Brockton, on the night of May 14. It is alleged that she was jealous of another woman, whom Quinn intends to marry, and that she fired four shots at him and one at herself, but without harm in either case. The case was continued till Wednesday for a hearing, and she was held in bonds of $1000. The triangular league which included Amherst, Wesleyan and Williams College teams, has been disrupted and all games have been cancelled, the Williams athletic council having voted to withdraw at once. Amherst previously had voted to withdraw at the end of the season. The termination of the agreement is the result of trouble over protests made by Williams and Wesleyan against Kane, the star pitcher of the Amherst baseball team. It was alleged that Kane should be barred on the ground of professional-ism. The receiver of the Farmers' National Bank of Vergennes, Vt., has been made an offer of $16,000 by Lieut. Gov. Martin F. Allen of North Ferrisburg, formerly vice president and director of the institution, and others, in settlement of the claims of the bank against Mr. Allen and members of his family. The total indebtedness is $16,285, in addition to which is an apparent overdraft by M. F. Allen of $10,800. Of this amount $6189 is claimed to be accounted for by the manipulations of Cashier Lewis and his clerk, Representative J. W. Ketchum, both of whom are now serving sentences for wrecking the bank. It is claimed that the balance is offset by credits which should have been made but which were never made. The offer of $16,000, it is thought, will be accepted.

18. July 16, 1902 St. Johnsbury Caledonian Saint Johnsbury, VT
Article from St. Johnsbury Caledonian, July 16, 1902

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# Sons of Veterans Staff Named. Fred W. Spear of Manchester Depot, the newly elected commander of the Vermont Division Sons of Veterans, U. S. A., has issued orders No. 52, dated July 8, assuming command and establishing headquarters at Manchester Depot. The following staff appointments are announced: Adjutan:, A. J. Davis, Manchester Depot; quartermaster, George W. Utley, Manchester Depot; chaplain, Fred L. Page, Lyndonville; judge advocate, Ira E. Morse, Cambridge; sergeant-major, Ora Multord, Huntington; quartermaster sergeant, H. C. Gallup, Morrisville; color sergeant, L. N. Williamson, Bristol. Mrs. Hallett Wants her Money. Frances P. Hallett, the friend of D. H. Lewis, the defaulting cashier of the Farmers National Bank of Vergennes, who is now serving a seven years' sentence in the house of correction at Rutland, was in Burington Wednesday and appeared before George E. Johnson, examiner, as a witness in the case of Frances P. Hallett vs. Frank L. Fish, receiver of the Farmers National Bank. Through the efforts of Cashier Lewis Mrs. Hallett loaned the sum of $25,000 to tide over the affairs of the bank. Lewis, according to Mrs. Halktt's story, claiming that such a sum would save the institution. Mrs. Hallett brings suit against Fish to recover the money, claiming that she loaned it to the bank and not to Lewis. H. H. Powers of Morrisville, and Attorney Wilson of Bangor, Me, represent Mrs. Hallett and F. L. Fish and E. J. Ormsbee are counsel for the detendant. Torrey E. Wales Dead. Torrey E. Wales a former law partner of Chief Judge Russell S. Taft, died at

19. March 20, 1903 Vermont Phล“nix Brattleboro, Bellows Falls, Ludlow, VT
Article from Vermont Phล“nix, March 20, 1903

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IN OUR OWN STATE. MRS. HALLETT WILL RECOVER $25,000. Money was Advanced to Cashier D. H. Lewis Before Farmers' National Bank of Vergennes Collapsed. Judge H. H. Wheeler has rendered a decision in the United States circuit court allowing Mrs. Frances P. Hallett of Dorchester, Mass., to recover $25,000 from the receiver of the wrecked Farmers' National bank of Vergennes. Mrs. Hallett was engaged to be married to D. H. Lewis, the defaulting cashier of the bank, and when he was hard pressed a short time before the crash she advanced $25,000. She understood that the loan was to the bank and not to Lewis personally. Her counsel, H. H. Powers, in his argument claimed that whether she loaned to Cashier Lewis or to the bank it was in violation of a fundamental principle of law, namely, business transactions between persons having fiduciary relations are voidable. Here was a case where a man and a woman to whom he was engaged to be married entered into a business transaction which in law was as improper as transactions between a guardian and a ward. The application of this principle to the case of married people is something new in our courts. There was another point which came out in this remarkable case which is of interest to the lawyers. It was maintained by the defense that the directors did not authorize Cashier Lewis to borrow $25,000 from Mrs. Hallett. The response of the plaintiff to this point was that the bank could not in justice enjoy the fruits of a loan and at the same time repudiate the agent that negotiated it. The decision says, in part: "The evidence shows that the loan of the securities was made to Lewis as cashier, which was the office Mrs. Hallett had understood he held, and that it was induced by regard for Lewis because help to the bank in its trouble would, as she understood it, be a favor to him. "And she was not informed of the true situation of the bank nor of its condition as the officers understood it, and she could not act on an equality with them. She was told that the bank was in trouble and needed money or securities immediately, but this did not mean to her what it would to experienced bank men or trained financiers. She was not told that the capital was gone and more, nor that the disaster was the result of a defalcation and crime which might reach much further. "She was peculiarly exposed to deception by her engagement to Lewis, and but for that she would not have been applied to for the loan nor have complied."

20. March 21, 1903 Spirit of the Age Woodstock, VT
Article from Spirit of the Age, March 21, 1903

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# RECOVERS $25,000. United States Judge Hoyt H. Wheeler has rendered a decision in the case of Mrs. Frances P. Hallett of Dorchester, Mass., against the receiver of the defunct Farmers' National bank of Vergennes The decision is in favor of Mrs. Hallett, who sued for the recovery of $25,000 paid by her, through Cashier D. Henry Lewis, to the bank.

21. April 2, 1903 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, April 2, 1903

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# NEWS NUGGETS. Brought by the Wires from the North, East, South and West. The President has appointed Pierre Paul Demers of New Hampshire, to be United States consul at Port Limon, Costa Rica The census office cotton bulletin shows a total actual crop of 11,078,882 commercial bales, equivalent to 1,620,940,500 bales. John B. McKinnon of Boston, was found dead, hanging from a rope in his basement, Wednesday. He was 69 years old. Family troubles is offered as an excuse of the suicide. It is announced that the depositors of the defunct Farmers National Bank of Vergennes, Vt., will receive another small dividend after Mrs. Francis P. Hallett has received the $25,000 awraded her in the United States circuit court. It is said that Receiver F. L. Fish has about $40,000 in his hands, which, after Mrs. Hallett's award is deducted, will leave some $15,000 for depositors. J. G. Rollins, a clerk who operated the pneumatic tubes at the post office at Boston, was arraigned before United States Commissioner Fiske, Wednesday, charged with robbing the mails. Rollins pleaded not guilty and was held in $1500 for a hearing, April 2. It is charged that Rollins was seen to take several packages from the mails, Tuesday night, the boldness of the theft surprising the post office inspectors. The New York committee appointed by President Roosevelt for the relief of the West Indies sufferers at St. Pierre, Martinique, and other places on account of volcanic eruptions, made a report to the President, Wednesday. The financial statement shows that subscriptions amounting to $157,592 were received and that only $70,793 was expended for relief work. Upon President Roosevelt's suggestion the donors' permission will be asked to send the balance to Gov. Taft for the aid of sufferers in the Philippines. With more than 100 delegates present from Europe, America and the islands of the sea, the 35th biennial conference of the Seventh Day Adventists has commenced its labors at Oakland, Cal. Committees were appointed and the financial report of the general church body for the last two years was read and accepted. The report of General Treasurer Mitchell showed that the total wealth of the conference at the present time amounts to $205,408 free from incumbrances. Treas. Mitchell stated that $218,000 of the debts of the several institutions of learning had been liquidated.