Merchants National Bank (Rutland, VT)

View Charter #3311 on SPMC View balance sheet

Episode Information

Episode Type
Suspension → Closure
Start Date
March 26, 1900
Location
Rutland, Vermont (43.611, -72.973)
Bank Type
national
Charter Number
3311

Metadata

Episode ID
Bank ID
City ID
501461361
Model
gpt-5-mini
Short Digest

Receivership Details

Depositor recovery rate
96.5%
Date receivership started
1900-03-26
Date receivership terminated
1906-03-31
OCC cause of failure
Fraud
Share of assets assessed as good
35.1%
Share of assets assessed as doubtful
17.2%
Share of assets assessed as worthless
47.7%

Notes

Closure followed discovery of large cashier embezzlement; receiver appointed same day.

Events (4)
1. February 25, 1885 Chartered
Source
historical_nic
2. March 26, 1900 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier Charles W. Mussey charged with misappropriation/embezzlement; initial shortage reported $145,000 (later reported >$200,000).
Newspaper Excerpt
The Merchants' National Bank of this city closed its doors today and the cashier, Charles W. Mussey, is under arrest, charged with the misappropriation of the funds of the bank.
Source
newspapers
3. March 26, 1900 Receivership
Newspaper Excerpt
Bank Examiner D. D. Muir has been appointed temporary receiver by the controller of the currency today.
Source
newspapers
4. March 26, 1900 Receivership
Source
historical_nic

Newspaper Articles (22)
1. March 26, 1900 Evening Star Washington, DC
Article from Evening Star, March 26, 1900

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Article Text

BANK CLOSES ITS DOORS. Cashier of the Merchants' National of Rutland Under Arrest. RUTLAND, Vt., March 26.-The Merchants' National Bank of this city closed its doors today and the cashier, Charles W. Mussey, is under arrest, charged with the misappropriation of the funds of the bank. The exact amount of the shortage will not be Known until after a thorough examination of the bank's books, which is now in progress, has been completed. The closing of the bank was a complete surprise to the business community of Rutland. J. A. Mead, the president, is well known in commercial circles, and besides being the head of the Merchants' Bank is president of the State Trust Company. The trust company, however, is not affected by the suspension of the national bank. The closed institution is in charge of National Bank Examiner D. D. Muir, who was appointed temporary receiver by the controller of the currency today. Mr. Muir recently discovered evidence which led him to belleve an inspection of the accounts of the bank was necessary. It soon appeared that the finances of the institution were in a condition which called for the arrest of the cashier and a more thorough and systematic investigation was begun. The controller of the currency has received word that the Merchants' National Bank of Rutland, Vt., closed its doors this morning. Following is the synopsis of the report of the condition of the bank made to the controller of the currency under the call of February 13, 1900: Liabilities: Capital, $100,000; surplus and profits, $3,383; due to depositors, banks and bankers, $351,549; circulation, $21,870. Resources: Loans and discounts, $361,363; other assets, including cash, $115,438; total, $476,802. Bank Examiner D. D. Muir has been appointed temporary receiver.

2. March 26, 1900 The Evening Times Washington, DC
Article from The Evening Times, March 26, 1900

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Article Text

Receiver for a Bank. The Comptroller of the Currency today placed the Merchants' National Bank, Rutland, Vt., in the hands of D. D. Muir as temporary receiver. The condition of the above bank, as reported to the Comptroller of the Currency under call of February 13, 1900. was as follows: Liabilities-Capital, $100,000; surplus and profits, $3,383.47; due to depositors, banks and bankers, $351,549.26; circulation. $21,870. ResourcesLoans and discounts, $361,363.75; other assets, including cash, $115,438.98. Total, $476,802.78

3. March 26, 1900 Las Vegas Daily Optic Las Vegas, NM
Article from Las Vegas Daily Optic, March 26, 1900

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Four Bank Failures. Keene, N. H., March 26-The bank commissioners of New Hampshire have filed petitions with the clerk of the Cheshire county supreme court, asking that assignees be appointed for the Keene Guaranty Savings bank, and the Keene Five Cents Savings bank. Neither bank has received deposits of late, owing to the general belief that they sustained losses through western investments. Five Cents owes $1,449,058. Guaranty Savings bank $718,873. Washington, March 26-The comptroller of the treasury received word that the Merchant's national bank, of Rutland, Vermont, had closed this morning. Rutland, Vt., March 26-The Merchant's national bank closed its doors today. Cashier Charles W. Mussey is under arrest charged with misappropriation of funds. The amount of shortage is not known. The following is a synopsis of the report of the condition of the bank made by comptroller of currency under call of February 13th: Liabilities, capital $100,000; surplus and profits $3,383, due depositors and bankers $351,549; circulation $21,870. Resources: loans discounts $361,363; other assets including cash $115,438. Bank Examiner D. D. Muir has been appointed temporary receiver. Rutland, Vt., March 26-It is announced that the shortage of Cashier Mussey amounts to $145,000. The cashier was arrested at Albany, N.Y.

4. March 26, 1900 The Providence News Providence, RI
Article from The Providence News, March 26, 1900

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Article Text

BANK CLOSES DOORS AND CASHIER IS ARRESTED. Bank Examiner D. D. Muir was apRutland, Vf,, March 26.-The Merpointed temporary receiver: Following chants National Bank closed doors tois the synopsis of the report of the cone day, and the cashier, Charles W. Mus+ dition of the bank made to the comp. troller of the currency under the call sey, is under arrest, charged with the February 13, 1900: Liabilities-Capital misappropriation of funds of the bank. $100,000: surplus and profits $3,088; due The exact amount of shortage will not depositors. banks and bankers $351,5495 circulation $21,870. Resources-Leans be made known until after a thorough and discounts $361,363; other assets inexamination of the bank's books, which cluding cash $115,486. is now in progress, has been completed.

5. March 26, 1900 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, March 26, 1900

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Article Text

A NATIONAL BANK FAILS. Cashier Under Arrest for Misappropriation of Funds. Vermont Institution in the Hands of a Receiver-Amount of Shortage $145,000. Rutland, Vt., March 26.-The Merchant's National Bank of Rutland closed Its doors today and the cashier, Charles W. Muzzey, is under arrest, charged with misappropriation of funds, Following is a synopsis of the report of the condition of the bank made to the comptroller of the currency under the call of February 13: Liabilities, capital, $100,000; surplus and profits, $1,383; 'due to depositors, banks and bankers, $351,549; circulation, $21,870. Resources: Loans: Loans and dis. counts, $361,363; other assets, including cash, $115,438. Bank Examiner D. D. Muir has been appointed temporary receiver.

6. March 27, 1900 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, March 27, 1900

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Article Text

The Comptroller Notified. Washington, March 26.-The comptroller of the treasury has been notified that the Merchants' National bank of Rutland, Vt., closed its doors this morning. Following is the synopsis of the report of the bank's condition February 13, 1900: Liabilities-Capital, $100,000; surplus and profits, $3,383; due to depositors, banks and bankers, $351,549; circulation, $21,870. Resources-Loang and discounts, $361,363; other assets, including cash; $115,436. Bank Examiner D. D. Muir has been appointed temporary receiver.

7. March 27, 1900 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 27, 1900

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$145,000 SHORT. Cashier of Merchants National Bank, Rutland, Vt., Under Arrest--Confesses to Embezzlement and Falsifying Accounts. Bank in Hands of Receiver-Great Surprise to Business People. Rutland. Vt., March 26.-With its doors closed and its cashier, Charles W. Mussey, in jail, having confessed a shortage of $145,000. the Merchants' National Bank of this city, formerly one of the strongest institutions in the state, stands, tonight, on the verge of ruin, unless its stockholders come to its assistance and help the remaining assets to pay off the $351,000 due its depositors. Mussey confessed his guilt in the early hours of the morning to the entire board of directors, having come back from Albany at the earnest solicitation of a local detective, who traced him to the New York capital, when he failed to appear before his employers. late Saturday afternoon. He remained in close detention in the bank all day. practically under arrest in a civil suit brought by the bank for $50,000, but, tonight, the United States authorities after an examination into the bank affairs, formerly arrested him on a charge of embezzlement and lodged him in the county jail. It is understood that the United States circuit court has placed his bail at $100,000. Coincident with Mussey's confession came the closing of the musical store of H. A. McClure, Jr., the business of which, according to the confession of the cashier, has been supported wholly or in part by the funds of the bank. Mussey's story of his peculations from the bank have a very familiar sound, beginning as they did nearly 6 years ago with a comparatively small amount and gradually increasing until the amount became too great to remain hidden. Still, even the national bank examinor D. D. Muir was deceived by

8. March 29, 1900 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, March 29, 1900

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MUSSEY'S IRREGULARITIES Some Light Thrown on Methods of Defaulting Vermont Cashier. Rutland, Vt., March 28.-The affaire of the Mershants' National bank, which has been closed since Monday on Account of & defalcation of $145,000 by the cashier, Museey, were in charge of D. D. Muir, temporary receiver today. Considerable evidence bearing on the irrgularities of the cashier, were disclosed today. It a ppears that the bank recently directed him to buy a certain number of U. S. 4 per cant bonds and he was given a directors' private check for something over $13,000. The check, however, 16 appears, from the bank's records, was taken to the Baxter National bank of this city and used to liquidate some drafts which has been protested and which amounted to more than $12,000. It appears also from today's examination that on all loans made by Mr. Mussey to Mr. MoClure he charged 6 per cent and in this way he realized about $8,700 on his transactions with the music dealer, to whom he claims to have given the sum which he is accused of taking from the bank.

9. March 29, 1900 Delaware Gazette and State Journal Wilmington, DE
Article from Delaware Gazette and State Journal, March 29, 1900

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RECEIVERS FOR BANKS ASKED FOR. They Are Located in Keene, N. H., and Are Thought to Have Sustained Losses. Keene, N. H., March 26.-The bank commissioners for New Hampshire have filed a petition with the clerk of Cheshire county Supreme Court asking that an assignee be appointed for the Keene Guaranty Savings Bank of this city, and a petition of the same nature for the Keene Five-cents Savings Bank. The finances of both these institutions have been considered uncertain for some time and neither bank has received deposits of late, owing to a general belief that they had sustained losses through western investments. The Keene Five-cents Savings Bank has paid depositors one dividend of 10 per cent. It owes $1,449,058. The Keene Guaranty Savings Bank has paid depositors a dividend of 5 per cent. This institution owes $718,873. The petitions of the commissioners will come up for a hearing at the April term of court. AN THER CLOSES ITS DOORS. Washington, March 6.-The Controller of the Treasury has received word that the Merchants National Bank of Rutland, Vt., closed its doors this morning. Following is the synopsis of the report of the condition of the bank made to the Comptroller of the Currency under the call of February 13th, 1900: Liabilities-Capital, $100,000; surplus and profits, $3,383: due to depositors, banks and bankers, $351,549; cir. culation, $21,870. Resources-Loans and discounts, $361,363; other assets, including cash, 8115,436. Bank Examiner D. D. Muir has been appointed temporary receiver.

10. March 31, 1900 Barre Evening Telegram Barre, VT
Article from Barre Evening Telegram, March 31, 1900

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There Are No New Developments Today NO STATEMENT YET The Examination of the As sets is Still in Progress Rutland, Vt., March 31.-Thereare practically no new developments in connection with the collapse of the Merchant's National Bank and the arrest of Cashier Mussey and Marvin A. McClure, charged with embezzlement and misappropriation of its funds. Matters are expected to remain as they are until the two men are given hearings the latter part of next week. The examination of the accounts by Receiver Muir still contiuues, but no statement has been made public.

11. April 4, 1900 The Star Reynoldsville, PA
Article from The Star, April 4, 1900

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Cashier's Shortage $145,000. The Merchants National bank, of Rutland, Vt., closed its doors Monday, and Cashier Hussey was arrested at Albany, N. Y. He left a shortage of $145,000 in his accounts. The bank has a capital of $100,000 and there is due to depositors and other bankers $351,549. Its loans and discounts were $361,363 and other assets $115,438. National Bank Examiner D. D. Muir has been appointed temporary receiver. Hussey confessed that he had stolen $145,000 from the bank during the past six years and had covered his transactions by forged notes.

12. April 6, 1900 Middlebury Register Middlebury, VT
Article from Middlebury Register, April 6, 1900

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MCCLURE ARRESTED. Only Important Development of Week in Merchants' Bank Failure. The sensation of the past week in the Rutland bank failure was the arrest on last Friday morning of M. A. McClure, to whom Cashier Mussey loaned the enormous sum of $145,000. Rumor has been rife of impending revelations, showing that other loans of like character were made to parties whose names thus far have not been connected with the case, but to the time of this writing no such bomb has burst. Mr. McClure was arrested at 1.30 o'clock Friday morning at his home on Church street by Deputy United States Marshal J M. Stoddard and Deputy Sheriff Whittaker on charges of embezzlement and grand larceny and taken to county juil. The charges are same as those on which Charles H. Mussey was arrested. The complaint was signed by Dr. John A. Mead, president of Merchants' National bank. Judge E. i. Waterman of Brattleboro, representing United States District Attorney Martin. drew the papers, and the warrant was signed by James A. Merrill as United States commissioner. Judge Merrill is counsel for McClure and his position as commissioner disqualities him to act in future proceedings in this case. The signing of the warrant was a ministerial act merely. It is expected that hearings will be conducted by United States Commissioner Johnson at Burlington. The arrest was the result mainly of the investigations of D. D. Muir, receiver of the Merchants' bank. It was thought that nothing of consequence would be done by the officers in the McClure case until the arrival this week of District Attorney Martin. who was in Texas, but matters suddenly came to a head Thursday.

13. May 9, 1900 St. Johnsbury Caledonian Saint Johnsbury, VT
Article from St. Johnsbury Caledonian, May 9, 1900

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The defalcation of the Merchants National bank of Rutland isevidently deeper than at first supposed. It is understood in Rutland that the amount missing will exceed $200,000, and statements in New York papers, which may have been made up from the receiver's figures sent to the office of the comptroller of the currency in Washington, put the amount at $204,000.

14. May 23, 1900 St. Johnsbury Caledonian Saint Johnsbury, VT
Article from St. Johnsbury Caledonian, May 23, 1900

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Stockholders Assessed. Notices of an assessment of 100 per cent. upon the stockholders of the looted Merchants' National bank of Rutland have been sent out by Receiver D. D. Muir upon instructions from the controller of the currency. If it is all paid it will add $100,000 to the assets of the bank, this being the capital stock.

15. August 3, 1900 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, August 3, 1900

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A Dividend of Fifty Cents. Rutland, Vt., Aug. 2.-Receiver D. D. Muir of the Merchants' National bank, this city, which was wrecked by Cashier Charles W. Mussay last March, today received an order from the comp= troller of the currency to declare a 50 per cent. dividend to depositors. It now is expected that depositors eventually will receive the full amount that is dua them.

16. August 4, 1900 The Delawarean Dover, DE
Article from The Delawarean, August 4, 1900

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Paying Swindled Bank Depositors. Rutland, Vt., Aug. 3.-Receiver D. D. Muir, of the Merchants National bank of this city, which was wrecked by Cashier Charles W. Mussey last March; yesterday received an order from the comptroller of the currency to declare a 50 per cent dividend to depositors. It is now expected that depositors will eventually receive full amounts due them.

17. September 17, 1900 Barre Evening Telegram Barre, VT
Article from Barre Evening Telegram, September 17, 1900

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UNITED STATES COURT. Burlington, Sept. 17. - The time for noting cases for trial by jury at the Oct. term of the United States courts has expired, and according to the records of Geo. E. Johnson, clerk of the court, there are but two cases to be tried, those of Nepoleon LaBell vs the George E. Lyons Granite Company, and D. D. Muir, receiver of the Merchants National Bank of Rutland vs M. M. McClure. The term will be held at Rutland and will begin Tuesday, Oct. 2.

18. December 21, 1900 Barre Evening Telegram Barre, VT
Article from Barre Evening Telegram, December 21, 1900

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Merchants Bank Dividends. Rutland, Dec. 21.-Receiver Muir of the Merchants National Bank, that was wrecked by Cashier Mussey a year ago, will declare a 25 cent. dividend to the depositors in a few days. This will make 75 per cent. paid in all. Many assets are yet in the hands of the bank, and it is now thought that the depositors will receive 95 to 100 per cent.

19. January 3, 1901 Oxford Eagle Oxford, MS
Article from Oxford Eagle, January 3, 1901

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BUSINESS FAILURES. Jan. 3—Wabasha, Minn., People's bank. 6—Rahway, N. J., Union county bank.... New York, Hulbert H. Warner, patent medicine manf.; $2,319,027. 9—Plankinton, S. D., State bank. 17—Chicago, Francis P. Owings, real estate; $5,364,977. Feb. 7—New Bedford, Mass., Henry E. Holcomb, manf.; $1,351,438.... Boston, Miner, Beal & Co., clothing firm, $450,000. 26—United States milling combine (flour trust); $15,000,000. Mar. 3—Port Jervis (N. Y.) Nat. bank resumes; had suspended payment in December. 5—J. F. Seiberling, formerly manufacturer at Akron, O., files bankruptcy petition; $800,000, assets, $30. 19—John Kehoe, builder of New York, files bankruptcy petition; $1,520,085; no assets. 22—D. Appleton & Co., New York, publishers; $3,000,000. 26—Rutland, Vt., Merchants' Nat. bank.... Keene, N. H., Five Cent savings bank for $1,449,058; and Guarantee savings bank for $718,873. Apr. 3—Cambridge (Neb.) State bank; $40,000. 12—Yates Center, Kan., Citizens' state bank. 27—Adolph Landauer, dry goods dealer of Milwaukee; $391,945.31. May 11—Frank L. Fuller's private banks at Rockford and Cedar Springs, Mich. 21—Pentwater, Mich., Neilson & Co.'s bank. 26—Price, McCormick & Co., of New York, cotton brokers and shippers; $13,000,000. 28—Seymour, Johnson & Co., stock and cotton brokers of New York; $500,000. Jun. 5—W. C. Shields' bank at Mulberry Grove, Ill. 15—McNair & Alexander, cattlemen at Ashland, Kan.; $542,000. Aug. 13—Henry J. O'Neill, the "barley king," files petition in bankruptcy; $500,000.... Kingfisher (Col.) bank; $61,000. 17—Somerset (Ky.) Nat. bank. Sep. 6—Lamont (Ill.) state bank; $12,000. 7—Fifth Avenue Savings & Loan Ass'n., of McKeesport, Pa.; $500,000. 18—Hatch & Foote, New York brokers; $2,000,000. 19—South Danvers Nat. bank, at Peabody, Mass. Nov. 17—German Nat. bank, at Newport, Ky. Dec. 12—Bank at Brillion, Wis. 13—Order of Chosen Friends, large fraternal insurance association. 21—American nat. bank of Baltimore, Md. 25—Isaac Robinson, at Baltimore, Md., manufacturer; $800,000.

20. January 3, 1901 Marietta Daily Leader Marietta, OH
Article from Marietta Daily Leader, January 3, 1901

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BUSINESS FAILURES. Jan. 3—Wabasha, Minn., People's bank. 6—Rahway, N. J., Union county bank.... New York, Hulbert H. Warner, patent medicine manf.; $2,319,027. 9—Plankington, S. D., State bank. 17—Chicago, Francis P. Owings, real estate; $5,364,977. Feb. 7—New Bedford, Mass., Henry E. Holcomb, manf.; $1,351,438.... Boston, Miner, Beal & Co., clothing firm, $450,000. 26—United States milling combine (flour trust); $15,000,000. Mar. 3—Port Jarvis (N. Y.) Nat. bank resumes; had suspended payment in December. 5—J. F. Seiberling, formerly manufacturer at Akron, O., files bankruptcy petition; $800,000, assets, $30. 19—John Kehoe, builder of New York, files bankruptcy petition; $1,520,085; no assets. 22—D. Appleton & Co., New York, publishers; $3,000,000. 26—Rutland, Vt., Merchants' Nat. bank.... Keene, N. H., Five Cent savings bank for $1,449,058; and Guarantee savings bank for $718,873. Apr. 3—Cambridge (Neb.) State bank; $40,000. 10—Columbus, O., Reinhard & Co.'s bank; $140,000. 12—Yates Center, Kan., Citizens' state bank. 27—Adolph Landauer, dry goods dealer of Milwaukee; $391,945.31. May 11—Frank L. Fuller's private banks at Rockford and Cedar Springs, Mich. 21—Pentwater, Mich., Neilson & Co.'s bank. 26—Price, McCormick & Co., of New York, cotton brokers and shippers; $13,000,000. 28—Seymour, Johnson & Co., stock and cotton brokers of New York; $500,000. Jun. 5—W. C. Shields' bank at Mulberry Grove, Ill. 15—McNair & Alexander, cattlemen at Ashland, Kan.; $542,000. Aug. 13—Henry J. O'Neill, the "barley king," files petition in bankruptcy; $500,000.... Kingfisher (Col.) bank; $61,000. 17—Somerset (Ky.) Nat. bank. Sep. 6—Lamont (Ill.) state bank; $12,000. 7—Fifth Avenue Savings & Loan Ass'n., of McKeesport, Pa.; $500,000. 18—Hatch & Foote, New York brokers; $2,000,000. 19—South Danvers Nat. bank, at Peabody, Mass. Nov. 17—German Nat. bank, at Newport, Ky. Dec. 12—Bank at Brillion, Wis. 13—Order of Chosen Friends, large fraternal insurance association.

21. January 9, 1901 Willmar Tribune Willmar, MN
Article from Willmar Tribune, January 9, 1901

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BUSINESS FAILURES. Jan. 3—Wabasha, Minn., People's bank. 6—Rahway, N. J., Union county bank.... New York, Hulbert H. Warner, patent medicine manf.; $2,319,027. 9—Plankinton, S. D., State bank. 17—Chicago, Francis P. Owings, real estate; $5,364,977. Feb. 7—New Bedford, Mass., Henry E. Holcomb, manf.; $1,351,438....Boston, Miner, Beal & Co., clothing firm, $450,000. 26—United States milling combine (flour trust); $15,000,000. Mar. 3—Port Jervis (N. Y.) Nat. bank resumes; had suspended payment in December. 5—J. F. Seiberling, formerly manufacturer at Akron, O., files bankruptcy petition; $800,000, assets, $30. 19—John Kehoe, builder of New York, files bankruptcy petition; $1,520,085; no assets. 22—D. Appleton & Co., New York, publishers; $3,000,000. 26—Rutland, Vt., Merchants' Nat. bank.... Keene, N. H., Five Cent savings bank for $1,449,058; and Guarantee savings bank for $718,873. Apr. 3—Cambridge (Neb.) State bank; $40,000. 12—Yates Center, Kan., Citizens' state bank. 27—Adolph Landauer, dry goods dealer of Milwaukee; $391,945.31. May 11—Frank L. Fuller's private banks at Rockford and Cedar Springs, Mich. 21—Pentwater, Mich., Neilson & Co.'s bank. 26—Price, McCormick & Co., of New York, cotton brokers and shippers; $13,000,000. 28—Seymour, Johnson & Co., stock and cotton brokers of New York; $500,000. Jun. 5—W. C. Shields' bank at Mulberry Grove, Ill. 15—McNair & Alexander, cattlemen at Ashland, Kan.; $542,000. Aug. 13—Henry J. O'Neill, the "barley king," files petition in bankruptcy; $500,000.... Kingfisher (Col.) bank; $61,000. 17—Somerset (Ky.) Nat. bank. Sep. 6—Lamont (Ill.) state bank; $12,000. 7—Fifth Avenue Savings & Loan Ass'n., of McKeesport, Pa.; $500,000. 18—Hatch & Foote, New York brokers; $2,000,000. 19—South Danvers Nat. bank, at Peabody, Mass. Nov. 17—German Nat. bank, at Newport, Ky. Dec. 12—Bank at Brillion, Wis. 13—Order of Chosen Friends, large fraternal insurance association. 21—American nat. bank of Baltimore, Md. 25—Isaac Robinson, at Baltimore, Md., manufacturer; $800,000.

22. February 21, 1901 Bellows Falls Times Bellows Falls, VT
Article from Bellows Falls Times, February 21, 1901

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McClure Goes to Prison. Judge Wheeler in the United States district court February 13 pronounced sentence upon Marvin A. McClure, formerly a prominent business man of Rutland, who was convicted of assisting to wreck the Merchants' national bank of that city. Seven years in the Rutland county house of correction is McClure's sentence. McClure received the decision without an expression of surprise. It lay within the power of the court to send him to the state prison. The Merchants' national bank was forced to close its doors, a total wreck, on March 26, 1900. The national bank examiner, D. D. Muir, found a shortage of $145,000, a receiver was appointed and the cashier, Charles W. Mussey, was arrested, charged with misappropriating $145,000. The shortage was found afterward to exceed $200,000. McClure, a music teacher, dealer and speculator, was arrested a few days later, charged with aiding and abetting the cashier, who, it appears, had loaned McClure nearly $145,000 on notes of doubtful value, and in violation of the national banking laws. Mussey pleaded guilty at the hearing and is now in the house of correction serving a seven-year sentence.