1510. Savings Bank (Ansonia, CT)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
savings bank
Start Date
September 16, 1915
Location
Ansonia, Connecticut (41.346, -73.079)

Metadata

Model
gpt-5-mini
Short Digest
ddc79e84

Response Measures

Accommodated withdrawals, Partial suspension, Books examined

Other: Directors invoked the 60-day notice rule; later lifted for small amounts and paid by check on another bank.

Description

State Bank Commissioner Everett J. Sturgis took charge of the Savings Bank of Ansonia after the treasurer admitted embezzling ~$35-36k. A run began just before closing and directors invoked the 60-day rule; later small deposits were paid. Articles report the commissioner 'took charge' (government suspension). No clear statement that the bank permanently closed or later fully reopened, so outcome is unsure.

Events (2)
1. September 16, 1915 Run
Cause
Bank Specific Adverse Info
Cause Details
Run triggered by disclosure that treasurer Franklin Burton had embezzled about $35,000-$36,000 and admitted the theft to the State Bank Commissioner.
Measures
Directors invoked the sixty days' (30/60/90) notice rule; later lifted that requirement for sums of $50 and less and paid smaller depositors by check on another bank.
Newspaper Excerpt
A run on the bank started just before business closed and the directors invoked the sixty days' rule.
Source
newspapers
2. September 16, 1915 Suspension
Cause
Government Action
Cause Details
State Bank Commissioner ordered the institution taken in charge after the discovery of a cash shortage and the treasurer's confession of embezzlement.
Newspaper Excerpt
State Bank Commissioner Everett J. Sturgis had taken charge of the affairs of the Savings Bank of Ansonia.
Source
newspapers

Newspaper Articles (10)
1. September 17, 1915 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, September 17, 1915

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Article Text

MOB AT DOORS OF CLOSED BANK. Sixty Days' Notice Rule Halts RunTreasurer Confesses $36,000 Shortage. Ansonia, Conn., Sept. 17.-The police and fire departments of the city were called out last night to disperse a crowd of about five thousand depositors and friends following the announcement yesterday that State Bank Commissioner Everett J. Sturgis had taken charge of the affairs of the Savings Bank of Ansonia The treasurer of the institution, former Mayor Franklin Burton, is under arrest, charged with embezzlement of $36,000 on bogus notes during a period of fifteen years. A run on the bank started just before business closed and the directors invoked the sixty days' rule. Commissioner Sturgis stated that the treasurer has confessed that he lost the money in real estate investments. Burton has twice been mayor of the city and once a state senator. He is prominent in church affairs.

2. September 17, 1915 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, September 17, 1915

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Article Text

Ansonia Banker Admits Shortage TREASURER BURTON ABSTRACT. ED $30,000 IN 15 YEAR PERIOD BOGUS - NOTES USED Bank Commissioner Sturges Made Discovery When He Appeared Without Notice at Savings Bank of Ansonia and Found Cash Shortage-Mob of 5,000 Fight Police. Ansonia, Conn., Sept. 16.-The Savings Bank of Ansonia, a state institution, was taken in charge by Bank Commissioner Everett J. Sturges today, when in the course of an examination of the accounts of the treasurer, Franklin Burton, he found an apparent shortage of $4,300 in cash. In reply to a cross-examination, by the commissioner, Burton said thaat his accounts were not in good condition. Abstracted $36,000. Later, the commissioner authoried the statement that Burton had told him that he had abstracted $36,000 or thereabouts from the bank, covering a perior of fifteen years and that amount was represented by bogus notes among the bank's assets. "Run" Upon the Bank, The commissioner ordered an officer to take Burton in charge for the present and the bank examiner with four assistants set at work on the books. A run upon the bank started just before business closed and the directors invoked the sixty days notice rule. Examiner Came Without Notice. Commissioner Sturgis in his statement said that he appeared with his examiner at the bank today without previous notice. The cash shortage was quickly noted and called to the attention of Burton, who said such was the fact. The commissioner asked Burton for an explanation and after he had been questioned he stated, ac cording to the commissioner, that (Continued on Page Eight)

3. September 17, 1915 New-York Tribune New York, NY
Article from New-York Tribune, September 17, 1915

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Article Text

EX-MAYOR TAKEN AS BANK ROBBER Ansonia Institution's Officer Said to Have Admitted $36,000 Thefts. Ansonia, Conn., Sept. 16.-Following the discovery that Ex-Mayor Franklin Burton, treasurer of the Savings Bank of Ansonia, was short $4,300 in his cash accounts, and that he was alleged to have confessed to embezzling $36,000, State Bank Commissioner Sturgis ordered the institution closed. The news of the closing spread rapidly through the city, and in a short time the entire police department had its hands full handling the 5,000 depositors who insisted on storming the doors to draw out their money. So threatening became the crowd that Mayor Schulmaker mounted the steps of the bank to address the crowd, but his efforts were drowned in jeers and roars of "We want Burton!" Realizing the uselessness of talk, the Mayor ordered the patrolmen to draw their revolvers. He also sent in a general fire alarm. The men of both departments by repeatedly charging the crowl for two hours and by a liberal use of water and nightsticks succeeded in breaking it up. In a public statement Bank Commissioner Sturgis said that Burton when questioned about the cash shortage confessed that for the last fifteen years he had embezzled $36,000 by means of bogus notes which appear in the bank's statement as assets. The money stolen, Burton told the Commissioner, was lost in realty deals. Following the treasurer's statement, Mr. Sturgis said, he ordered the arrest of Burton. Bank officials when they found that a run had been started on the bank invoked the sixty-day clause. Later a statement was issued by William A. Nelson notifying the depositors that he would purchase all passbooks up to $100,000. Last night bank officials issued a statement that Burton's alleged peculations would not cripple the bank. as $20,000 of the shortage was covered by his surety bond. "The bank," the statement continued, "has a surplus of $63,000, and all obligations will be met promptly when the Bank Commissioner has finished his investigation." Burton was taken to the county jail, and up to an early hour this morning had not been bailed. He is fifty-five years old, married, and has two children. He is prominent in church circles, and besides serving twice as Mayor has been in the State Senate. GREAT BEAR SPRING WATER-50c. the case of six glass stoppered bottles.Advt.

4. September 17, 1915 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, September 17, 1915

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Article Text

POLICE AND FIREMEN STOP DEPOSITORS Savings Bank Fails. President Is Church Worker, and Embezzles Large Sum. ANSONIA, Conn., Sept. 16- The entire police and fire departments were called out to disperse a crowd of five thousand following the announcement that the State Bank Commissioner had taken charge of the Savings Bank of Ansonia. The treasurer, former mayor Franklin Burton, is under arrest charged with the embezlement of $35,000 on bogus notes during a period of fifteen years. A run on the bank started just before business closed and the directors invoked the sixty doys notice rule. Burton was twice mayor and prominent in church affairs.

5. September 17, 1915 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, September 17, 1915

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Article Text

BANK CLOSING CAUSES NEAR RIOT ANSONIA, Conn., Sept. 16.-The entire police and fire departments of the city were called out to-night to disperse? a crowd of about 5,000 persons following the announcement late to-day that the state bank commissioner Everett J. Sturgis had taken charge of the affairs of the Savings Bank of Ansonia. The treasurer of the Institution, former Mayor Franklin Burton, is under arrest, charged with embezzling $36,000 on bogus notes during a period of fifteen years. A run on the bank started just before business closed and the directors invoked the sixty day notice rule. The last statement of the bank on June 14. 1915, showed deposits of vo, 074,216 and surplus of $63,000. Commissioner Sturgis stated that the treasurer had confessed that he lost the money in real estate investments The bank issued a statement to-night saying the alleged defalcation is partly covered by Burton's bond of $20,000. The statement says further that "all depositors will be paid when the commissioners are through."

6. September 17, 1915 Arizona Republican Phoenix, AZ
Article from Arizona Republican, September 17, 1915

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Article Text

BANK CLOSES; RIOT [ASSOCIATED PRESS DISPATCH] ANSONIA, Conn., Sept. 16.-The entire police and fire departments were called out today to disperse a crowà of five thousand following the announcement that the state bank commissioner had taken charge of the Savings Bank of Ansonia. The treasurer, former Mayor Franklin Burton, is under arrest charged with the embezzlement of $36,000 by means of bogus notes during a period of fifteen years. A run on the bank started just before business closed and the directors invoked the sixty days' notice rule. Burton was twice mayor and prominent in church affairs.

7. September 17, 1915 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 17, 1915

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Article Text

RIOT OVER BANK LOOTING Police and Firemen Disperse The Crowd-ex-Mayor Arrested. Ansonia, Conn. Sept. 17-The entire Police and Fire Departments of the city were called out last night to disperse a crowd of about 5,000 persons following the announcement late yesterday that State Bank Commissioner Everett J. Sturgis, had taken charge of the affairs of the Savings Bank of Ansonia. The treasurer of the institution, former Mayor Franklin Burton, is under arrest, charged with embezzling $36,000 on bogus notes during a period of 15 years. A run on the bank started just before business closed and the directors invoked the 60 days' notice rule. The last statement of the bank, on January 1, 1915, showed deposits of $3,074,216 and surplus of $63,000. Commissioner Sturgis stated the treasurer had confessed that he lost the money in real estate investments. Burton is said to be under $20,000 bond. "All depositors will be paid when the commissioners are through," a statement issued says.

8. September 17, 1915 South Bend News-Times South Bend, IN
Article from South Bend News-Times, September 17, 1915

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MADDENED DEPOSITORS FIGHT TWO FORCES Five Thousand Start Run When . Hearing of Embezzlement of $35,000 by Treasurer. ANSONIA, Conn., Sept. 17. - Five thousand persons fought the fire department and the entire police force Thursday night outside the savings bank here when announcement was made that State Bank Commissioner Sturgis had taken charge of the institution because of the embezzlement of $35,000 by the treasurer, Franklin Burton, former mayor of the city. A run started just before the bank closed, but was halted when the directors invoked the 60-day rule. Men and women depositors, most of them mill employes, struggling to withdraw their deposits. The fire department had to turn streams of water on the crowd before order was restored. Burton was mayor of Ansonia for three terms and previously had been a state senator and assemblyman. He acknowledged to Commissioner Sturgis he lost the $35,000 in real estate speculation.

9. September 18, 1915 New Britain Herald New Britain, CT
Article from New Britain Herald, September 18, 1915

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Article Text

INSTITUTION ATTACHES PROPERTY OF BURTON Run on Bank Continues Today-No Further Funds Missing. Ansonia, Sept. 18.-An attachment i n favor of the Savings Bank of Ansonia was served today against property and life insurance policies of Franklin Burton, the former treasurer of the institution who is now out on bail on the charge of embezzling $36,000. hTe papers were drawn up by Ralph Clark, a commissioner of the superior court, and served by Deputy Sheriff McNerney of New Haven. The run on the bank continued to. day, the line which formed outside the doors before the opening hour numbering over 100 persons. The directors lifted the sixty days notice requirement on deposits so far as it appled to sums of 500 and less, and depositors were paid by check on another bank as soon as their pass books were checked up. Bank Commissioner E. J. Sturges and his assistants left for their homes today and they will return Monday to continue the examination. So far, it is understood, no evidence of further misappropriations of funds or makingfi of bognus securities has been found other than those items which Burton admitted to the commissioner W. A. Nelyson who temporarily fills the office of treasurer and secretary of the bank stated today, it is understood, that had he been in town a run on the bank would have been averted as he personally would have made good the deficit immediatly.

10. September 18, 1915 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 18, 1915

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Article Text

ADMITS BANK THEFT Ex-Mayor of Ansonia Pleads Guilty Run Continues. Ansonia, Ct., Sept. 18 - Former Mayor Franklin Burton pleaded guilty in the City Court to a charge of em bezzling $36,000 of the funds of the Savings Bank of Ansonia, of which he was treasurer. He was held for trial in the Superior Court, his bond of $10,000 being furnished by William A. Nelson, a director of the bank Burton was arrested Thursday night after he had confessed the defalcation to State Bank Commissioner E. J. Sturges. A crowd of several hundred gathered near the bank this morning, but there was no disorder, in contrast to the riotous scenes of last night. Extra police were on guard, however, Depositors were admitted to the bank one by one and their pass books were redeemed at full value. The directors stated today that all claims against the institution would be met and that the surplus of $80,000 will more than cover any shortage.