1557. Stafford Savings Bank (Stafford Springs, CT)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
October 13, 1887
Location
Stafford Springs, Connecticut (41.954, -72.302)

Metadata

Model
gpt-5-mini
Short Digest
599169765fdb92ea

Response Measures

None

Description

1887 articles report a major cashier (Richard S. Hicks) defalcation that wrecked Stafford National Bank and heavily implicated Stafford Savings Bank. Depositors gathered at closed doors (runs/angry crowd), the Savings Bank suspended in mid‑October 1887, directors voted to scale accounts 15%, and by early November 1887 the bank planned to reopen and accept deposits. Later accounts (1894) note William M. Corbin rescued the Savings Bank from receivership. Cause is bank-specific fraud/insolvency. Dates are taken from the newspaper publication dates and internal references.

Events (4)
1. October 13, 1887 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed discovery of massive embezzlement/defalcation by cashier Richard S. Hicks and worthless assets (bad checks, failed lumber company investments).
Newspaper Excerpt
Both the Stafford National Bank and the Stafford Savings Bank have suspended, having been wrecked by Hicks.
Source
newspapers
2. October 14, 1887 Run
Cause
Bank Specific Adverse Info
Cause Details
Large defalcation by cashier Richard S. Hicks; shortage estimated about $250,000, involving bad assets and misuse of bank funds.
Measures
None specifically to stop the run reported in the article beyond later suspension and scaling decisions.
Newspaper Excerpt
An excited crowd of angry depositors hung about the closed doors of the two banks all day yesterday.
Source
newspapers
3. November 1, 1887 Other
Newspaper Excerpt
The directors of the Stafford Savings Bank have voted to scale down all depositors' accounts 15 percent... The bank will be open in a few days for deposits and payments. The scaling is upon accounts up to Nov 1st. Those depositing now are credited at full amount. No deposits had been taken from the time of suspension to Nov. 1st, though applications had been made by those wishing to deposit. (The Press, 1887-11-03).
Source
newspapers
4. July 1, 1888* Other
Newspaper Excerpt
In 1887, when the failure of the Stafford National Bank nearly carried down the Stafford Savings Bank, Mr. Corbin took the presidency of the savings bank, and with rare business ability unraveled the snarl of affairs, saved the bank from a receivership and built it up to noteworthy strength. (New-York Tribune obituary, 1894-03-23).
Source
newspapers

Newspaper Articles (5)
1. October 14, 1887 Evening Star Washington, DC
Article from Evening Star, October 14, 1887

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Article Text

A QUARTER OF A MILLION GONE. Both the Stafford Banks Ruined by Cashier Hicks' Defalcation. The defalcation of Richard S. Hicks, cashier of the Stafford National Bank, at Stafford, Conn., has created a decided sensation in that State, says a New Haven dispatch to the Philadelphia Press. Messrs. Foreman and Cooley, the National Bank examiners, say that the shortage will reach $250,000. Both the Stafford National Bank and the Stafford Savings Bank have suspende i, having been wrecked by Hicks. The Savings Bank held $69,000 of the National Bank stock, which had a capital of $200,000. An excited crowd of angry depositors hung about the closed doors of the two banks all day yesterday. One young man had deposited $7,000 in the Savings Bank, It having been bequeathed to him, and he was there bemoaning his loss. Poor women walled over the quick consumption of their little wealth. Workmen at the mills threatened to treat Hicks in a manner that would not leave him able to be tried. Their savings of years had been swallowed up. District Attorney Lewis E. Stanton said: "When charged with being a defaulter Hicks emphatically denied the allegation, but when the actual accounts of the New York, Boston and Springfield banks were produced yesterday he confessed to the defalcation." YEARS OF CONTINUED FRAUD. The false entries on the books and the pecultar way draft stubs had been handled lately were a surprise to all who had a hand in the examination. In many cases the stubs do not correspond with the drafts, and in each case the draft was for much more than indicated on the stub. The printed numbers on the drafts were frequently erased and other numbers written in, and the order or draft numbers was disarranged. Within a few days Hicks had put in as assets of the bank two checks of the Vermont Lumber Co., drawn on a Springfield bank, amounting to $50,000. These are worthless. Hicks had considerable me ney sunk in the lumber company, which has gone under. Hicks is now said to have been the principal owner of the concern. His confession in regard to the lumber company is that some years ago the bank was found to be possessed of a bad debt and took a large tract or timber land in Vermont. It was not thought safe to hold the land, so he says he offered to relieve the bank by buying the tract. The Vermont Lumber Co. was organized, or which Hicks was chief owner, and other tracts were bought. A mill was built and operations began. Loveless, Farr & Co., then having an office to Springfield, Mass., were the company's selling agents. Hicks expected to clear the land at a profit of $50,000, but it proved to be a poor investment. It is now proven that it is but a repetition of the old story of speculation and the use of the bank's funds to aid in repairing the losses. OTHER CROOKED TRANSACTIONS. He has had large dealings with T. H. Brady, a New York cotton broker, and has sent him drafts to the amount of $74,091, as now appears by the books. His Irregular transactions have been going on since 1872, when he took his position as cashier of the bank. Many wonder why he did not flee to Canada before the development took place. It is likely that he was putting the matter off, hoping that before his transactions would be made public he could make enough by speculation to cover his embezziements. It has also been discovered that Hicks has been issuing certificates of depo-it at 4 per cent interest. The examiners found $46,000 in these certificates, all held by residents of Stafford, Tolland, and adjoining towns, some of the certificates being for very small amounts. This is all lost. If a stranger had asked the people of Stafford Springs Tuesday afternoon who was the most public-spirited man in the borough three out of four would have an-wered R. S. Hicks. He seemed to be the person who united the triendship of the young men with the confidence of the older business men. His push and drive in developing the place had given him such a hold on the community that the mere fact that his name was connected with an enterprise was enough to insure its being taken up by scores of people. The roads on the terrace, the water company, the agricultural assoclation were but a few of the enterprises in which he was the leading spirit, and many of the principal blocks in the town were owned by him. He had laid the foundation for a new block opposite the bank which he ruined that was to be the handsomest building in town, and was to contain a hall for entertainments and for the gatherings of the young men of the village. He organized an electric light company for the village and a charter was obtained from the last legislature. He is about thirty-eight years of age, is a native of Tolland, and began his career as a banker as a clerk in the Tolland Bank.

2. October 14, 1887 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 14, 1887

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Article Text

$200,000 GONE. A Bank Cashier's Speculation, and Wha It Led to. STAFFORD SPRINGS. CONN, Oct. 13. The directors of the Stafford bank favor the appointment of a receiver It is believed that little, if any. of the bank's capital of $200,000 will remain after the banks' affairs are settled. It was discovered that the defaulter had dealt heavily in stocks, $75 000 of the banks' funds having been forwarded to T. M. Bradv, a New York broker within three months. To conceal his pilferings, vouchers for the above amounts were concealed at the cashier's home. He also dealt with one Belden, of Minneapolis, another broker who was indebted to the bank for $16,000. Examiner Fornian asserts that the Stafford Savings bank, which had $69,000 deposits in the National bank is most extensively involved. The affairs of the savings bank are now being examined by the State of Connecticut. The town of Stafford is involved $10,000. the Mineral Springs Manu't'g. Co. lose $7000 Other amounts lost are comparatively small. George M. Ives, father-in-law of the defaulter, states that Hicks informed him the main cause of his downfall was extensive investments in the lumber business, especially in the Vermont Lumber Co.

3. November 3, 1887 The Press Stafford Springs, CT
Article from The Press, November 3, 1887

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Article Text

ciety hold their first sociable in the chapel, Tuesday afternoon and evening of next week, Nov. 8th, Mrs. M. A. Smith, Mrs. G. H. Baker, hostesses. All are cordially invited to attend, the ladies especially desiring all their friends to come and hold with them a jubilee over the extinction of the church debt. -Rev. Messrs. Breed and Hawley exchanged pulpits last Sunday morning. Mission service it Buff Cap, Sunday, at 3 p. m., Rev. F. D. Buckley officiating G. A. R. meeting next Monday even ing. Winter Post, G. A. R. has about de cided to postpone the big fair-planned for the first week in Decemer-untilabou the second week in January. Reason the absorption of the public mind just now in other matters, and cousequent depression in business. The plan of the fair is one that will invite co-operation from all. the main object being to add to a small fund already created as a nucleus to the "memorial building fund, or the construction of a building which shall fill the several purposes of a monumental structure for the defenders of the union in the war of the rebellion, an assembly room for the G. A. R. post, a home for the Stafford Public Library, and headquarters for a local historical society, and perhaps also museum of relies and articles of historical it interest. This combination will as should, enlist the sympathy of all, either from patriotism or desire to beautify the village with a structure, not extravagant, but beautiful because consedrared to the memory of patriotism and hereism, and to the enlightment of the masses by providing abundantly good reading free of cost, as it is part of the plan to have the library so endowed as to be made free to all, The task of doing this seems large, but will grow easier as it progresses to accomplistment, and enlists the pride of sons of Staf. ford here and elsewhere. As we make our village more attractive to cultured people we shall see an improvement in a population, and our mills filled with class of operatives, intelligent, refined, and in sympathv with every move towards progress. Every employer must see that he has a selfish interest, if no higher mo tive, in seeing this work prosper, and all communities of interests can join hands in the work and begin now to plan for the best results. John E. Ince, with "a jolly company of jolly comedians, will be at Oronoco Hall next Tuesday evening, 8th, for one night only, giving a musical comedy conceit, entitled "Fun in a Boarding School, "a three-act excursion of fun, with new songs, acts, specialties and costumes. at Tickets, 35 and 50 ets., now on sale Parson's This company hasbeen running for a week at the Springfield Muse, and IS the News of that city says "The play much more laughable and refined than any of the farce comedies that have lately been presented in this city. The Professor Gimcrack of John E. Ince is a remarkably clever portraiture of the old time ped gogue, and his y-word 'come again is excruciating. Mr. Coleman as David Doo dle was excellent, and his Irish songs and dances were immense Mr. Whyte in the double role of Harry Hamilton and Simon Clamshell was very good Miss Burnham as Jessie, although suffering with a severe cold, played the part very acceptably Miss Emma Jones as the old spinster, Sa mantha Smythe, was extremely clever, and her parody, Pretty as a Picture, was greeted with rounds of applause. Mrs. Dinsmore as the gushing widow played her role with extremely good tact. Little Nellie Smith caught the house with her songs and dances. The directors of the Stafford Savings Bank have voted to scale down all doposit or 's accounts 15 per cent. A very large meeting of corporators previously held had unanimously sanctioned the step after a very full investigation of affairs. Expert bank men consulted have invariably advised the same, and it has in all ways appeared the best thing to do. The directors are warranted in paying 85 per cent. after a most thorough pruning of doubtful assets, calling the stock of the Stafford National Bank valueless, and redueing estimates of values of all stocks and bonds to the safest basis, charging to profit and loss account many items that may hereafter be realized upon. The inteut has been to amply protect depositors who did not close their accounts, and yet not do injustice to any. The bank will be open in a few days for deposits and pay ments. The scaling is upon accounts up to Nov 1st. Those depositing now are credited at full amount. No deposits had been taken from the time of suspension to Nov. 1st, though applications had been made by those wishing to deposit. We may say that every one of the bank officers has approved of every step thus far taken in starting the bank anew, and that each of the 16 corporators present at last Monday's meeting also voted for the scaling. -The trial of O'Neill, of the American House, on charges growing out of the recent search of the premises, made by Prosecutor Hodgson and Sheriff Fisk, was tried ou Monday and Tuesday before Justice Washburn. Decision reserved. -Union prayer-meeting on Tuesday evening next at 7t o'clock, at Mr. E. Y. Fisk's, Stafford Street. A. L. Howard, the East-] butcher, soon after giving testimony in the liquor case of state vs, Westcott, received notice that he must vacate the premises occupied by him because of giving such testimony. There was no complaint that Mr. Howard had given false testimony, but he had gone athwart the path of the saloon power, whose interests at times demand perjury, or even murder. The saloon loses ground. however, when it makes such demands. The Sheriff La. valley case is an instance in point. Since a temperance advocate was recently murdered in a western city its thirsty denizens have to go outside the city limits for the rum which ontraged public sentiment sa B shall not be sold there. And the rum power has made a mistake in this attempted punishment of a witness who obeyed the lawful summons to court, and gave truthful evidence in preference to committing perjury. No license" gain votes next fall from this attempt to punish a witness in court. number of Stafford people

4. March 23, 1894 New-York Tribune New York, NY
Article from New-York Tribune, March 23, 1894

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Article Text

OBITUARY. WILLIAM M. CORBIN. William M. Corbin died at his home, No. 57 Willard-st., Hartford, Conn., on Wednesday morning. He was born in Union, Conn., on May 13, 1835. He had a good school education and went into business at eighteen with Walker, Sessions & Co., storekeepers and manufacturers of shoes. He succeeded to the business and was engaged in it until 1881, a period of twenty-eight years. In 1881 he removed his family to Hartford and in 1884 an attack of what was supposed to be a fatal disease compelled him to give up the office of Sheriff that he then held. He rallied, however, and in 1887, when the failure or the Stafford National Bank nearly carried down the Stafford Savings Bank, Mr. Corbin took the presidency of the savings bank, and with rare business ability unravelled the snarl of affairs, saved the bank from a receivership and built it up to noteworthy strength. In July, 1888, he took the cashiership of the First National Bank of Stafford Springs, then organized, which has proved successful. This place he held until his death. In 1888, too, he became president of the Central Woollen Company of Stafford Springs, where he remained until he died. He was a Republican in politics. In 1868 he represented Union in the Connecticut House; in 1875 he was State Senator from the XXth District; in 1884 he was delegate to the convention that nominated Garfield, and for years he was a member of the State Central Committee. For many years he was a deputy sheriff and in 1881 he was elected Sheriff of Tolland County. Mr. Corbin leaves four children-William H. Corbin, of Elizabeth, N. J.; Mrs. J. A. Wiley, of Hartford; J. Benjamin Corbin, of New-York, and Harvey Walker Corbin, of the Connecticut Trust Company, Hartford.

5. March 29, 1894 The Press Stafford Springs, CT
Article from The Press, March 29, 1894

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Number 52. THE LATE HON WM. M. CORBIN. In the brief mention last week we pressed a purpose to speak further of the life and character of the late Wm. M. Corbin in this week issue. Perhaps cannot do better than to include in this sketch the brief biography given in the history of Union Hon. William M Corbin was born in Union May 13th 1835. being the son of Dea. Benjamin and Maria Corbin, who resided in the eastern part of the town. The subject this sketch receive school school common the of his native town, and outs: of his school district attended select at the Center four fall terms. from 1850 to 1853. inclusi thus preparing him the honorable and reer that has followed 1858, age of eighteen, left home and took clerkship in the store and shoe manufacturing establishment of Walker Sessions Co. Mashapaug and there remained three years. In 1856. the age of became of he the Bates Co. were Mass. who also Walker, Sessions Co of Mashapa and Sessions. Carpenter & of to Canada. In 1858 to Mash apaug. and the firm of Corbin Tourtel was formed to business Walke of Co. death of Iarvey Valker. the ber. early in 1860. left the agement of the business in the hands Mr. Corbin. who was made appointed the sole administrator of Mr estate with its large This to him the age of twenty and responsibility that falls few early age and which he carried through an able and thorough business firm Tourtellotte Corbin of The firm Corbin Walker. the ceeded Tourtellotte 1861 and continued 1868 when Milton H Kinney was admit ted. and the firm name became Corbin Co busin Tourtellotte The until 1871 when Mr lotte retired. and the busi at Masha the remainin by paug partners under the name of Corbin Kin ney, until 1881. when the firm disso making eight years active life Mashapa cluding at time Fiskdale and spent partn for twenty. -five years cont ing his residence Mashapaug he had very honorable and successfu public life acting as tor and trustee of estates. for minors including the sons of the Harvey alker. until they became age, years ty-one Stafford Savings Bank from its tion in 1872. In additi to these various political offices in Union. selectman and register of voters for eral years also represents in the legis. lature of 1868. declining During his legislative term the important comm For eigl 1862 teen from years, nearly 1880, he was deputy sheriff and latter year elected sheriff Tolland for three years, from June 1881 1875 he was elected senator from the twentieth district. In 1880 he was at the gate republican cago, which nominated James Garf for president He was for several a member of the lcan town committee of Union. and of the state central of Connecticut the old twentieth republican very and strong tics, olding leading and influen sition in the buncile of his party in necticut He joined the church of Union 1859. and has ued his membership there since, liberal contributor to its active the repairs church in 1865. taking leading and assisting liberally towards the cost After his election sheriff Tolland county, Mr. Corbin was urged make his Rock center in the county and in he bought out hardware and continued the until failing health his ment 1884. In 1881 he had family to Hartford for legal poses his retaining Union until 1884 since which time been resident of Hartford His health would not admit his candidate for re-election for sheriff. declined renomi he three years he was in and gave up cares not expecting to live. of 1887 came the failure of the Stafford National Bank which the Stafford Savings Bank on its large holdings and interests stock of the National Bank. and doubtfu assets Although paired health and hardly ably home, Mr orbin was to dency of the Savings Bank and at time when recei vership of the bank and inev itable He rected himself to the straightening out the affairs of the bank where very valuable service in helping to store confinence 'and placing basis what to-day strong He was also chosen the stockholders' committee of the Stafford National Bank to assist in the same He gave that work and the Savings Bank of his time following July when resigned the presidency of the Savings Bank take the cashiership of the First y Bank. which was organized July, and commenced business August 2d, following `with a record All of the work that he has done for the banking interests of Stafford Springs has had very hearty support and approval of the people and business interests that section. His high character and in honorable business record has done much d to place the financial institutions he has been with on sound and footing with the full of the October. 1888, with In people. ey Johnson and Richard G of ford, Merrick Marc of Union. of Samuel G Adams. of Boston he g ized the Central Woolen Co. of Springs, purchasing the Grahite Mill Co to property and changing chosen Corbin was mill Mr to of the company. which has done much add the business interests Stafford Springs and has itself had This the leading points of his busi ell ness and public life. which hav honor both to himself and his na is tive of Union To the above we may add that it is to Mr Corbin that his native town is debted for the publication of its very teresting history, he having guarantee a the expense of publication and the aid of competent persons to put int shape the wealth of material gathered ou au by Prof. Hammond, whose work of ut thorship was stopped. as was that of hi successor, Rev. J. P. Watson, by death th It was finally put in shape for print b Rev. H. M. Lawson, now a missionary India, and to Mr. Corbin is his nativ town indebted for the preservation of er history that in coming years will accru re greater and greater value. an We spoke last week of especial reason ta Stafford had to honor the memory of M