1.
August 7, 1912
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
(Special to The Bulietin.) Dnaielson, Aug. 6.-The Windham County Savings bank was enjoined Tuesday, on an order from the superior court, from paying out or receiving any more moneys for a period of four months. The injunction was issued by Judge Gardiner Greene of Norwich, on Tuesday, and was served on the bank officials during the day, when Bank Commissioners Norris S. Lippitt of Norwich and Fred P. Holt of Hartford took charge of the institution and commenced to check up the books, their work being completed during the afternoon. The commissioners found a discrepancy of $18,000 between the amount of deposits as shown by the individual acocunts on the ledgers and the total of deposits as shown by the bank's balance sheet. When asked for a statement early in the afternoon, Commissioner Lippitt said that a discrepancy had been found, but that he might be quoted as stating that the depositors need have no fear as to the ultimate outcome, and it was indicated by what he said that the action that has been taken does not mean that the institution is seriously involved. Mr. Lippitt laid particular stress on the point that the people interested should not worry. The fact that action had been taken to temporarily suspend the paying or receiving of funds by the bank did not become known about the business section, excepting to a few, until after the commissioners had completed their work and it was not many minutes before birth was given to a number of wild stories as to the bank's condition. There was no run on the bank, however, and no chance for one, because the paying teller's window had been closed in accordance with. the injunction order. During the afternoon persons having business to transact at the bank came in either to deposit or withdraw from their accounts and then learned for the first time that they could not be accommodated. There was no excitement among the depositors and apparently no need for any. The action taken in closing the bank came as a great surprise, however. Treasurer Young's Statement. During the afternoon, Chauncey C. Young, secretary and treasurer of the bank, said that a discrepancy of $18,000 was claimed by the commission-
2.
August 7, 1912
The Bridgeport Evening Farmer
Bridgeport, CT
Click image to open full size in new tab
Article Text
TROLLEY RIDE AND SHORE DINNER. The committee of arrangements of the four lodges of Knighte of Pythias is hustling to give the members a good time at the trolley ride and shore dinner to be held Friday evening, Aug. 23, at Island View Hotel, Myrtle Beach. Special cars will leave in front of the post office at 7.30, and the dinner will be served upon arrival at the beach. Tickets can be !secured from the committee until Aug. 20, after which date the sale stops. BANKDISCREPANCY Discovery Temporarily Closes Windham County Institution Danielson Coun., Arts. 7-The Windbarn County Savings Bank has been enjoined paying out or receive ing momey by Norris S. Lippitt and Fred P.HHolt, bank commissioners, who came here yesterday afternoon and began an examination of the bank's books Mr. Young. \secretary of the institution, sadd there was a discrepancy of $18,000 between the cash book entries and the total amount of the accounts as shown by the ledger entries. He says he is certain that it is due to a clerical error and not to bad investor Itregiblerity. He has been treasurtr of the bank for the last 25 years. The injunction, which was granted by Judge Gardner If Green, of the Superior Court, is to run for four months. The bank was incorporated in 1864, and once before, a few years ago, was closed for a time. The president is John A. Paine and C. C. Young is treasurer. The amount of deposits is given as $850,000.
3.
August 7, 1912
The Salt Lake Tribune
Salt Lake City, UT
Click image to open full size in new tab
Article Text
SILK WEAVERS' MONEY IN SUSPENDED BANK By International News Service. DANIELSON. Conn., Aug. 6.-When the silk mills closed this evening consternation prevailed among the hundreds of poor silk weavers, upon learning that the Windham county savings bank, with 3000 depositors, had been closed by the state bank commissioners. John A. Paine is president and C. C. Young is secretary of the institution. That the ledger discrepancies would be larger than in the Whidsor Locks savIngs bank swindle which was climaxed last winter by the suicide of Treasurer Alfred W. Converse, was at first rumored, but the state bank commissioners said they hoped to be able to straighten out the tangle inside of a year without loss to the depositors. Never since the bank was incorporated in 1864. they declare, has the bookkeeper taken a trial balance. The ledgers at present show deposits of $850,000.
4.
August 9, 1912
Putnam Patriot
Putnam, CT
Click image to open full size in new tab
Article Text
Danielson Savings Bank Closed The Windham County Savings Bank of Danielson was Tuesday afternoon enjoined from paying out of funds or receiving deposits by the state bank commissioners, pending an investigation into the affairs of the institution which is in progress. Bank Commissioner Norris S. Lippitt, who was at the bank Tuesday, said that errors of long standing had been revealed by a trial balance, taken during the examination by the commissioners. An injunction was then secured. Mr. Lippitt declined to state the amount of the discrepancy discovered, but said it was comparatively small. He said it was not likely that a receiver would be asked, although the bank might be closed for a year. The ultimate outcome, he believes, will be favorable. The bank has 3,000 depositors. Its assets, according to the annual statement of the bank commissioners are $841,509.27. John A. Paine is president and C.C. Young, treasurer. The bank was incorporated in 1864, but there never has been a trial balance until the one taken by the commissioners. Commissioner Lippitt said there was no reason to suspect anyone of criminal practices in connection with the bank's affairs. The National bank has offered to make loans on pass books issued by the savings institution as security. The injunction covers a three-months' period but the bank may be opened before that time. No run on the bank was made and no grave doubts are expressed by depositors as to the ultimate outcome of the temporary difficulty.
5.
June 21, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
the City. Israel Putnam lodge of Odd Fellows will hold annual memorial services for deceased members tomorrow (Sunday). Rev. G. D. Stanley will preach the sermon at Grove street cemetery. Edwin L. Wood of Putnam Heights has entered the employ of the Putnam Savings bank. W. J. Bartlett has a new automobile, The boat races at New London made afternoon trains into this city late Friday afternoon. Putnam lodge of Elks has under consideration an outing of considerable magnitude to be held at Alexander's lake in August, but plans are in an embryo state at present. Will Speak at Brooklyn. Judge Edgar M. Warner is to speak at a union W. C. T. U. meeting to be held in the Baptist church at Brooklyn tomorrow (Sunday). If the weather is pleasant today, the members of the eighth grade of the local schools will have an outing at Roseland park. Sailing from Boston. State Attorney and Mrs. Charles E. Searls will sail from Boston Monday for Hamburg. They will go into Norway and Sweden and then to St. Petersburg, returning to Putnam late in the summer, An unusually large number of telephone employes, principally in the plant department, are at work in the Putnam division, making ready for the installation of the common battery service and the occupancy of the new telephone building. Rebuilding Tatem Factory. The new Tatem woodworking factory is nearly completed and about three-quarters of the force employed before the fire that destroyed the former factory are at work. New labor saving machinery has been installed. The company is rushed with business. At the post office the letter carriers their summer vacations and will out July will 5 begin go in regular order until all have had the usual period of rest. Those teachers in the schools of Putnam who are not residents of the town will leave for their homes today (Saturday) to remain for the summer. Several of the teachers remained for the reception Friday evening. Ensign Tyler Coming. Ensign A. Tyler of Hartford is to be here this evening to conduct special services for the Salvation Army. Ensign Tyler is the divisional secretary of the Army for southern New England. Deputy Sheriff George F. Holbrook was at Danielson Friday to serve the papers at the Windham county savings bank in connection with the application for a receiver made by the state bank commissioners. 1913's Reception. The final event of commencement
6.
July 1, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
Superior Court Adjourned to July 7th. Sheriff P. B. Sibley came to this city and adjourned the session of the superior court scheduled to sit Monday to next Monday, July 7, when Judge Gardiner Greene of Norwich will preside. The matter of the receivership of the Windham County Savings bank at Danielson will be heard at that time.
7.
July 11, 1913
Putnam Patriot
Putnam, CT
Click image to open full size in new tab
Article Text
DOS -John O'Bienspent Sunday in in ton. -C. M. Elliott spent Tuesday Boston. -Jasper Holmes and family are at Old Orchard Beach, Me. W. E. Warren and wife are I. spendthe month at Tuesset, R. ing Maria Flynn has York. returned -Miss business trip in New from a C. Burgess is off to Nova Scotia -Elmer and will bring home a bride. -Miss Bertha Sargent has returned Bluffs. from two weeks' stay at Oak of -Mrs. Harry St. Onge and relatives. son Worcester are visiting local -Mrs. Albert Gagne is at the condi- Day Kimball hospital in a critical tion. C. Swift, superintendent Ed- of schools, -G. is visiting at his home in inboro, Pa. & Howard have sold an Overland -Bruce touring car to A. W. Marey, Walnut street. Edward Williams and Miss in Maude -Mrs Williams have been visiting Southbridge. -Adelard Viens and wife, and Ernest Tetreault and wife, are camping at Quadie pond. -F. W. Seward and wife enter- Frank taining Miss MarySullivan and C. Leete of Guilford. -Mr. and Mrs. Herbert Ladd, their son Bert and Miss Elizabeth O'Brien were in Norwich Sunday. Rev. J. R. Stubbert and wife left Monday for their cottage at Crescent Beach for the summer. -Mrs. Charles Buckminster and Mrs. E.A. Brousseau are spending ten days on Nantucket Island. -John Deveney of the Putnam been Inn is having his vacation. He has visiting at his home in Worcester. -A. I. Morse and S. M. Wheelock the Fourth with their families Pleasant at spent their summer cottages at View. They remained over Sunday. -Mr. and Mrs. James Fagan, local residents many years ago, were visitors Oxhere Monday, coming here from ford. -Charles Gagne, who has been in Montreal for the past four years, has He returned to his home in this city is a registered electrician. Dr. S. B. Overlock is still at the is Hartford hospital. His progress very slow and he may be removed fu- to his home in Pomfret in the near ture. Seward, Raymond WheatMansfield of in on, -Clayton Nelson Dayville Putnam are and William Ormsbee of camp at Alexander's lake, occupying the Paine cottage. -Principal Hathaway of the TourMemorial High Thompand family are tellotte son, School, spending Their the summer at Tiverton, R. I. son, Lloyd recently from breaking his young the piazza right fell arm above the elbow. -Edward Mullan, Jr., who works in his father's grocery store is confined his home with a was in one of the He to delivery sprained wagons Nelson ankle. and stepped through a hole. Mansfield, who works in his father's is grocery store is also at home. His case of mumps. There will be a meeting in Odd Fellows' hall Friday evening at which local council of Boy be All interested in moveorganized. the Scouts the beneficial will ment, which has had such a on the physical and of boys, are be effect building requested moral to present. A good number have signified their interest in the movement and a large, enthusiastic meeting is anticipated, -Sheriff Sibley of Danielson was in Willimantic Monday and on the order of Green of the Court until next Judge Superior Norwich adjourned completes Saturday at 10 a. m. If Judge Green trial of two cases at Frithe Norwich, intrest he will hear parties in conthe of a cerning day, appointment receiver for the Windham County Savings Bank at Danielsun. If the matter is uot heard then court will be adjourned sine die. -It has just been learned that the Plant people have taken over the trolley line running through this city dating back to July 1st. It was rumored that the was some time ago place transfer but the date to known take was never known. The line will be hereafter as the Shore Line Electric company instead of the Connecticut company as here-to-fore. Morton G. Plant is at the head of the system. -Boston and Albany trains that run over the route cester to were usually Springfield sent from through Worfrom Worcester to New Londen afternoon, on of this city Monday their usual account route wreck that blocked at a between Two coaches went early Worcester. point through Pullman Brookfield Putnam trains, with and in the the first before four o'clock. express afternoon, The arriving Putnam 3.27 just for Hartford was held at for minutes that train who were to Meriden and Britain Springfield twenty Hartford, the passengers on New travelling might be transferred, an extra car be-
8.
July 17, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
SAILING SATURDAY. Former Danielson Rectors Going to LaSalette Conference in Italy. A Cleghorn, Mass., news item reads: Rev. Celestin Crozet, pastor of the Church of St. Joseph, in company with Rev. Camille Triquet. the former pastor. now of Holyoke, will sail Saturday from New York for Naples. The two priests will attend a gathering of the delegates from the various parts of the world that are represented by LaSalette fathers. A superior general will be elected at this conference, and other important business transacted. The local priests do not plan to return until the middle of September. Rev. J. P. Guinet of Hartford will also attend in the capacity of provincial. The headquarters of the Order of LaSalette is in Susa, Italy, and the conference will be held at that town. Fathers Crozet and Triquet expect to have an audience with his holiness, Pope Pius, before their return, and will no doubt bring the blessing of the pontiff to the congregations they represent. Bank Hearing in Hartford. By agreement of all parties there is to be a hearing before Judge Tuttle in the superior court in Hartford at 10:15 a. m. Friday on the application of the state bank commissioner for the appointment of a receiver for the Windham County Savings bank of Danielson. Sheriff Sibley went to Willimantic Wednesday, opened court and then adjourned it till the time mentioned.
9.
July 17, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
Court Adjourned To Friday Next. The Superior Court was again adjourned by Sheriff Sibley from Wednesday to' next Friday at 10:15 a. m. It is believed at Friday's session the hearing relative to the appointment of a receiver for the Windham County Savings bank at Danielson will come before the court. It was stated at the court house Wednesday that the court might be adjourned Friday and the Danielson bank matter might be heard before Judge Tuttle at Hartford.
10.
July 18, 1913
The Bridgeport Evening Farmer
Bridgeport, CT
Click image to open full size in new tab
Article Text
FORFEITURE OF BANK'S CHARTER UP TO COURT Hartford, July 18-No decision was given by Judge Joseph P. Tuttle in the superior court today on the application made by Bank Commissioners Holt and Lippitt for the appointment of a receiver for the Windham County Savings Bank in Danielson, but before the hearing an agreement was entered into withdrawing the bank's plea in abatement and the demurrer to the plea. The bank's lawyers contended for e. more specific statement as to what the commissioners mean by alleging that the public is in danger of being defrauded. The commissioners ask for the forfeiture of the bank's charter and the winding up of its business. Without indicating how he would decide the latter Judge Tuttle expressed himself as not in sympathy with the proposition that two public officials should have the officers of an institution into court asking. for a receiver and the forfeiture of a charter without giving the facts upon which the application is based. |It is possible that the judge may order a more specific statement. The bank commissioners say the assets. of the bank are about $30,000 less than its liabilities. No irregularities on the part of any of its officials is suggested. The bank has been under injunction from :paying deposits since Aug. 6, 1912. This injunction expires October 4.
11.
July 19, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
HEARING IN WILLIMANTIC. Judge Tuttle, at Hartford Friday, Sets Aug. 29th as Date for Considering Opposition to Receiver for Danielson Savings Bank. -Judge Tuttle at a session of the superior court, held at Hartford, Friday, took under advisement the request of Judge Harry E. Backs of Danielson and Judge Henney, of Hartford, to have the state bank commissioners file a statement of why the publie would be defrauded If a receiver was not appointed for the Windham County Savings bank at Dantelson. a movement that is being strenuously opposed bp the officials and depositors of the bank, who clai mthe institution is solvent. The matter will come up for hearing at a session of the superior court to be held in this city Aug. 29.
12.
July 22, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
DECISION FOR BANK. Bank Commissioners Must File More Specific Statement. (Special to The Bulletin.) Danielson, July 21.-Judge Tuttle, who in Hartford last Friday heard the motion of counsel for the Windham County Savings bank for a more specific statement from the bank commissioners filed a decision favorable to the banks on Monday. The memoranda on the motion is as follows: The complaint alleges against the defendant the failure to conduct the savings bank and long continued insolvency and inability to resume the business of the savings bank and further that in the opinion of the petitioners the public is in danger of being defrauded. The plain inference is that facts other than the failure to conduct the savings bank and long continued insolvency and inability to resume the business of the savings bank have come to the attention of the petitioners upon which they base an opinion that the public is in danger of being defrauded. No reason exists why the ordinary rules of pleading should not be followed and the defendant is entitled to know in advance what these facts are. I am satisfied that independently of the particular allegation in this petition, there is nothing in the statutes which warrants the bank commissioners in citing a bank into court and asking for a receiver thereof upon the mere statement of their opinion that the public is in danger of being defrauded by the continued operation of the bank. The defendant's motion for a more specific statement is granted, such a statement to be filed on or before the 16th day of August, 1913, and the defendant is directed to answer the petition as so amended on or before the 22nd day of August, 1913. Tuttle, judge.
13.
July 25, 1913
Putnam Patriot
Putnam, CT
Click image to open full size in new tab
Article Text
Danielson Bank Hearing. The application for the appointment of a ceceiver for the Windham County Savings Bank of Danielson came before Judge Joseph P. Tuttle in the superior court in Hartford, Friday morning but, because of an agreement entered into between the lawyers, the matter took but little time. The question argued was whether the bank was entitled to a more specific statement than the mere allegation that the bank commissioners were of the opinion that the "public are in danger of being defrauded." That is, the bank claimed that they had a right to know in what manner the commissioners claimed that the public would be defrauded if the bank was allowed to continue. The attorneys for the commissioners claimed that under the statute the commissioners were not compelled to give their reasons, that it was the duty of the defendant to file an answer and to let the court determine whether the commissioners' opinions were well founded. Judge Tuttle said the question was a new one to him and he said that he would give it consideration :before deeiding. Without in any way indicating what his ultimate decision would be, he said that he did not have much sympathy with the plan of a public official or two public officials haling a corporation into court and saying in their opinion the public was in danger of being defrauded without giving any reason for that opinion. It was agreed that, if Judge Tuttle decides that the more specific statement should be ordered, that it will be filed on or before August 16. The time for the bank to answer the petition was fixed for August 22 and then under the agreement of yesterday the lawyers will appear before Judge Marcus H. Holcomb in the superior court of Windham county on Friday, August 29, and ask to have a day fixed for a hearing on the question as to whether a receiver shouldsbe appointed.
14.
July 25, 1913
The Bridgeport Evening Farmer
Bridgeport, CT
Click image to open full size in new tab
Article Text
OFFICIALS STATE CLOSING BANK IN DANIELSON ERROR Hartford, July 25.-A committee of the directors/of the Windham County Savings Bank of Danielson, for which the bank commissioners have applied to the Court for a receiver, have issued a statement concerning the financial condition of the bank and expressing the opinion that the bank should be released from the restraining order. The bank has not been doing business since Aug. 6, 1912: On July 18 the application of the bank commissioners for the appointment of a receiver was heard in this city by Judge Joseph P. Tuttle of the Superior court. The application alleged that the depositors were likely to be defrauded unless this action was taken. The bank officials denied this and asked for a more specific statement. Judge Tuttle has the application under consideration. The directors statement today says: "Closing the bank was due to an apparent error of $20,659.44 from the general ledger and a trial balance taken at that time. The officials of the bank claimed that these were clerical errors and after a thorough search these errors were corrected and the books balanced. The balancing of the books was approved over the signature of Bank Commissioner Fred. ₽. Holt. "The earnings of the bank from June 30, 1912, to July 1, 1913, have been $40,245.42. Had the bank been allowed to invest this sum in the usual way a tregular rates it would have realized an increase in earnings of from $1,500 to $1,800. "Even though the bank was called upon to pay a flat dividend upon its total deposits during the period referred to, after paying this dividend the bank would still have had a balance left out of its earnings of $6,187.54. "This very satisfactory showing is made in spite of the fact that the bank has been put to heavy extra expense for auditing and additional clerical help in connection with the investigation of the bank's accounts, following the present restraining order. "Upone" the strength of the actual condition of the bank as shown by its board and records and the following statements of its assets and lla bilities, it is the opinion fo this committee that the bank should be TOleased as soon as possible from the restraining order and allowed to resume business." The injunction was to have expired on August 6 next, but a later order was secured to run to October 3.
15.
August 15, 1913
The Bridgeport Evening Farmer
Bridgeport, CT
Click image to open full size in new tab
Article Text
Danielson Bank Accused Of Repeatedly Making False And Fraudulent Reports, Paying Unearned Dividends, Using Funds For Speculative Purposes And Illegal Investments Through Loans To Its Own Officers Hartford, Aug. 15-Charges that dividend credited to its depositors. "It has persistently concealed th the Windham County Savings Bank of fact that it has knowingly and re Danielson has made false and fraudupeatedly permitted certain of its of lent reports, has paid unearned divificers to become and to long remain dends and has / used its funds for borrowers of its funds through loan ostensibly made to third persons bu speculative purposes and illegal inin fact made for the benefit of said vestments through loans to certain of officers and on collateral belonging t its officers are contained in a more said officers and it has also concealed specific statements filed with the the fact that it has used its funds fo clerk of the Windham County suspeculative purposes and illegal in perior court, today, by State Bank vestments through like loans, ostensi Commissioners Norris S. Lippitt and bly made to third persons but in fact Fred P. Holt. Their statement is filed made for the benefit of said bank o in compliance with an order issued certain officers thereof. by Judge J. P. Tuttle, who heard the "By all of said acts said bank has preliminary motions made by the cominduced several thousand individual missioners for the appointment of a receiver for the bank. members of the public to make deposits therein in reliance upon the apThe more specific statement says: "The bank manifests no intention parent safety and earning capacity of said bank and has twice become ser or desire to change its management iously insolvent, resulting on a forme or modify its past policies. Its past occasion in the scaling of all the ther policy has resulted in defrauding the deposits in said bank and in the prespublic in the following manner and ent occasion depriving all its depositby the following means: ors of the use of their money on de"It has persistently rendered false. posit in said bank without interest fo reports in that it has continuously more than a year thus far and said and knowingly and grossly overvalued bank is still seriously insolvent; by and misstated its assets and underreason thereof said depositors will be stated its actual liabilities, thereby deprived of the use of their said holding out to the public and causing the belief that it was a sound and money without interest for a period o at least another year unless said desafe depository for savings when, in posits are again scaled or receiver fact, it was not a sound and safe deappointed for said bank. pository for savings. "By reason of the aforesaid false It has persistently, repeatedly and and fraudulent reports, payment o knowingly paid dividends to its deunearned dividends, etc., several positors in excess of the amount perthousand individuals have been demitted by Sections 3,440 and 8,441 of frauded by said bank; and all of said the general statutes and in some infraudulent acts are still being done stances in excess of the net earnings and continued by said bank except so for the preceding six months without far as restrained by order of this carrying off the losses theretofore incourt; and there is no apparent inten curred, thereby holding out to the tion to alter said policies or to cease public and causing the public to befrom said fraudulent acts in the fulieve that it was earning four per ture." cent. per annum upon its deposits in The bank has until August 23 in addition to the amount necessary to which to file an answer and on Frioffset all losses and to carry to reserve the sum required by the general day, August 29, the matter will come statutes when, in fact, said bank was up before Judge Marcus Holcomb a the short calendar session of the court earning a much less amount and had insufficient accrued income to pay the in Putnam for assignment for trial.
16.
August 22, 1913
Putnam Patriot
Putnam, CT
Click image to open full size in new tab
Article Text
Bank Commissioners File Statement Bank Commissioners Lippitt and Holt have complied with the order of Judge Tuttie by filing a more specific statement iu their proceedings against the Windham County Savings bank of Danielson. Charges that the Windham county Savings Bank of Danielson has made false and fraudulent reports, has paid unearned dividends and has used its funds for speculative purposes and il. legal investments through loans to certain of its officers are contained in a more specific statement filed with the clerk of the Windham county superior court Friday by State Bank Commissioners Norris S. Lippitt and Fred P. Holt. The more specific statement fol. lows: In reply to the defendant's motion for a more specific statement and the order of the court issued in accord ance therewith the petitioners in the above entitled action submit the following statement of the manner In which, in their opinion, the public is in danger of being defrauded by said bank, the reasons why the public is in danger of being defrauded, and the facts or circumstances that cause the public to be in danger of being defrauded by said bank; this is: The bank manifests no intention or desire to change its management or modify its past policies. Its past policy has resulted in de frauding the public in the following manner and by the following means It has persistently rendered false re ports in that it has continuously and knowingly grossly overvalued and mis-stated its assets and understated its actual liabilities, thereby holding out to the public and causing the publie to believe that it was a sound and safe depository for savings, when, in fact, it was not a sound and safe de pository for savings. It has persistently, repeatedly and knowingly paid dividends to its de positors in excess of the amount permitted by sections 3440 and 3441 of the general statutes. and in some in stances in excess of the net earnings for the preceding six months, without charging off the losses theretofore in curred, thereby holding out to the publie and causing the public to believe that it was earning 4 per cent. per an num upon its deposits in addition to the amount necessary to offset all losses and to carry to reserve the sum t required by the general statutes, 1 when, in fact, said bank was earning a much less amount and had insufficient accrued income to pay the diviI dend credited to its depositors. It has persistently concealed the e fact that it has knowingly and repeat t edly permitted certain of its officers S to become, and to long remain, bor rowers of its funds through loans os d tensibly made to third persons, but in fact made for the benefit of said of ficers, and it has also concealed the fact that it has used its funds for spec e ulative purposes and illegal investe ments through like loans, ostensibly made to third persons, but in fact e made for the benefit of said bank 01 e certain officers thereof. By all of said acts said bank has in t duced several thousand individual > members of the public to make depos its therein in reliance upon the appare ent safety and earning capacity of said e bank, and has twice become seriously insolvent, resulting on the former occasion in the scaling of all the then it deposits in said bank, and in the pres b. ent occasion in depriving all its depos+ itors of the use of their money on de e posit in said bank, without interest e for more than a year thus far, and said bank is still seriously insolvent: e by reason thereof said depositors will y. be deprived of the use of their said o money, without interest, for a period w of at least another year unless said deposits are again scaled or receivers a appointed for said bank. e By reason of the aforesaid false and o fraudulent reports, payment of unearned dividends, etc., several thous a and individuals have been defrauded by said bank; and all of said fraud
17.
September 23, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
The trial of the case of the state bank commissioners VS. the Windham County Savings bank of Danielson, the appointment of a receiver being asked for by the commissioners, was commenced here Monday in the superior court, Judge Marcus H. Holcomb presiding. The bank was closed Aug, 6, 1912, under a reseraining order issued by Judge Gardiner Greene of the superior court and has since remained enjoined from paying out or receiving money, the injunction having been twice extended since it was originally placed and since last extended in April of this year, the commissioners have applied to the superior court for the appointment of a receiver, alleging that the bank is insolvent and that the depositors are in danger of being defrauded. A Tedious Session. While there was considerable of interest in the first day's progress of the trial, the session proved a tedious one in a way, as much of the time was taken by the counsel for the commissioners in going through the routine of laying in books of the bank for exhibits and tracing various transactions involving loans, etc. Clerk Young on Stand. Earl M. Young, 24, Danielson, clerk in the bank since June, 1907, and who has been the secretary and treasurer of the institution since May 1 of this year, when his father, C. C. Young, treasurer of the bank for many years, resigned, was on the witness stand all day with the exception of a short time that the court was in session. Morning's Proceedings. Attorney Ralph O. Wells and Attorney Stewart Dunning, both of Hartford, counsel for the commissioners, conducted that side of the case, Attorney Wells doing the examining of
18.
September 24, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
missioner Holt that during the lunch hour recess a conference was held between the court, the bank commissioners and the counsel in the case, at which an agreement was reached that an entirely new set of corporators, directors and officers of the bank should be elected, all of whom should prove satisfactory to the court and to the bank commissioners. This seemed a happy solution of the dilemma and will result in the saving of the Windham County Savings bank to Danielson. Officials Not Dissatisfied. While present officers and directors are obligated to resign their positions and connections with the bank under the terms of the agreement under which the bank is to resume business, none of those who are slated to go and who could be reached for interviews expressed regret when they learned of that feature of the agreement. Those who have been in close touch with them since the bank became involved in difficulties say that they have expressed a willingness to resign if by doing so they could benefit the bank, but that they have hesitated to do so under fire, so were retaining their positions until such time as the bank's difficulties were adjusted. That this feeling among them was accurately forecasted was indicated by what some of them said Tuesday afternoon in the corridors outside the courtroom, where they were awaiting the outopme of the conference. Commissioner Lippitt's Statement. The adjustment of the case Tuesday, when the trial was threatening to drag through the remainder of the week, was welcomed by all. Commissioner Lippitt, while talking with counsel concerned in the trial, was heard to remark that notwithstanding all of the insinuations that have been made against the commissioners in connection with the difficulties of the Windham County Savings bank, he would be pleased to see the bank saved as could be a satisfactory to Danielson, agreement could done be had reach- if the ed, and that he has always best interest of the bank at heart. Officers and Directors to Resign. In compliance with the terms of the agreement, the officers and directors who are to go are to resign at once, list of the court and and proved the by new corporators, bank commis- apsioners in agreement with the attorneys for the bank, will elect a new board of directors and officers. A Protection to the Bank. That part of the agreement under which the depositors will be allowed the privilege of withdrawing 10 per cent. of their money on Oct. 6 and 10 per cent, every three months thereafter until further notice is regarded as a protection to the bank for a period of time. Will Get Dollar for Dollar. It is now assured that the depositors will get dollar for dollar up to the amounts shown on their passbooks. as those who know of banking affairs in eastern that with its new and feel conditions positive Connecticut board of directors the bank can go on doing business, and in a profitable way. Run Not Probable. The opening of the bank will be hailed with delight by the majority of the 2,600 depositors of the Institution, as many of them have been put to no small amount of inconvenience by the tieing up of their funds since Aug. 6 of last year. While heavy withdrawals are to be expected when the bank opens, a disastrous run is not liable under the agreement plan for opening
19.
October 10, 1913
Putnam Patriot
Putnam, CT
Click image to open full size in new tab
Article Text
BANK RE-OPENS Closed 14 Months. Prospect Bright Daniel J. Byrne, New Treasurer Of Wind. ham County Savings Bank The Windham County Savings Bank of Danielson opened its doors Monday morning. The bank was closed August 6th, 1912, under a restraining order of the Superior court granted at the request of the state bank commissioners. At the recent term of court held in Putnam the bank commissioners and bank officials came to an agreement whereby the bank has been allowed to reopen under a practically new set of officers. The announcement of these officials has already been made with the exception of a treasurer. The announcement was made Tuesday that Daniel J. Byrne of Boston had been elected to fill this position. This announcement was received with pleasure in Putnam where Mr. Byrne is well known. Mr. Byrne is the elder son of Mrs. Mary Byrne, Woodstock avenue. He was born in Mechaniesville and later removed with his parents to Uxbridge. After he came to Putnam he entered the Putnam High school. He finished his education and fitted himself of a business career in Providence. For fifteen years he was connected with the Putnam Savings bank. Four years ago he went to Boston and became manager of the Safe deposit department in the First National bank. Mr. Byrne is a man of sterling worth and ability and the Danielson bank is fortunate in obtaining his services. When the bank opened Monday after its long enforced idelness people were curious to see the effeet. There was no run on the institution which denotes that the public have the contidence in the bank that they have steadily maintained. Of course there were some accounts withdrawn but there were likewise deposits made. The withdrawal of money was to be expected as some of the depositors of small means were doubtless in need of money which they had been unable to get for fourteen months. The people of Danielson are greatly pleased that the bank has been saved to them and that the outlook for its future is so bright.
20.
December 17, 1913
Norwich Bulletin
Norwich, CT
Click image to open full size in new tab
Article Text
DANIELSON AND PUTNAM NEWS form with the requirements of the 55DANIELSON hour law, which becomes effective January 1. In most cases this arrangement will mean the cutting of the aac Varney Sent to Jail-Norwich working time by about 3 hours a week. Board of Trade's Late Car Proposal Will Take Up Gymnasium Project. Pleasing-Savings Bank Doing Big It is expected that after the holiday Business-$93 from Glee Club's Conseason, when there will be more free cert. time to give consideration to the matter, a-special meeting of the Killingly Isaac Varney, 19, Waterville, Me., High School Alumni association will as sent to jail for 30 days from the be called for the purpose of getting wn court Tuesday morning as a vathe views of the members relative to rant. Constable Fred Mitchell of the project of creating a fund for entral Village is interested in the the building of a high school gymrisoner, who may have been formerly nasium building. An effort will be he of a gang that was arrested in made to get every graduate and former at place a few days ago. student of the school interested and Supervisor Albert S. Ames is to to make them supporters of the plan. bend the holiday recess, beginning Second Ten Per Cent. of Accounts riday, it his home in Boston, May Be Drawn Jan. 6. French Members in Charge. On January 6, the second ten per St. James parish whist this week cent. of any depositor's account in the as given Tuesday evening under the Windham County Savings bank may uspices of the French speaking membe drawn, under the arrangement ers of the Children of Mary. made by Judge Marcus H. Holcomb Fred and William Nutall, who have of the superior court when the diffeen chauffeurs for the A. F'. Wood culties of the institution were adjustompany, are soon to engage in bused in the latter part of September, a less for themselves in Danielson. part of this agreement being that ten Attorney Samuel B. Harvey of Wilper cent. of a deposit might be withmantic was a visitor in Danielson drawn at the opening of the bank for thesday. business on October 6. and ten per Sixty Prisoners at Jail. cent. every three months thereafter There are more than 60 prisoners at until further notice, when all restrice county jail in Brooklyn. tion is looked to be removed. The annual Christmas festival and It is a matter of intense gratifiiracle play is being arranged by the cation for everyone interested in the omfret Neighborhood association, institution to know that during the Invitations were received here Tuesfirst three months only a very small ay to inspect the new telephone buildpercentage of the depositors have g at Putnam tomorrow (Thursday) taken advantage of the privilege of sitors' day. withdrawing from their deposits and There was a report here Tuesday in most cases the withdrawals have lative to some horses that might been to meet pressing need for money. rove of interest to an agent of the On the other hand the bank has daily ate humane society. received new deposits and has opened Agents of the state board of educamany new accounts, the status of the on are investigating as to the eminstitution at the present time being loyment of boys under the legal age such as to win for Treasurer Daniel I motion picture houses in towns in J. Byrne very complimentary congratis section, ulations from the state bank commissioners on a recent visit here. K. H. S. Team Leads. The future of the bank is undoubtKillingly high school's team is leadedly assured and secured, which means g the Quinebaug Valley league with a very great deal to the majority of TO games won and none lost. Putnam the 2,600 depositors. as one game won and one lost, while Commissioners Reserve Decision. lainfield and Tourtelotte have yet to in a league game, County Commissioners E. H. Corttis, All hunters' licenses expire with the E. H. Hall and Frank O. Davis came d of the year. In Killingly only a here Tuesday for a hearing on the W who have licenses are making use remonstrances against granting li: them, these going out principally censes to E. I. Dagenais, whose place hunting foxes, of business is at No. 13 Railroad square, and to Charles T. Senay, who Death of Capt, Gilbert S. Kelley. has applied for a license in the WinCaptain Gilbert S. Kelley, a seakleman building on Main street. The ring man who is the owner of the hearings were held in the selectmen's ornwall place on the West Side, died office in the town hall and occupied cently in a Boston hospital after about all of the afternoon. Attorney ndergoing a surgical operation. CapSamuel B. Harvey of Willimantic repin Kelley was about 56 years of age. resented Mr. Dagenais and Attorney rs. Kelley died here about two years Edward T. Burke of Norwich reprego, sented Mr. Senay. The remonstrants Town Clerk Frank T. Preston is rewere represented by Judge A. G. Bill living applications for the required of Danielson. A large number of witrms from those who desire to make nesses testified as to the suitability turns, as required in complying with of the places for licenses, some sayertain features of the workingmen's ing that the places were suitable and compensation act, effective January 1. others that they were not. The counleased with Action of Norwich Board ty commissioners reserved their deof Trade, cision in both cases.
21.
January 23, 1914
Putnam Patriot
Putnam, CT
Click image to open full size in new tab
Article Text
Bank Commissioners' Report A Word About Putnam and Danielson Banks In their annual report for the year ended Sept. 30, 1913, the state bank commissioners report as follows relative to the Windham County Savings bank of Danielson and the Putnam Savings bank: The Windham County Savings bank, which was under a restraining order at the time of our last annual report, continued in this condition until the time when, acting with the approval of the Attorney General, we asked to have a receiver appointed to wind up its affairs. The case was delayed in the court, not coming to trial until Sept. 22, 1913. During the trial the counsel for the bank offered to bring about an immediate and complete change in the management of the institution and we were glad to discontinue the suit and thus save the institution to the community. This change in management has taken place. We are, therefore, gratified to report that the outlook for this bank is very bright. On Dec. 29th the assets of the Put. nam Savings bank were found to be insufficient to meet its liabilities so that we, acting in concert with the counsel of the bank, issued an order restraining the bank from receiving deposits or paying out funds. The bank has an earning power of approximately $120,000 gross per annum. We hope, therefore, that it will be able to resume before any serious inconvenience results.