The bank suspended payments in January–March 1904 after discovery of embezzlement by Treasurer Burton (B./Burt on some articles) H. Mattoon. There is no clear evidence of a depositor run; payments were halted via the 90-day rule and court injunctions. The institution was later liquidated and a receiver appointed (1906) and the charter effectively ended. Although a November 1904 article mentions the bank 'probably solvent' and might 'resume,' directors later decided on liquidation (Jan 1905) and the bank was wound up; final receivership and charter termination occurred in 1906. OCR variant: treasurer's name appears as B. H. Mattoon / Burton H. Mattoon in texts — treated as same person.
Events (7)
1.January 14, 1904Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed discovery of embezzlement and altered books by Treasurer Burton H. Mattoon; directors invoked the 90-day law pending examination of accounts.
Newspaper Excerpt
The officials of the Watertown Savings bank have issued a notice that the ninety day law has been taken advantage of and hereafter no funds will be paid to depositors without such notice.
Source
newspapers
2.March 22, 1904Suspension
Cause
Bank Specific Adverse Info
Cause Details
Court order, at request of bank counsel and examiners, to suspend payments while investigations and litigation regarding defalcations and collection of town notes proceeded.
Newspaper Excerpt
Judge Ralph Wheeler ... granted an order prohibiting the Watertown Savings bank from paying out deposits or interest upon them until further orders of the court.
Source
newspapers
3.November 18, 1904Other
Newspaper Excerpt
the institution is probably solvent and will resume business in a short time ... George H. Stoughton has collected $84,674.07 in loans and $10,569.01 in interest and has now placed the bank on a safe, solvent basis ... the bank now has 1057 depositors, with $249,538.34 to their credit ... and $92,595.68 cash in ... (article truncated).
Source
newspapers
4.January 27, 1905Other
Newspaper Excerpt
The Watertown Savings bank has closed its doors ... The directors finally decided that it was best to close ... It will take some time to entirely close up the affairs of the institution and ... Treasurer George H. Stoughton ... will remain in charge. The assets of the bank are $258,698.87, and the amount due depositors ... $249,538.34. ... 'we shall be able to pay every depositor one-half on his whole deposit and the balance due ... as soon as the balance of the loans can be called in.'
Source
newspapers
5.January 12, 1906Receivership
Newspaper Excerpt
Judge Prentice Hears Petitions For Appointment of a Receiver. ... it is thought likely he will be appointed. The bank has $5,000 in cash and bonds in assets. The town of Watertown lost $16,000 in the failure of the bank.
Source
newspapers
6.January 15, 1906Other
Newspaper Excerpt
Deputy Sheriff Daniel F. Hannon to-day served papers on President C. B. Mattoon and S. McLean Buckingham, receiver of the Watertown Savings bank, forbidden them from carrying on any further business. This deprives the bank of its charter and goes into effect immediately.
Source
newspapers
7.March 26, 1908Other
Newspaper Excerpt
S. McLean Buckingham, receiver of the defunct Watertown Savings bank has a quantity of money on his hands ... The bank is square with all its depositors, likewise its stock holders and its officers and it has gone out of practical existence.
Source
newspapers
Newspaper Articles (15)
1.January 15, 1904The Daily Morning Journal and CourierNew Haven, CT
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Article Text
WATERTOW BANK SUSPENDS ANINVESTIGATION OF ACCOUNTS TO BE MADE. Ninety-Day Law Taken Advantage of and No Funds WIII be Paid Out Unless Three Months' Notice is GivenTreasurer Mattoon Held Under Bonds of $9,000 for Embezzlement. Watertown, Jan. 14.-The officials of the Watertown Savings bank have issued a notice that the ninety day law has been taken advantage of and hereafter no funds will be paid to depositors without such notice. This notice was posted after a meeting of the directors of the bank this afternoon. The directors refused to discuss the affairs of the bank, but President Charles B. Mattoon said that until a thorough examination of the books had been made and compared with the books of depositors the financial condition of the bank could not be determined. President Mattoon is not related to Treasurer Mattoon, accused of embezzlement. The bank officials have secured all the books, assets and securities and have removed them from the bank. Their present location is known only to the directors. The bank has suspended operations for the present, but will resume business as soon as the books have been straightened out. Two bank commissioners are here assisting the directors. Treasurer Mattoon of the bank was seen this evening and asked to make a statement. He said that on the advice of his counsel he would add nothing to his statement that at the proper time he would explain everything. He admitted, however, that he had made some errors, but what those errors were the former state senator refused to say. W ted, Jan. 14.-Ex-State Senator Burton H. Mattoon, treasurer of the Watertown Savings bank, who was arrested yesterday, was held to-day at a special session of the superior court on charges of embezzlement and altering the books of the bank. Mr. Mattoon addressed the court, saying that he could furnish bonds to any amount, but that he hoped the amount would not be so large as to add to the notoriety he had already received through the newspapers. Judge Roraback fixed the bond at $9,000, which was furnished, an dthe case will come up for a hearing later. Mattoon was specifically charged with the embezzlement of $1,000 and with alteration of the bank's books in two instances. Besides being treasurer of the savings bank, he is also clerk and treasurer of the town, and ata recent town meeting a report of an expert employed by a special investigating committee to examine the town books alleged that Mattoon's accounts showed a shortage of $23,592.07. The court proceedings today were not connected with the town's affairs.
CANNOT PAY DEPOSITS. Watertown Savings Bank Prohibited by Order of Judge Wheeler. Judge Ralph Wheeler of the superior court, yesterday afternoon, after adjournment of the case against Willis Vandemark, granted an order prohibiting the Watertown Savings bank from paying out deposits or interest upon them until further orders of the court. The order was the result of rather lengthy conference between Judge Burpee, counsel for the bank, and Bank Examiners Noble of New Milford and Kendall of Suffield. The notice of the order was served upon Treasurer Stoughton of the bank late in the afternoon. There is no cause for alarm, it is said, in the existence of this order. It was taken merely for the safety of all concerned and to give the bank directors time to look about them pending the trial of the case against the alleged defaulter, ex-Treasurer Mattoon. The step was decided upon at a meeting of the diréctors held yester: day. A report is to the effect that the bank examiners informed Judge Wheeler that at present it would be impossible for them to give an exact report on the financial ability of the bank and the safe plan to pursue under the circumstances was to suspend all payments until the courts decide as to the bank's ability to collect some $14,000 outstanding notes against the town of Watertown. This case was to have been heard yesterday in the district court, but for some reason it was put back to next Saturday for reassign. ment.
3.November 18, 1904The Newtown BeeNewtown, CT
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Article Text
In Newtown, New Milford, Woodbury, Middlebury and Bethlehem, there are a few depositors in the Watertown Savings bank, who will be gratified by the announcement that the institution is probably solvent and will resume business in a short time. It will be remembered that the affairs of the bank were found so badly tangled, last December, as the result of B. H. Mattoon's management, that business was suspended by order of the bank commissioners. The present condition of the institution is brought out in an interesting article, from the pen of R. H. Smith in the Thomaston Express. Mr Smith doubtless gets his information at first hands, as Mr Stoughton, the temporary treasurer, is a Thomaston citizen. The Express says: George H. Stoughton has won fresh financial renown in his management of the wrecked Watertown Savings bank, to whose officers and depositors he submitted his first report, as treasurer on Thursday of last week. Appointed treasurer in February, he found the bank's affairs woefully tangled and its reputation gone, but he has since collected $84,674.07 in loans and $10,569.01 in interest and has now placed the bank on a safe, solvent basis, with the dead wood cut out and its affairs in business trim for a successful future. The bank now; has 1057 depositors, with $249,538.34 to their credit and a net amount of $6,286.94 in earnings and interest on hand. To meet this, there are $149,394.60 in loans on real estate, $13,090 in loans on joint and endorsed notes, $745 loaned Watertown's South school district and $92,595.68 cash in
4.January 27, 1905The Newtown BeeNewtown, CT
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WATERTOWN. WATERTOWN BANK TO BE LIQUIDATED DIRECTORS THINK THAT A CONTINUANCE ISN'T WORTH WHILE.-OUTSIDE DEPOSITORS THINK LOCAL INTEREST IS NOT ENOUGH TO WARRANT RUNNING THE INSTITUTION ANY LONGER. The Watertown Savings bank has closed its doors, and as soon as an order can be obtained from the superior court removing the injunction restraining the bank from paying money to the depositors, those who have money in the bank will receive their claims. It is claimed the bank is solvent and the creditors will receive every dollar due them. It will take some time to entirely close up the affairs of the institution and while this is being done Treasurer George H. Stoughton of Hartford will remain in charge. The assets of the bank are $258,698.87, and the amount due depositors outside of interest is $249,538.34. Treasurer George H. Stoughton yesterday said: The directors finally decided that it was best to close because we found on examination of the accounts that more than half the depositors resideCoutside of the town of Watertown and that more than threefifths of the deposits belong to them. And, of course, non-residents have not the same interest in having a bank in Watertown, and we have reason to believe that the majority of them would draw out their money at the earliest possible moment. If the deposits were to be drawn down to less than $100,000, the directors would not feel that it was practicable to continue the institution. The bank is even in better condition than it was last November at the time of the public meeting of the depositors, because since that time we have collected some thousands of dollars in loans and interest. "I hope that within the next 30 days_or certainly by March 1, we shall be able to pay every depositor one-half on his whole deposit and the balance due their accounts will be paid just as soon as the balance of the loans can be called in."-[Republican.
WATERTOWN JOTTINGS Miss Ella Dains of Oakville is visiting her sister, Mrs George Barton. Norton & Bunnell have the contract to paint the Seymour Smith homestead in Oakville, R. V. Magee and Ira C. Hotchkiss went to Thomaston last evening to a meeting of Granite chapter, No 36. R. A. M. A son was recently born to Mr and Mrs Beckett of Poverty street. A large amount of cash was paid to the depositors of the Watertown Savings bank yesterday. Joseph Huey, who has been in the employ of Charles Mattoon for a number of years as milk peddler. has resigned this position and is at present visiting friends in Pennsylvania.
WATERTOWN BANK Judge Prentice Hears Petitions For Appointment of a Receiver. Hartford, Jan 12.-Judge Prentice of the supreme court to-day heard the petition for winding up of the affairs of the Watertown Savings bank and the appointment of a receiver. No objection has been made to the naming of F. McLean Buckingham and it is thought likely he will be appointed. The bank has $5,000 in cash and bonds in assets. The town of Watertown lost $16,000 in the failure of the bank.
WATERTOWN JOTTINGS A hearing was held in Hartford yesterday afternoon in regard to the appointment of a receiver for the Watertown Savings bank. There was no opposition and S. McLean Buckingham will probably be appointed. The funeral of Corinne Roeske was held this afternoon. Interment was in Evergreen cemetery. Louis Fox has moved into his new house. Herbert Dayton has purchased another fine driving horse. Mrs M. A. Doolittle in visiting relatives in New York. The building which G. A. Upham is erecting for a workshop is nearly completed and will be equipped with a gasolene engine and wood working machinery.
THE WATERTOWN BANK. Last Act To-Day Which Puts Watertown Institution Out of Business. Deputy Sheriff Daniel F. Hannon to-day served papers on President C. B. Mattoon and S. McLean Buckingham. receiver of the Watertown Savings bank, forbidden them from carrying on any further business. This deprives the bank of its charter and goes into effect immediately. The papers are made out by Samuel A. Prentice, a judge of the supreme court of errors.
WHO OWNS MONEY Left in Hands of Receiver of Watertown Savings Bank. S. McLean Buckingham, receiver of the defunct Watertown Savings bank has a quantity of money on his hands which may or may not turn into dividends for those who were depositors of the bank or into a number of law suits against him as receiver. It is probable that he will ask the advice of the superior court to direct him in distributing the money, for it seems to be a question with him to whom does it belong? Does it belong to the stockholders, or to those who were depositors of the bank? The earning source of the money was, of course the money which belonged to the depositors, but they have been all paid off in full, minus their interest, and so far as known the stock holders and the officials have been paid their dividends and their salaries and after all this, there is more than enough to pay the receiver for his services and his counsel also. That is the interesting situation in which the receiver finds himself: with more money on his hands than he knows what to do with. The bank is square with all its depositors, likewise its. stock holders and its officers and it has gone out of practical existence. It closed its doors some time ago when its treasurer B. H. Mattoon was found to be a defaulter. The stock holders took this course believing that the depositors and the public would have no more faith in its safety vaults. And now. at the closing of a series of law suits that have left some of Mattoon's and some of his bondsmen without a stick, the receiver finds himself with a quantity of cash on hand and wondering what he shall do with it. When the Mattoon and Marggraff properties which were sold yesterday at public auction to satisfy some judgments given against them in favor of the bank, will have been fully transferred to the new owners, Receiver Buckingham will begin some action to ascertain to whom the money he has on hands after paying off all claims, belongs. Next week he expects to be able to make a full report of his receivership.
CITY NEWS. The Misses Margaret, Rose and Anna Coughlan and Miss Rose Carroll have returned from a ten days' trip to Washington. Josephine Kelly the thirteen months old daughter of Mr and Mrs James E. Kelly of 28 North Main street, died this morning. The funeral will be held ht 4 o'elock to-morrow afternoon. The department of public safety will hold a special meeting in the mayor's office Tuesday afternoon. The commissioners will adjourn to the Baldwin street engine house for the purpose of seeing how the work is progressing. Owners of dogs were very much in evidence about the lobby of City hall this afternoon. If this is kept up until May 1, the warden may not have much to do this season. but it is doubtful if all will comply with the law on time to avoid trouble. Another large audience was present at Poli's last evening to witness the production of "The Merry Geisha." Last night's presentation went off much more smoothly than that of the previous evening and the principals scored more 30 than on the opening night. There was more volume to the chorus, the soloists seemed to be in better voice and the performance on a whole was many per cent better than Thursday event ing. The board of county commissioners with the court house building committee from the bar association held a meeting this morning and decided to accept revised plans for the court house addition. To do this work according to these plans $30,000 with the $50,000 already appropriated will be necessary. It was agreed to call a meeting of the county legislators to take action upon the new proposition in order to obtain the extra funds from the next legislature. It was felt right along that the sum of $50.000 would be far from adequate for the work necessary. The meeting of the legislators may be held in a few weeks, and the visitors will be the guests of the local bar association. The affairs of the defunct Watertown Savings bank are about all wound up. The report of the receiver, S. Buckingham McLean, was givet. a hearing in the superior court in New Milford yesterday. It shows there Is $9,177 left over after paying all expenses. There will be held another hearing next week to determiae whom this money belongs to. Emil C. Marggraff put in a claim for it on the grounds that he, as bonisman for the defaulter treasurer B, H. Mattoon, is a grievous loser and it would be only just and fair that he should be compensated for his losses. Colonel Burpee appeared for the receiver advised the court tc give this matter serious consideration and State Attorney General Holcomb supported this suggestion. The receiver was paid for his services $2.500 and counse) for him were paid for services and expenses about $4,500 The period of services has extended over four or five years.
CITY NEWS. Right Rev Bishop Tierney administered the sacrament of confirmation to a large numberof boys and girls at the Sacred Heart church this morning. There was a large attendance at the annual muster and inspection of Company E. Hibernian Rifles, in City hall last night. The inspection officer, Adjutant Edward J. Joy of the Fourth regiment, Bridgeport, found the company in excellent condition. and complimented Captain Griffin and all the other officers on the work of the past year. Three or four deer paid a visit to the south end of the city this morning, and while they did not do much damage people who have gardens claim that they hope they will not return this season. Some of the people on Washington street say that shortly before the deer rushed by their houses they heard the discharge of a rifle in the vicinity of Dublin street, and suspect that this had something to do in forcing the fleet footed animals up the hill and then down in the direction of Baldwin street. Mrs Emma J. Mattoon of Watertown has filed a claim with the superior court through Attorney M. J. Byrne for part of the $9,760 which is in possession of S. McLean Buckingham receiver of the Watertown Savings bank after all debts, depositors and expenses are paid. Mrs Martoon is the widow of Henry J. Mattoon who was the father and one of the bondsmen for Burton H. Mattoon, whose financeering caused the bank to suspend business. She claims that she has been left a penniless widow by the attorneys for the bank. Burpee and Carmody. by their selling the old homestead for $3,500 to satisfy a judgment given against B. H. Mattoon. when at that time such a sale was not necessary. In other words, she claims that the amount of B. H. Mattoon's defalcations has more than been made good to the depositors of the bank without seiling her home.
DEPOSITORS WILL GET THEIR MONEY Important Decision on Watertown Savings Bank Affairs by Supreme Court of Errors. WHAT THE RECEIVER SAYS Over Nine Thousand Dollars for Distribution in His Hands-Bank Was Wrecked by Treasurer Burton M. Mattoon. Bridgeport, Oct. 27.-The supreme court of the state, sitting here to-day. handed down several decisions, one on an action for distribution of certain funds in the hands of the receiver of the Watertown Savings bank, whose affairs, following the defalcations of Treasurer Burton M. Mattoon are just about to be wound up. The decision directs that the funds be distributed among the petitioners, the memorandum being by Judge Roraback Other decisions were: Hartford County-John Schusler V8. County Commissioners. no error. opinion by Chief Justice Baldwin Olin N. Pelton vs. David Goldberg and wife. action to recover for goods sold, no error: Judge Hall. William G. Forbes vs. Town of Suffield. action for damages no error; Judge Prentice William P. Dunham vs. F. S. Cox, action for conversion of funds, no error: Judge Thayer. F. A. Cadwell vs. Town of Canton. action for damages, no error; Judge Hall. Middlesex County-Francis F'. Bulkley VS. Norwich and Westerly Railroad company, action for damages, no error: Judge Prentice Watertown, Oct. 27.-Nearly 1,000 depositors will be benefited by the decision today of the supreme court against the Savings bank of Watertown. There is over $9,000 to be distributed among the depositors as a re(Continued on Third Page.)
MORE RED TAPE May Depive Wateriowa Deposilors of 1beir Money. There is to be another chapter of litigation over the surplus of $9,000 of the defunct Watertown Savings bank. It was thought that when the supreme court rendered its decision that the money belonged to the depositors and the end was in view, all but to distribute the money. But there is a paragraph in the finding of the supreme court which draws a distinction between the depositors. Some of them it seems presented their claims in a proper form and some did not. The paragraph in question reads thus: "The superior court is advised that all such depositors who made presentation of their claims as set forth in the finding, made a lawful exhibition of such claims; that the receiver should distribute the balance of the money (after paying just charges) now in his hands to such depositors who have presented their claims in the manner above indicated ,and that the sureties on the bond (Mattoon's) are not entitled to any portion of the balance of the money now in the hands of the receiver." There are about 1,000 depositors and what number presented their claims lawfully and what number did not, is another matter for the courts to decide. Until that is done the money cannot be distributed.
14.February 26, 1909Norwich BulletinNorwich, CT
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$8,162 FOR DEPOSITORS Of the Defanct Watertown Savings Bank Who Are Ertitled to Interest. Watertown, Conn., Feb. 25.-On an order received today from Judge Curtiss of the superior court, Receiver S. McLean Buckingham of the defunct Watertown Savings bank will pay the surplus of $8,162 in his hands to the depositors of the bank who are entitled to interest, of whom there are 175. This sum is sufficient to allow each depositor 55 per cent. of the total amount of interest due on his savings when the bank closed its doors in 1903 on account of the defalcations of Burton H. Mattoon, its treasurer. All the depositors were paid the face value of their deposits in 1907, and the bondsmen of Mattoon, who lost much property on account of his crime, appealed unsuccessfully to the supreme court for this surplus as reimbursement.
15.March 1, 1909Norwich BulletinNorwich, CT
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Where a Balance Is Going. The decision of Judge Curtis in the Litchfield county superior court that a balance of $8,162 in the hands of the receiver of the Watertown Savings bank shall be distributed among the despositors settles a disputed point. The depositors have already received their principal and the forthcoming payment will cover a part of the interest due them. A good deal of controversy as to who was entitled to this balance has taken place. The bank went to pieces as the result of irregularities on the part of its treasurer. The treasurer's bondsmen were forced to settle to the extent of their liability. They were hard hit and suffered severely. The question of determining who was legally entitled to the balance left after the depositors of the defunct bank had been paid the amount of their deposits developed various views. It was claimed by one party that the balance should go to the state; by another faction that the bondsmen should be the beneficiaries; while a third contention was that the persons who were depositors at the time of, the failure should be the recipients of the surplus. The court has now decided in favor of the depositors. Doubtless this conclusion is sound law. If the case could have been determined, on the basis of sympathy instead of on the basis of the statutes, doubtless the bondsmen, who reaped only loss and suffering. would have obtained some reimbursement from the surplus.-Hartford Times.
