1607. Willimantic Savings Institute (Willimantic, CT)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
savings bank
Start Date
March 24, 1888
Location
Willimantic, Connecticut (41.711, -72.208)

Metadata

Model
gpt-5-mini
Short Digest
21373827c67b684c

Response Measures

None

Description

The Willimantic Savings Institute closed its doors and suspended payment on about March 23–24, 1888 after a $150,000 shortage/embezzlement by Treasurer H. F. Royce. Directors invoked the law requiring four months' notice and voted a 15% scaling of deposits. Bank commissioners declared the institute sound after the scale; later court injunction (Feb 1889) limited payments for one year to prevent a run, and by Feb 1889 directors indicated the bank was sound and might pay April dividends, consistent with successful recovery rather than permanent failure. No receiver or permanent closure is reported in these articles.

Events (4)
1. March 24, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large misappropriation/defalcation (~$150,000) by Treasurer H. F. Royce; unsafe, unauthorized loans and floating accommodation paper led directors to suspend payments and scale deposits.
Newspaper Excerpt
The Willimantic Savings Institute to-day closed its doors to business. The directors ... voted to suspend the treasurer, H. F. Royce, and to scale the deposits 15 per cent, and an advantage was taken of the law allowing four months' notice to depositors to close the bank and begin the work of straightening matters out.
Source
newspapers
2. December 20, 1888 Other
Newspaper Excerpt
Closing testimony in the case against ex-Treasurer H. F. Royce for alleged embezzlement and false entries in the Willimantic Savings Institute was closed ... Royce claimed that the shortage was accounted for by four new notes ... Directors testified the notes were never accepted by the bank nor held as assets.
Source
newspapers
3. February 24, 1889 Other
Newspaper Excerpt
The Supreme Court, by Judge Elisha Carpenter, has issued an injunction forbidding the officers and directors of the institute from paying out any more money to depositors, except dividends, for one year, or until February 22, 1890. ... The Bank Commissioners in the application for the injunction declare that the institute is now thoroughly sound ...
Source
newspapers
4. February 28, 1889 Other
Newspaper Excerpt
The directors ... assert that the 15 per cent. scale of deposits last March and last week's injunction were necessary to prevent a run and the appointment of a receiver, but that the bank is now sound, and will probably pay April dividends.
Source
newspapers

Newspaper Articles (16)
1. March 24, 1888 New-York Tribune New York, NY
Article from New-York Tribune, March 24, 1888

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A SAVINGS BANK CLOSED. PEOPLE OF WILLIMANTIC DISTURBED. THE TREASURER, H. F. ROYCE, SUSPENDED-LENDING MONEY WITHOUT SECURITY IN SPITE OF THE DIRECTORS-HIS IRREGULARITIES SUFFICIENT FOR A CRIMINAL CHARGE. [BY TELEGRAPH TO THE TRIBUNE.] WILLIMANTIC. Conn., March 23.-For the second time in the history of Willimantic a banking institution has closed its doors. The first case was in 1880, when the Willimantic Trust Company was wrecked by certain stockholders, in spite of the efforts of the president and others to save it. The cashier of this Trust Company was Henry F. Royce, whose methods of financial management were thought by many at that time to be the main cause of its wreck. Now comes another financial disaster in which Royce is the central figure; but this time, owing to the care of the directors, there is no wreck, but a rescue. The Williamantic Savings Institute to-day closed its doors to business. The directors met this morning and voted to suspend the treasurer, H. F. Royce, and to scale the deposits 15 per cent, and an advantage was taken of the law allowing four months' notice to depositors to close the bank and begin the work of straightening matters out. The principal irregularities of the treasurer are held by lawyers to be of the nature of defalcations. The present directors took charge of the bank in June, 1886. Upon their first examination they found that Royce was carrying about $150,000 in accommodation paper for certain men in NewYork. They at once voted that this paper should be discontinued as fast as it matured and so instructed the treasurer. In a few months the amount was reduced to about $92.000. Meanwhile, presumably as an offset to this curtailment of his operations, it was found by the directors that Royce was floating between $100,000 and $300,000 in checks between New-York and Willimantic each month. and measures were at once taken to stop this practice. It was done, it is said, for the accommodation of men who were not doing a deposit business at the Institute. Application was made at the bank for a loan of $70,000 upon the property of the United States A Stamping Company at Portland, Conn. committee of the directors, after examining the Portland property. reported that it was not safe to lend more than $35,000 on it and the matter was dropped. At the next examination of accounts by the directors. it was found that Royce. without the knowledge of the directors, had lent the Portland Company the $70,000, accepting as ostensible security a mortgage on of the the company's property. A committee directors promptly investigated the case and found upon the Portland town records no evidence of the alleged mortgage to the Savings Institute. They found that the Portland Company's property was fully covered by incumbrances placed prior to the date of the $70,000 loan, thus leaving entirely unsecured the claims of the Savings Institute. Efforts were then made to collect something on this claim without success, but it is expected that the New-York paper will prove of some value. These transactions show the net discrepancy in Royce's accounts to be about $150,000. Finding it impossible to check his irregularities the directors placed the case before the Bank Commissioners. George M. Landers. of New-Britain. and H. C. Noble. of Milford. They came to Willimantic on Tuesday. and the action Commissioners of to-day was the result. The pronounced the bank sound. after the 15 per cent scale had been made. The management that has taken hold of the bank to resebe it from Royce possess the confidence of the community, and will undoubtedly succeed in a short time in putting it on a sound and safe basis. There was a slight run on the Dime Savings Bank, but this was promptly met and soon subsided. Royce has not yet been arrested, but it is stated that he will probably be proceeded against in criminal action. Any depositor can cause the arrest of Rovee. The deposits of the bank are $900,000. Frank N. Webb. assistantnearly treasurer, has been made acting-treasurer.

2. March 24, 1888 The Morning News Savannah, GA
Article from The Morning News, March 24, 1888

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TRICKS OF A TREASURER. The Willimantic Savings Institute Badly Fleeced. WILLIMANTIC, CONN., March 23.-The financial climax that has for a long time been pending was reached to-day in the affairs of the Willimantic Savings Institute. A shortage or misappropriation of the bank's funds to the amount of $150,000 is found owing, it is said, to a series of transactions by Treasurer H. F. Royce, without the knowledge or consent of the directors. It is alleged that the transactions of Royce are tantamount to a defalcation. Royce has been floating large amounts of accommodation paper. When t e directors discovered this they ordered the practice stopped and the paper cancelled as soon as it matured. Recently they discovered that Royce had rather increased than diminished his forbidden transactions, and that when a loan on real estate had been authorized to the amount of 1000-Royce had loaned $70,000 and had not recorded the mortgage. CAN'T DRAW THEIR MONEY. The institution has taken advantage of the law requiring four months' notice of the withdrawal of deposits, and to-day refused payment and closed its doors to business. Its affairs will probably be straightened out in a few days. There was a slight run on the Dime Savings Bank this afternoon by some nervous persons, but all claims were met promptly and the excitement soon subsided. The deposits of the Willimantic Savingsi institute aggregate about $900,000. Frank F. Webb, assistant treasurer, has been made acting treasurer.

3. March 24, 1888 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, March 24, 1888

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THE FUNDS DISAPPEARED, AND CASHIER ROYCE WILL PROBABLY BE ARRESTED. The Peculiar Transactions of a Bank Official Leads to a Shortage of $130,000 in the Accounts-Running the Institution Regardless of Orders. WILLIMANTIC, Conn., March 24.-A finan. cial climax that has for a long time been pending was reached yesterday in the affairs of the Willimantic Savings institute. A shortage or misappropriation of the bank's funds to the amount of $150,000 is found, owing, it is said, to a series of transactions by Treasurer H. F. Royce. It is alleged that the transactions of Mr. Royce are tantamount to defalcation. A brief history of the case may thus be given: When the present board of directors was chosen, in June, 1886, they soon found that Treasurer Royce was floating about $152,000 of accommodation paper for New York parties, whose names are not now given. In October, 1886, the directors passed a resolution directing that this paper, as fast as it matured, should be taken in. In this way the amount was reduced to about $92,000. The directors also discovered a system of floating checks between Willimantic and New York, amounting to anywhere from $100,000 to $300,000 per month, all of which was done by Treasurer Royce without the consent of the directors. Measures were at once taken to stop this. A year ago the bank received an application for $70,000 loan on the real estate of the United States Stamping company in Portland, Conn. The directors found the loan would not be safe for over $35,000, and no loan was authorized. On the next examination it was found that the $70,000 loan had been made on a mortgage of that company's property, but no record of the mortgage could be found, and it was subsequently found that the whole property was covered by prior mortgages. The efforts of the directors to collect on this loan have failed, but it is expected that something will be realized. Yesterday the directors suspended Treasurer Royce, and voted to scale the deposits 15 per cent. Frank F. Webb, assistant treasurer, was chosen to succeed Royce. The bank commissioners pronounce the institution sound after the 15 per cent. scale. It is said criminal proceedings will be instituted against Royce at once. The bank has taken advantage of the law requiring four months' notice of withdrawal of deposits, and yesterday refused payment and closed its doors to business. Affairs will probably be straightened out in a few days. There was a slight run on the Dime Savings bank in the afternoon by some nervous persons, but all claims were promptly met, and the excitement soon subsided. The deposits of the Willimantic Savings institute aggregate about $900,000.

4. March 24, 1888 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, March 24, 1888

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THE SCOUNDREL FOR CASH A Couple More Case Developed-Heavy "Shortage" in a Savings Bank. WILLIMANTIC, Conn. March 24. - A financial climax that has for a long time been pending was reached in the affairs of the Willimantic Savings institution Friday. A shortage or misappropriation of the bank's funds to the amount of $150,000 is found owing, it is said, to a series of transactions by Treasurer H. F. Royce. It is alleged that the transactions of Mr. Royce are tatamount to defalcation. The directors of the institution have discovered the deficiency to bedue to a system of exchanging accommodation paper with certain New York parties by Treasurer H. F. Royce, unknown to the directors. The transactions have been going on for over two years. The fact that the paper was floating became known to the directors in October, 1886, and they caused it to be taken up as fast as possible, and also stopped the system of floating checks which Royee had carried on with a New York bank, and which ran sometimes as high as $300,000 a month They succeeded in reducing the accommodation loans to $92,000. but recently discovered that Royce had made a $70,000 loan on mortgage on property in Portland, Conn., which was unsafe and unauthorized On examination they found that there were prior mortgages on the property, and there will probably be little realized on the loan. The directors have suspended Royce and appointed his assistant, Frank F. Webb, in his place and voted to scale deposits 15 per cent. The bank commissioners say the institution is sound after the 15 per cent. scale. Royce will probably be criminally prosecuted.

5. March 26, 1888 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, March 26, 1888

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ROYCE AND THE INGERSOLLS. The New York End of the Willimantic Savings Bank Loans. NEW YORK, March 25.-The irregularities of Cashier H. R. Royce of the Willimantic Savings Institute were known to a few men in this city months ago. A gentleman who met Royce in this city four months ago said he told him then that he had discounted notes for the Ingersolls to the amount of $200,000 and that he was nearly crazy about it. The Ingersolls referred to are Lorin Ingersoll, who a few years ago was supposed to be a millionaire, and his sons, John E. and James H., who were the proprietors of the United States Stamping company. The dispatches from Willimantic say that Cashier Royce lent $70,000 on the property of the United States Stamping company at Portland, Conn., the security for which was very slender. In July last Mrs. Rebecca Ingersoll, wife of Lorin, obtained a judgment against the company for $98,591. The property at Portland, it is said, was sold out by the sheriff on execution of this judgment, and was bought in by Mrs. Ingersoll for her claim, and the Portland Stamping Works was the style used to continue the business. Lorin Ingersoll, it is said, managed the business by power of attorney from Mrs. Ingersoll. A week before Mrs. Ingersoll entered judgment against the company the company gave two chattel mortgages on machinery, stock, etc., one in favor of the Pottier & Stymus Manufacturing company for $39,702, and the other in favor of August Pottier for $59,620. Numerous judgments have since been entered against the company by various creditors and it is said the claims against the company aggregate ever $300,000. Last December Henry W. Bates was appointed receiver of the company. At the county clerk's office the judgment record shows upward of seventy-five judgments against Messrs. Lorin, John E. and James H. Ingersoll, aggregating about $300,000, principally on notes and endorsements. Among the banks which have entered judg ments against them are the Columbia, Oriental, North River, East River National, St. Nicholas and Germania of New York, the Grand National and Spring Garden of Philadelphia, the National Bank of Commerce, Third National and Farmers' and Mechanics' of Buffalo, the Farmers' and Manufacturers' of Poughkeepsie, the Old National bank of Whitehall, N. Y., the Bank of Attica, the Rhode Island National bank and Winnebago National bank of Rockford, Ill. WILLIMANTIC, March 24.-The report that H. F. Royce, treasurer of the Willimantic Savings Institute, had fled to Canada is no doubt untrue. Inquiry at the institute elicits the information that Royco went to New York last night to see about securing a settlement with parties there whose paper is held by the institute. This looks as if the directors were trying to save as much for the depositors as possible before taking steps to arrest Royce. The savings institute is crowded to-day with depositors demanding certificates on which to withdraw deposits four months hence. They are all accommodated and assured that they will not lose more than fifteen per cent. and perhaps only part of that. The chief credit for unearthing the Royce nest and rescuing the bank from wreck belongs to ex-State Treasurer Edwin A. Buck, who accepted the position of president in June, 1886, soon after which Royce's transactions began to be discovered.

6. March 29, 1888 The Brookhaven Leader Brookhaven, MS
Article from The Brookhaven Leader, March 29, 1888

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A CLIMAX. A Connecticut Town Disturbed by the Tricks of a Bank Officer. WILLIMANTIC, Conn., March 24. - A finaneial elima* that has for a long time been pending was teached westerday in the at fairs of the Willimantic Savings Institution! when a shortage or misappropriation of the bank's funds to the amount of $150,000 was announced, owing, it is said, to g series of transactions by Treasurer H. F. Royce without the knowleage or consent of the directors. It is alleged that the transactions of Cashier Royce are tantamount to defalcation: When the present board of directors were chosen in Jude, 1886, they soon found that Treasurer Royce was float ing about $152,000 of accommodation paper for New York parties whose names are not now given and in October, 1886, they passed a Vote directing that this paper as fast as it matured should be taken in. In this way the amount was reduced to about $09,000. The directors also discovered a system of floating checks between W illimantic and New York, amounting any where from $100,000 to $300,000 per month, du of which was done by Treasurer Royce without the consent of the directors. Measures were at once taken to stop this. A year ago the bank received an application for a $70,000 loan on real estate of the United States Stamping Company, of Portland, Conn. The directors found the loan would not be safe for ov er $35,000, and none was authorized. On the next examination it was found that the $70,000 loan had been made on a mortgage of that company's property, but no record of the mortgage could be found, and it was subsequently found that the whole property was covered by prior mort gages. Efforts to collect this loan have been unsuccessful, but it is expected some thing will be realized. Yesterday the directors suspended Treasurer Royee and voted to scale the deposits fifteen per cent. Frank F. Webb, assistant treasurer, was chosen to succeed Royce. The bank commissioners pronounced the institution sound after the fifteen per cent. scale. It is said that criminal proceedings will be instituted against Royce at once, but he has not been arrested.

7. March 29, 1888 The Somerset Reporter Skowhegan, ME
Article from The Somerset Reporter, March 29, 1888

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CENERAL. A shortage $150,000 has been found in the funds of the Willimantie, Conn., Savings Inconstitution and the bank has suspended payment. Henry Bergh, nephew of the late Henry Bergh and Secretary of the Society for the Prevention of Cruelty to Animals of New York, was yesterday elected President of the society.

8. March 30, 1888 The Iola Register Iola, KS
Article from The Iola Register, March 30, 1888

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A FINANCIAL CLIMAX. A Connecticut Town Disturbed by the Tricks of n Bank Officer. Willimantic, Conn., March 24.-A financial climax that has for a long time been pending was reached yesterday in the af. fairs of the Willimantic Savings Institution, when a shortage or misappropriation of the bank's funds to the amount of $150,000 was announced, owing, it is said, to a series of transactions by Treasurer H. F. Royce without the knowledge or consent of the directors. It is alleged that the transactions of Cashier Royce are tantamount to defalcation. When the present board of directors were chosen in June, 1886, they soon found that Treasurer Royce was floating about $152,000 of accommodation paper for New York parties whose names are not now given and in October, 1886, they passed a vote directing that this paper as fast as it matured should be taken in. In this way the amount was reduced to about $92,000. The directors also discovered a system of floating checks between W illimantic and New York, amounting anywhere from $100,000 to $300,000 per month, all of which was done by Treasurer Royce without the consent of the directors. Measures were at once taken to stop th B. A year ago the bank received an application for a $70,000 loan on real estate of the United States Stamping Company, of Portland. Conn. The directors found the loan would not be safe for over $35,000, and none was authorized. On the next examination it was found that the $70,000 loan had been made on a mortgage of that company's property, but no record of the mortgage could be found, and it was subsequently found that the whole property was covered by prior mortgages. Efforts to collect this loan have been unsuccessful, but it is expected something will be realized. Yesterday the directors suspended Treasurer Royce and voted to scale the deposits fifteen per cent. Frank F. Webb, assistant treasurer, was chosen to succeed Royce. The bank commissioners pronounced the institution sound after the fifteen per cent. scale. It IS said that criminal proceedings will be instituted against Royce at once, but he has not been arrested.

9. April 6, 1888 Fisherman & Farmer Elizabeth City, Edenton, NC
Article from Fisherman & Farmer, April 6, 1888

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THE NEWS EPITOM DDD. Eastern and Middle States. URIAH H. BRADNER, the Danville (N. Y.) banker, sentenced last November to five years' imprisonment for larceny, has died in Auburn State Prison of pneumonia. FOUR men were killed and four boys injured in a railroad accident at Barree, Penn. JAY GOULD and family have returned to their home in New York City. Mr. Gould is greatly improved in health by his long cruise. TREASURER ROYCE, of the Willimantic (Conn.) Savings Institute, misappropriated $150,000 of the bank's funds, and it has been compelled to suspend. THE legal effort to break the wills of two prominent people-Samuel J. Tilden and Mrs. A. T. Stewart-is being made simultaneously in the Metropolis. A FRIGHTFUL collision occurred between passenger trains at Wampum, Penn., in which two men were killed and nine severely injured. THE remains of General Jose Antonio Paez, the Venezuelan patriot, were escorted to the dock in New York city by an imposing military escort and placed on board the United States steamer Pensacola, which will convey them to his native land for burial. THE State Committee has decided to hold the New York Republican State Convention in Buffalo on May 16. JOSEPH W. DREXEL, the eminent banker, of the firm of Drexel, Morgan & Co., died at his residence in New York city, after a lingering illness. MISSES MARGARET and Annie O'Reilly, sisters of a prominent politician, were run over and killed on a railway crossing at Woonsocket, R. I.

10. April 11, 1888 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, April 11, 1888

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THE NEWS EPITOMIZED. Eastern and Middle States. JAY GOULD and family have returned tc their home in New York City. Mr. Gould is greatly improved in health by his long cruise. TREASURER ROYCE, of the Willimantic (Conn.) Savings Institute, misappropriated $150,000 of the bank's funds, and it has been compelled to suspend. THE legal effort to break the wills of two prominent people-Samuel J. Tilden and Mrs. A. T. Stewart-is being made simul-, taneously in the Metropolis. A FRIGHTFUL collision occurred between passenger trains at Wampum, Penn., in which two men were killed and nine severely injured. THE remains of General Jose Antonio Paez, the Venezuelan patriot, were escorted to the dock in New York city by an imposing military escort and placed on board the United States steamer Pensacola, which will convey them to his native land for burial. THE State Committee. has decided to hold the New York Republican State Convention in Buffalo on May 16. JOSEPH W. DREXEL the eminent banker, of the firm of Drexel, Morgan & Co., died at his residence in New York city, after a lingering inness. MISSES MARGARET and Annie o Reilly, sisters of a prominent politician, were run over and killed on a railway crossing at Woonsocket, R. I. THE funds for operating the Auburn (N. Y.) Prison have been exhausted, and 900 prisoners are locked in their cells in inforced idleness. NEW HAMPSHIRE has been alarmed by two distinct eathquake shocks. Ex-LIEUTENANT-GOVERNOR DORSHEIMER, editor of the New York Star, died of pneumonia at Savannah, Ga. AN explosion of nitro-glycerine occurred at the aqueduct powder works of L. D. Stickney, near Ardsley, Westehester county, N. Y., blowing six buildings into atoms and killing two laborers.

11. December 20, 1888 New-York Tribune New York, NY
Article from New-York Tribune, December 20, 1888

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CLOSING TESTIMONY IN THE ROYCE CASE. Willimantic, Conn., Dec. 19 (Special).-The testimony in the case against ex-Treasurer H. F. Royce for alleged embezzlement and false entries in the Willimantic Savings Institute was closed late this afternoon. John M. Hall will open argument for the State to-morrow and William C. Case will close for the defendant. The testimony to-day was interesting The defence claimed that there were no false entries except those specified by Royce himself in his testimony. Bank Examiner H. C. Noble took the stand in rebuttal and pointed out suppressed or partial entries aggregating $106,793 27. which Noble thought was plainly intended to cover a shortage of $20,000. The expert accountant, Charles F. Brown, of Hartford, corroborated Noble's statement. Royce claimed that the shortage was accounted for by four new notes received from Ingersoll in New-York after suspension, and that false entries were made to cover old Ingersoll paper which was protested. President E. A. Buck, Treasurer F. F. Webb and Directors J. M. Alpaugh and G. C. Martin, of the institute, testified that the four Ingersoll notes were never accepted by the bank nor held as assets. N. D. Webster, teller of the institute, testified that the two notes for $3,150 and $1,850, said by Royce to be unpaid and taken by him to New-York, were, in fact, entered on the books as paid and had never left the bank files

12. February 14, 1889 The Press Stafford Springs, CT
Article from The Press, February 14, 1889

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WILLIMANTIC. -The Willimantic Electric Light Company has increased its capital stock from $10,000 to $20,000. -The depositors of the Willimantic savings institution held a meeting yesterday morning, and it was generally agreed that they should cease withdrawing their funds for fear of throwing the affairs of the bank into a receiver's hands. This would result in a long delay and loss. A motion to appoint a committee of investigation was defeated, and also one asking the state attorney to withdraw the case against exTreasurer Royce. (OORRESPONDENCE.) -H. C. Hall, who has had a long and severe spell of illness, is fast on the road to health. -Pat Coffey's saloon was recently the scene of a lively row between Pat Shea and Healy, both assaulting a man named Haggerty. They had things quite Pat down there. -Roadmaster Daggett of the Air Line road has gone to Bermuda for his health. -Dr. C. J. Fox has been presented with the annual volume of 1888 of the surgeon general's report, by Dr. John Moore, surgeon general of the U.S. -P. Trudo & Co. have opened a grocery store in Cunningham Block. -The article in last week's Press, relative to the P. O. clerks, did not in any way apply to Postmaster Wales or his chief clerk, Mr. Brown, both of whom are noted for their special courtesy to old and young, regardless of sex or age. -At the borough meeting last week the ten extra police were not appointed, and of course there was "no rosin." -I. C. Lincoln's daughter, Ida, is recovering from her attack of diphtheria. -Cashier O. H. K. Risley recently had stolen from him a bear skin robe, valued at $125. -Rev. M. G. Coker has been retained pastor of the Baptist church, by a vote of 63 to 18. He is greatly respected. -Chief Engineer C. N. Daniels has been appointed district deputy of Tolland and Windham counties by the Masonic OLD CROW. Grand Lodge.

13. February 24, 1889 New-York Tribune New York, NY
Article from New-York Tribune, February 24, 1889

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THE WILLIMANTIC SAVINGS INSTITUTE. Willimantic, Feb. 23 (Specal).-The troubles of the Willimantic Savings Institute reached a climax to-day. Upon the petition of Bank Commissioners George M. Landers and H. C. Noble, the Supreme Court. by Judge Elisha Carpenter, has issued an injunction forbidding the officers and directors of the institute from paying out any more money to depositors, except dividends, for one year, or until February 22, 1890. Sheriff Pomeroy served the injunction on the bank officials early this afternoon. The Bank Commissioners in the application for the injunction declare that the institute is now thoroughly sound, but that the efforts of certain persons," meaning ex-Treasurer Royce and his friends, are plainly designed to induce depositors to draw out heavy deposits suddenly before loans can be called in and thus, if possible, to force the bank into the hands of a receiver and to prevent the retrial of Royce, prepara tions for which are now in progress. The bank has been drawn upon heavily since the end of the first trial. when the jury stood 6 to 6.

14. February 25, 1889 Evening Journal Wilmington, DE
Article from Evening Journal, February 25, 1889

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The Willimantic Bank Case. WILLIMANTIC, Conn., Feb. 25.-When Treasurer Boyce, of the Willimantic Savings institute, was tried last December for falsification of the books, etc., the jury disagreed, although Boyce made admissions which render him liable under the banking laws. Since then he and his friends have labored systematically to scare depositors and embarrass the bank, in the hope of preventing a zetrial. Judge Carpenter, at the request of the state bank commissioners, has enjoined the institute from paying back any deposits for one year. This is done to prevent a run and a sacrifice of securities, as the bank is perfectly sound. Poyce will soon be brought to trial.

15. February 25, 1889 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, February 25, 1889

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The Willimantic Bank Case. WILLIMANTIC, Conn., Feb. 25.-When Treasurer Boyce, of the Willimantic Savings institute, was tried last December for falsification of the books, etc., the jury disagreed, although Boyce made admissions which render him liable under the banking laws. Since then he and his friends have labored systematically to scare depositors and embarrass the bank, in the hope of preventing retrial. Judge Carpenter, at the request of the state bank commissioners, has enjoined the institute from paying back any deposits for one year. This is done to prevent a run and a sacrifice of securities, as the bank is perfectly sound. Boyce will soon be brought to trial.

16. February 28, 1889 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, February 28, 1889

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THE BANK IS SOUND. Official Statement Concerning Royce's Crookedness at Willimantic. WILLIMANTIC, Conn., Feb. 28.-The directors of the Willimantic Savings institute issued a statement to depositors of facts in the case of ex-Treasurer Royce, saying that from 1844 to 1888 he discounted $1,046,521 of Ingersoll paper unknown to the directors, and that during the same time a process which they term "kiting of checks" took place between Royce and Ingersoll to the amount of over four and a half millions of dollars. This the present board stopped in 1887, after a loss of $70,000 had been sustained. Details are given of other cases wherein several thousands of dollars were lost. The directors assert that the 15 per cent. scale of deposits last March and last week's injunction were necessary to prevent a run and the appointment of a rej ceiver, but that the bank is now sound, and will probably pay April dividends.