1753. First National Bank (Putnam, CT)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 448
Charter Number: 448
Start Date: August 11, 1924
Location: Putnam, Connecticut (41.915, -71.909)

Metadata

Model: gpt-5-mini
Short Digest: 44004e38

Response Measures

Full suspension, Books examined

Other: Receiver appointed by Comptroller of the Currency; extensive embezzlement by cashier G. Harold Gilpatric led to permanent closure and liquidation. Some OCR inconsistency in receiver's middle initial (George W. / George M. Coffin).

Description

A run on the savings department occurred after the cashier G. Harold Gilpatric attempted suicide and admitted financial involvement (embezzlement). Directors closed the bank (posted notice) and the Comptroller appointed a receiver; the bank never resumed normal operations and entered liquidation. The receiver briefly opened the doors for receipt of payments only (Aug 15) but the institution remained in receivership and effectively closed. Dates derived from contemporaneous newspaper reports (Aug 11–15, 1924).

Events (4)

1. August 11, 1924 Run

Cause: Bank Specific Adverse Info
Cause Details: Withdrawals followed revelation that cashier G. Harold Gilpatric had attempted suicide and confessed financial involvement/embezzlement; his note to his wife revealed he was financially involved.
Measures: Bank changed opening hour; directors met; later closed doors and posted closing notice; limited reopening for receipt of payments by the receiver (Aug 15).
Newspaper Excerpt: A run on the savings department of the bank continued all day yesterday, with an average of about a score of depositors in line withdrawing funds.
Source: newspapers

2. August 12, 1924 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors closed the bank after admitting funds were impaired due to defalcations by cashier G. Harold Gilpatric (large shortage in negotiable securities and funds).
Newspaper Excerpt: The First National Bank of Putnam ... closed its doors today. An hour after the usual hour of opening the closing notice was posted on the bank's front doors.
Source: newspapers

3. August 15, 1924 Receivership

Newspaper Excerpt: With the First National Bank ... in the hands of George M. Coffin of New Haven, the receiver appointed by the Comptroller of Currency at Washington, D. C., because of defalcations aggregating $262,000 ... G. Harold Gilpatric a patient ... hovering between life and death ... The doors of the bank, closed several days ago after a run ... were opened today by the receiver. George W. Coffin, for the receipt of payments due the bank. The bank has suffered a loss of more than $262,000 ... depositors ... will be called upon to file proofs of their claims. (Aug 15 reports).
Source: newspapers

4. August 15, 1924 Reopening

Newspaper Excerpt: The doors of the First National Bank of Putnam, closed several days ago after a run ... were opened today by the receiver ... for the receipt of payments due the bank.
Source: newspapers

Newspaper Articles (20)

1. August 12, 1924 Evening Star Washington, DC

Article from Evening Star, August 12, 1924

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GILPATRIC'S BANK CLOSED BY STATE Aged Patrons Weep at Institution Where Cashier Attempted Suicide. By the Associated Press. PUTNAM, Conn., August 12.-The First National Bank of Putnam, whose cashier, G. Harold Gilpatric, shot himself at his home last Thursday, closed its doors today. An hour after the usual hour of opening the closing notice was posted on the bank's front doors. It was signed by N. S. Bean, chief national bank examiner. Depositors in Tears. The notice was the first official statement that the bank directors had acted for the protection of the institution, whose funds have been admitted to be impaired. Before the posting, President Charles H. Brown notified all who called at the bank that the hour of opening had been changed to 10 o'clock, standard time, and a crowd began gathering. The directors were understood to be in session in the bank. A few of the older persons in the crowd were seen in tears. Gilpatric, also State treasurer, is in serious condition as a result of the bullet wound and probably permanently blind. A run on the savings department of the bank continued all day yesterday, with an average of about a score of depositors in line withdrawing funds. From friends of the State treasurer's family it was learned that in a note left for his wife after the shooting he revealed that he was financially involved.

2. August 14, 1924 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, August 14, 1924

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PUTNAM NATIONAL. BANK WRECKED BY ACTS OF GILPATRIC Putnam, Conn., Aug. 13.-Developments were numerous today in connection with the wrecking of the First National Bank of Putnam by its cashier, State Treasurer G. Harold Gilpatric. It is estimated that the bank's loss, placed at a minimum of $262,000 by the directors, is so great that it cannot again open its doors. One of the outstanding developments of the day was the issuance of a warrant for the arrest of the state treasurer by Assistant United States District Attorney George M. Cohen of Hartford, charging him with embezzlement of a nominal $100,000 of the bank's funds. The warrant was turned over to U. S. Marshal Jacob Walter with instructions to serve it at his discretion. State's Attorney Charles E. Searles of Windham county, in whose jurisdiction any action on the part of the state would lie, is on his way home from Nantucket. He is also the attorney for the bank. George W. Coffin, national bank examiner, was today appointed assistant cashier of the bank by the comptroller of currency at Washington. Walter H. Gilpatric, brother of the man who is still fighting for his life at the Day Kimball Hospital, where he lies partly blinded as a result of his attempt at suicide, announced that the state treasurer has assigned all his property to the bank to meet its losses. Mr. Gilpatric estimated that these losses would not be as great as previously indicated and that the assets available would closely match them. After a conference with National Bank Examiner Dean a meeting of citizens headed by M. H. Geissler and J. J. Whitehead voted to organize a new national banking corporation that would keep the commercial banking interests of the town in its own hands and subscribed more than $25,000 to a prospective $250,000 capital. Outside interests had telegraphed also to the comptroller of the currency at Washington for authority to establish a new banking institution here. In his bed at the Day Kimball Hospital the wounded treasurer and cashier called for his brothers, Walter H. Gilpatric, a New York lawyer, and Raymond Gilpatric of New Britain, (Continued on Page 8, Col. 5)

3. August 15, 1924 Putnam Patriot Putnam, CT

Article from Putnam Patriot, August 15, 1924

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Comptroller Appoints Receiver For Bank, Shortage $262,000 CASHIER GILPATRIC HOVERS BETWEEN LIFE AND DEATH AT HOSPITAL.-FULL EXTENT OF HIS DEFALCATIONS STILL UNKNOWN.-NEW LOSSES CROP UP ALMOST DAILY.-BANK SOLVENT, JUDGE GEISSLER ASSERTS. Gilpatric's Resignation as State Treasurer Is Prepared But Not Signed.-Embezzlement Charge Waiting to Be Served.His Market Venture In Hartford In Receiver's Hands. In answer to this, it can be stated that With the First National Bank, of the shortage is known to be as large which he was cashier, in the hands of as $262,000 and that this figure is beGeorge M. Coffin of New Haven, the ing added to almost daily through the receiver appointed by the Comptroller discovery of heretofore unsuspected of Currency at Washington, D. C., defalcations. No one can state what because of defalcations aggregatthe final total of losses will amount to. ing $262,000 in negotiable securities Why did Mr. Gilpatric do it and left with the bank for safe keeping, what did he do with the money, are G. Harold Gilpatric continues a patwo questions which, it would appear, tient at the Day Kimball Hospital, no one can answer. hovering between life and death, perCould Refuse no Friend haps blinded for life, as a result of his attempt at suicide by shooting That Mr. Gilpatric's manipulation himself through the right temple, at of the funds of the bank are tracable, his home on Seward street, last Thursdirectly and surely, to his inability to day. say "no" to a friend in need of monThe doors of the bank, closed on ey, but who had no security whatever Tuesday by vote of the directors, to safeguard any loan, is the firm belief of those who loved and still love were thrown open yesterday, but only for the receipt of money due Harold Gilpatric. It has been estabthe bank. lished, with accuracy, that Mr. GilMr. Coffin was an extremely busy patric's operations extended back at man yesterday familiarizing himself least eighteen months. with the task that confronts him as Mr. Gilpatric's resignation as treasreceiver for the bank. He told a Paurer of the State of Connecticut has triot reporter this morning that it is been drawn, but as yet he has not impossible to forecast any date on signed it. The reason why he has not which the affairs of the institution affixed his signature to the document is because his doctors inform the famwill be wound up. It is a long drawn ily that it is inadvisable to have him out process, but one which he promdo so just now, because of the reacises to expedite as speedily as possition it would have on his condition. ble. His brother, Walter Gilpatrie, has Must File Proofs of Claims stated that there is no need of his As soon as arrangements can be brother resigning that position, becompleted, depositors who had $1,500,cause "he is practically out now. 000 in the bank will be called upon to One of the tangles that has resultfile proof of their claims. A similar ed from the closing of the bank, has procedure will have to be followed been the large number of outstanding with those who had securities in safe checks which people and business keeping at the bank. Until this is houses have had returned to them with done Mr. Coffin will be unable to get the request. "Please pay cash." Quick a complete check on the amount of to see Putnam's need, the Windham Mr. Gilpatric's irregular dealings County National Bank and the Danwith the bank's money. It is stated ielson Trust Co. of Danielson, have ofthat these proofs from depositors are fered their facilities for the convenuncovering, almost daily, additional ience of depositors whose money is losses. That the bank's total loss will tied up in the Putnam bank. The Danprobably exceed $262,000. the total ielson banks rising to Putnam's emerdiscovered to date, is the assurance of gency have been a great help in one of the directors, but he stated that straightening out Putnam's credit afit is impossible to arrive at any idea fairs and keeping business going withof the total defalcation until proofs out too much confusion. Likewise the of depositors are all in and Mr. Coffin Putnam Savings Bank has been a has made a complete check of everygreat help in a most trying situation. thing The bank has prepared itself and is Concerning the solvency of the bank. cashing out-of-town checks for any little is known beyond the statement reasonable sum. made at the public mass meeting on State's Attorney Arrives Thursday afternoon, by Judge M. H. State's Attorney Charles E. Searls, Geissler, who stated that 100 cents on who arrived home yesterday from a the dollar will be paid to every devacation at Nantucket Island, Mass., positor of the bank. has concerned himself officially with One of the questions which everyone has asked this week is: How (Continued on Page Five) much of the bank's money is missing?

4. August 15, 1924 Putnam Patriot Putnam, CT

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With the First National Bank, of which he was cashier, in the hands of George M. Coffin of New Haven, the receiver appointed by the Comptroller of Currency at Washington, D. C., because of defalcations aggregatthe left ing $262,000 with in bank negotiable for continues safe securities keeping, G. Harold Gilpatric a patient at the Day Kimball Hospital, hovering between life and death, perhaps blinded for life, as a result of his attempt at suicide by shooting himself through the right temple, at his home on Seward street, last Thursday. The doors of the bank, closed on Tuesday by vote of the directors, were thrown open yesterday, but only for the receipt of money due the bank. Mr. Coffin was an extremely busy man yesterday familiarizing himself with the task that confronts him as receiver for the bank. He told a Pato any triot impossible reporter forecast this morning that date it on is which the affairs of the institution will be wound up. It is a long drawn out process, but one which he promises to expedite as speedily as possible. Must File Proofs of Claims As soon as arrangements can be completed, depositors who had $1,500,000 in the bank will be called upon to file proof of their claims. A similar procedure will have to be followed with those who had securities in safe keeping at the bank. Until this is done Mr. Coffin will be unable to get a complete check on the amount of Mr. Gilpatric's irregular dealings with the bank's money. It is stated that these proofs from depositors are uncovering, almost daily, additional losses. That the bank's total loss will probably exceed $262,000, the total discovered to date, is the assurance of one of the directors, but he stated that it is impossible to arrive at any idea of the total defalcation until proofs of depositors are all in and Mr. Coffin has made a complete check of everything Concerning the solvency of the bank, little is known beyond the statement at mass on made Thursday the afternoon, public by Judge meeting M. H. Geissler, who stated that 100 cents on the dollar will be paid to every depositor of the bank. One of the questions which everyone has asked this week is: How much of the bank's money is missing?

5. August 15, 1924 Putnam Patriot Putnam, CT

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Comptroller Appoints Receiver for Bank. Shortage $262,000 (Continued from Page One) by the directors as $262,000, but this the bank's affairs and present condiamount is in excess of the loss. tion. He stated today that nothing had come to his attention that disDiscussed Donahue Affair closed the necessity of the state atWith respect to reports that there torney's office for Windham county to had been forgeries on mortgage deeds proceed against anyone connected given by Mr. Gilpatric to James Donwith the bank or any of its affairs. ahue, to the Cutler estate and to other Not Gilpatric's Signature interests in this city who had given him an aggregate of approximately It was learned from a reliable $200,000 to invest for them, Walter H source today that there has been disGilpatrie said that his brother assured covered among the papers of Mr. Gilhim specifically in the case of the Donpatric a note for $35,000, payable to ahue and Cutler instances that the G. Harold Gilpatric as trustee of the transactions were entirely regular. trust fund set up by the late Joseph My brother told me that he handCutler for his daughter, Miss Annie ed the mortgage for the Hartford Cutler. The note is not signed by Mr. property to Donahue for him to reGilpatric. Whose signature it is. cord," Mr. Gilpatric said. "If Donahowever, could not be learned. It is hue failed to record it we cannot help stated, however, that the note appears it. He (Donahue) has run to the to be worth its face value and therestate attorney for prosecution. We fore the trust fund is not in danger are sorry. We are concerned now in of losing anything by reason of the getting together all possible assets to note. The mortgage deed, said to have make up the losses. If these losses been given on Hartford property, canamount to anything like $262,000 I not be found. But this fact is also shall be greatly surprised. not conclusive of wrongdoing, as the Mr. Gilpatric indicated that by the deed may yet be found among the ef assignment to the bank he felt that no fects of Mr. Gilpatric yet to be found. wrong was being done to individuals Refuse to Make Statement who had entrusted funds to the state From the moment that the bank treasurer for safe keeping, because opened its doors as usual on Friday he believed his brother's accounts in morning, until the institution was this connection would be found corclosed for good by vote of directors rect Tuesday morning, directors and offi. A "certain element" was charged by cials have persistently refused to Mr. Gilpatric with disturbing condimake any sort of a public statement tions in recent days to the point where showing the status of the bank. They an effort to effect a settlement with were pleaded with by depositors and the bank that would maintain its solothers who had a right to know how vency had been obstrueted. the institution stood. But all that "They are trying to make my brothwas fortheoming was the reiterated er a goat for a great many things that statement that "The bank is solvent never took place, he said in discusand capable of meeting all its obligasing reports of mortgage and trust tions. fund irregularities. There was a decided run on the Prepared For Courts bank during Saturday morning, savWhen this thing is finished up I ings accounts being particularly af think that Putnam will find that all a fected by the continued absence of losses have been made good It will definite statement of facts concerning be true if they let us get things tothe bank gether. If they put Harold in bankIn the meantime directors of the bank held frequent meetings, but ruptcy no one knows what will happen. what they discussed and what they He has to face the courts on this. decided to do. was not made public. We are prepared for this. We are Decided "Run" Starts to let the its not so The bank opened at the usual hour the as we are on Monday morning A crowd gathcourse. much prepared with We are past concerned law take in makered within a few minutes and a line ing up for the consequences of the of about fifteen people assembled bepast. fore the savings department. People Events Develop Rapidly were withdrawing their money. Some Developments came thick and fast took away sizeable piles of bills. OthTuesday afternoon. one of them beers did not have as much on deposit, ing the announcement by Walter Gilbut they were withdrawing all that patric that his brother had assigned they had. It was a serious-faced his personal property to the bank to group of people, not excited or uncover any losses he may have caused strung, but taking a natural precauthat institution. The statement was tion in the face of the uncommunicaas follows: tive statement that the bank was sol"G. Harold Gilpatric has today exevent. Business in the commercial cuted and delivered to the First Na(checking) department was stated to tional Bank, an assignment of all his have been normal during the day, property to meet any loss sustained with deposits and withdrawals about as usual for a Monday's business. It by reason of his acts. From an est:mate of his assets, it is believed that was reported that one of the bank's heaviest depositors made a 100 per they will go a considerable way in offsetting such loses.' cent withdrawal during the day. The Mr. Gilpatric indicated that by the run on the savings department continued throughout the day, and is reassignment to the bank he felt that no wrong was being done to indiported to have totalled approximately viduals who had entrusted funds to $75,000. the man for safe keeping, because he In Session Eight Hours believed his brother's accounts in this The directors held a meeting in connection would be found correct. the forenoon, lasting two hours. In Trying to Raise Money the afternoon they met again, adIt is known that Mr. Gilpatrie's journing around o'clock and re-conbrothers have been working day and vening at about 8 o'clock. They remained in session until shortly after night for a week now, in an endeavor 10 o'clock. Everyone realized that to determine what property and entersomething of major importance was prises their brother had been financiforcing the directors to hold three ally interested in and which could be meetings in one day, each of which turned quickly into cash, to meet lasted hours in length. Everyone obligations disclosed by his operations. His assets included real estate and hoped they would break their silence and tell something about the bank, automobiles which are assessed for so that even the worst fears might $10,188 in Putnam: his share in the be satisfied. But their silence was island at Juniper Point, Maine, which Sphinx-like They had nothing to say Mr. Gilpatric owned jointly with Rev. and their continued refusal to divulge Harry Fosdick, the famous New York any information to the people who preacher; the Trumbull building prohad money in the bank, greatly inperty in Hartford, said to have a mar creased everyone's fears. ket value today of at least $150,000 Long before the scheduled hour of but encumbered with mortgages of opening the bank Tuesday morning $78,625; Worcester real estate havat 9 o'clock, a crowd had gathered ing a reported value upwards of before the front door. It was easily $200,000; his bank stock, Putnam to be seen that they were there for Woolen Co., stock: the Gilpatric the purpose of withdrawing their summer home at Juniper Point. and funds. They said little to one anin all probability many more items other and a decidedly sober expresabout which the public is uninformed. sion covered everyone's face. Gilpatric Heavily Bonded Delay Bank Opening Hour Bonds of $150,000 carried by the At 9 o'elock Charles H. Brown, American Surety Company of New president of the bank, stepped to the York City and the Hartford Accident front door and told those who were and Indemnity Company are protecwaiting to go inside that the bank tion for the State of Connecticut of would be ready to do business at 10 the funds over which Mr. Cem us This pronouncement greatly xuluas when are under the know agitateuth Sundiours They tednahoed to state treasurer are carrie the to York New company fears Miss Haz Mr. Baker was seen that by the news- bank

6. August 15, 1924 Evening Star Washington, DC

Article from Evening Star, August 15, 1924

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RIFLED BANK OPEN TO COLLECT DEBTS Little Light Shed on Gilpatric's Disposition of Stolen Money. By the Associated Press. PUTNAM, Conn., August 15.-The doors of the First National Bank of Putnam, closed several days ago after a run which followed the attempt at suicide by the cashier, State Treasurer G. Harold Gilpatric, were opened today by the receiver. George W. Coffin, for the receipt of payments due the bank. The bank has suffered a loss of more than $262,000 in negotiable securities and in funds advanced on straw loans. Just as soon as possible, depositors, who had approximately $1,500,000 in the bank, in addition to those who had intrusted their funds to the bank for safekeeping, will be called upon to file proofs of their claims. The authorities are continuing investigation of the extent of Gilpatric's embezzlements, both from the bank and from estates of which he was trustee. Little has been revealed as to what he did with the money, rumors of irregularities in his private life being unsupported. Gilpatric is in a hospital, and a Federal warrant charging embezzlement is awaiting service. His resignation as State treasurer has been prepared by relatives, but not signed.

7. August 16, 1924 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, August 16, 1924

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Slow Work in Straightening Out Tangle of Accounts of Cashier Who Attempted Suicide-Condition Still Critical -Resignation As State Treasurer Prepared And Awaits His Signature Putnam, Conn., Aug. 15-By A. P.) -A half million dollars may be involved in the embezzlements of G. Harold Gilpatric, state treasurer and cashier of the First National Bank of Putnam, it was indicated today by those trying to straighten the tangle in which his attempt at suicide left his accounts. Gilpatric himself, does not know how much is gone. In a statement of assets made as a part of the letter to his wife, written before he fired the shot that will partially blind him, for life, he listed such of his belongings as he could remember, but could say of his obligations only that he was "hopelessly involved." The existence of this list of assets became known today, as did other facts in connection with the attempted suicide by which Gilpatric sought to close probably seven years of embezzlement. The list includes a number of items which it is believed will be difficult to realize anything like the face value on. The list included no mention of several mortgages that he holds. As assets these are worth more probably than some items listed. The likelihood that the losses will approximate $500,000 is based on accumulating instances of apparent embezzlement of negotiable bonds left with Gilpatric at the bank: the obtaining of money by means of straw notes, or notes with weak endorsements, and the indications that mortgages and mortgage notes obtained by Gilpatric as investments for estates in his charge will prove to be without standing. As yet the receiver, George W. Coffin. has not called for proof of claim and today with the bank reopened for everything but withdrawals. was in receipt of a number of inquiries from persons who entrusted Gilpatric with their funds without receipt. Those trying to straighten out Gilpatric's affairs have found they were those of a man overburdened with work. who had taken on more than he could possibly attend to. yet heasted that he "left business behind" when he ended the day at the bank. He made out his own income tax statements. was his own lawyer, accountant and adviser. Mrs. Gilpatric has told friends that there was nothing abnormal in her husband's life. His expenditures were in keeping with his income and he was concerned with the education of his children. Little Rhoda Gilpatric, 18 years old. having completed a course at a fashionable finishing school last June, was preparing to go to college next fall. Instead. she said at her father's bedside. "Don't mind. Dad: I'll go to work and we'll pay up this money." Although Gilnatric is conscious, his condition is critical and his resignation as state treasurer. prepared for signature several days has not been signed. As yet. Gilpatric has not been told that the bank is closed.

8. August 19, 1924 Evening Star Washington, DC

Article from Evening Star, August 19, 1924

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STATE MAY LOSE $30,000 ADDITIONAL Gilpatric Increased Connecticut Deposit by That Sum Before Bank Crashed. By the Associated Press. HARTFORD, Conn., August 19.-Accounts of the State treasury, which were taken over yesterday by Capt. Anson T. McCook, the new State treasurer, showed that the State deposit in the First National Bank of Putnam was increased from $90,000 to $120,000 within the past two months. The amount of the State's deposit in the bank wrecked by the defalcation of G. Harold Gilpatric, its cashier, and former State treasurer, previously had been set down as $100,000. As State treasurer, Gilpatric made the additional deposit which put the total of the State's funds in his bank $30,000 over the legal limit, soon after his return from the Republican national convention at Cleveland in June, which he attended as a guest. Deputy State Treasurer Thomas H. Judd of New Britain promptly protested to Mr. Gilpatric that the additional deposit was illegal, as the State law permitted such deposits only to the extent of 30 per cent of the capital, undivided profits and surplus of the bank, which. in this case was approximately $90,000. Gilpatric gave an explanation for his action and Judd was overruled. Deputy Treasurer Judd last night confirmed this information, but declined to comment. He went to Putnam the Sunday following Gilpatric's attempted suicide, and went over the situation there with directors of the involved bank with a view to protecting the State's interests. At that time the officials entertained hopes of saving the institution and rather than precipitate a run on the bank, Judd did not withdraw the State's deposit.

9. August 21, 1924 The Monmouth Inquirer Freehold, NJ

Article from The Monmouth Inquirer, August 21, 1924

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WORLD'S BUSINESS Trading in the dry goods market remains quiet, with P decidedly better feeling prevailing Entrance of the Pere Marquette railway into the proposed $1,500,000,000 "Nickel Plate" system being organized by the Van Sweringen interests of Cleveland was predicted. Loans and investments exceeding $4,000,000 and affecting more than 200 banks in the Northwest had been made by the Agricultural Credit Corporation up to mid-July. E. L. Doheny denies sale of his holdings to Standard Oil interests. Shipping Board official finds United States marine is gaining abroad. A receiver is to be appointed immediately for the closed First National Bank of Putnam, Conn., it was announced at the office of the controller of the currency. The cotton crop is still imperiled by drought. Trade gain throughout the country falls short of e.pectations. Exports of grain from the United States last week totaled 1,845,000 bushels against 2,234,000 bushels for the previous week. Cotton goods manufacturers claim that a reason for their decreased business is the widespread wearing of silk by all classes of women, where they used to wear cotton.

10. August 23, 1924 New Britain Herald New Britain, CT

Article from New Britain Herald, August 23, 1924

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FEDERAL AGENT IN e 8 INQUIRY AT PUTNAM (Continued From First Page) been pledged in subscriptions to the stock and surplus of the new institution. The promoters of the new bank started with $150,000 as their goal, of which $100,000 was to be the capitalization and $50,000 the surplus. This amount has been increased by reason of the over-subscription to $150,000 capital and $75,000 surplus. Promoters Still Active The expected action of the stockholders committee of the old bank in accordance with instructions of the resolutions adopted by the stockholders' meeting yesterday looking toward a possible reopening of the bank had no effect upon the plans for the new institution. Pending some definite official word from Washington whence emanated reports that the old bank would likely reopen, both projects will go forward, it was indicated today. The conference of the stockholders' committee with Receiver Coffin is expected to determine their future action toward the reopening of the old institution. National Bank Examiner Bean is still working on the accounts of the closed bank and the checking up of the assets is still in progress. When it will be finished is not known. Creditors of the bank are still presenting their claims at the institution. No Information on State Money No further information as to the disposition of the state money, which was drawn last June by Mr. Gilpatric from the state treasury for a special account in the form of checks. and reported not to have been on deposit at the First National bank here, has been found here. State officials have made known that the money was claimed by Mr. Gilpatric to have been an advance toward a local building project, on which the state school I fund intended to take a mortgage. I E. C. Rogers, proprietor of the Putnam Inn and a close friend of Mr. 1 Gilpatric, who had a building project I ia process about this time, knows t nething about the matter. he has dist closed. It is also on record that Mr. t Rogers negotiated d mortgage from the Putnam Savings bank in connecS tion with his building project which i consisted of a remodeling of his hotel. it So far as could be learned he had no loan from the First National bank. C

11. August 23, 1924 New Britain Herald New Britain, CT

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FEDERAL AGENT IN INQUIRY AT PUTNAM U. S. Grand Jury May Bring Indictment Against Cashier NEW BANK GOES FORWARD Backers Active in Spite of Belief First National May Reopen Doors-No Further Information Concerning Whereabouts of State's $10,000. Hartford. Aug. 23.-Agent John A. Dowd of the bureau of investigation of the department of justice was in Putnam Friday looking into certain phases of the defalcations of G. Harold Gilpatric as cashier of the First National bank. Mr. Dowd. who is in charge of the bureau for the Connecticut district, declined to discuss his investigations, but it was learned he went to Putnam on request of the office of the United States attorney. It is understood the Gilpatric case may soon be placed befor the federal grand jury with a view to seekiig an indictment of the former bank cashier, and the federal attorney was desirous of obtaining information in conection with the case that would not be forthcoming from the bank examiners. Putnam, Aug. 23.-No confirmation was obtainable here today of reports that department of justice agents were here from Washington investigating the conduct of the affairs of the First National bank, which was wrecked so badly, according to a statement of Federal Bank Examiner Norville S. Bean, by the alleged defalcations of its cashier, G. Harold Gilpatric, former state treasurer, that its liquidation seemed assured. Assistant District Attorney Cohen, who issued a federal warrant for the arrest of Mr. Gilpatric on a charge of embezzlement of a nominal $100,000, declined to deny or affirm the report. Directors of the bank, State's Attorney Charles M. Searles and others had heard nothing of any such visits, they declared today. $200,000 Pledged To New Bank While the committee, appointed yesterday at a meeting of the stockholders of the First National bank, announced their organization today with State Bank Commissioner John B. Byrne as chairman and Byron Bugbee secretary and sought a conference with Receiver George W. Coffin for this afternoon, those in charge of the new bank were not curtailing their activity. It was announced that a top tal of approximately $200,000 had (Continued on Page 10)

12. August 29, 1924 Putnam Patriot Putnam, CT

Article from Putnam Patriot, August 29, 1924

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aminers that there was anything wrong with the accounts of the local bank and that the affairs of its casher warranted closest scrutiny. Those who are in a position to talk are saying nothing. Borrowings Arouse Suspicion However, it is learned from one with whom Mr. Gilpatric talked a lot and knew very well, that Mr. Gilpatrie's personal affairs as disclosed through his borrowings here and there and of his almost frantie attempts to raise money in Hartford and elsewhere on doubtful securities, were in all probability the chief things that ied to National Bank Examiner Caroiyan starting to check up on certain phases of the local bank's activities. It Mr. Gilpatrie was borrowing to a tremendous extent, in comparison with his salary and probable income from private fortune, this fact would naterally arouse suspicions and of course lead to a most thorough scrutiny of his own and the bank's business dealings. Defalcations Quite Recent One question which has occupied the attention of about everyone in this vicinity, since the closing of the bank, has had to do with gossip surrounding the probable time at which Mr. Gilpatrie began appropriating securities in the possession of the bank for his own uses to recover on probable losses or over extensions in personal investments upon which he could not realze at once. Neither the bank examiners nor Receiver Coffin will say a word on this or any other point, for that matter. However, it is talked on the street among those who believe they have accurate information. that Mr. Gilpatrie's "borrowings" from his bank did not cover the period of time that has been often stated in the press. That the defalcations began within two and a half years, is the information one receives by having his ears close to the and one sources at ground. sundry is that further the moving informed of the bank into temporary quarters on Union street and the period that the bank did business there, afforded an excellent opportunity for one to take securities, for instance, without arousing particular suspicion. The securities could have been "misplaced" in the moving and had not been found. This would be a feasible answer to questions that depositors are known to have made during that period. In fact. one such depositor is reported to have made the statement that he received just this sort of an answer from Mr. Gilpatrie when he inquired about some of his securities which he had left there for safe keeping. His alarm subsided some months later when he again came into possession of his valuables, as they had been "found." Stockholders Meet As a result of the call issued by six stockholders of the First National

13. October 8, 1924 New Britain Herald New Britain, CT

Article from New Britain Herald, October 8, 1924

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BANK EMPLOYES' WAGES SLASHED Putnam Clerks Suffer From Gilpatric's Actions Putnam, Conn., Oct. 8.-Acting on an order from the comptroller of currency at Washington, George W. Coffin, receiver of the wrecked First National bank, closed after its cashier, former State Treasurer G. Harold Gilpatric, had attempted suicide on August 7, has reduced the wages of all of the employee connected with the bank from the assistant cashier down to the janitor. In the latter case, the cut is one of 50 per cent. The bank employers, 12 in number, have been retained since the bank closed its doors and have been at work tabulating the 4,700 claims against the institution. Following the announcement of the wage reduction, Guy L. Baker, the assistant cashier, presented his resignation effective October 15. Miss Fannie Barber of Ellington, Conn., sole heir at law of the estate of the late Mary Gardner, of which Gilpatric was executor, has been appointed administrator of the estate by the Putnam probate court, Gilpatric having been removed upon application of Miss Barber. In the last report of the executor a shortage of $35,000 was disclosed. The estimated net value of the estate is $80,000. Gilpatric is making preparations to come to New Haven next work when he will be put to plea in court. He will make the trip by automobile and is being taken on automobile rides every evening so that he will be in good condition for the journey. The party will leave Putnam Wednesday and stop over night in Meriden, continuing on to New Haven Thursday morning. hjn'omffiaDac2r-. -n

14. February 27, 1925 Putnam Patriot Putnam, CT

Article from Putnam Patriot, February 27, 1925

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CASES AGAINST BANK REMOVED Transferred to Federal Court, By Order of Superior Court This Morning Arguments to Jurisdiction May Be Made The cases of the Putnam Woolen Company, Selden B. Overlock and Maude Allard Whitmarsh against George M. Coffin, receiver of the First National Bank of Putnam, were among the short calendar matters taken up by Judge Frank D. Haines of the superior court this morning. By order of the court the cases were transferred to the United States distriet court where copies of the files must be returned not later than March 5. Attorney Charles E. Searls appeared for the receiver to support the motion for removal and Attorneys John F. Carpenter and William A. King as counsel for the Putnam Woolen Company, opposed the motion. Other plaintiffs were not represented. Attorney Searls argued, and quoted from the judicial code, that the appointment by the comptroller of the currency of a receiver for the bank made such receiver a government officer and as such, when sued at law or in equity, such suit should be brought to the United States court for, under the statute, a suit against a United States officer, or proceedings to liquidate the affairs of a bank, were matters of original jurisdiction of the Federal court. Mr. King questioned whether the present suits against the receiver were matters contemplated by the statute as liquidating a bank. However, the opposition to the removal was not insistent, Attorney King stating that it was more a formal opposition in order that the plaintiff might save its rights to plead in abatement or to the jurisdiction in the Federal court. He felt, he said, that if counsel stood idly by and allowed the transfer to be made without any opposition it might lose its day in court to argue on formal motions. Attorney Searls said he had prepared an order for the transfer to the Federal court and would add to the order that counsel appeared and objected to it, and "put up a bitter fight," said Mr. Searls. "if you say so." Judge Haines said the order prepared might be entered by the clerk.

15. August 28, 1925 Putnam Patriot Putnam, CT

Article from Putnam Patriot, August 28, 1925

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PROOF THAT PROCEEDS FROM SALE OF BONDS BECAME A PART OF BANK'S FUNDS AND WERE USED BY BANK CAUSES COMPTROLLER TO ORDER ALLOWANCE Company's Attorney Traces Securities.-$41,371.7 Amount Allowed.-Suit Is Withdrawn The claim of the Putnam Woolen for use by the bank. At the same time Attorney Carpenter successfully tracCompany against the First National ed securities for other clients whose Bank of Putnam for the disappearclaims have also been allowed. ance of bonds owned by the company The claim is not allowed as a preleft with the bank has been allowferred claim but stands upon the same footing as that of depositors and the ed by the receiver of the bank under Woolen Company will be allowed its authority of the comptroller of the pro rata share in dividends declared. currency. The allowance amounts to Transactions with the bank by the $41,371.77 Woolen Company in which funds were The allowance of the claim is on invested and reinvested in Liberty the ground that the proceeds from the Bonds upon authorization of the Wool. sale of the bonds of the company been Company, brought about a situacame a part of the funds of the bank tion wherein the bonds of the company and were used for bank purposes. were left in the bank's hands. When J. F. Carpenter, attorney for the the bank went into the hands of a Putnam Woolen Company instituted receiver the bonds of the Woolen Comthe first suit brought against the bank. pany could not be found. Claim was The writ was made returnable to the made in due course by the Woolen Windham County Superior Court but, Company but, with many other similar after hearing, was ordered transferred claims for securities left in the hands to the United Statse District Court of the bank, the claim was denied where it has since been pending. Due by the receiver and notice to that to the allowance of the claim of the effect sent to the company. plaintiff this suit has been withdrawn. While the allowance of the receiver During the time the suit has been upon authorization of the comptroller pending Attorney Carpenter has been will doubtless effect similar claims it engaged in trying to trace the missing bonds of the Woolen Company and does not determine the status of claims was finally successful being able to for missing securities which can not the bonds had been sold and be, or are not, traced to the funds of show that the proceeds mingled with bank funds the bank.

16. January 1, 1926 Putnam Patriot Putnam, CT

Article from Putnam Patriot, January 1, 1926

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GILPATRIC'S ESTATE WILL PAY ABOUT 10% Claims Filed By Putnam CredEASTFORD FIDDLER itors Total About $26,000, Passed By Trustee AMONG ENTRANTS Does Not Include Receiver's or Es. tate's Claims Will Go to Providence to Compete For New. England A list of claims aggregating $791,Championship 071.32 has been prepared by Judge Arthur E. Howard, trustee of the esFirst to Issue Challenge Is 73 Years tate of G. Harold Gilpatric, which Old Judge Howard will submit to the referee in bankruptcy for approval. Of Jonathan Whitford, 73-year old this amount about $26,000 in claims Eastford fiddled, who sent broadcast has been filed by Putnam creditors. a challenge to other old-time fiddlers This does not include the claim of Rein the state to compete for the chamceiver Coffin nor estates. From prespionship of Connecticut, not barring ent appearances creditors will receive the piccolo, drum or bones, will tuck about ten per cent of the amount of his fiddle under his arm and leave Puttheir claims. nam by bus for Providence, where he The only claim not disposed of by has entered the contest for the chamthe trustee is that of the Mary Gardpionship of New England. The conner estate. In regard to this claim test will be staged at the Albee TheLawrence A. Howard, counsel for the atre Monday, Tuesday and Wednestrustee, has requested Attorney J. F. day of next week. Carpenter, counsel for Miss Fannie The Eastford fiddler at first declarBarber, administrator of the Mary ed that contestants should come to Gardner estate, to file a brief in supEastford, but so confident has he beport of his client's claim. If the come that he can back up his claims as amount of the claim should be fixed a champion that he could not resist at $70,000, it would increase the total the temptation to enter the list. even amount of claims to $861,071.32 though it took him some forty miles in May Increase Assets winter weather to be present at the fiddlers' roll call. The assets of the bankrupt estate Of course the aged Eastfordite will amount to $147,000 and may be inhave the united backing of Windham creased if pending litigation termicounty. While he will be one of a nates favorably to the estate. This score of old-timers from all parts of litigation concerns stock of the WhipNew England, all of this county's ple & Gilpatric Company, which the wooden nutmegs will be stacked on the trustee is seeking to recover and is Eastford man. In the olden days it valued at about $50,000. If this should was "All ready, Mr. Cady." In modbe allowed by the federal court the ern times it is, "All ready, Mr. Whitdividend to creditors would be corresford." Let's go, and good luck go pondingly increased, assuming that with you. the trustee's report is approved by the referee. OPEN NIGHT OF THE List of Claims Approved PUTNAM HI-Y CLUB When the amount of the Mary Gardner estate claim has been determined, This evening the Putnam Hi-Y club the following list of claims will be is holding an open night in the High submitted to the referee in bankruptschool auditorium. The evening's entertainment will consist of a musical ey: George M. Coffin, receiver, First and literary program followed by a National Bank. Putnam, $641,341.93 social evening and dancing. During Union Block Co., A. Macdonald, Jr., the course of the evening the club will lawyer, Putnam, $4,690.00; Dr. S. B. furnish refreshments. Overlock, Pomfret, $350.00; Mrs. G. Next Monday evening the club will Harold Gilpatric, Putnam, $20,520.20; hold its weekly business meeting in Hartford-Connecticut Trust Co., trus. the Congregational church. After the tee for Annie G. Cutler. $84,880.86; business session Attorney Eric JohnOliver P. Bancroft, $171.48; John R. son will address the club. Stromberg, $129.18; Town of Boothbay Harbor. Me. (taxes) $29.60; MURDERED WOMAN Wileox Brothers, Putnam, $70.22: C. KILLED MOOSUP MAN W. Murdock, Inc., $1,434.41; Phoenix National Bank. Hartford, $9,000.00; Sarah Lussier, who was murdered United States Fidelity & Guaranty in a drunken brawl at a house in Co. (bond), $15,000.00; Robert H. Bridgeport, Sunday, was formerly a Newell & Co., Inc., Medina, N. Y. Windham county woman, her home $29.00; William F. Rafferty, $76.10; being in Moosup. Mrs. Lussier kill- Riverside Trust Co., $825.80; Harted a man in Moosup eight years ago, ford-Connecticut Trust Co., $13,096.alleging that the man made an as- 12; Woréester Bank & Trust Co., sault on her 13-year old son. She was $25,000.00; Fannie E. Barber, adminallowed to plead guilty to manslaugh- istratrix Mary Gardner Estate: Euter and was sentenced to not less than gene J. Phillips, Providence, R. I., fourteen nor more than fifteen years $24,426.42; total, $791,071.32; unliquidated Gardner Estate, $70,000.00; in state's prison. She was subscgrand total, $861,071.32. quently pardoned.

17. January 4, 1926 The Chattanooga News Chattanooga, TN

Article from The Chattanooga News, January 4, 1926

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EX-CASHIER CONFESSES PART IN BANK THEFT Responsible for $16,000. Gives Up to Authorities. Hartford, Conn., Jan. Guy L. Baker, former assistant cashier of the First National Bank of Putnam, of which former State Treasurer G. Harold Glipatric was cashier,' today to the theft of $16,000 from the bank. He submitted to arrest, explaining his confession was for the purpose of assuming his share of the responsibility wrecking of the bank. Gilpatric, whose misuse of funds of the bank closed the institution and wiped out trust funds, now serving at Atlanta. He was denied pardon. Baker outlined the peculations he committed while an assistant to Gilpatric at the bank. Baker has been in

18. January 7, 1926 New Britain Herald New Britain, CT

Article from New Britain Herald, January 7, 1926

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Does Admit, However, That He Was Aware of Former Treasurer's At Loose Dealings The Putnam Bank. His Case Nolled in Police Court in Order That Federal Authorities May Take Jurisdiction in Prosecution. 1. Hartford, Jan. 7 (AP) - Guy Baker, charged with the embezzlement of $16,300 of the funds of the First National bank of Putnam. and who was held in bonds of $25.000 on the charge, had his case nolled in police court this morn that he might be turned over ing the federal authorities. Baker had to been held at the county jail under the state warrant since Saturday when he confessed his peculations to Assistant United States Attorney George H. Cohen. Hearing This Afternoon federal warrant, signed on Monday The by United States Commissioner Frederic J. Corbett, was not served on Baker this morning. His was set for 2 o'clock by Corbett. At during a hearing Commissioner this morning, recess which 10:30 pethe police court over George L. Day taken riod Judge Baker of was back to presided, a cell there to await the arrival of Dep. uty United States Marshal Allen Marsh. Baker Very Nervous he would be Baker fore "I thought now," remarked here to be= when the marshal had to put in an minutes before at 9 o'clock. twenty reporter failed Baker appearance court was was nervous. and session as he sat opened visibly court alone during dock. in the the he front row in the prisoners' and unclasped the latter part During clasped of his the hands ses- his sion he sat with his hands in pockets, and with unfeigned interin the court proceedings. Prior est the court session he conversed for to a considerable period concern- of ing his own case and the affairs Gilpatric. "I have told all there is to tell concerning myself." Baker again declared. "As I have before said, did not come up here to make half a confession." Knew Gilpatric Stole Baker, while admitting that he had knowledge that Glipatric funds had been playing loose with the of the bank, denied he had any knowledge of where the money went. He declared he did not know what Gilpatric did with the money had and denied once more that he been with Gilpatric when the forcashier of the bank disposed of mer any of the funds. He disclaimed knowledge of any of Gilpatric's associates, and asserted that he had Burns of Hartford in but once that he a seen the bank John remem- cash bered, and that was to check. Has No New Facts He asserted he did not rememhe first became suspicious and further ber of when Gilpatric, transaction said he could not recall the that confirmed the suspicions that cashier was using the bank's funds the for private purposes. He said the could throw no light on transactions he of Gilpatric involving state funds. aiding the investigators endeavoring to financial who on As Gilpatric's are to operations. check up said, "I only wish I knew. but to help all not much that am there Baker willing is I I can, know." On Verge of Tears lips trembled as own cussed Baker's his peculations difficulty he from disbank. and it was with the that he restrained himself. He repeated a previous assertion he lux- had that it was a desire for made uries he did not have that was responsible for the theft of the bank's funds. When pressed for information and as the time he first took money to from what source, Baker professed that he could not recall. He Worked By Himself again reiterated that Glipatric He no knowledge of his pecula- "I tions, had nor did any other person. with most certainly did not work the Gilpatric in taking money from bank." Baker asserted. Baker was alone in court this morning. not even having the consoling presence of counsel. Going back to the days when the was started on the bank in Putnam run and he had assured paand others that the bank was trons solvent. Baker said he did as he instructed by Norman S. Bean. of was chief federal bank examiner Boston. "I think the examiner at time thought the bank was solvent." that Baker said. "In fact I be= it was some time after the bank Heve was closed that they discov- was ered for a certainty the bank Roken insolvent." said - -

19. March 5, 1926 Putnam Patriot Putnam, CT

Article from Putnam Patriot, March 5, 1926

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URGED GILPATRIC TO COME OUT WITH TRUTH ATTORNEY CARPENTER WROTE FORMER CASHIER SEVEN PAGE LETTER-WAS INSTRUMENTAL IN MAKING HIM CASHIER.-DUTY TO PERFORM Putnam Lawyer Makes Further Revelations In Second Letter to Saul Berman Attorney J. F. Carpenter of this have liked to have seen Mr. Gilpatric city, counsel for large creditors of privately and would like to have been the First National Bank, has written accorded the same privilege given the a second letter to Saul Berman, receiver. but it was not to be and I referee in bankruptcy, in which the do not think it would have done much Putnam attorney sets forth more of good except that it might possibly his views on the way the matter of have given me some leads whereby I receiver Gilpatric's questioning has been handl- might have helped both the ed. and my clients. I do not think it adMr. Carpenter repeats that he has visable for me to attempt to get these given the receiver full information leads in public hearing. One has got as to his knowledge of the bank's to be decent to his friends and to affairs. While he did not consider those who are innocent. Out With the Truth his appearance at the hearing very important he would have liked to "On the day it was determined to have been there so as to have known bring Gilpatric from Atlanta I Was exactly the plans. frankly informed (not by you) that Mr. Carpenter again states that I would not be allowed to question the questioning of Gilpatric without him. I had given in most of my inhaving either the trustee or referee formation as to the bank's affairs present is illegal and that in his opinand I considered it merely a tempest ion the transcript of the records of in a teapot. At the same time I had the hearing in Putnam, taken by an been instrumental in making Gilpatric ordinary stenographer, can not legcashier of the bank and considered I ally be made a part of the bankrupt had a duty to perform and wrote Gilproceedings. He says that neither he, patric a seven page letter telling him nor any lawyer of standing, would go that he had not helped where he could before such a hearing take the chance help and not to adhere to any advice of having his client bound by statehis personal counsel might have giv ments made by the bankrupt under en him or might give him, but to come such circumstances. He is glad, howout and tell the whole truth, make a ever, that the receiver of the bank clean breast of the whole affair and was allowed opportunity to privately assist in every possible way. question Gilpatric concerning the af"I submitted the letter to the counfairs of the bank but states that there sel for the receiver, and, in fact, he has been much criticism of the invesmailed the letter. It seemed to me tigation being carried on in the rethat I, above all others, ought to deceiver's absence. mand of Gilpatric that he should help. Mr. Carpenter's letter continues: "I hope he has given the receiver Done His Part leads which will assist him. WhatMy situation is this: The matters ever assistance Gilpatric may have which I have completed have been given the receiver does not, of course, demonstrated and the results have concern the bankruptcy court except been given to the receiver or his at- insofar as it may lead to recoveries torney. As to whether or not I wish by the trustee in bankruptcy. at this time to take up incompleted To Come Across matters I am very much in doubt. It "It seems to me that after my per. would seem to me that insofar as sonal letter to Gilpatric and my let. actual service is concerned I have ter to ou, made public, Gilpatric done my part in furnishing all these ought to have been influenced to come various reports to the receiver or to across with the truth. his counsel. I don't think anybody "Finally, the public knows that the is more interested to really accomplish information considered so valuable something than I am because of the to the receiver has been furnished very large interests which I represent. him through me by Hadfield, RothAt the same time it is problematical to well and Soule, and I am very glad I me as to the best method to adopt as did so and I will be very glad to give to incompleted investigations. the receiver any further information Unpleasant Matters I can and in every possible way help in adjusting the affairs of the bank. "There is, of course, ample opporI would not have troubled you tunity to go into unpleasant matters, but I hardly think the receiver, his with this letter, but I am afraid the counsel or I would think it advisable public expects too much of me, and to do so. It is of little use to bring I want the public, and especially the out what has been lost beyond re- creditors of the bank, to know that covery. The situation is bad enough I have done all I could. "Very truly yours, as it is. John F. Carpenter." I frankly confess that I would

20. July 9, 1926 Putnam Patriot Putnam, CT

Article from Putnam Patriot, July 9, 1926

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FIRST NATIONAL BANK IS HELD RESPONSIBLE bank, swelling its resources to that exInstitution Was In a Position to tent. Know What Cashier Was Defrauded Both Doing "We have then this situation before us: Gilpatric by his acts not only deCan't Disclaim Acts and Retain Benefrauded the bank, but also the plaintiff estate. The bank now seeks to fits Received disclaim the acts of its cashier, but desires to retain the benefit it received The First National Bank of Putnam from those very acts. The plaintiff is held by Judge Isaac Wolfe of the estate was in no position to stop Gilsuperior court to be responsible for patric's fraud against it. The defendthe conduct of its principal managing ant bank, on the contrary, was in a officer, G. Harold Gilpatrie, in using much better position to know that its the machinery of the bank to defraud managing officer was dishonest and the estate of Joseph W. Cutler. was using the machinery of the bank The decision, filed with the clerk of and of the power entrusted to him, to the superior court, denies the demurdefraud not only itself but its customrer of the defendant to the substituters. The bank, under the circumed complaint, in the case of the Hartstances, is chargeable with knowledge ford-Connecticut Trust Company, trusof the acts of its cashier." tee of the Cutler estate, against Geo. The plaintiff trustee claims damagM. Coffin, receiver of the Putnam es of $45,000 in the action against bank, and others. the receiver, to cover the loss of $34,Bank Had Knowledge 763.06 sustained by the estate by reasThe court holds that the plaintiff's son of the manipulations of Gilpatric. lose suffered through the misconduct