1830. Watertown Savings Bank (Watertown, CT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
January 14, 1904
Location
Watertown, Connecticut (41.606, -73.118)

Metadata

Model
gpt-5-mini
Short Digest
da274e81

Response Measures

None

Description

No run is described in the articles. The bank suspended operations in Jan 1904 after alleged embezzlement by treasurer B. H. Mattoon (bank-specific adverse info). It resumed operations later in 1904 but directors voted to liquidate and close in Jan 1905 (voluntary liquidation), and by 1906 receivership actions and charter revocation finalized the bank's permanent closure. Sequence: suspension (1904) → reopening (late 1904) → voluntary liquidation/closure (1905) → receivership (1906). Categorized as suspension_closure because there was a suspension (no run) and the bank ultimately closed permanently and entered receivership.

Events (8)
1. January 14, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed discovery of badly tangled affairs and allegations of embezzlement by Treasurer B. H. (Burton H.) Mattoon; investigation and removal of books and assets by directors and bank commissioners.
Newspaper Excerpt
The officials of the Watertown Savings bank have issued a notice that the ninety day law has been taken advantage of ... The bank has suspended operations for the present, but will resume business as soon as the books have been straightened out.
Source
newspapers
2. March 23, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Court order to prohibit payments while examiners and court assess bank's ability to collect outstanding notes related to alleged defaulter (ex-Treasurer Mattoon).
Newspaper Excerpt
Judge Ralph Wheeler ... granted an order prohibiting the Watertown Savings bank from paying out deposits or interest upon them until further orders of the court.
Source
newspapers
3. November 18, 1904 Reopening
Newspaper Excerpt
the institution is probably solvent and will resume business in a short time ... business was suspended by order of the bank commissioners ... George H. Stoughton ... has now placed the bank on a safe, solvent basis ... for a successful future. The bank now has 1057 depositors ... and ... cash in ... (resumption reported).
Source
newspapers
4. January 27, 1905 Suspension
Cause
Voluntary Liquidation
Cause Details
Directors voted to close and liquidate because majority of deposits were non-resident and sustaining the institution was deemed impracticable; closure intended to wind up affairs and pay depositors.
Newspaper Excerpt
The Watertown Savings bank has closed its doors ... It is claimed the bank is solvent and the creditors will receive every dollar due them ... directors finally decided that it was best to close ...
Source
newspapers
5. March 25, 1905 Other
Newspaper Excerpt
A large amount of cash was paid to the depositors of the Watertown Savings bank yesterday.
Source
newspapers
6. January 12, 1906 Other
Newspaper Excerpt
Judge Prentice Hears Petitions For Appointment of a Receiver ... The bank has $5,000 in cash and bonds in assets. The town of Watertown lost $16,000 in the failure of the bank.
Source
newspapers
7. January 15, 1906 Other
Newspaper Excerpt
Deputy Sheriff Daniel F. Hannon to-day served papers on President C. B. Mattoon and S. McLean Buckingham, receiver of the Watertown Savings bank, forbidden them from carrying on any further business. This deprives the bank of its charter and goes into effect immediately.
Source
newspapers
8. February 23, 1906 Receivership
Newspaper Excerpt
Judge Gager ... appointed McLean Buckingham of Watertown permanent receiver of the Watertown Savings bank, and ordered him to furnish a bond of $5,000.
Source
newspapers

Newspaper Articles (9)
1. January 15, 1904 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, January 15, 1904

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Article Text

WATERTOW BANK SUSPENDS ANINVESTIGATION OF ACCOUNTS TO BE MADE. Ninety-Day Law Taken Advantage of and No Funds WIII be Paid Out Unless Three Months' Notice is GivenTreasurer Mattoon Held Under Bonds of $9,000 for Embezzlement. Watertown, Jan. 14.-The officials of the Watertown Savings bank have issued a notice that the ninety day law has been taken advantage of and hereafter no funds will be paid to depositors without such notice. This notice was posted after a meeting of the directors of the bank this afternoon. The directors refused to discuss the affairs of the bank, but President Charles B. Mattoon said that until a thorough examination of the books had been made and compared with the books of depositors the financial condition of the bank could not be determined. President Mattoon is not related to Treasurer Mattoon, accused of embezzlement. The bank officials have secured all the books, assets and securities and have removed them from the bank. Their present location is known only to the directors. The bank has suspended operations for the present, but will resume business as soon as the books have been straightened out. Two bank commissioners are here assisting the directors. Treasurer Mattoon of the bank was seen this evening and asked to make a statement. He said that on the advice of his counsel he would add nothing to his statement that at the proper time he would explain everything. He admitted, however, that he had made some errors, but what those errors were the former state senator refused to say. W ted, Jan. 14.-Ex-State Senator Burton H. Mattoon, treasurer of the Watertown Savings bank, who was arrested yesterday, was held to-day at a special session of the superior court on charges of embezzlement and altering the books of the bank. Mr. Mattoon addressed the court, saying that he could furnish bonds to any amount, but that he hoped the amount would not be so large as to add to the notoriety he had already received through the newspapers. Judge Roraback fixed the bond at $9,000, which was furnished, an dthe case will come up for a hearing later. Mattoon was specifically charged with the embezzlement of $1,000 and with alteration of the bank's books in two instances. Besides being treasurer of the savings bank, he is also clerk and treasurer of the town, and ata recent town meeting a report of an expert employed by a special investigating committee to examine the town books alleged that Mattoon's accounts showed a shortage of $23,592.07. The court proceedings today were not connected with the town's affairs.

2. March 23, 1904 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, March 23, 1904

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Article Text

CANNOT PAY DEPOSITS. Watertown Savings Bank Prohibited by Order of Judge Wheeler. Judge Ralph Wheeler of the superior court, yesterday afternoon, after adjournment of the case against Willis Vandemark, granted an order prohibiting the Watertown Savings bank from paying out deposits or interest upon them until further orders of the court. The order was the result of rather lengthy conference between Judge Burpee, counsel for the bank, and Bank Examiners Noble of New Milford and Kendall of Suffield. The notice of the order was served upon Treasurer Stoughton of the bank late in the afternoon. There is no cause for alarm, it is said, in the existence of this order. It was taken merely for the safety of all concerned and to give the bank directors time to look about them pending the trial of the case against the alleged defaulter, ex-Treasurer Mattoon. The step was decided upon at a meeting of the diréctors held yester: day. A report is to the effect that the bank examiners informed Judge Wheeler that at present it would be impossible for them to give an exact report on the financial ability of the bank and the safe plan to pursue under the circumstances was to suspend all payments until the courts decide as to the bank's ability to collect some $14,000 outstanding notes against the town of Watertown. This case was to have been heard yesterday in the district court, but for some reason it was put back to next Saturday for reassign. ment.

3. November 18, 1904 The Newtown Bee Newtown, CT
Article from The Newtown Bee, November 18, 1904

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Article Text

In Newtown, New Milford, Woodbury, Middlebury and Bethlehem, there are a few depositors in the Watertown Savings bank, who will be gratified by the announcement that the institution is probably solvent and will resume business in a short time. It will be remembered that the affairs of the bank were found so badly tangled, last December, as the result of B. H. Mattoon's management, that business was suspended by order of the bank commissioners. The present condition of the institution is brought out in an interesting article, from the pen of R. H. Smith in the Thomaston Express. Mr Smith doubtless gets his information at first hands, as Mr Stoughton, the temporary treasurer, is a Thomaston citizen. The Express says: George H. Stoughton has won fresh financial renown in his management of the wrecked Watertown Savings bank, to whose officers and depositors he submitted his first report, as treasurer on Thursday of last week. Appointed treasurer in February, he found the bank's affairs woefully tangled and its reputation gone, but he has since collected $84,674.07 in loans and $10,569.01 in interest and has now placed the bank on a safe, solvent basis, with the dead wood cut out and its affairs in business trim for a successful future. The bank now; has 1057 depositors, with $249,538.34 to their credit and a net amount of $6,286.94 in earnings and interest on hand. To meet this, there are $149,394.60 in loans on real estate, $13,090 in loans on joint and endorsed notes, $745 loaned Watertown's South school district and $92,595.68 cash in

4. January 27, 1905 The Newtown Bee Newtown, CT
Article from The Newtown Bee, January 27, 1905

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Article Text

WATERTOWN. WATERTOWN BANK TO BE LIQUIDATED DIRECTORS THINK THAT A CONTINUANCE ISN'T WORTH WHILE.-OUTSIDE DEPOSITORS THINK LOCAL INTEREST IS NOT ENOUGH TO WARRANT RUNNING THE INSTITUTION ANY LONGER. The Watertown Savings bank has closed its doors, and as soon as an order can be obtained from the superior court removing the injunction restraining the bank from paying money to the depositors, those who have money in the bank will receive their claims. It is claimed the bank is solvent and the creditors will receive every dollar due them. It will take some time to entirely close up the affairs of the institution and while this is being done Treasurer George H. Stoughton of Hartford will remain in charge. The assets of the bank are $258,698.87, and the amount due depositors outside of interest is $249,538.34. Treasurer George H. Stoughton yesterday said: The directors finally decided that it was best to close because we found on examination of the accounts that more than half the depositors resideCoutside of the town of Watertown and that more than threefifths of the deposits belong to them. And, of course, non-residents have not the same interest in having a bank in Watertown, and we have reason to believe that the majority of them would draw out their money at the earliest possible moment. If the deposits were to be drawn down to less than $100,000, the directors would not feel that it was practicable to continue the institution. The bank is even in better condition than it was last November at the time of the public meeting of the depositors, because since that time we have collected some thousands of dollars in loans and interest. "I hope that within the next 30 days_or certainly by March 1, we shall be able to pay every depositor one-half on his whole deposit and the balance due their accounts will be paid just as soon as the balance of the loans can be called in."-[Republican.

5. March 25, 1905 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, March 25, 1905

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Article Text

WATERTOWN JOTTINGS Miss Ella Dains of Oakville is visiting her sister, Mrs George Barton. Norton & Bunnell have the contract to paint the Seymour Smith homestead in Oakville, R. V. Magee and Ira C. Hotchkiss went to Thomaston last evening to a meeting of Granite chapter, No 36. R. A. M. A son was recently born to Mr and Mrs Beckett of Poverty street. A large amount of cash was paid to the depositors of the Watertown Savings bank yesterday. Joseph Huey, who has been in the employ of Charles Mattoon for a number of years as milk peddler. has resigned this position and is at present visiting friends in Pennsylvania.

6. January 12, 1906 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, January 12, 1906

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Article Text

WATERTOWN BANK Judge Prentice Hears Petitions For Appointment of a Receiver. Hartford, Jan 12.-Judge Prentice of the supreme court to-day heard the petition for winding up of the affairs of the Watertown Savings bank and the appointment of a receiver. No objection has been made to the naming of F. McLean Buckingham and it is thought likely he will be appointed. The bank has $5,000 in cash and bonds in assets. The town of Watertown lost $16,000 in the failure of the bank.

7. January 13, 1906 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, January 13, 1906

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Article Text

WATERTOWN JOTTINGS A hearing was held in Hartford yesterday afternoon in regard to the appointment of a receiver for the Watertown Savings bank. There was no opposition and S. McLean Buckingham will probably be appointed. The funeral of Corinne Roeske was held this afternoon. Interment was in Evergreen cemetery. Louis Fox has moved into his new house. Herbert Dayton has purchased another fine driving horse. Mrs M. A. Doolittle in visiting relatives in New York. The building which G. A. Upham is erecting for a workshop is nearly completed and will be equipped with a gasolene engine and wood working machinery.

8. January 15, 1906 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, January 15, 1906

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Article Text

THE WATERTOWN BANK. Last Act To-Day Which Puts Watertown Institution Out of Business. Deputy Sheriff Daniel F. Hannon to-day served papers on President C. B. Mattoon and S. McLean Buckingham. receiver of the Watertown Savings bank, forbidden them from carrying on any further business. This deprives the bank of its charter and goes into effect immediately. The papers are made out by Samuel A. Prentice, a judge of the supreme court of errors.

9. February 24, 1906 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, February 24, 1906

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Article Text

McLean Backingham Appointed Re. ceiver. Winsted, Feb. 23.-Judge Gager in the superior court to-day appointed McLean Buckingham of Watertown permanent receiver of the Watertown Savings bank, and ordered him to furnish a |bond of $5,000. Howard M. Hickox and Albert T. Blakeslee were appointed appraisers.