1831. Watertown Savings Bank (Watertown, CT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
January 1, 1903*
Location
Watertown, Connecticut (41.606, -73.118)

Metadata

Model
gpt-5-mini
Short Digest
95feee0e

Response Measures

None

Description

The Watertown Savings Bank closed its doors in 1903 after defalcations by treasurer Burton H. Mattoon. A receiver (S. McLean Buckingham) was appointed and the bank remained defunct; subsequent articles discuss receivership administration and distribution of surplus funds in 1907-1909. No contemporaneous depositor run is described; closure was caused by bank-specific embezzlement.

Events (3)
1. January 1, 1903* Receivership
Newspaper Excerpt
The Watertown Savings bank is still in the hands of Mrs. S. McLean Buckingham, receiver. / S. McLean Buckingham, receiver of the defunct Watertown Savings bank ... has a quantity of money on his hands ... Receiver Buckingham will begin some action ... next week he expects to be able to make a full report of his receivership. / On an order received today from Judge Curtiss ... Receiver S. McLean Buckingham ... will pay the surplus of $8,162 in his hands to the depositors ... Feb. 25, 1909.
Source
newspapers
2. January 1, 1903* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed because treasurer Burton H. Mattoon was found to be a defaulter; irregularities/embezzlement wrecked the bank.
Newspaper Excerpt
the bank closed its doors in 1903 on account of the defalcations of Burton H. Mattoon, its treasurer.
Source
newspapers
3. February 25, 1909 Other
Newspaper Excerpt
On an order received today from Judge Curtiss of the superior court, Receiver S. McLean Buckingham of the defunct Watertown Savings bank will pay the surplus of $8,162 in his hands to the depositors ... There is over $9,000 to be distributed among the depositors ... Bridgeport, Oct. 27.-The supreme court ... directed that the funds be distributed among the petitioners ... Watertown, Oct. 27.-Nearly 1,000 depositors will be benefited by the decision today ... there is over $9,000 to be distributed among the depositors ...
Source
newspapers

Newspaper Articles (8)
1. January 22, 1908 The Morning Journal-Courier New Haven, CT
Article from The Morning Journal-Courier, January 22, 1908

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Article Text

Upon the expiration of the restraining order, February 28. 1907. the Thompson Savings bank of Putnam commenced to pay its depositors in full and in July, 1907, deposits not called for were deposited with the treasurer of the state and the charter annulled, as provided by special act, approved March 19. 1907. There were 174d eposits uncalled for, amounting to $519.69. The restraining order to the Stonington Savings bank expires January 3. 1908. On December 28, 1907. a further order was issued. restraining payments to October 3. 1908. The Watertown Savings bank is still in the hands of Mrs. S. McLean Buckingham, receiver. The receiver of the People's Savings bank of Pawcatuck has paid during the year a final dividend of 22 3-10 per cent., which. with a previous dividend paid, makes a total of 72 3-10 per cent. The defalcation if the treasurer of New Britain was the Savings Bank excellency at the fully reported to ye rther examinatime it occurred. ar ers and investion by the commi have proved tigation by the

2. March 26, 1908 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, March 26, 1908

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Article Text

WHO OWNS MONEY Left in Hands of Receiver of Watertown Savings Bank. S. McLean Buckingham, receiver of the defunct Watertown Savings bank has a quantity of money on his hands which may or may not turn into dividends for those who were depositors of the bank or into a number of law suits against him as receiver. It is probable that he will ask the advice of the superior court to direct him in distributing the money, for it seems to be a question with him to whom does it belong? Does it belong to the stockholders, or to those who were depositors of the bank? The earning source of the money was, of course the money which belonged to the depositors, but they have been all paid off in full, minus their interest, and so far as known the stock holders and the officials have been paid their dividends and their salaries and after all this, there is more than enough to pay the receiver for his services and his counsel also. That is the interesting situation in which the receiver finds himself: with more money on his hands than he knows what to do with. The bank is square with all its depositors, likewise its. stock holders and its officers and it has gone out of practical existence. It closed its doors some time ago when its treasurer B. H. Mattoon was found to be a defaulter. The stock holders took this course believing that the depositors and the public would have no more faith in its safety vaults. And now. at the closing of a series of law suits that have left some of Mattoon's and some of his bondsmen without a stick, the receiver finds himself with a quantity of cash on hand and wondering what he shall do with it. When the Mattoon and Marggraff properties which were sold yesterday at public auction to satisfy some judgments given against them in favor of the bank, will have been fully transferred to the new owners, Receiver Buckingham will begin some action to ascertain to whom the money he has on hands after paying off all claims, belongs. Next week he expects to be able to make a full report of his receivership.

3. April 25, 1908 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, April 25, 1908

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CITY NEWS. The Misses Margaret, Rose and Anna Coughlan and Miss Rose Carroll have returned from a ten days' trip to Washington. Josephine Kelly the thirteen months old daughter of Mr and Mrs James E. Kelly of 28 North Main street, died this morning. The funeral will be held ht 4 o'elock to-morrow afternoon. The department of public safety will hold a special meeting in the mayor's office Tuesday afternoon. The commissioners will adjourn to the Baldwin street engine house for the purpose of seeing how the work is progressing. Owners of dogs were very much in evidence about the lobby of City hall this afternoon. If this is kept up until May 1, the warden may not have much to do this season. but it is doubtful if all will comply with the law on time to avoid trouble. Another large audience was present at Poli's last evening to witness the production of "The Merry Geisha." Last night's presentation went off much more smoothly than that of the previous evening and the principals scored more 30 than on the opening night. There was more volume to the chorus, the soloists seemed to be in better voice and the performance on a whole was many per cent better than Thursday event ing. The board of county commissioners with the court house building committee from the bar association held a meeting this morning and decided to accept revised plans for the court house addition. To do this work according to these plans $30,000 with the $50,000 already appropriated will be necessary. It was agreed to call a meeting of the county legislators to take action upon the new proposition in order to obtain the extra funds from the next legislature. It was felt right along that the sum of $50.000 would be far from adequate for the work necessary. The meeting of the legislators may be held in a few weeks, and the visitors will be the guests of the local bar association. The affairs of the defunct Watertown Savings bank are about all wound up. The report of the receiver, S. Buckingham McLean, was givet. a hearing in the superior court in New Milford yesterday. It shows there Is $9,177 left over after paying all expenses. There will be held another hearing next week to determiae whom this money belongs to. Emil C. Marggraff put in a claim for it on the grounds that he, as bonisman for the defaulter treasurer B, H. Mattoon, is a grievous loser and it would be only just and fair that he should be compensated for his losses. Colonel Burpee appeared for the receiver advised the court tc give this matter serious consideration and State Attorney General Holcomb supported this suggestion. The receiver was paid for his services $2.500 and counse) for him were paid for services and expenses about $4,500 The period of services has extended over four or five years.

4. May 30, 1908 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, May 30, 1908

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CITY NEWS. Right Rev Bishop Tierney administered the sacrament of confirmation to a large numberof boys and girls at the Sacred Heart church this morning. There was a large attendance at the annual muster and inspection of Company E. Hibernian Rifles, in City hall last night. The inspection officer, Adjutant Edward J. Joy of the Fourth regiment, Bridgeport, found the company in excellent condition. and complimented Captain Griffin and all the other officers on the work of the past year. Three or four deer paid a visit to the south end of the city this morning, and while they did not do much damage people who have gardens claim that they hope they will not return this season. Some of the people on Washington street say that shortly before the deer rushed by their houses they heard the discharge of a rifle in the vicinity of Dublin street, and suspect that this had something to do in forcing the fleet footed animals up the hill and then down in the direction of Baldwin street. Mrs Emma J. Mattoon of Watertown has filed a claim with the superior court through Attorney M. J. Byrne for part of the $9,760 which is in possession of S. McLean Buckingham receiver of the Watertown Savings bank after all debts, depositors and expenses are paid. Mrs Martoon is the widow of Henry J. Mattoon who was the father and one of the bondsmen for Burton H. Mattoon, whose financeering caused the bank to suspend business. She claims that she has been left a penniless widow by the attorneys for the bank. Burpee and Carmody. by their selling the old homestead for $3,500 to satisfy a judgment given against B. H. Mattoon. when at that time such a sale was not necessary. In other words, she claims that the amount of B. H. Mattoon's defalcations has more than been made good to the depositors of the bank without seiling her home.

5. October 28, 1908 The Morning Journal-Courier New Haven, CT
Article from The Morning Journal-Courier, October 28, 1908

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DEPOSITORS WILL GET THEIR MONEY Important Decision on Watertown Savings Bank Affairs by Supreme Court of Errors. WHAT THE RECEIVER SAYS Over Nine Thousand Dollars for Distribution in His Hands-Bank Was Wrecked by Treasurer Burton M. Mattoon. Bridgeport, Oct. 27.-The supreme court of the state, sitting here to-day. handed down several decisions, one on an action for distribution of certain funds in the hands of the receiver of the Watertown Savings bank, whose affairs, following the defalcations of Treasurer Burton M. Mattoon are just about to be wound up. The decision directs that the funds be distributed among the petitioners, the memorandum being by Judge Roraback Other decisions were: Hartford County-John Schusler V8. County Commissioners. no error. opinion by Chief Justice Baldwin Olin N. Pelton vs. David Goldberg and wife. action to recover for goods sold, no error: Judge Hall. William G. Forbes vs. Town of Suffield. action for damages no error; Judge Prentice William P. Dunham vs. F. S. Cox, action for conversion of funds, no error: Judge Thayer. F. A. Cadwell vs. Town of Canton. action for damages, no error; Judge Hall. Middlesex County-Francis F'. Bulkley VS. Norwich and Westerly Railroad company, action for damages, no error: Judge Prentice Watertown, Oct. 27.-Nearly 1,000 depositors will be benefited by the decision today of the supreme court against the Savings bank of Watertown. There is over $9,000 to be distributed among the depositors as a re(Continued on Third Page.)

6. October 31, 1908 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, October 31, 1908

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MORE RED TAPE May Depive Wateriowa Deposilors of 1beir Money. There is to be another chapter of litigation over the surplus of $9,000 of the defunct Watertown Savings bank. It was thought that when the supreme court rendered its decision that the money belonged to the depositors and the end was in view, all but to distribute the money. But there is a paragraph in the finding of the supreme court which draws a distinction between the depositors. Some of them it seems presented their claims in a proper form and some did not. The paragraph in question reads thus: "The superior court is advised that all such depositors who made presentation of their claims as set forth in the finding, made a lawful exhibition of such claims; that the receiver should distribute the balance of the money (after paying just charges) now in his hands to such depositors who have presented their claims in the manner above indicated ,and that the sureties on the bond (Mattoon's) are not entitled to any portion of the balance of the money now in the hands of the receiver." There are about 1,000 depositors and what number presented their claims lawfully and what number did not, is another matter for the courts to decide. Until that is done the money cannot be distributed.

7. February 26, 1909 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, February 26, 1909

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$8,162 FOR DEPOSITORS Of the Defanct Watertown Savings Bank Who Are Ertitled to Interest. Watertown, Conn., Feb. 25.-On an order received today from Judge Curtiss of the superior court, Receiver S. McLean Buckingham of the defunct Watertown Savings bank will pay the surplus of $8,162 in his hands to the depositors of the bank who are entitled to interest, of whom there are 175. This sum is sufficient to allow each depositor 55 per cent. of the total amount of interest due on his savings when the bank closed its doors in 1903 on account of the defalcations of Burton H. Mattoon, its treasurer. All the depositors were paid the face value of their deposits in 1907, and the bondsmen of Mattoon, who lost much property on account of his crime, appealed unsuccessfully to the supreme court for this surplus as reimbursement.

8. March 1, 1909 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, March 1, 1909

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Where a Balance Is Going. The decision of Judge Curtis in the Litchfield county superior court that a balance of $8,162 in the hands of the receiver of the Watertown Savings bank shall be distributed among the despositors settles a disputed point. The depositors have already received their principal and the forthcoming payment will cover a part of the interest due them. A good deal of controversy as to who was entitled to this balance has taken place. The bank went to pieces as the result of irregularities on the part of its treasurer. The treasurer's bondsmen were forced to settle to the extent of their liability. They were hard hit and suffered severely. The question of determining who was legally entitled to the balance left after the depositors of the defunct bank had been paid the amount of their deposits developed various views. It was claimed by one party that the balance should go to the state; by another faction that the bondsmen should be the beneficiaries; while a third contention was that the persons who were depositors at the time of, the failure should be the recipients of the surplus. The court has now decided in favor of the depositors. Doubtless this conclusion is sound law. If the case could have been determined, on the basis of sympathy instead of on the basis of the statutes, doubtless the bondsmen, who reaped only loss and suffering. would have obtained some reimbursement from the surplus.-Hartford Times.