Dime Savings Bank - Willimantic, CT

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: March 23, 1888
Location: Willimantic, Connecticut (41.711, -72.208)

Metadata

Model: gpt-5-mini
Short Digest: 9dbc46e8

Response Measures

Accommodated withdrawals

Description

The articles primarily describe a major defalcation and suspension/refusal of payment at the Willimantic Savings Institute (closed March 23, 1888). Several pieces note a slight run on the Dime Savings Bank the same day; that run was quickly met and the Dime did not suspend. Therefore the episode for the Dime Savings Bank is a run only (no suspension or closure). Date taken from newspaper telegraphed local dateline (March 23, 1888).

Events (1)

1. March 23, 1888 Run

Cause: Local Banks
Cause Details: Depositors were nervous and made withdrawals after news of the misconduct/closure of the Willimantic Savings Institute (shortage/defalcation by treasurer H. F. Royce).
Measures: All claims were promptly met; bank paid depositors and the excitement subsided.
Newspaper Excerpt: There was a slight run on the Dime Savings Bank this afternoon by some nervous persons, but all claims were promptly met, and the excitement soon subsided.
Source: newspapers

Newspaper Articles (6)

1. March 24, 1888 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, March 24, 1888

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Article Text

ANOTHER BIG THEFT. The Willimantic Savings Institute Plundered to the Extent of About $150,000. WILLIMANTIC, Conn., March 23.-A financial climax that has for a long time been pending was reached to-day in the affairs of the Willimantic Savings Institute. A shortage or misappropriation of the bank's funds to the amount of $150,000 is found, owing, it is said, to a series of transactions by Treasurer H. F. Royce, without the knowledge or consent of the directors. It is alleged that the transactions of Cashier Royce are tantamount to defalcation. A brief history of the case may thus be given: When the present board of directors were chosen, in June, 1886, they soon found Treasurer Royce floating about $152,000 of accommodation paper for New York parties whose names are now given. In October, 1886, the directors passed a vote directing that this paper, as fast as it matured, should be taken in. In this way the amount was reduced to about $92,000. The directors/also discovered a system of floating checks between Willimantie and New York. amounting to nywhere from $100,000 to $300,000 per month, all of which was done by Treasurer Royce without the consent of the directors. Measures were at once taken to stop this. A yearago the bank received application for a $70,000 loan on the real estate of the United States Stamping Company, in Portland, Conn. The directors found the loan would not be safe for over $35,000, and no loan was authorized. On the next examination it was found that the $70,000 loan had been made on a mortgage of that company's property, but no record of the mortgage could be found, and it was subsequently found that the whole property was covered by prior mortgages. Efforts by the directors to collect on this loan have been unsuccessful, but it is expected something will be realized. To-day the directors suspended Treasurer Royce and voted to scale the deposits 15 per cent. Frank W. Webb, assistant treasurer, was chosen to suoRoyce. The bank commissioners pronoutice the institution sound after the 15 per cent. scale. It is said criminal proceedings will probably be instituted against Royce at once. The Savings Institute has taken advantage of the law requiring four months' notice of withdrawal of deposits, and to-day refused payment. and has closed its doors to business. Affairs will be probably straightened out in a few days. There was a slight run on the Dime Savings Bank, this afternoon, by some nervous persons, but all claims were promptly met, and the excitement soon subsided. The deposits of the Willimantie Savinga Institute aggregate $900,000. Royce has not been arrested.

2. March 24, 1888 New-York Tribune New York, NY

Article from New-York Tribune, March 24, 1888

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Article Text

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

3. March 24, 1888 Wichita Eagle Wichita, KS

Article from Wichita Eagle, March 24, 1888

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Article Text

A SLIGHT SHORTAGE. A Disciple of the Tate School Works a Savings Institute. WILLIMANTIC, Conn., March 23.-A shortage of $150,000 in the affairs of the Willimantic Savings institute was discovered today. The deficit is attributed to unauthorized purchases of treasurer. A brief history of the case may thus be given: When the present board of directors were chosen in June, 1886, they found that Treasurer Royce was floating about $152,000 of accommodation paper for New York parties, whose names are not now given. In October, 1886, the directors passed a vote directing that this paper, as fast as it matured, should be taken in. In this way the amount was reduced to about $92,000. The directors also discovered a system of floating checks between Willimatic and New York, amouting to anywhere from $100,000 to $300,000 per month, all of which was done by Treasurer Royce, without consent of the directors. Measures were at once taken to stop this. A year ago the bank received application for a $70,000 loan on real estate to the United States Stamping company, in Portland, Conn. The directors found the loan would not be safe for over $35,000 and no loan was authorized. On the next examination it was found that a $70,000 loan had been made on mortgage of that company's property, but.no record of the mortgage could be found and it was found that the whole property was covered by prior mortgages. The efforts by directors to collect on this loan have been unsuccessful, but it is expected something will be realized. Today the directors suspended Treasurer Royce and voted to scale deposits 15 per cent. Frank F. Webb, assistant treasurer, was chosen to succeed Royce. The bank commissioners pronounced the institution sound after the 15 per cent scale. It is said criminal proceedings will probably be instituted against Royce at once. The Willimantic Savings institute has taken advantage of the law requiring four months' notice of withdrawal of deposits and today refused payment and has closed Its doors to business. Affairs will probably be straightened out in a few days. There was a slight run on the Dime Savings bank this afternoon by some nervous persons, but all claims were promptly met and excitement soon subsided. Deposits of the Willimantic Savings institute aggregate $900,000. Royce has not been arrested.

4. March 24, 1888 The Morning News Savannah, GA

Article from The Morning News, March 24, 1888

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Article Text

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

5. March 24, 1888 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, March 24, 1888

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Article Text

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

6. March 29, 1888 The Emporia Weekly News Emporia, KS

Article from The Emporia Weekly News, March 29, 1888

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Article Text

Refused Payment. WILLIMANTIC, Con., March 23.-A shortage of $150,000 in the affairs of the Willimantic savings institute was discovered to-day. The deficit is attributed to unauthorized transferres of Treasurer H. F. Royce. The institute has taken advantage of the law requiring four months notice before withdrawal of deposits, and to-day refused payment and has closed its doors to business. Affairs will be probably straightened out in a few days. There was a slight run on the Dime saving bank this afternoon by some nervous persons, but all claims were promptly met and the excitement soon subsided. Deposits of the Willimantic savings institute aggregate $900,000. Royce has not been arrested.