Willimantic Trust Company - Willimantic, CT

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: April 29, 1885
Location: Willimantic, Connecticut (41.711, -72.208)

Metadata

Model: gpt-5-mini
Short Digest: a03a469b

Response Measures

None

Description

The Willimantic Trust Company is repeatedly referred to as the late company and receivers are paying dividends after a court decision forcing stockholders to repay improperly obtained funds. There is no description of a depositor run; the bank failed and a receiver (Osborn) has been paying dividends (30% on 1885-04-29). Cause of failure cited is bank-specific misconduct (cashier bought stock with company funds).

Events (3)

1. April 29, 1885 Receivership

Newspaper Excerpt: A dividend of 30 per cent, amounting to $29,000, will be paid tomorrow to the depositors of the late Willimantic Trust Company by the receivers. This is the third dividend ... Receiver Osborn states that the full amount will probably be paid finally.
Source: newspapers

2. May 1, 1885 Other

Newspaper Excerpt: This dividend is the result of the recent decision of the Connecticut Supreme court, compelling the stockholders who sold out when the trust company was threatening insolvency to restore to the receiver the money they got thereby.
Source: newspapers

3. * Suspension

Cause: Bank Specific Adverse Info
Cause Details: Cashier bought stock of the stockholders with funds of the company; bank threatened insolvency and subsequently failed per court record.
Newspaper Excerpt: Soon after the company failed. The decision is that the stockholders must pay back the money received for the stock with interest.
Source: newspapers

Newspaper Articles (3)

1. March 25, 1885 Morning Journal and Courier New Haven, CT

Article from Morning Journal and Courier, March 25, 1885

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Article Text

STATE NEWS. Miss Kate Miller, for several years teacher of the school in Staddle Hill district, Middletown, died on Monday of scarlet fever after only three days' illness. Fred. S. Work of Middletown, who has been in Nebraska about three months, returned home on Monday. His father will go out there next week. Father Desmond, of the Catholic church, Middletown, is still dangerously ill with pneumonia. The Middlesex Assurance company lost $4,000 by the Bridgeport fire of last week. Judge Beardsley on Monday passed the final decree enforcing the decision of the Supreme Court of Errors in the Willimantic Trust company's suit. The cashier bought stock of the stockholders with funds of the company. Soon after the company failed. The decision is that the stockholders must pay back the money received for the stock with interest. The sum involved is about $33,000. Work is to be resumed on the Ridgefield, Connecticut and New York railroad. About $220,000 was expended some years ago on the road and it is stated that $250,000 more will complete and equip it. When completed it will connect with the New England road at Fishweir Bridge, about two miles west of Danbury. The road has never issued bonds and money to complete it will be raised by the sale of stock. Romeo, one of the fine dogs. imported by the late Judge Harris B. Munson of Seymour, is now living in Bridgeport and is still searching for his dead master. Not a team passes through the street that Romeo does not run out and take a sniff at the hind wheel in hope of recognizing the vehicle in which Judge Munson used to make trips into the country.

2. May 1, 1885 New-York Tribune New York, NY

Article from New-York Tribune, May 1, 1885

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Article Text

DEPOSITORS GETTING BACK THEIR MONEY. WILLIMANTIC, Conn., April 29.2A dividend of 30 per cent, amounting to $29,000, will be paid tomorrow to the depositors of the late Willimantic Trust Company by the receivers. This is the third dividend, and results from the recent decision of the Connecticut Supreme Court that stockholders who sold out when the Trust Company threatened insolvency must pay back to the receivers the money thereby obtained. Only 71g per cent now remains due the depositors, and Receiver Osborn states that the full amount will probably be paid finally.

3. May 1, 1885 Morning Journal and Courier New Haven, CT

Article from Morning Journal and Courier, May 1, 1885

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Article Text

Stockholders Who Have Had to Pay Up. A dividend of 30 per cent. was declared to the depositors by the receivers of the late Willimantic Trust company yesterday. This makes a total of 921/2 per cent. thus far divided. This dividend is the result of the recent decision of the Connecticut Supreme court, compelling the stockholders who sold out when the trust company was threatening insolvency to restore to the receiver the money they got thereby. Most of these stockholders have recently made payment accordingly. A few will be unable to pay, b it Receiver Osborn states that the depositors will finally be paid 100 per cent. with0 it interest. The amount comprised by the 30 per cent. dividend is nearly $29,000.