Cranston Savings Bank - Providence, RI

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: February 21, 1879
Location: Providence, Rhode Island (41.824, -71.413)

Metadata

Model: gpt-5-mini
Short Digest: fc119f76

Response Measures

None

Description

The articles (1879) state the Cranston Savings Bank was in the hands of a receiver and depositors are contesting receiver's fees. No run or reopening is mentioned. This indicates a suspension/closure with a receiver assigned (suspension_closure).

Events (2)

1. February 21, 1879 Receivership

Newspaper Excerpt: the Cranston Savings Bank, the latter in the hands of a receiver. ... Mr. ALEXANDER FARNUM asked $30,000 for his services for three years. ... They have protested against the allowance of the charge, and the subject has been referred to a Master in Chancery. (May/June 1879 articles discuss receiver's fees.)
Source: newspapers

2. February 21, 1879 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was insolvent or otherwise failed leading to receivership (receiver in charge); articles reference receiver and contested fees, implying failure rather than a temporary liquidity event.
Newspaper Excerpt: the Cranston Savings Bank, the latter in the hands of a receiver.
Source: newspapers

Newspaper Articles (3)

1. February 21, 1879 The Sun New York, NY

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Article Text

SETTLING THE SPRAGUE ESTATE. The Largest Creditors Moving to Secure the Removal of the Trustee. Early this week Messrs. Metcalf & Pomroy of Providence addressed a letter to Mr. Zachariah Chaffee, trustee of the A. and W. Sprague estates, asking him if he would agree to the terms of any paper which all the creditors of the Spragues might sign. Mr. Chaffee promptly replied in the affirmative, whereupon the same gentlemen addressed to him another letter inquiring if he would equally agree to any petition signed by three-fourths of the creditors, and Mr. Chaffee again responded that he would acquiesce in the terms of any petition so signed. One of the gentlemen who addressed these letters to Mr. Chaffee, Mr. Metcalf. is a member of a committee appointed by certain of the Sprague creditors a year ago, and which at the time brought suit against Mr. Chaffee in Rhode Island to put him out of the trusteeship. The Committee consists of Messrs. Aldrich. Metc lf. Weeden. and Farnum. and in the suit brought by them they swore that they represented $4,000,000 of the Sprague paper. Mr. Farnum is the receiver of the Franklin Institution for Savings, in Providence, which holds $700.000 of these notes. Messrs. Metcalf and Aldrich are directors in the Second National Bank of Providence, which is another institution holding the Spragues' paper to a large amount. The First National, the Globe. and the Cranston Savings Bank, the latter in the hands of a receiver. make. with the others mentioned, five banks in Providence which together hold $3,500,000 of the Spragues' extension paper or old trustee notes. These, at least, will sign the paper asking for the removal of Mr. Chaffee. the idea being. probably, to pool the whole property and then to fight all suits outside. Such as join in the movement will sign an agreement to unite in a corporation for the purpose of obtaining possession and control by purchase of the said property and its conversion and application to the liquidation of our debts. and to take stock in such corporation in proportion to our respective claims." the agreement to be binding when three-fourths of the creditors in amount shall havesigned thesame. The total liabilities of the Spragues are $8,000,000. Of this. $5,000,000 is held by fifteen banks, and the rest is spread all over the country. from Maine to South Carolina.

2. May 13, 1879 The Sun New York, NY

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Article Text

The depositors of the Cranston Savings Bank of Providence have got hold of the notion that savings banks are not organized for the purpose of enriching receivers. Mr. ALEXANDER FARNUM asked $30,000 for his services for three years. This amount astonishes the farmers and mechanics whose earnings are represented in the bank. They have protested against the allowance of the charge. and the subject has been referred to a Master in Chancery. Meantime the Legislature of Rhode Island has referred to a committee the case of a widow whose so-called guardian nominated a member of a court of probate to act as a Commissioner in the division of some property partly belonging to the widow. The Commissioner and his two associates sent in a bill of $13,400 for their services. Then the guardian sent in an extravagant bill for services. which the Commissioner, as a member of the court of probate. passed upon.

3. June 5, 1879 The Stark County Democrat Canton, OH

Article from The Stark County Democrat, June 5, 1879

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Article Text

THE depositors of the Cranston Savings Bank of Providence have got hold of the notion that savings banks are not organized for the purpose of enriching receivers. Mr. Alexander Farnum asked $30,000 for his services for three years. This amount astonishes the farmers and mechanics, whose earnings are represented in the bank. They have protested against the allowance of the charge, and the subject has been referred to a Master in Chancery. Meantime the Legislature of Rhode Island has referred to a committee the case of a widow, whose so-called guardian nominated a member of court of probate to act as a Commissioner in the division of some property partly belonging to the widow. The Commissioner and his two associates sent in a bill of $13,400 for their services. Then the guardian sent in an extravagant bill for services, which the Commissioner, as a member of the court of probate, passed upon.