Willimantic Savings Institution (Willimantic, CT)

Episode Information

Episode UID
3700539291059
Episode Type
Suspension โ†’ Reopening
Bank Type
savings
Bank ID
370053929 hash
Start Date
March 23, 1888
Location
Willimantic, Connecticut (41.711, -72.208)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5e720771d4ba3b13

Response Measures

None

Description

Later (1889) report of depositors' meeting implies the institution continued under restrictions; final resolution not shown.

Events (2)

1. March 23, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large shortage/misappropriation (~$150,000) by Treasurer H. F. (L. F.) Royce discovered; directors suspended him and scaled deposits 15%.
Newspaper Excerpt
The Willimantic Savings Institution Closes its Doors. ... the bank has taken advantage of the law requiring four days' notice of withdrawal of deposits, and today refuses payment and has closed its doors to business.
Source
newspapers
2. February 13, 1889 Other
Newspaper Excerpt
the depositors of the Willimantic savings institution held a meeting ... generally agreed that they should cease withdrawing their funds for fear of throwing the affairs of the bank into a receiver's hands.
Source
newspapers

Newspaper Articles (7)

Article from The Portland Daily Press, March 24, 1888

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Article Text

A BIC SUM MISSING. The Willimantic Savings Institution Closes its Doors. WILLIMANTIC, Conn., March 23.-. A financial climax, that has for a long time been pending, was reached today in the affairs of the Willimantic Savings Institution. A shortage or misappropriation of the bank's funds to the amount of $1,000,000 is found, owing, it is said, to a series of transactions made by the treasurer, L. F. Royce, without the knowledge or consent of the directors, It is alleged that the transactions of Cashier Royce are tantamount to defalcation. The bank has taken advantage of the law requiring four days' notice of withdrawal of deposits, and today refuses payment and has 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 banks this 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. Royce has not been arrested. Frank F. Webb, assistant treasurer, has been made acting treasurer.


Article from Rock Island Daily Argus, March 24, 1888

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Article Text

THE SCOUNDREL FOR CASH A Couple More Case Developed-Heavy "Shortage" in a Savings Bank. WILLIMANTIC, Conn. March 24. - A financial climax that has for a long time been pending was reached in the affairs of the Willimantic Savings institution Friday. 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 tatamount to defalcation. The directors of the institution have discovered the deficiency to bedue to a system of exchanging accommodation paper with certain New York parties by Treasurer H. F. Royce, unknown to the directors. The transactions have been going on for over two years. The fact that the paper was floating became known to the directors in October, 1886, and they caused it to be taken up as fast as possible, and also stopped the system of floating checks which Royee had carried on with a New York bank, and which ran sometimes as high as $300,000 a month They succeeded in reducing the accommodation loans to $92,000. but recently discovered that Royce had made a $70,000 loan on mortgage on property in Portland, Conn., which was unsafe and unauthorized On examination they found that there were prior mortgages on the property, and there will probably be little realized on the loan. The directors have suspended Royce and appointed his assistant, Frank F. Webb, in his place and voted to scale deposits 15 per cent. The bank commissioners say the institution is sound after the 15 per cent. scale. Royce will probably be criminally prosecuted.


Article from The Brookhaven Leader, March 29, 1888

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Article Text

A CLIMAX. A Connecticut Town Disturbed by the Tricks of a Bank Officer. WILLIMANTIC, Conn., March 24. - A finaneial elima* that has for a long time been pending was teached westerday in the at fairs of the Willimantic Savings Institution! when a shortage or misappropriation of the bank's funds to the amount of $150,000 was announced, owing, it is said, to g series of transactions by Treasurer H. F. Royce without the knowleage or consent of the directors. It is alleged that the transactions of Cashier Royce are tantamount to defalcation: When the present board of directors were chosen in Jude, 1886, they soon found that Treasurer Royce was float ing about $152,000 of accommodation paper for New York parties whose names are not now given and in October, 1886, they 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 $09,000. The directors also discovered a system of floating checks between W illimantic and New York, amounting any where from $100,000 to $300,000 per month, du 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 a $70,000 loan on real estate of the United States Stamping Company, of Portland, Conn. The directors found the loan would not be safe for ov er $35,000, and none 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 mort gages. Efforts to collect this loan have been unsuccessful, but it is expected some thing will be realized. Yesterday the directors suspended Treasurer Royee and voted to scale the deposits fifteen per cent. Frank F. Webb, assistant treasurer, was chosen to succeed Royce. The bank commissioners pronounced the institution sound after the fifteen per cent. scale. It is said that criminal proceedings will be instituted against Royce at once, but he has not been arrested.


Article from The Somerset Reporter, March 29, 1888

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Article Text

CENERAL. A shortage $150,000 has been found in the funds of the Willimantie, Conn., Savings Inconstitution and the bank has suspended payment. Henry Bergh, nephew of the late Henry Bergh and Secretary of the Society for the Prevention of Cruelty to Animals of New York, was yesterday elected President of the society.


Article from The Iola Register, March 30, 1888

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Article Text

A FINANCIAL CLIMAX. A Connecticut Town Disturbed by the Tricks of n Bank Officer. Willimantic, Conn., March 24.-A financial climax that has for a long time been pending was reached yesterday in the af. fairs of the Willimantic Savings Institution, when a shortage or misappropriation of the bank's funds to the amount of $150,000 was announced, 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. When the present board of directors were 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 and in October, 1886, they 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 W illimantic and New York, amounting 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 th B. A year ago the bank received an application for a $70,000 loan on real estate of the United States Stamping Company, of Portland. Conn. The directors found the loan would not be safe for over $35,000, and none 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 to collect this loan have been unsuccessful, but it is expected something will be realized. Yesterday the directors suspended Treasurer Royce and voted to scale the deposits fifteen per cent. Frank F. Webb, assistant treasurer, was chosen to succeed Royce. The bank commissioners pronounced the institution sound after the fifteen per cent. scale. It IS said that criminal proceedings will be instituted against Royce at once, but he has not been arrested.


Article from The Republican Journal, April 5, 1888

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Generalities. Jay Gould has arrived in New York In Nebraska there are no legal holidays established by statute. The Burlington strike has cost the road $6, 000,000 already. Medical journal derides the theory that colds are contagious. Prof. James S. Booth, of Philadelphia, the eminent chemist, is dead. The biennial election resolve has been defeated in the Massachusetts House The strike among the weavers in the cotton mills at Salmon Fails, N. H., has collapsed The Iowa Republican Convention strongly indorsed Senator Allison as President ial can didate. The polished Athenians of Boston now say that Sullivan is not even good enough to run gin-mill. Ex-Governor John Hoffman of New York died suddenly March 24th, at Weisbader Germany. General Sherman. portrait now hangs in the Harvard library It was presented by him to the University. Parson W. W. Downs, of Boston. preach d funeral sermon on histwo dogs whom somebody poisoned. Governor Lowry. of Mississippi, has accepted railroad passes. which is a misdemeation under the State laws Seals are very abundant on the New foundland cosst. men and and women are catching them great numbers News of the sudden death of Chief Justic at Waite was received with profound sorrow, his old home, Toledo, Ohio The National Board of Marine Underwriter has undertaken radical reform methods the of of baling and handling cotton. explosion in theatre at Oporto, Portugal caused the destruction of the theatre and the death of about 100 people. A Methodist minister having forgotten his one girl and dded another in West Virginia, is now out of the pulpit. and The boycott of Chicago, Burlington Quiney freights by engir and firemen has proved failure. and so has the strike. Mrs Rebecca Benne tt was chosen moderator at meeting in Lee. Mrs. James Buzzell was elected super intendent of schools. The family of James Wilson. ix in number f Green River county are dead from cidentally eating pork poisoned to kill The New York assembly has ordered to third reading the bill for the substitution electricity for hanging in capital punishment. shortage $150,000 has been found in the funds Williman the Conn., vings stitution and the bank has suspend A Russian Pacific R: ilroad is to be built through Siberia and proposed to tinish it from European Russia to Vladivostock in three years. By decision of the Postmaster General and eriodicals kages publications exchanged with Canada, regardles of weight Ontario lumbermen fear that there :1 be enough water this spring float their larg winter'sent of logs Over 400,000,000 feet now ent. It is feared that the brig Gipsy Queen Capt. handler, from M atanzas for Philadel phia, been lost off the Delawar Capes with all board. New York editors reporters members the Horace Greeley Club have applied for the Knights of Labor, with the of getting better pav. 1. Hill, prominent member of the York Union Club and executor II Canada to be posed The xican has the Anthomy ichroders the Mexican National Bank for the 852.500,000, Bell telephone stock fell tifts points Waite of eath. the The supreme news telephone court judges who sat on the great case now stand three to three. It stated that England sent here last 11,000,000 free free-trade pamphlets. would England, thos were benefit pamphiets be the Martin J. Clark and He ekiah Best. judges Baltimor felection fraudul action in the last munic pal election. were teneed to years' imprisonment. Pilot boats Enchantress and Phantom New York are still missing. and the Pilot missioners given them up lost. There were fourteen persons on the boats A " 1 cent lunch-stand" has been establi in New York and there lemand for more of them. The bill far comp soup ed fish, pork and beans coffee milk. and bread The bill allowing 825 a month to army nurses caused considerable discussion in the recently Senator Beek objected to furthe consideration and the bill went over under pro test Lieutenant Howard of Gatling gun motoriety is at variance with his wife and threatens the which vorce courts, in suit expected to result in the de development of sendal. M. Bishop widely known as the "fatte man on earth. has died Petersburg intermittent H years of fever. weighed 550 pounds. He has been on exhibition since infancy The New York Journal prints fac simile paragraph in General Grant's letter dismissal Gen. Badeau which Gen. Ba deau clared written Col. Grant. The writing proves to be that of General Grant. company has been formed in Pittsburg with capital of 100.000 facture from blast furnace einders. he 30,000 on lav. turning out count believe they will be sold at 85 a thousand A decree authorizing the Crown Prince Wil liam of Germany to present the Emper offic the business the in transaction of of the Emperor being unable to act for himsel will shortly issued and proclaimed throughout the empire A letter from the Secretary of the Navy in Februar solution 21st Senate of reply gives the naval force employee under the Fish Commission 15 officers 124 and the annual thereof to the Navy Department $92,604. verdiet for 837.650 has been rendered at Topeka, Kansas, against three life insurance Mutual Company of New York, the New York Life and the ecticut Mutual in favor of Mrs. Hillman. case had been tries twice before Th House epublicans are preparing tariff bill It will remove all tobacco taxes. cigars and cigarette alcohol in the arts; one-half the sugar duty, giving Louisiana planters bount will adopt the wool schedule of the Wool Assoc ciation. The advent of Spring was signalized by weather and cold territic storm portions of the West structive freshet the East and very severe tornado and storm in the South. Georgia and Tennessee have suffered terribly in loss of life and property Senator Edmunds has introduced bill viding for the inspec tion meats intended exportation, to meet the objections urged against American meat products by the Gerand Gove French man and prevent to the importation into this country of adulterat ed goods. William Henry Trescott. the well known dicontributes the plomat. New York Herald long letter the effect that the tishery treaty surrender of priv and Canada's claims. He thinks valuable rights under the treaty of 1830 have been lost and only trivial points gained Mr. R. B. Anderson. Consul General hagen. reports an ingenious device by which the Norwegians their salmon fishing. During the season when the tish are hunting for wilv paint places bawning on the rocks. The fish attempt to leap these imaginary waterfalls, and are caught in nets is they fall back. The friends of Gen. Hancock. who have been active in their efforts to raise sufficient money purchase house in hington for Mrs Hancock, have met with complete success. brown and large three-story The house


Article from The Press, February 14, 1889

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WILLIMANTIC. -The Willimantic Electric Light Company has increased its capital stock from $10,000 to $20,000. -The depositors of the Willimantic savings institution held a meeting yesterday morning, and it was generally agreed that they should cease withdrawing their funds for fear of throwing the affairs of the bank into a receiver's hands. This would result in a long delay and loss. A motion to appoint a committee of investigation was defeated, and also one asking the state attorney to withdraw the case against exTreasurer Royce. (OORRESPONDENCE.) -H. C. Hall, who has had a long and severe spell of illness, is fast on the road to health. -Pat Coffey's saloon was recently the scene of a lively row between Pat Shea and Healy, both assaulting a man named Haggerty. They had things quite Pat down there. -Roadmaster Daggett of the Air Line road has gone to Bermuda for his health. -Dr. C. J. Fox has been presented with the annual volume of 1888 of the surgeon general's report, by Dr. John Moore, surgeon general of the U.S. -P. Trudo & Co. have opened a grocery store in Cunningham Block. -The article in last week's Press, relative to the P. O. clerks, did not in any way apply to Postmaster Wales or his chief clerk, Mr. Brown, both of whom are noted for their special courtesy to old and young, regardless of sex or age. -At the borough meeting last week the ten extra police were not appointed, and of course there was "no rosin." -I. C. Lincoln's daughter, Ida, is recovering from her attack of diphtheria. -Cashier O. H. K. Risley recently had stolen from him a bear skin robe, valued at $125. -Rev. M. G. Coker has been retained pastor of the Baptist church, by a vote of 63 to 18. He is greatly respected. -Chief Engineer C. N. Daniels has been appointed district deputy of Tolland and Windham counties by the Masonic OLD CROW. Grand Lodge.