First National Bank (Putnam, CT)

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BANK AT PUTNAM FIGHTS OFF RUN

Uneasiness at Attempt of Gilpatrick to Kill Himself Increases

Putnam, Ct., Aug. 11—Fighting off a possible run on the one bank in this little town, state and federal banking men were today deploring reports that G. Harold Gilpatrick, treasurer of the state of Connecticut, and cashier of the First National bank of Putnam, had misused funds of the bank. "The bank is solvent. It can pay dollar for dollar," officials declared to citizens anxiously inquiring as to the bank's status today.

Slowly but surely residents withdrew their funds from the savings department while directors met behind closed doors for a two-hour session.

"We are following the wishes of federal examiners in saying nothing," they declared after the meeting.

Outside the bank an undercurrent of uneasiness has set in frequently expressed in the query, "Why isn't a statement issued?"

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BANK CLOSES DOORS AFTER ITS CASHIER TRIES TO KILL SELF

Putnam, Conn., Aug. 12—Following the attempted suicide of its cashier G. Harold Gilpatric, state treasurer of Connecticut, who is now in a local hospital, the First National Bank of Putnam suspended business today.

A formidable run on the bank which began when the shortage was discovered in Gilpatric's accounts, caused the directors to take the step at an all night session. Twenty-five depositors were in line at the door when the notice of suspension was posted. It is said that the run exhausted the bank's cash capital of $150,000.

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Losses of Putnam Bank Believed Too Great to Allow Doors to Reopen

Warrant Is Issued For Arrest of Cashier Gilpatric, Charged With Embezzlement of $100,000—George W. Coffin Appointed Receiver—Citizens of Town Start Movements For Establishment of Two New Financial Institutions—Gilpatric Assigns Property to Meet Losses

Putnam, Ct., Aug. 13—Events moved rapidly and developments were numerous today in connection with the wrecking of the First National bank of Putnam by its cashier, State Treasurer G. Harold Gilpatric. It is estimated that the bank's loss, placed at a minimum of $262,000 by the directors, is so great that it cannot again open its doors.

One of the outstanding developments of the day was the issuance of a warrant for the arrest of the state treasurer by assistant United States Dist-Atty George M. Cohen of Hartford, charging him with embezzlement of a nominal $100,000 of the bank's funds. The warrant was turned over to United States Marshal Jacob D. Walter with instructions to serve it at his discretion.

State's Atty Charles E. Searles of Windham county, in whose jurisdiction any action on the part of the state would lie, is on the way home from Nantucket. He is also the attorney for the bank.

Appointed Receiver

George W. Coffin, national bank examiner, was today appointed as receiver for the bank by the comptroller of the currency at Washington.

Walter H. Gilpatric, brother of the man who is still fighting for his life at the Day-Kimball hospital where he lies partly blinded for life, as a result of his attempt at suicide, announced that the state treasurer has assigned all his property to the bank to meet its losses. Mr Gilpatric estimated that these losses would not be as great as previously indicated and that the as-

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CONNECTICUT CRASH

G. Harold Gilpatric, State Treasurer of Connecticut and cashier of the First National Bank, of Putnam, who attempted suicide. The bank closed its doors and it is said there is a shortage of over $225,000.

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PUTNAM BANK OPENS TO RECEIVE PAYMENTS

Putnam, Conn., Aug. 15.—(Associated Press)—The doors of the First National Bank of Putnam, closed several days ago after a run which followed the attempted suicide of the cashier, State Treasurer G. Harold Gilpatric, were opened today by the receiver, George W. Coffin, but only for the receipt of payments due the bank. The receiver stood by the statement previously given out that he knew nothing concerning the word of National Bank Examiner N. S. Bean that the bank's resources were so badly impaired that its business was wrecked.

The receiver was busy familiarizing himself with the conditions, which involve a loss of more than $263,000 in negotiable securities and in funds advanced on straw loans. Just as soon as possible depositors, who had apparently $1,500,000 in the bank, in addition to those who had entrusted their funds to the bank for safe keeping, will be called upon to file proof of their claims.

The present inquiry is centering on the questions of how much more actually is missing and what Gilpatric did with the money.

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Bank Open Again After Heavy Run

(By Associated Press Leased Wire) Putnum, Conn.—The doors of the First National bank of Putnam, closed several days ago after a run which followed the attempt at suicide by the cashier, State Treasurer G. Harold Gilpatric, were opened today by the receiver, George W. Coffin, for the receipt of payments due the bank. The bank has suffered a loss of more than $262,000 in negotiable securities and in funds advanced on straw loans. Just as soon as possible depositors, who had approximately $1,500,000 in the bank, in addition to those who had entrusted their funds to the bank for safe keeping, will be called on to file proofs of their claims.

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Putnam Bank Opens To Receive Payments

PUTNAM, Conn., Aug. 15.—(By The Associated Press).—The doors of the First National Bank of Putnam, closed several days ago, after a run which followed the attempt at suicide by the cashier, State Treasurer G. Harold Gilpatric, were opened today by the receiver, George W. Coffin, but only for the receipt of payment due the bank. The receiver stood by the statement previously given out that he knew nothing concerning the word of National Bank Examiner N. S. Bean that the bank's resources were so badly impaired that its business was wrecked.

The receiver was busy familiarizing himself with the conditions, which involve a loss of more than $262,000 in negotiable securities and in funds ad-

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BANK REOPENED

Receiver to Collect Funds Due Connecticut Institution.

(By the Associated Press.) PUTNAM, Conn., Aug. 15.—The doors of the First National bank of Putnam, closed several days ago after a run which followed the attempt at suicide by the cashier, State Treasurer G. Harold Gilpatric, were opened today by the receiver, George W. Coffin, for the receipt of payments due the bank.

The bank has suffered a loss of more than $262,000 in negotiable securities and in funds advanced on straw loans. Just as soon as possible depositors who had approximately $1,500,000 in the bank in addition to those who entrusted their funds to the bank for safe keeping will be called upon to file proofs of their claims.

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PUTNAM BANK OPEN TO RECEIVE PAYMENTS DUE

Putnam, Conn., Aug. 15.—(By The Associated Press.)—The doors of the First National bank of Putnam, closed several days ago, after a run which followed an attempt at suicide by the cashier, State Treasurer G. Harold Gilpatric, were opened today by the receiver, George W. Coffin, but only for the receipt of payments due the bank. The receiver stood by the statement previously given out that he knew nothing concerning the word of National Bank Examiner N. S. Bean that the bank's resources were so badly impaired that its business was wrecked.

The receiver was busy familiarizing himself with the conditions, which involve a loss of more than $262,000 in negotiable securities and in funds advanced on straw loans. Just as soon as possible, depositors who had approximately $1,500,000 in the bank, in addition to those who had entrusted their funds to the bank for safe-keeping, will be called

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Reopen Bank To Take In Payments Due

Putnam, Conn., Aug. 15 (By the Associated Press).—The doors of the First National Bank of Putnam which were closed after a run following the attempt at suicide by G. Harold Gilpatric were reopened today by Receiver George Coffy, but only for receipt of payments due the bank. The receiver stood by his statement that he knew nothing concerning the word of the bank examiner that the resources of the institution were so badly impaired that its business was wrecked.

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STATE MAY LOSE $30,000 ADDITIONAL Gilpatric Increased Connecticut Deposit by That Sum Before Bank Crashed. By the Associated Press. HARTFORD, Conn., August 19.-Accounts of the State treasury, which were taken over yesterday by Capt. Anson T. McCook, the new State treasurer, showed that the State deposit in the First National Bank of Putnam was increased from $90,000 to $120,000 within the past two months. The amount of the State's deposit in the bank wrecked by the defalcation of G. Harold Gilpatric, its cashier, and former State treasurer, previously had been set down as $100,000. As State treasurer, Gilpatric made the additional deposit which put the total of the State's funds in his bank $30,000 over the legal limit, soon after his return from the Republican national convention at Cleveland in June, which he attended as a guest. Deputy State Treasurer Thomas H. Judd of New Britain promptly protested to Mr. Gilpatric that the additional deposit was illegal, as the State law permitted such deposits only to the extent of 30 per cent of the capital, undivided profits and surplus of the bank, which. in this case was approximately $90,000. Gilpatric gave an explanation for his action and Judd was overruled. Deputy Treasurer Judd last night confirmed this information, but declined to comment. He went to Putnam the Sunday following Gilpatric's attempted suicide, and went over the situation there with directors of the involved bank with a view to protecting the State's interests. At that time the officials entertained hopes of saving the institution and rather than precipitate a run on the bank, Judd did not withdraw the State's deposit.

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STATE MAY LOSE $30,000 ADDITIONAL

Gilpatric Increased Connecticut Deposit by That Sum Before Bank Crashed.

By the Associated Press. HARTFORD, Conn., August 19.—Accounts of the State treasury, which were taken over yesterday by Capt. Anson T. McCook, the new State treasurer, showed that the State deposit in the First National Bank of Putnam was increased from $90,000 to $120,000 within the past two months. The amount of the State's deposit in the bank wrecked by the defalcation of G. Harold Gilpatric, its cashier, and former State treasurer, previously had been set down as $100,000.

As State treasurer, Gilpatric made the additional deposit which put the total of the State's funds in his bank $30,000 over the legal limit, soon after his return from the Republican national convention at Cleveland in June, which he attended as a guest.

Deputy State Treasurer Thomas H. Judd of New Britain promptly protested to Mr. Gilpatric that the additional deposit was illegal, as the State law permitted such deposits only to the extent of 30 per cent of the capital, undivided profits and surplus of the bank, which, in this case was approximately $90,000. Gilpatric gave an explanation for his action and Judd was overruled.

Deputy Treasurer Judd last night confirmed this information, but declined to comment. He went to Putnam the Sunday following Gilpatric's attempted suicide, and went over the situation there with directors of the involved bank with a view to protecting the State's interests. At that time the officials entertained hopes of saving the institution and rather than precipitate a run on the bank, Judd did not withdraw the State's deposit.

NEW BANK GETS CAPITAL.

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$30,000 Excess Deposited In Past Two Months

ASSISTANT PROTESTED

Gilpatric As Treasurer Overruled His Subordinate

Hartford, Aug. 18—Accounts of the state treasury which were taken over today by Captain Anson T. McCook, the new state treasurer, showed that the state deposit in the First National bank of Putnam was increased from $90,000 to $120,000 within the past two months. The amount of the state's deposit in the bank wrecked by the defalcation of G. Harold Gilpatric, its cashier, and former state treasurer previously had been set down as $100,000.

As state treasurer, Gilpatric made the additional deposit which put the total of the state's funds in his bank $30,000 over the legal limit, soon after his return from the Republican National convention at Cleveland in June, which he attended as a guest.

Assistant Protested.

Deputy State Treasurer Thomas H. Judd of New Britain promptly protested to Mr. Gilpatric that the addition deposit was illegal, as the state law permitted such deposits only to the extent of 30 per cent of the capital, undivided profits and surplus of the bank which, in this case was approximately $90,000.

Gilpatric gave an explanation for his action and Judd, being his subordinate, was overruled.

Deputy Treasurer Judd tonight confirmed this information but declined to comment. He went to Putnam the Sunday following Gilpatric's attempt at suicide, and went over the situation there with directors of the involved bank with a view to protecting the state's interests. At that time the officials entertained hopes of saving the institution and, rather than precipitate a run upon the bank Judd did not withdraw the state's deposit.

Feared Exposure.

The fact that Gilpatric transferred $30,000 from the state treasury to his own bank within the past two months, which covered the period during which the federal bank examiners made an unusual number of visits to the institution was taken to indicate that Gil-

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Examine Field For New Putnam Bank

Putnam, Aug. 25—The citizens' committee organized for the purpose of securing funds for a new bank to replace the First National bank, closed after its cashier, former State Treasurer G. Harold Gil-

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aminers that there was anything wrong with the accounts of the local bank and that the affairs of its casher warranted closest scrutiny. Those who are in a position to talk are saying nothing. Borrowings Arouse Suspicion However, it is learned from one with whom Mr. Gilpatric talked a lot and knew very well, that Mr. Gilpatrie's personal affairs as disclosed through his borrowings here and there and of his almost frantie attempts to raise money in Hartford and elsewhere on doubtful securities, were in all probability the chief things that ied to National Bank Examiner Caroiyan starting to check up on certain phases of the local bank's activities. It Mr. Gilpatrie was borrowing to a tremendous extent, in comparison with his salary and probable income from private fortune, this fact would naterally arouse suspicions and of course lead to a most thorough scrutiny of his own and the bank's business dealings. Defalcations Quite Recent One question which has occupied the attention of about everyone in this vicinity, since the closing of the bank, has had to do with gossip surrounding the probable time at which Mr. Gilpatrie began appropriating securities in the possession of the bank for his own uses to recover on probable losses or over extensions in personal investments upon which he could not realze at once. Neither the bank examiners nor Receiver Coffin will say a word on this or any other point, for that matter. However, it is talked on the street among those who believe they have accurate information. that Mr. Gilpatrie's "borrowings" from his bank did not cover the period of time that has been often stated in the press. That the defalcations began within two and a half years, is the information one receives by having his ears close to the and one sources at ground. sundry is that further the moving informed of the bank into temporary quarters on Union street and the period that the bank did business there, afforded an excellent opportunity for one to take securities, for instance, without arousing particular suspicion. The securities could have been "misplaced" in the moving and had not been found. This would be a feasible answer to questions that depositors are known to have made during that period. In fact. one such depositor is reported to have made the statement that he received just this sort of an answer from Mr. Gilpatrie when he inquired about some of his securities which he had left there for safe keeping. His alarm subsided some months later when he again came into possession of his valuables, as they had been "found." Stockholders Meet As a result of the call issued by six stockholders of the First National

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TOWN DEBT REDUCED Putnam Finished Fiscal Year With Surplus of $24,787 The report of David Flagg, treasurer for the town of Putnam, which is printed in the annual report of the town of Putnam, copies of which will be sent out within a few days, shows that the town finished the fiscal year with a balance of $24,787.67, of which more than $20,000 is locked up in the closed First National Bank. This surplus is applied to reduce the town debt of $223,500. The net indebtedness of the town at the close of the fiscal year is $98,717.32. The selectmen estimate that the expense of running the town the coming year will amount to $146,000. Of which half, $73,500, is to be spent on schools. Interest on the debt and contributions to outside poor are the next largest items, the proposed appropriation for each being $10,000. State and county taxes will amount to $17,000.

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The new Citizens' National Bank of Putnam will open its doors for business in the First National Bank building next Wednesday morning, Nov. 12, at 9 o'clock. Permission and direction for the new bank to begin to function at the earliest possible minute was received on Thursday from Henry M. Dawes, Comptroller of the Currency. Twelve hours later the Citizens' Committee had met and selected a board of directors and officers which represents all of the different elements that make up the business and professional life of this banking community, The names of the directors ought to command the confidence and respect of everyone in the territory which the bank will serve. They are: Joseph C. Hoppin, Asa M. Ross, Alex Gilman, Mahlon H. Geissler, Samuel Reynolds, Edward J. Keegan, Whitman Danielson, John W. Whipple, William P. Warren, 8. Nikoloff, A. Newton Vaughn, Edgar H. Corttis, Ethel M. Goodridge, Louis P. Faucher, Vietor Chapdelaine, Albert H. Williams, Earl C. Rogers, James A. Parker of Boston. Samuel Reynolds President The directors organized as follows: President, Samuel Reynolds. Vice presidents, A. Newton Vaughn, Alex Gilman, Judge Mahlon H. Geissler. Cashier, Whitman Danielson. These officers will serve until the first annual meeting which will be held in January, when a permanent directorate will be chosen by the stockholders. Mr. Danielson is one of the substantial citizens of this county, is a capable, clear-thinking business man, well qualified to act as temporary cashier. He consented to serve in this capacity until the directors have had time to consider the merits and select a permanent cashier of long and varied banking experience from among several applicants for this responsible position. In addition to the commercial department there will be a savings department, both of which will be ready to function Wednesday morning. The bank will also handle certificates of deposit as one of their forms of service to the public. In the alteration of the bank building over a year ago more than six hundred safe deposit boxes, of the most approved type were provided. They are protected against fire and burglary by impregnable vaults. These boxes are of various sizes and will be rented to the public at prices ranging from five to twenty-five dollars per year, Receiver to Remain Arrangements have been made with George M. Coffin, Receiver, and Comptroller Dawes, for Mr. Coffin to

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Putnam - Receiver of First National Bank shows assets of institution still uncollected totals $806.614.88; issues financial report.

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"With the bank's funds so augmented and further augmented from other similar sources," continues the complaint, "said Gilpatric as the cashier of said bank issued for said bank certain drafts on Boston banks which he used to purchase the bonds of Kidder, Peabody & Co. of Boston. These bonds were thereupon delivered to the Federal Reserve Bank of Boston, which exchanged them for suitable denominations and delivered them to the state of Connecticut on March 9, 1921. "The sum total of all claims asserted against the receiver of the First National Bank of Putnam on account of the misapplication of funds to issue said Boston drafts and purchase said Liberty bonds is not more than $63,951.35. The amount of $34,763.06 is the amount found by the probate court for the district of Putnam to be due to the plaintiff on account of said defalcation."

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little boy on a small bicycle and she was pinched. The magistrate released her and reproved the cop. New London - Rough weather halts salvaging operations on S-51. New Haven - Crown Prince of Sweden, Gustavus Adolphus, accepts invitation to visit Yale in June to receive honorary degree of doctor of laws. Norwalk - Merchants obtain injunction restraining city from enforcing new parking ordinance which prohibits parking in business sectiin. Hartford - Receiver for wrecked First National bank of Putnam informs governor that disposition of $230,000 in Liberty bonds in GIIpatric misappropriations has been ascertained, and that there is no claim against the state. Hartford - John A. Danaher,

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FIRST NATIONAL BANK IS HELD RESPONSIBLE bank, swelling its resources to that exInstitution Was In a Position to tent. Know What Cashier Was Defrauded Both Doing "We have then this situation before us: Gilpatric by his acts not only deCan't Disclaim Acts and Retain Benefrauded the bank, but also the plaintiff estate. The bank now seeks to fits Received disclaim the acts of its cashier, but desires to retain the benefit it received The First National Bank of Putnam from those very acts. The plaintiff is held by Judge Isaac Wolfe of the estate was in no position to stop Gilsuperior court to be responsible for patric's fraud against it. The defendthe conduct of its principal managing ant bank, on the contrary, was in a officer, G. Harold Gilpatrie, in using much better position to know that its the machinery of the bank to defraud managing officer was dishonest and the estate of Joseph W. Cutler. was using the machinery of the bank The decision, filed with the clerk of and of the power entrusted to him, to the superior court, denies the demurdefraud not only itself but its customrer of the defendant to the substituters. The bank, under the circumed complaint, in the case of the Hartstances, is chargeable with knowledge ford-Connecticut Trust Company, trusof the acts of its cashier." tee of the Cutler estate, against Geo. The plaintiff trustee claims damagM. Coffin, receiver of the Putnam es of $45,000 in the action against bank, and others. the receiver, to cover the loss of $34,Bank Had Knowledge 763.06 sustained by the estate by reasThe court holds that the plaintiff's son of the manipulations of Gilpatric. lose suffered through the misconduct