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START RUN ON BANK; POLICE ARE CALLED (By Associated Press) Mass., July workers in the town of Millbury started run the Millbury Savings bank today following circulation of story that there shortage in the bank's funds. The entire police force of the town called out keep the deposiorder as they withdrew their funds.
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Mill Workers Start Run on Millbury Bank Worcester, Mass., July 16 (AP) Scores of mill workers in the town of Milibury started run on the Millbury Savings Bank today. Following the circulation of story that there was shortage bank's funds. The entire police force of the town was called out to keep the depositors in order as they withdrew their funds.
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BANK OPEN TODAY DESPITE SHORTAGE $150,000 Withdrawn in Millbury Case-Treasurer Fired Millbury, Mass., Juyl 1 7(AP) - The Millbury Savings Bank opened for business today despite a run yesterday during which 162 accounts were closed out and $150,000 was withdrawn. A shortage of $6.000 in the mortgage accounts was admitted by officials last night after a meeting attended by State Banking Commissioner Roy A. Hovey. They said they could not tell whether it was due to larceny or mismanagement. The office of Treasurer Ernest L. Smith, who refused to resign, was declared vacant and a committee was appointed to select a successor. The run assumed large proportions quickly. after rumors of the shortage became known, and state and local police aided in keeping the crowds in order. During the day large sums were brought from a Worcester bank.
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RUN FAILS TO CLOSE BANK Millbury, Mass., July 17-(P) The Millbury Savings Bank opened for business today despite a run yesterday during which 162 counts closed out and $150, 000 was withdrawn.
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MILLBURY BANK OPENS DESPITE $150,000 RUN MILLBURY Mass. The Milibury Savings bank opened for business today despite run yesterday during which 162 accounts were closed out and was shortage of $6000 in the mortgage admitted by officials last night meeting attended by Bank Roy Hovey They said they could not tell whether was due to larceny or ment run assumed proportions quickly of became state and local the order. During the day sums were brought Worcester RAID RUMORS DISCREDITED MILLBURY Mass. July 17 (U.P rumors holdup men planned to raid the homes of workers who had most from the Savings bank added to this today. About 700 accounts were withdrawn in yesterday's on the bank. but during the several persons returned with the deposits. State Bank Roy said there was no danger of the institu- TO VOTE ON MERGER NEW YORK July 7.-Meetings of stockholders of Pan American PetroleTransport company and Lago Oil & Transport corporation will be held Aug. 18 to vote on an agreement to merge Under the agreement holders of Oil will receive one-half share of Class common American for each share of Lago. About 97 per the are owned now by Pan American.
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Millbury, Officials of Millbury Savinga bank announce $155,000 withdrawn during run on bank yester. day; admit shortage of $6,000 in mortgage accounts.
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COPS CALLED OUT IN RUN ON BANK Worcester, Mass., July 16 (P).The entire police force of the town of Millbury was called out to handle the crowds today when depositors of the Millbury Savings bank started a run on the institution. Although state officials expressed belief the bank was sound, the heavy withdrawals caused transfer of $400,000 from the Worcester County National bank to meet demands of depositors.
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RUN ON MILLBURY SAVINGS BANK ENDS Depositors Withdraw About $400,000Evans in Charge Until New Treasurer Is MILLBURY Mass. 18 the Millbury Savings bank today reported Twenty hand when opened inTwo troopers from Grafton racks McCarthy relieved further at Bank said the bank contemplated no anyresult the Clarence Evans, of the Worcester County charge the affairs the bank remain present sitinstalled. Mr. said that been withdrawn depositors. asserted. out the first day mail great as bank officials ticipated.
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BANK MUST GIVE 90 DAYS NOTICE TO MILLBURY INSTITUTIONS Mass. July Roy from his office today said there may be shortage between $5,000 $6,000 the Savings scene run yesterday which resulted the calling police The run the bank threatened continue today the bank availed itself of that provision requiring 90-day notice this action approved by long line depositors waited opening of the bank this mornbut depositor only $100 the balance accounts will be paid within parties want Money to meet the rush with. drawals rushed from Worcester yesterday
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Millbury Savings Bank Opens Despite Heavy Run Millbury, Mass. July 17-(AP) The Millbury Savings bank opened for business today despite a run yesterday during which 162 accounts were closed out and $150,000 was withdrawn. A shortage of $6,000 in the mortgage accounts was admitted by of ficials last night after meeting attended by state bank commissioner Roy A. Hovey. They said they could not tell whether it was due to larceny of The office of treasurer Ernest L. Smith, who refused to resign, was declared vacant and a committee was appointed to select successor. The run assumed large proportions quickly, after rumors of the shortage became known. and state and local police aided in keeping the crowds in order. During the day large sums were brought from Worcester bank.
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BUSINESS IS NORMAL AFTER RUN ON BANK By Associated Press. MILLBURY MASS., July 18.-Business was normal at Millbury Savings Bank today. following run which started Tuesday afternoon. Several persons deposited money this The run due to of small shortage bank funds. About $400,000 was Bank officials said they did not feel they had sufficient grounds for criminal action in connection with the shortage.
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Milbury Bank Officer Arrested in Shortage Worcester, Mass. Aug. 1 (UP) Ernest L Smith, deposed treasurer of the Millbury Savings bank. has been arrested here on charges of misappropriation of the institution's funds. After citizens of Millbury learned last July 15 of Smith's removal, they started a two-day run on the bank and withdrew more than $200,000. Later most of the money was re-deposited and the bank's business at present is normal. Ira N. Jencks. state bank examiner. estimated the shortage at the Millbury Savings bank as about $6000.
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TREASURER OF BANK TAKEN IN WORCESTER Ernest Smith of Millbury Arrested After Probe Misappropriation of Funds Charged; Action Follows Detailed Survey Special Dispatch Globe WORCESTER, July 31-Ernest L. Smith. deposed treasurer of the Millbury Savings Bank, was arrested this afternoon on charges of misappropriation of the bank's funds. He was booked at Police Headquarters by State Detective Edward J. McCarthy of Worcester, after conference with Smith, Detective McCarthy and Smith's counsel, attorney Harold H. Hartwell, this afternoon, and balled immediately. The arrest climaxed weeks of work on the part of State and privately engaged auditors to untangle the bank's affairs. When the news of Smith's having been deposed from the bank reached the townspeople on July 15, twoday run started on the bank, which resulted in withdrawa! of more than $200,000. Ira Jencks, a State bank examinplaced the bank's shortag about $6000 on July the usion of business on that date. The shortage had been placed at about $1000 by Continued on the Tenth Page
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EX-BANKER ARRESTED Shortage in Accounts Placed at $6,000 by Examiner. Worcester, Mass., Aug. 1.-Ernest L. Smith, deposed treasurer of the Millbury Savings Bank, has been arrested here on charges of misappropriation of the institution's funds. After citizens of Millbury learned last July 15 of Smith's removal, they started two-day run on the bank and withdrew more than $200,000. Later of the was redeposited and the bank's business at present is normal. Ira N. Jencks, State Bank ExamIner. estimated the shortage the Millbury Savings Bank as about $6,000.
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FATE OF BANK HANGS UPON 576 DEPOSITORS Special Dispatch to the Globe Sept the good will of 576 depositors, who have signified their intention of all their funds, rests the fate of the Millbury Savings Bank which underwent a severe crisis recently during "run" that followed discovery $63,000 If these depositors will revoke their decision to withdraw their money the bank will saved, Jay Clarke counsel for the bank. tonight told 1000 persons from Millbury, Springfield and Boston who attended mass held in the Town Hall. If they persist in their purpose of withdrawing their deposits, Mr Clarke declared, the bank will probably be unable to stand the strain and will be turned over State Bank Commissioner Roy Hovey order that assets may be liquidated to meet the demands of all depositors. Says Depositors Hold Key Mr Clarke was the principal speaker at the His appeal in the interests of bank the other speakers, John W. chief accountant of the auditing firm which over the books; Leander president of the Mechanics Bank Dennis president of the Bancroft Trust Company of Thomas Sullivan, president the Bay State Bank Worcester, and W. Windle, new president of the Millbury Bank. deposits of the 576 in persons Mr Clarke explained, total $1,010,000. He said that order assure the complete safety of the bank will be necessary 80 percent number the Clarke before tion He estate the bank by changes in taken care of surplus. The shortage he stands covered Says Institution Is Sound The Mr his sound mands time would tion all hardship persons ous He the forced to the liquidate its and the the expressed the mit to sound special tices will be the positors notices, to and the express the of depositors to their money in the the of meeting the 1000 persons in the officers of the institution.
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BANK CLOSED AT MILLBURY Said to Be Solvent After Assets Are Liquidated MILLBURY, Mass, Oct 14 (A. Rahostey took Bank today of Millbury Savings Bank, the doors of which are to be closed until the affairs of the institution have been straightened. It is said to be solvent, if time is given to handle the assets. The owners of the 5,500,000 deposits which will still remain, will, it is believed, according to the bank authorities, get dollar for dollar. The bank is at present earning* its dividends, to Jay Clark who issued this on behalf of the depositors to a total of nearly $500,000 who days tomorrow notice of withdrawal will not get their gave money any sooner that other also representing $500,000 of group who days' tice and withdrew it. All depositors will share alike. Before the run on the bank which followed the discovery of irregularities the of Ernest Smith, then part treasurer in State Prison for his crimes, deposits totaled Almost immediatel upward of $50,000 withdrawn in run which started with the very quickly to the positors and holders of larger To protect depositors whole the trustees took advantage of the statute which compels 90 days' $100. withdrawals These notices will begin to expire to. morrow.
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MILLBURY SAVINGS BANK IS DECLARED SOLVENT State Commissioner Hovey Takes Charge No Losses Are Expected Millbury, Oct. 14- (AP) -Bank Commissioner R. A. Hovey took possession today of Millbury Savings bank, the doors of which are to be closed until the affairs of the institution have been straighter-ed It is said there is no intention of liquidating. The bank is said to be solvent if time is given to handle the assets. The owners of the $5,500,000 deposits which will still remain, will, it is believed, according to the bank get dollar for dollar. The bank at earning its dividends according to Atty Jay Clark, Jr., who issued this statement on behalf of the trustees. But depositors to total of nearly $500,000 who 90 days ago tomorrow gave notice of withdrawal, will not get their money any sooner than that other group also representing $500,000 of deposits who also gave the 90 days notice and withdrew it. All depositors share alike. Before the run on the bank which followed the discovery of irregularitles on the part of Ernest L. Smith, then treasurer, now in state prison for his crimes, deposits totalled upward of $6,000,000. Almost immediately upward of $50.000 was withdrawn in a run which started with the small depositors and quickly extended to the holders of larger amounts. To depositors as a whole the trustees took advantage of the statute which compels 90 days notice of withdrawals of sums in excess of $100. These notices will begin to expire tomorrow.
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STATE TAKES OVER BANK AT MILLBURY Pres Wendle Plans to Pay Folk Out of Own Fund MILLBURY, Oct 14-It was nounced today that the Millbury Savings Bank, which is regarded as solvent, will be taken by Bank Commissioner Roy A. Hovey and state agent will be placed in charge temporarily. The bank will still continue to action was taken early tonight after the had been in session the day. During the meetthe resignation of Richard D. Lee, formerly ing of the Malden Savings Bank, accepted. reason given. He was treasurer only two ago. William W. Wendle, president of the institution, today that he will pay $35,000 Christmas Club will posits from his own funds. He make the payments, when they come due, shortly before the holiday The doors of the bank will remain open despite all the difficulties the institution has The money of the be fully tected and, that they will receive dollar for dollar. The tire trouble followed the discovery irregularities on the of Ernest Smith, then treasurer, now in State Prison, when run on the bank was started by the small depositors.
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FEW ASK FOR LOANS AT MILLBURY BANK New Treasurer Takes Over Duties at Reopening Special Dispatch to Globe MILLBURY, Oct 27-The Millbury Savings Bank, which suspended business on July 17, following the declaration of a 90-day moratorium against withdra resulting from run started when it was discovered that the treasurer, Earnest L. Smith, was short in his accounts, was opened for business this afternoon under the nanagement of a new treasurer, John H. Maxwell of West Somerville. The depositors are still unable to withdraw their accounts, but are permitted to borrow up to 75 percent of their deposits. About dozen depositors were when the bank doors and borrowe funds, most of them to pay taxes and other such bills. There was nothing like the number expected to make loans. Mr Maxwell, the who was elected last Saturday, was many bouquets by friends he has made town since he came here last July to conduct the investigation, which revealed Smith's shortage.
MILLIONS PLEDGED Continued from Page One notice posted at the bank's en caused by public the assets the due course depositors the Boston bank have asked the rency take of the institution. Williams, chief bank examiner temporary charge closed aided Her receiver the Federal bank, was present the bank Pearson that as far could learned National affiliated closed He said that he staff that Schramm Jersey, mem Trust was the tution today The Clearing House banks sent Credit corporation. the branch of the national group. sent of sent $300,000 on deposit in the National it the State House. 90 Day Notices Posted posted today the banks in Lowell the savings department of the Trust company and the Millbury Savings bank, at the bank commisThe National bank of five city According the bank commissioner's the July last, amounted to The paid capital December, 1930, the Boston National
HAMDEN (CT.) BANK ALSO CLOSES DOORS 90-Day Clause Invoked in State ton Bank Stockholder Promises Pay in Full Boston, Dec. banks New England closed their doors day as the result of heavy withdraw- The institutions which either did not open for business which closed late the the nental National Boston: the Hamden Bank and Trust company of Hamden, Ct., the Arlington Trust company and the Plymouth County Trust company of Brockton. The financial status the banks at time official statements tinental, capital stock $1,000,000, surplus, ArlingTrust, deposits County, deposits of $3,816,Another Boston bank, the Grove Hall that bank open again meet The after all-day run the advice Bank Arthur Guy. Invoke Clause The banks Lowell the saving department the Trust company Boston the Millbury Savings bank 90-day banks require notice of intent funds. The officials dinarily heavy caused by general order the assets the bank, orderly pay full. the the Bostonbank the troller currency to take possesthe president the bank, Terrell and youngest in would the ordinary on dollar would be paid depositors. We
FOUR BANKS CLOSE IN MASSACHUSETTS AND CONNECTICUT Lawrence and Boston, Brockton Institutions Affected by Runs HAMDEN (CT.) BANK ALSO CLOSES DOORS Clause Invoked in State Bank Stockholder ton Promises Pay in Full Boston. Dec. banks in New England closed their doors tothe result of heavy withdrawday als. The institutions which either did not open for business which closed the day the nental National bank of Boston: the Hamden Bank and Trust of Hamden, company and County Trust financial status the banks at The the time their last official statements capital tinental, stock surplus, assets ArlingTrust deposits County, deposits of $3,816,Boston the Grove Another Hall Savings closed the bank would again meet action was taken after all-day and upon Arthur Guy. Bank Invoke Clause bank at Lowell The the department Trust company Boston the Millbury Savings bank the Millbury banks 90-day clause notice of intent require funds. The officials withdrawals caused dinarily heavy uneasiness and order general public conserve the assets of the bank. which. in course orderly liquidation, should pay all full, the Bostonbank the troller currency to take possesthe The president the bank, Terrell M. Ragan, 37 years old and reported the youngest president in said, would expected that through the ordinary cents on dollar would be paid depositors. We (Continued on Second Page)