gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c47ba9989e2715d4
Response Measures
None
Receivership Details
Depositor recovery rate
92.6%
Date receivership started
1906-08-17
Date receivership terminated
1913-05-31
OCC cause of failure
Excessive lending
Share of assets assessed as good
30.2%
Share of assets assessed as doubtful
26.4%
Share of assets assessed as worthless
43.4%
Events (4)
1.October 14, 1864Chartered
Source
historical_nic
2.August 17, 1906Receivership
Source
historical_nic
3.August 17, 1906Receivership
Newspaper Excerpt
The comptroller of the currency has received advice ... that the First National bank of Chelsea, Mass., has been closed. Examiner Ewer has been appointed receiver.
Source
newspapers
4.August 17, 1906Suspension
Cause
Government Action
Cause Details
Closed by order of the comptroller of the currency; Bank Examiner Ewer ordered doors closed and placed in charge as receiver.
Newspaper Excerpt
The First National bank of Chelsea will not be open for business in the morning, orders having been issued by the comptroller of the currency to close the institution.
BANK GLOSES DOORS; ANOTHER TO RESCUE First National of Chelsea, Mass., in Receiver's Hands-50 Per Cent Tendered. Boston, Aug. 17.-The business community of Chelsea was surprised when it became known that First National bank of that city, one of the oldest financial institutions in this section of the state, had been closed and Bank Examiner Alfred Ever placed in charge. Many of the small tradesmen had practically all of their ready money tied up in the bank, but it is expected that relief will be afforded by the Winnisimet National bank of Chelsea which has offered to pay to depositors of the First National 50 per cent of their accounts. The remaining banks in Chelsea have but a few thousand dollars to their credit at the First National, and will not be directly affected by the difficulty. It is said that the difficulty at the bank was brought about by a steady transfer of large accounts to Boston banks and the Chelsea bank was thereby hampered for ready money. It has been learned also that the First National was heavily involved in real estate which tied up its money to the extent of about $500,000. The failure of the First National was responsible for small runs on the Chelsea Savings and Co-operative e Provident banks this morning. Stensland Not Found. Mobile, Ala., Aug. 17.-There is no truth in reports sent out from here that a man believed to be Paul O. Stensland the fugitive bank president of Chicago was seen in a house on the e outskirts of Mobile and that a posse C had surrounded the place. Another Bank Closed. Chicago, Aug. 17.-The Garfield r Park bank, a small institution located n at 2024 West Madison street, has been e placed in the hands of a receiver by e Judge Bethea. Three creditors with Is claims amounting to several thousand dollars, filed the petition in court, askiing that Ellis E. Drake, president of k the institution as well as the bank, be is declared insolvent. 1The collapse of the Milwaukee Avetnue tSate bank is said to have caused the doors of the smaller institution to be closed. Ever since the failure of the Milwaukee avenue bank the depositors k in the Garfield Park bank have been t withdrawing their deposits. aPresident Drake declared that he er was solvent and if given time to disd pose of certain securities he would be rable to pay all of the creditors in full.
2.August 17, 1906The Daily Morning Journal and CourierNew Haven, CT
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FIRST NATIONAL BANK OF CHELSEA CLOSED RUN ON THE INSTITUTION IS IXPECTED THIS MORNING. Bank Examiner Asks for Police Protection-The Bank One of the Oldest Institutions in the Town-Has Capital of $300,000 and Carries Deposits of Several Million Dollars-President Declines to Discuss the Failure. Boston, Aug. 16.-The First National bank of Chelsea will not be open for business in the morning, orders having been issued by the comptroller of the currency to close the institution. National Bank Examiner Alfred Ewer has been making an inspection of the bank recently, and to-night, at the request of the directors, he visited the institution and counted the cash on hand. The bank examiner stated that he had found no discrepancy between cash book and funds on hand, but that, from a superficial examination, he had decided to recommend to the authorities at Washington that the doors of the bank be closed to business to-morrow. He said that he had had no opportunity to make a thorough inspection of the books, but from what he had observed, and from statements of some of the officials, it was doubtful if the bank was ever reopened for business. Beyond this statement the bank examiner had nothing to say for publication to-night. At a late hour to-night Bank Examiner Ewer notified the officers at police headquarters in Chelsea that he required the services of a patrolman to guard the bank during the night and that in the morning he probably should need the assistance of several policemen at the institution, as it was possible that a run would be started by the depositors when they heard that the doors would not be opened. The police accordingly assigned a patrolman to stand at the bank doors during the night. Mr. Ewer arrived at the bank at 9 o'clock night and made a superficial examination of the cash books and some of the accounts. Several of the directors and employes assisted him in his work. The First National is one of the oldest institutions in Chelsea, having been incorporated as a national bank in 1864. It has a capital of $300,000 and carries deposits of several million dollars. The president is Sylvester B. Hinckley of the Chestnut Hill district of Newton, formerly a resident of Chelsea. The cashier is Walter Whittlesey. Neither of these men were at the bank to-night and when President Hinokley was called on the telephone at his home he declined to make any statement whatever regarding the situation. He admitted that he had heard of the action of Bank Examiner Ewer, but refused to discuss the matter.
3.August 17, 1906The Evening TimesGrand Forks, ND
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EXAMINER IN CHARGE. Oldest Bank of Chelsea. Mass., Forced To Close Its Doors. Associated Press to The Evening Times. Boston, Mass., Aug. 17.-The business community of Chelsea was surprised when it became known today that the First National bank of that city, one of the oldest financial institutions in this section of the state, had been closed and Bank Examiner Alfred Ever placed in charge. The withdrawal of large accounts and heavy investment in real estate caused the embarrassment. It is expected that all depositors will eventually get their money.
MASSACHUSETTS BANK CLOSED. Failure Due to Excessive Loans Made to Officers and Directors. Washington, Aug. 17.-The comptroller of the currency has received a telegram from National Bank Examiner Ewer that the First National Bank of Chelsea, Mass. has been closed. Examiner Ewer was appointed receiver. The failure is reported to be due largely to excessive loans made to officers and directors of the bank. The statement of resources and liabilities on June 18th, 1906, shows the loans and discounts to be $1,118,586; cash on hand, $57,379; capital stock, $300,000; deposits, $679,729. Strikes Tradesmen a Hard Blow. Boston, Mass., Aug. 17.-The business community of Chelsea was surprised when it became known that the First National Bank of that city, one of the oldest financial institutions in this section of the state, had been closed. Many small tradesmen had practically all their ready money in the bank; but it is expected that relief will be afforded by another national bank of Chelsea, which has offered to pay depositors of the First National fifty per cent of their accounts. It is said here that the difficulties of the bank were brought about by the steady transfer of large accounts to Boston banks. It is learned also that the First National was involved in real estate transactions to the extent of about $500,000.
5.August 17, 1906The Barre Daily TimesBarre, VT
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BOSTON BANK FAILS TODAY First National of Chelsea Is Closed by Comptroller A BIG CROWD GATHERED Bank Examiner Says He Does Not Think There Is Any Discrepancy in the Accounts of the Institution. This Boston, Aug. 17.-Crowds gathered in front of the doors of the First National Bank of Chelsea this morning but when it was found that the doors would not be opened the depositors and others quietly went away. No run occurred on any other bank in the city. Announcement had been made last night that the bank would not open for business this morning, the comptroller of the currency having given orders to close the institution. National Bank Examiner Ewer last night visited the institution and counted the cash on hand. He stated that he found no discrepancy between cash book and funds on hand but from what he had observed and from statements of some of the officials it was doubtful if the bank ever would be reopened for business.
6.August 17, 1906Rock Island ArgusRock Island, IL
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BORROWED FUNDS Chelsea, Mass., Bank Fails Be. cause of "Indiscretions" of Officials. CARRIED $680,000 DEPOSITS Garfield Park Bank at Chicago Drawn Under by Crash of Milwaukee Avenue, Washington, Aug. 17.-The controller of the currency has been advised that the First National bank of Chelsea, Mass., was closed by the action of the directors. The failure is reported by the examiner to be due to large and excessive loans to officers and directors of the bank. On June 18 the bank had deposits of $680,000. Another Bank Yields. Chicago, Aug. -The Garfield Park bank, a small institution, located at 2024 West Madison street, was placed in the hands of a receiver late yesterday afternoon by Judge Bethea of the United States district court. Three creditors, with claims amounting to several thousand dollars, filed a petition asking that Ellis E. Drake, president of the institution, as well as the bank, be declared insolvent. The assets of the bank are not given in the petition. The court appointed Henry
Due to Excessive Loans. Washington, Aug 17.-The comptroller of the currency has received advice by telegram from National Bank Examiner Ewer that the First National bank of Chelsea, Mass, has been closed by action of the directors. Examiner Ewer has been appointed receiver. The failure of this bank is reported by the examiner to be due to large excessive loans to officers and directors of the bank. The following is a statement of the resources and liabilities of the bank at the date of its last report of condition made to the comptroller of the currency June 16, 1906: Resources-Loans and discounts, $1,114,586; U. S. bonds to secure circulation, $50,000; premium on U. S. bonds, $2,250; banking house and other real estate, $60,778; due from banks, $22,356; cash and cash items, $57,379; redemption funds, $2,500; total, $1,309,849. Liabilities-Captital stock, $300,000; surpluse and profits, $139,344; circulating notes, $49,500; due to banks, $10,733; dividends unpaid, $543; deposits, $679,729; bills payable, $130,000; total, $1,309,849. During the morning throngs of depositors appeared at the bank and at 10 o'clock more than 500 people were assembled there. There was no disorder, however, the police authorities having taken precautions to send a dozen patrolmen to the scene to maintain order. Bank Examiner Ewer permitted holders of safe deposit vaults to enter the bank and examine their property, but all other persons were excluded. It is said that the difficulty at the bank was brought about by a steady transfer of large accounts to Boston banks and the Chelsea bank thereby was hampered for ready money. Examiner Ewer said to-day that he was unable to state how serious the failure was. Two years ago the bank had deposits of $800,000, with a surplus of $130,000. In addition to the withdrawal of large cash accounts it has been learned that the First National bank was heavily involved in real estate which tied up their money to the extent of about $500,000. The failure of the first National was responsible for small runs on the Chelsea Savings and Co-operative Provident banks this morning, but tne depositors at these institutions soon ceased with drawing their money when it was seen that there was a plentiful amount of cash on hand.
8.August 17, 1906The News-DemocratProvidence, RI
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500 DEPOSITORS GATHER AROUT SUSPENDED BANK Boston, Aug. 17.-At an early hour this morning Bank Examiner Ewer notified the police department that he would probably need the services of officers in front of the First National bank this forenoon, which was closed by order of the comptroller of the currency. During the morning throngs of depositors put in their appearance at the bank and at 10 o'clock more than 500 people were assembled there. There was no disorder, however, the police authorities having taken precautions to send a dozen patrolmen to the scene to maintain order. The employes of the bank reported for work at the usual hour today and Bank Examiner Ewer used them in assisting him to learn the condition of the embarassed institution. Mr. Ewer decided that holders of safe deposit vaults had a right to visit these vaults and examine their property there. but only persons who were able to prove conclusively that they rented such 'deposit boxes were admitted to the bank. It was learned during the morning that the closing of the bank will embarass hundreds of yersons' in addition to those who placed their savings in the institution. A number of business houses in the city kept sufficient cash on hand in the First National bank to make up their weekly pay-roll and it was apparent today that a number of shop and store employes might be compelled to wait until next week for their wages. It is said that the difficulty at the bank was a steady transfer of large accounts to Boston banks and the Chelsea bank was thereby hampered for ready money. Examiner Ewer said today that he was unable to state how serious the failure was. Two years ago the bank had deposits of $800,000 and a surplus of $130,000. In addition to the withdrawal of large cash accounts it has been learned that the First National bank was heavily involved in real estate which tied up their money to the extent of about $500,000. Thomas Martin of Wakefield, one of the directors of the bank, is responsible for an application for a government examination of the bank's affairs. Some time ago he began an investigation of the condition of the finances of the institution with which he is connected and as a re: sult of this investigation Bankt Examiner Ewer was summoned. During the morning there were small runs of the Chelsea Savings and the Co-operative Provident banks, but as soon as the depositors realized that there was a plentiful amount of cash on hand to meet their demands the run ceased. and no further trouble was anticipated by the bank officials. EXCESSIVE LOANS TO OFFICERS. Washington Aug. The comptrol1er of the currency has received advices by telegram from National Bank xaminer Ewer that the First National bank of Chelsea, Mass. has been closed by action of the directors. Examiner Ewer has been appointed receiver. The failure of this bank is reported by the examiner to be due to large excessive loans to officers and directors of the bank. The following is a statement of the resources and liabilities of the bank at the date of its last report of con*ditions made to the comptroller of the currency, June 18, 1906: RESOURCES: Loans and discounts, $1,114,586; United States bonds to secure circulation. $50,000; premium on United States bonds, $2250 banking house and other rail estate, $50,778; due from banks, $22,356; cash and cash items, $57,379; redemption fund. $2,500; total, $1,309,849. LIABILITIES: Capital stock $300,000; surplus and profits, $139,344 circulating notes, $49,500; due to banks. $10,733: dividends unpaid, $543; deposits, $670,729; bills payable $130,000; total $1,309,849.
9.August 18, 1906Daily Kennebec JournalAugusta, ME
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les up nan Million 01 Chelsea Bank's Funds. Hundreds Affected by Failure Old established Concern. Closing of Institution Comes as Surprise to the Business Community. Chelsea Mass., Aug. 17.-Following official information given by Bank Ewer to the of the Currency that the Examiner troller National the Comp- failure of the First National Bank of Chelsea, the doors of which were closed last night. was due to excessive loans made to officers and directors of the bank. it became understood today that the principal factor in the suspension of the bank was a large indebtedness on of its president, Sylvester B. This estimated at officially the Hinckley. part indebtedness from $300,000 is un- to but statements were \directors of today $500,000, by had the transferred bank issued that President Hinckley to the institution his equity in large real estate holdings, which, it was expectfor of all in full. ed, depositors would provide President the ill payment his Hinck- home ley is said to be fatally at in Newton. Developments today indicated that Mr. was real Hinckley estate transactions, involved from in extensive which he expected to realize splendid profit for the bank as well as for himself. Two failure of his plans in connection an his illness, as well as dissatisfaction on the part of at least one of the directors with some of the paper placed with the bank as collateral, accounts for the closing of the bank. The director most active in bringing affairs to a erisis was Thomas Martin. a former president of the bank. who in an interview today said that recently he discovered some evidence of unbusinesslike methods, and as a director started an investigation. which developed the fact that paper held by the bank was not what Mr. Martin considered strictly commercial. He said also that the signatures in some cases "needed explaning. Examiner Ewer, having been appointed temporary receiver by the comptroller, was in charge of the bank today. Boston, Aug. 17.-The business community of Chelsea was surprised when it became known that the First National Bank of that city, one of the oldest financial institutions in this section of the state had been closed and Bank Examiner Alfred Ewer placed in charge. Many of the small tradesmen have practically all of their ready money tied up in the bank but it is expected that relief will be afforded by the Winnisimmet National Bank of Chelsea, which has offered to pay to depositors of the First National 50 per cent. of their accounts. The remaining banks in Chelsea have but few thousand dollars to their credit at the First National and will not be directly affected by the difficulty. At an early hour this morning Bank Examiner Ewer notified the police department that he would probably need the services of officers in front of the First National Bank this afternoon. During the morning throngs of depositors put in their appearance at the bank and at 10 o'clock more than 500 were assembled there. The employes for at the and Bank Examiner of usual the hour bank today reported work Ewer used them in assisting him to learn the condition of the embarrassed institution. Mr. Ewer decided that holders of safety deposit vaults had a right to visit these vaults and examine but persons were able conclusively that their who property there, to prove only they had rented safe deposit boxes were admitted to the bank. It was learned during the morning of the bank will hundreds in tion barrass that the closing of persons addi- emto those who their savings of busin the sufficient in iness the houses institution. placed A city number kept on hand in the First National to make their payroll. cash Bank up weekly it was of and store employes a might number and be shop apparent today that compelled to wait until next week for their wages. (Continued on Page Two.)
10.August 18, 1906The Daily Morning Journal and CourierNew Haven, CT
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FAILURE OF CHELSEA BANK DUE TO EXCESSIVE LOANS TO OFFICERS AND DIRECTORS. President Hinekley Indebted to the Institution to the Extent of $300,000 to $500,000-To Make This Good He Transfers Equity in Real Estate to Cover It-Fatally III at His Home. Chelsea, Mass., Aug. 17.- Following the official information given by Bank Examiner Ewer to the comptroller of the currency at Washington, that the failure of the First National bank of Chelsea, the doors of which were closed last night, was due to excessive loans made to officers and directors of the bank, it became understood to-day that the principal factor in the suspension of the bank was a large indebtedness on the part of its president, Sylvester B. Hinckley. This indebtedness is unofficially estimated at from $300,000 to $500,000, but statements made to-day by directors of the bank indicate that President Hinckley had transferred to the institution his equity in large real estate holdings, which, it was expected, would provide for the payment in full of all depositors. President Hinckley is said to be fatally sick at his home in Newton. So sick, it is said, is he, that on Saturday last he was unable to place his signature to the papers transferring his property to the bank, and it was necessary for him to resort to making his mark upon the document. This proceeding was legalized by the witnessing signatures of his wife and son. It is said that Mr. Hinckley had not 'been able to be at the bank for four weeks. Developments to-day indicated that Mr. Hinckley was involved in extensive real estate transactions, from which he expected to realize splendid profits for the bank, as well as for himself. The failure of his plans in connection with his illness, as well as dissatisfaction on the part of at lease one of the directors with the nature of some of the papapers placed with the bank as collateral, accounts for the closing of the bank. The director most active in bringing affairs to a crisis was Thomas Martin, the former president of the bank, who, in an interview to-day, said that recently he discovered evidence of unbusiness like methods, and as a director started an investigation. This disclosed the fact that paper held by the bank was not what Mr. Martin considered strictly commercial. He said also that the signatures in some cases "needed explaining." Mr. Martin also said that sufficient property had been transferred by Mr. Hinckley to the !bank to insure the payment of depositors in full. Examiner Ewer, having been appointed temporary receiver by the comptroll= er, was in charge of the bank to-day, and with an augmented corps of clerks was busily engaged upon the accounts of the institution. Late to-day he was unable to intimate when he should be able to report further to his chief at Washington,
11.August 18, 1906Arizona RepublicanPhoenix, AZ
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BANK WRECKING IN MASSACHUSETTS / Chelsea President Was In Real Estate speculation. Chelsea, Mass., Aug. 17.-Following the information given by Bank Examiner Ewer to the comptroller at Washington that the failure of the First National bank of Chelsea, the doors of which were closed last night, was due to excessive loans made to officers and directors of the bank, it became known today that the principal factor in the suspension of the bank was a large indebtedness on the part of its president, Sylvester B. Hinckley. This indebtedness is unofficially estimated at from $300,000 to $500,000, but statements made today by directors of the bank indicate that President Hinckley has transferred to the institution his equity in large real estate holdings, which, it was expected, would provide for the payment in full of all depositors. President Hinckley is said to be fatally ill at his home in Newton. Developments today indicated that Mr. Hinckley was involved in extensive real estate transactions from which he expected to realize splendid profits for the bank as well as for himself. The failure of his plans in connection with his illness, as well as dissatisfaction on the part of at least one of the directors with the nature of some of the papers placed with the bank as collateral accounts for the closing of the bank. Examiner Ewer has been appointed temporary receiver by the comptroller. Director Martin, who was said to be responsible for the investigation which closed the bank. said today that he had discovered things which led him to make an investigation. As a result of it he obtained from President Hinckley the title for the bank in certain real estate held in the Back Bay and Brighton by Hinckley When pressed for a statement as to what in particular attracted his notice, Mr. Martin said that paper he did not consider genuine commercial paper was being handled. When asked if this paper was signed by fictitious names, Mr. Martin said: "There are some papers there that are very doubtful."
12.August 18, 1906The Montgomery AdvertiserMontgomery, AL
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CHELSEA PEOPLE SURPRISED. Bank Was One of Oldest Institutions in Massachusetts. Boston, Aug. 17.-The business community of Chelsea was surprised when it became known that the First National Bank of that city, one of the oldest financial institutions in this section of the State, had been closed. Many of the small tradesmen have practically all of their ready money tied up in the bank. It is said the difficulty with the bank was brought about by a steady transfer of large accounts to Boston banks and the Chelsea bank was thereby hampered for ready money. It has been learned also that the First National Bank was heavily involved In real estate which tied up their money to the extent of about $500,000. The failure of the First National was responsible for small runs on the Chelsea Savings and Co-operative Provident Banks this morning.
13.August 18, 1906Omaha Daily BeeOmaha, NE
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MASSACHUSETTS BANK FAILS Institution at Chelsea Lends Too Much Money to Officers and Directors. WASHINGTON, Aug. 17.-The comptroller of the currency has received advices by telegram from National Bank Examiner Ewer that the First National bank at Chelsea, Mass., has been closed by action of the directors. Examiner Ewer has been appointed receiver. The failure is said to be due to large excessive loans to officers and directors of the bank. A statement of the resources and llabilities of the bank at the date of its last report of condition was made to the comptroller June 18, 1906. This shows loans nd discounts to be $1,114,586; cash on hand, $57,379; capital stock, $300,000, and deposits, $679,729. CHELSEA. Mass., Aug. 17.-Following the official Information given by Bank Examiner Ewer to the comptroller at Washington, that the failure of the First National bank of Chelsea, the doors of which were closed last night, was due to excessive loans made to officers and directors of the bank, it became understood today that the principal factor in the suspension of the bank was a large indebtedness on the part of its president, Sylvester B. Hinckley. This indebtedness is unofficially estimated at from $300,000 to $500,000, but statements made today by directors of the bank indicate that President Hinckley has transferred to the Institution his equity in large real estate holdings, which, it was expected, would provide for the payment in full of all depositors. President Hinckley is said to be fatally ill at his home in Newton. Developments today indicated that Mr. Hinckley was involved in extensive real estate transactions from which he expected to realize splendid profits for the bank as well as for himself. The failure of his plans in connection with his illness, as well as dissatisfaction on the part of at least one of the directors with the nature of some of the papers placed with the bank as collateral, accounts for the closing of the bank. Examiner Ewer has been appointed temporary receiver by the comptroller. Director Martin, who is said to be responsible for the investigation which closed the bank, said today that he had discovered things which led him to make an investigation. As a result of It he obtained from President Hinckley the title for the bank in certain real estate held in the Back Bay and Brighton by Mr. Hinckley. When pressed for a statement as to what in particular attracted his notice, Mr. Martin said that paper, which he did not consider genuine commercial paper, was being handled. When asked if this paper was signed by fictitious names Mr. Martin said: "There are some papers there that are very doubtful."
14.August 18, 1906Daily Kennebec JournalAugusta, ME
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BY ACTION OF DIRECTORS Bank Is Closed and Examiner Ewer Appointed as Receiver. Washington, Aug. 17.-The comptroller of the currency has received advices by telegram from National Bank Examiner Ewer that the First National Bank of Chelsea, Mass., has been closed by action of the directors. Examiner Ewer has been appointed receiver. The failure of this bank is reported by the examiner to be due to large excessive loans to officers and directors of the bank. The following is a statement of the resources and liabilities of the bank at the date of its last report of condition made to the comptroller of the currency June 18. 1906: Resources: Loans and discounts, $1.114.536; United States bonds to secure circulation, $50,000; premium on United States bonds, $2250; banking house and other real estate. $60,778; due from banks, $22,356; cash and cash items, $57,379; redemption funds, $2500; total, $1,309,849. Liabilities: Capital stock, $300,000; surplus and profits, $139,344; circulating noties. $49,500; due to banks, $10,733; dividends unpaid, $543; deposits, $679.729; bills payable. $130,000; total, $1.309,849.
15.August 18, 1906The Cairo BulletinCairo, IL
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LIKE STENSLAND, HE BORROWED FROM BANK AND WHEN HIS REAL ESTATE PLANS FAILED THE CRASH CAME CAME. Chelsea, Mass., Aug. 17.-Following the official information given by Bank Eaxaminer Ewer to the currency comptroller at Washington that the failure of the First National Bank of Chelsea, which was closed last night, was due to excessive loans to officers and directors, it became understood today that the principal factor in the suspension was the large indebtedness by President Sylvester B. Hinckley, This is unofficially estimated at from $300,000 to $500,000. Directors say that President Hinckley has tarnsferred to the institution, equity in large real estate boldings, which are expected to provide payment to all depositors. Hinckley is said to be fatally ill at his home in Newton The failure of his plans. illness and dissatisfaction on the part of one of the directors with papers placed with the bank as collateral are accounts for the closing.
16.August 18, 1906The Times DispatchRichmond, VA
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CHELSEA BANK CLOSES DOORS President Owes Nearly $500,000 and Is Fatally Ill at Home. (By Associated Press.) CHELSEA, MASS., August 17.-Following the official information given by Bank Examiner Ewer to the Comptroller of the Currenoy at Washington, that the failure of the First National Bank of Chelsea, the doors of which were closed last night, was due to excessive loans made to officers and directors of the bank, It became understood to-day that the principal factor in the suspension of the bank was a large indebtedness on the part of its president, Sylvester B. Hinckley. This indebtedness is unofilcially estimated at from $300,000 to $500,000, but statements made to-day by directors of the bank indicate that President Hinckley had transferred to the institution his equity in large real estate holdings, which, it was expected, would provide for the payment in full of all depositors. President Hinckley is said to be fatally ill at his home in Newton. Developments to-day indicated that Mr. Hinckley was involved in extensive real estate transactions, from which he expected to realize splendid profits for the bank, as well as for himself. The failure of his plans, in connection with his illness, as well as dissatisfaction on the part of at least one of the directors with the nature of some of the papers placed with the bank as collateral, aocounts for the closing of the bank. Examiner Ewer having been appointed temporarily receiver by the comptroller, was in charge of the bank to-day, and with an augmented corps of clerks was busily engaged upon the accounts of the institution. Late to-day he was unable to Intimate when he should be able to report further to his chief at Washington. Director Martin, who is said to be responsible for the Unvestigation which closed the First National Bank of Chelsea, said to-day that he had discovered things which led him to make an Investigation. As a result of it he obtained from President Hinckley the title for the bank in certain real estate held in the Back Bay and Brighton sections by Mr. Hinckley. When pressed for a statement as to what in particular attracted his notice, Mr. Martin said that paper which he did not consider genuine commercial paper was being handled. When asked if this paper was signed by flotitious names, Mr. Martin said: "There are some papers there that are very doubtful." Mr. Martin says the bank has suffcient equity in the Hinckley property to pay all depositors in full.
17.August 18, 1906The Salt Lake HeraldSalt Lake City, UT
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PRESIDENT AT FAULT. Real Estate Speculations Which Did Not Prove Profitable. Chelsea, Mass., Aug. 17.-Following the information given by Bank Examiner Ewer to the comptroller at Washington, that the failure of the First National bank of Chelsea, the doors of which were closed last night, was due to excessive loans made to officers and directors of the bank, it became understood today that the principal factor in the suspension of the bank was a large indebtedness on the part of its president, Sylvester B. Hinckley. This indebtedness is unofficially estimated at from $300,000 to $500,000, but statements made today by directors of the bank indicate that President Hinckley has transferred to the institution his equity in large real estate holdings, which, it was expected, would provide for the payment in full of all depositors. President Hinckley is said to be fatally ill at his home in Newton. Developments today indicated that Mr. Hinckley was involved in extensive real estate transactions from which he expected to realize splendid profits for the bank as well as for himself. The failure of his plans in connection with his illness, as well as the dissatisfaction of at least one of the directors with some of the paper placed with the bank as collateral. accounts for the closing of the bank. Examiner Ewer has been appointed temporary receiver by the comptroller. Director Martin, who was said to be responsible for the investigation which closed the bank, said today that he had discovered things which led him to make an investigation. As a result of it he obtained from President Hinckley the title for the bank in certain real estate held in the Back Bay and Brighton by Mr. Hinckley. When pressed for a statement as to what in particular attracted his notice. Mr. Martin said that paper which he did not consider genuine commercial paper was being handled. When asked if this paper was signed by fictitious names, Mr. Martin said: "There are some papers there that are very doubtful."
18.August 21, 1906Daily Kennebec JournalAugusta, ME
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NU DEPALGATION. No Suspicion of Dishonesty in Chelsea Bank. Director Martin Believes That Depositors Will Get Money. Investigation of Bank's Affairs Will Take Several Weeks---Permanent Receiver. Chelsea, Mass., Aug. 20.-There were no developments today in the investigation which is being conducted at the First National Bank by Bank Examiner Ewer. The institution which was placed in the hands of it receiver by order of the comptroller of the currency last week. opened its doors at the usual hour this morning and \a large number of depositors availed themselves of the opportunity of having their bank books verified by Mr. Ewer, in order that they might realize 50 per cent. of their deposits at the Winnimisset Bank The action of the Winnmisset Bank in announcing its willingness to advance :0 per cent. of their deposits to the patrons et the First National Bank prevented a financial panic in this city last week. according to a statement made today by a prominent bank official. The bank has paid out more than $50,000 under this arrangement, rendering temporary aid to more than 200 people whose ready money would under ordinary circumstances be tied up at the First National Bank pending a thorough examination of its books by treasury officials. Bank Examiner Ewer and a force of e clerks worked throughout the day yesterday at the books of the First National Bank and he said before resuming his investigation, that the work could not be completed for several days. Thomas J. Martin, a director of the bank. and through whose efforts a receiver for the institution was appointed. made a statement today that the financial difficulties in which the bank had become involved were brought about through the explicit confidence which the directors and stockholders had placed in the transactions of President Hinckley. He said that there was not the slightest suspicion of defalcation or misappropriation of funds. He expressed an opinion that depositors would be paid dollar for dollar. Albert Apsey, who today was appointed receiver of the First National Bank by the acting comptroller of the currency at Washington. is a member of the law firm of Apsey & Smith, State street, Boston. His home is in North Cambridge,
19.August 21, 1906The Morris County ChronicleMorristown, NJ
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Chelsea, Mass.-The information given by Bank Examiner Ewer to the Comptroller of the Currency at Washington, in connection with the failure of the First National Bank, of Chelsea, was that the collapse was due to excessive loans made to officers and directors of the bank. It became known that the principal factor in the suspension of the bank was a large indebtedness on the part of its president, Sylvester B. Hinckley. This indebtedness is unofficially estimated at from $300,000 to $500,000, but statements made by directors of the bank *indicate that President Hinckley has transferred to the institution his equity in large real estate holdings, which, it is expected, will provide for the payment in full of all depositors. President Hinckley is said to be dangerously ill at his home in Newton. On Saturday last he was unable to place his signature to the papers transferring his property to the bank, and it was necessary for him to resort to making his mark upon the document. This proceeding was legalized by the witnessing signatures of his wife and son. It is said that Mr. Hinckley has not been able to be at the bank for four weeks. Developments indicated that Mr. Hinckley was involved in extensive real estate transactions, from which he expected to realize great profits. The director most active in bringing affairs to a crisis was Thomas Martin, a former president of the bank, who, in an interview said that recently he discovered evidence of unbusinesslike methods, and started an investigation. This disclosed the fact that papers held by the bank were not what Mr. Martin considered strictly commercial. He said that the signatures in some cases "needed explaining." Mr. Martin also stated that sufficient property had been transferred by Mr. Hinckley to the bank to insure the payment of depositors in full.
20.October 2, 1906The News-DemocratProvidence, RI
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# CHELSEA BANK STOCK HOLDERS
# ASSESSED 100 PER CENT.
Chelsea, Mass., Oct. 2. The stock-
holders of the First National bank of
Chelsea, which went into the hands of
a receiver some time ago, have been
assessed 100 per cent.
Notice of this assessment has just
been received by the stockholders. Oct.
25 is named as the time by which all
payments must be paid.
21.October 3, 1906The News-DemocratProvidence, RI
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CHELSEA BANK STOCK HOLDERS ASSESSED 100 PER CENT. Chelsea, Mass., Oct. 3.-The stockholders of the First National bank of Chelsea, which went into the hands of a receiver some time ago, have been assessed 100 per cent. Notice of this assessment has just been received by the stockholders. Oct. 25 is named as the time by which all payments must be paid.
22.October 8, 1906Evening Times-RepublicanMarshalltown, IA
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"According to the statistical figures on insanity," says Dr. Forbes Winslow of London, "It can be shown that before long there will be actually more lunatics in the world than sane people."
Frank Brewster has been appointed receiver of the Bay State Cordage Company of Newburyport, Mass., by Judge Lowell of the United States circuit court on a bill brought by Receiver Albert S. Apsey of the First National Bank of Chelsea.
23.November 29, 1906The Daily Morning Journal and CourierNew Haven, CT
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# FAILURE IN BOSTON.
President of Bay State Cordage Company a Voluntary Bankrupt.
Boston, No. 28.-Sylvester B. Hinckley, president of the Bay State Cordage company, filled a voluntary petition in bankruptcy to-day. The schedule gives the total liabilities as $322,255, of which $234,253 is unsecured. The net assets are given as $266,833. The First National bank of Chelsea is the largest unsecured creditor with a claim of $115,000. The bank, of which Mr. Hinckley's father was president, went into the hands of a receiver shortly before the latter died. The Bay State Cordage company is second with a claim amounting to $63,836.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
