7117. Hingham National Bank (Hingham, MA)

View Charter #1119 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
1119
Charter Number
1119
Start Date
September 29, 1873
Location
Hingham, Massachusetts (42.242, -70.890)

Metadata

Model
gpt-5-mini
Short Digest
23bf7316b54cfc1e

Response Measures

None

Description

Multiple contemporary papers report a discovered defalcation by Cashier J. C. (or J. O.) Lovett of about $40–41,000; the national bank examiner closed/suspended the bank on Sept. 29, 1873. There is no description of depositor runs. A later dispatch (Oct 1) reports stockholders voted to reduce capital and continue business, indicating the bank was able to reorganize and continue — classified here as suspension with reopening. OCR variants of the cashier's initials (J.C./J.O.) appear in sources; I record the facts as reported.

Events (5)
1. May 6, 1865 Chartered
Source
historical_nic
2. September 29, 1873 Suspension
Cause
Government Action
Cause Details
Closed by the national bank examiner after discovery of a $40,000–$41,000 defalcation by cashier Lovett; suspension ordered by examiners.
Newspaper Excerpt
The national bank examiner has discovered a defalcation in the Hingham National Bank of $40,000, and has closed that institution.
Source
newspapers
3. September 30, 1873 Other
Newspaper Excerpt
The defalcation of $41,000 has been discovered ... The bank suspends payment. The Board of Directors at once appointed a committee ... the suspension of the bank followed.
Source
newspapers
4. October 1, 1873 Reopening
Newspaper Excerpt
The stockholders have voted to reduce the capital of the bank from $200,000 to $40,000, and continue business.
Source
newspapers
5. May 31, 1916 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (8)
1. September 30, 1873 Wilmington Daily Commercial Wilmington, DE
Article from Wilmington Daily Commercial, September 30, 1873

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Article Text

Lates! General News. There was a continued improvement in the financial condition yesterday, througout the country. The suspension of two large meroantile firms was announced-onein Phildelphia the other in New York-but their embarraasment was regarded as temporary. The New York Stock Exchange re-opens to-day. It is said that the forthcoming public debt statement will show an increase for September The custom receipts have fallen off more than 50 per cent, since the beginning of the panic. At Lewistown, Me., Sunday was the hotest automn day for several years, the thermometer marking 85 to 90 in the shade. It is stated that the University of Virginia has made arrangements for credits to all students temporarily embarrassed by the money stringency in the cities. Nearly 2000 immigrants arrived in New York yesterday. The Newark Industrial Exposition was opened last evening. The building covers over an acre of ground. The Grant Locomotive and the Danforth Works, of Paterson, N. J., have discharged 275 men. owing to the difficulty of getting ready money. The Athletics defeated the Philadelphians. yesterday, in Philadelphia, by a score of 6 to 7. Colonal McKenzie, the Kickapoo er has arrived in St. Louis. He says that only a portion of the Kickapoos have returned to their old reservation in Kausas. The rest of the band have gone farther into Mexico. and will probably cause more tronble on the border. Five new cases of yellow fever and one death were reported in Montgomery. Ala ; yesterday. Michael Hoban quarrelled with his brother Joseph, in New York, last evening. and shot him in the breast, inflicting a fatal wound. The Hingham National Bank, Hingham Mass. has failed in consequence of the defalcation of its cashier, Lovett. The amount stolen is stated at $41.000. At Washington, yesterday, Michael Kane was convicted of manelaughter in killing his own brother.

2. September 30, 1873 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 30, 1873

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NEWS OF THE DAY show the veryage and body of the Times.' The yellow fever continues to rage among the remnant of the inhabitants of Shreveport. The undertakers have SO much business on hand that they can no longer perform their work with due solemnity. The slowly moving faueral procession has disappeared from the streets, but hearses go dashing out to the cemeteries. An investigation has disclosed the fact that the disease was brought from Cuba. An appeal for aid is published which will touch the hearts of benevolent people everywhere, and induce a generous response. The national bank examiner has discovered a defalcation in the Hingham, Mass., National Bank of $40,000, and has closed that institution. The failure of this bank is in no wisé connected with the panic. It is solely from the defalcation of Mr. Lovett, the cashier, who has appropriated more than $40,000 of the bank's money for speculative purposes. Under ordinary circumstances the bank could get redis counts and proceed with their business, but at this time that is an impossibility. Mr. Kellogg, the acting Governor of Louisiana, arrived in Washington yesterday from New York. He was unsuccessful in his efforts to negotiate the State bonds issued by his government. He called on the President for the purpose of giving him his version of affairs in Louisiana. Mr. Casey, the collector of the port of New Orleans, and the fast ally of Kellogg, is also in Washington, and with his family is stopping at the White House. John Hall, a miller, residing near Trenton, N. J., came into that city yesterday with a wagon and pair of horses. As he was crossing the railroad track near the Fair grounds the wagon was struck by an approaching train, and himself and two horses killed. A woman with him in the wagon escaped unhurt. Hall was intoxicated. An instance occurred on Sunday, in which the pulpit upheld the banks of Reading, Pa. A dispatch from that city says: Father Boreman, at St. Paul's church, announced that if his hearers had money in the banks, and doubted its safety, he would guarantee the payment," which was plucky for a priest in these scary times. In the Frederick, Md., Circuit Court, yesterday, after eight days continuance, the jury in the case of Jeanette Woodward VS. the Balti more and Ohio Railroad Company for $10,000 damages for the killing of her husband, Chas. Woodward, a freight conductor, September 24, 1869, rendered a verdict for plaintiff, and assessed damages at $8,000. The sewing machine interests are greatly exercised over an alleged discovery among the English patents. It is said that a patent has been found dated July 17, 1790, granted by the British Government to Thos. Paint, numbered 1,764, for a sewing machine having all the essential features of the American. The Dominion Government have forwarded a watch and $500 to Rev. Mr. Ancient, in acknowledgement of his gallant conduct towards the passengers and crew of the ill-fated steamship Atlantic. While a party of young men were serenading a newly married couple in Brownsville, Maine, on Saturday night, the bridegroom, named Merrill, fired on them, mortally wounding one named Kendall. In Cuba recently a railway train while wooding between San Jose and Juanita, was attacked by insurgents, and one officer and two passengers injured. Barnum's rhinosceros died at Philadelphia yesterday. The late Dr. Nelaton, of Paris, left property valued at seven millions of francs. The Galignani says Pere Hyacinthe has abandoned the clerical garb.

3. September 30, 1873 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, September 30, 1873

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MASSACHUSETTS. ANOTHER DEFALCATION. In This Time. Massachusetts BOSTON, Sept. 29.-The National Rank Examiner has discovered a defalcation in the Hingbam National Bank of $40,000, and has closed that institution. The failure of this bank is in no wise connected with the panic. It is solely from the defalcation of Mr. Lovett, the cashier, who has appropriated more than $40,000 of the bank's money for speculative purposes. Under ordinary circumstances the bank could get rediscount and proceed with their business, but at this time that is an impossibility. Bank Examiner Needham, at the request of the directors of Hingbam National Bank makes the following statement: The loss by the defalcation of J.C. Lovett, cashier, will amount to about $41.000. To meet the liabilities of bill holders and depositors the bank has deposited at Washington $140,000 and holds notes and other securities to the amount of $238,000, a large per centage of which will ultimately be realized on. The deposits and circulations amount to $211,500. There can be no question but that all the creditors of the bank will be paid and a large per centage of the original investments returned to stockholders. DANIEL NEEDHAM, (Signed,) National Bank Examiner. Lovett is about 65 years old, and has been cashier ever since the bank was established. Fatal Accident. W. H. Downes, freight conductor on the Boston & Albany Railroad, was killed and terribly mangled Saturday night near South Framingham, by falling from the train. Fire. This afternoon fire was discovered in the lumber drying house at Holt & Baylees on East Cambridge. Amount of lumber injured by fire, water, steam and smoke will reach over 50,000 feet. Loss nearly $5000; covered by insurance. Turning the Tables. WORCESTER, Sept. 29.-Eliza Hill shot and wounded her husband, Eurich Hill, on the road between this city and Leicester last evening. The bullet entered his back but the wound is not serious Jealousy prompted the act. She was arraigned in the Central District Court this morning, and pleading not guilty was held in $10,000 bail for examination on the 7th prox. The injured man has recovered from the shock but as the ball cannot be found may yet die.

4. September 30, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 30, 1873

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New-York Daily Tribune. FOUNDED BY HORACE GREELEY. TUESDAY, SEPTEMBER 30, 1873. The Intransigente insurrection in Spain 18 expected to end soon; the Carlists are greatly demoralized in the North. An American vessel was seized by the English for selling arms to the Ashantees. Mr. Andrey Lask was elected Lord Mayor of London. President Grant is anxious about the effect of the pavic on the manufacturing interests of the country, and it is intimated that, if it becomes necessary, some use may be made of the greenback reserve to aid them. Benjamin Bullock's Sons, Philadelphia, wool dealers, and Ford & Fuller, Albany brokers, suspended. A defalcation of $41,000 has been discovered in the Hingham National Bank, near Boston, Cashier Lovett being The Howard Association makes an the culprit. earnest appeal for aid for the Shreveport sufferers. H. H. Walker and his son Henry were murdered by Indians at Little Salt Creek, Texas, Sept. 13. Another Erie War is probable between Jay Gould and Bischoffscheim. The Stock Exchange is to be reopened to-day. The drain of currency from the city 18 diminishing. The suspended bankers decline to make public statements. Strong efforts are making to enable the New-Brudswick Bank to resume. The Glenhatu Manufacturing Company has failed. The holder of Brooklyn's redemption fund turned over his balance to the city under the alleged pressure of an investigation. The Controller asked the Common Counoil for leave to bring suit against Hugh McLaughlin to recover interest on public money retained by him. The Mayor asked for power to send for persons and papers in the investigation of accounts. The District-Attorney ordered an exacter administration of Raymond-st. Jail. A question of veracity came up in the matter of Alderman Ropes's alleged desire to retain a forger in office. The Controller offered a resolution in the Committee of 100 indorsing the nomination of Alderman Ropes for Mayor. Preparations for Thursday's assembling of the Evangelical Alliance are being pushed. The NewA drunken ark Industrial Exhibition was opened. man shot his brother, inflicting a probably fatal wound. - A match race between the yachts Wm. T. Lee and A secret session Brooklyn was won by the Lee. Gold, 1131, 112g, of the Kelsey inquest was held. 112g. Thermometer, 71°, 781°, 68°.

5. September 30, 1873 Wilmington Daily Gazette Wilmington, DE
Article from Wilmington Daily Gazette, September 30, 1873

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Another Defalcation-Ruin of One More Bank, BOSTON, September 29. - The national bank examiner has discovered a defalcation in the Hingham National Bank of $40,000, and has closed that institution. The failuae of this bank is in no wise connected with the panic. It is solely from the defalcation of Mr. Lovett, the cashier, who has appropriated more than $40,000 of the bank's money for speculative purposes. Under ordinary circumstances the bank could get re-discounts and proceed with their businesss, but at this time that is an impossibility.

6. September 30, 1873 The New York Herald New York, NY
Article from The New York Herald, September 30, 1873

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Article Text

ANOTHER BANK DEFALCATION. Cashier Lovett, of the Hingham Bank, Boston, in Trouble. Forty-one Thousand Dollars Gambled Away in Stock Speculations. The Bank Closed by the Government Examiners. BOSTON, Sept. 29, 1873. Another financial "irregularity" has been unearthed to-day, the transgressor this time being J. O. Lovett, cashter of the Hingham National Bank, and the amount of his defalcation is stated to be about $40,000. It is the same old story of speculation, and the defaulter, as usual, is a venerable man, and has always enjoyed the confidence of the community. The discovery of the delalcation was first made by Colonel Needham, the Bank Examiner, who called the directors together this lorenoon and startled them with the following little letter:GENTLEMEN-I find the cashier of your bank a defaulter to the amount of $40.000. The notes held by the bank, amounting to more than $200,000, are mostly good and all the creditors, of the bank are secure. A large percentage of the original investment will, undoubtedly, be returned to the stockholders. Colonel Needham. in a conversation with the HERALD reporter. said he had not been satisfied for a long time with th management of the affairs of the bank. Two ve S ago he made an examination and found the e aany securities which he did not approve a. d which he urged the cashier to get rid of in some way. At that time, in a private conversation with the President of the bank, Mr. Crocker Wilder, he asked him if he considered the cashier an honest man, and Mr. Wilder replied that he did he had no reason to doubt him. Mr. Neednam then said to the cashier, "It seems to me you are inclined to speculations," and put the question to him point blank, "Do YOU EVER SPECULATE?" and he replied, "No, sir." Last Thursday Mr. Needham made his regular annual visit to the bank, and an examination of affairs revealed the whole thing and confirmed the suspicions which he previously had. He discovered that the account of Mr. Lovett was not correct, and in making up his statement-he had got too much cash credited, which the balance did not prove. He claimed a balance against the Suffolk National Bank of this city in lavor of his own bank of $395,542 86. Mr. Needham sent his clerk to the Suffolk Bank and found that instead 01 a balance in favor of the Hingham Bank the accounts of the Suffolk Bank 'snowed the former owed them $207,363. When this fact was shown Mr. Lovett, he admitted the whole thing, and said that the money had been used in speculation. The capital of the bank is $200,000. THE ASSETS. There are as assets, in notes and bills discounted, $211,441 93-all but about $6,000 of which will eventually prove good. There are bonds of the Boston, Hartlord and Erie Railroad and other stocks, which amount to $17,000. The bank has in bonds deposited in Washington, $140,000. The entire circulation is $126,000, and the deposits amount to $85,542, so that there is money enough to pay all depositors and all the circulation and a very large percentage of the stock. THE DEFALCATION amounted to $41,000, and was finally discovered last Saturday. On that day Colonel Needham, after having visited the Suffolk National Bank and satisfied himself that Lovett had overdrawn his account to the extent of upward of $2,000, and that he was a defaulter to a large amount, telegraphed Lovett to meet him at the Suffolk Bank at half-past two o'clock the same afternoon. Not making his appearance, Lovett was informed by Colonel Needham that he would meet him at Kingham Bank this morning upon the arrival of the first train. He did so, and upon entering the bank found the Board of Directors assembled at their usual meeting for making their semi-annual dividend. Colonel Needham made known his discovery or the defalcation, which Lovett at once and unhesitatingly confessed. Being asked how much he had used, he replied $35,000. : Colonel Needham told him he was a defaulter to the amount of $41,000. After some hesitation he acknowledged that to be the sum. THE BANK SUSPENDS PAYMENT. : The Board of Directors at once appointed a com-. mittee to wait upon the officers of the Suffolk r National Bank and see what could be done under I the circumstances. The statements of Colonel h h Needham were confirmed and the suspension of the bank followed. Lovett's suree ties amount to $20,000; his bondsmen are perfectly good, and depositors will lose nothing by his speculations. Mr. Lovett has been cashier from the formation of the bank, and has enjoyed the confidence or a majority of the residents. It has been known for years that he was a speculator in stocks. He was with many an oracle upon stocks, and his recommendation was received as authority, and investments were made by others in accordance with his views. Some have thought that the management of the bank was too largely under the control of Mr. Lovett, a practice common to many country banks, and one which cannot be too strongly deprecated. The lact that Mr. Lovett had the reputation of "running the bank" has been commented upon; but as he had reached the age of some sixty-live years, and had always sustained himself, the President and directors were tree from any suspicion of dishonesty.

7. October 2, 1873 The Republican Journal Belfast, ME
Article from The Republican Journal, October 2, 1873

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Another Bank Defalcation. BOSTON, Sept. 29. The National bank examiner has discovered defalcation in the Hingham National Bank of $40,000 and has closed the institution. The failure of this bank is no wise connected with the panic. It is solely from the defalcation of Mr. Lovett, the cashier, who has appropriated more than $40,000 of the bank's money for speculative purposes. The Cumberland, Maryland, News gives as an instance of the obliging kindness of Treasurer Spinner that the collector of Cumberland sent a half burned ten cent note to the Treasury. Yesterday,' says the News, "a new ten cent note was received, enclosed in a registered letter each way, and the five cents for registering-eleven cents in all-was what the new ten cent note cost. Who will doubt that Mr. Spinner is accommodating?" -The Whig says that burglars are op-

8. October 2, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 2, 1873

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BANKS IN LIQUIDATION. THE HINGHAM (DLASS.) NATIONL BANK. HINGHAM, Mnes., Oct. 1.-The defaulting Cashier of the Hingham National Bank is confined to his house by illness. The stockholders have voted to roduce the capital of the bank from $200,000 to $40,000, and continue business. ATLANTIC NATIONAL, OF NEW YORK. NEW YORK, Oct. 1.-The Receiver of the AtInntic National Bank is paying another dividend of 15 por cont, making a total dividend now paid of 55 per cout.