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BANK LOSSES AROUSE NORTHAMPION FOLK
Continued `rom the First Page had heard num erous rumors concerning the situation at the bank, and conferred with Pres Temenway Wednesday morning of this week, to decide what steps should be taken to protect the public funds on deposit there. Mayor Bliss said tonight that he was given to understand by Mr Hemenway that the shortage was approximately $100,000, that the bank was protected by surety bond to the amount of $50,000 from any defalcation by Harold R. Newcomb, former manager of the savings department, and that in addition there was an ample surplus to protect depositors. Still disquieted after this interview, the Mayor says he summoned a meeting of the Finance Committee Wednesday afternoon, and at that time it was decided to withdraw $50,000 from the trust company in two checks of $25,000 each, to be deposited in two other local banks. Officials of the latter institutions were consulted and it was deemed advisable to deposit, instead of checks, New York drafts on the Hampshire County Trust Company. However, Mayor Bliss learned this afternoon that the two drafts had not been honored.
Teachers' Payroll Met By with the First National Bank, the city was able this morning to meet teachers' payroll of more than $15,000. It was expected that the Finance Committee would authorize temporary loan to tide over regular expenses until the Hampshire County Trust Company's affairs are liquidated. Definite announcement today that the bank's shortage approximated $285,000 came as distinct shock Northampton, since had been specifically charged with the theft of only $15,000, statements from bank officers, previous to this morning, had given no indication of the the shortage. Last Saturday after the bank exhad audit, Pres Hemenway declared that amount of the net loss, if any, cannot be determined at this time, as arrangements are being with counsel for Newcomb for restitution of certain embezzled. While there was no appreciable run on the bank after New. comb arrested last week Monday, withdrawals began to increase early this week, and by Wednesday Thursday assumed serious proportions. Yesterday afternoon several depositors were informed that no more ready cash was available and were given checks for the amounts they wished to These checks were not honored today, however.
Coolidge Issues Statement
Although statement was issued from the office of Calvin Coolidge this morning, to the effect that both he and Mrs Coolidge had accounts at the Hampshire County Trust Company, and had not withdrawn their deposits because they still felt the was perfectly safe, many of the smaller depositors who had deferred withdrawing their accounts pending April when interest added, pointed out tonight that the closing of the bank might be more of an inconvenience to them than to the Coolidges. Particularly hard hit are number of tobacco and onion growers in this section of the Connecticut Valley, who already started Spring work. The company was largely patronized farmers, who will be faced with the necessity almost at once meeting sizable bills for fertilizer, seed and labor. Among the excited depositors who gathered in the corridor outside the closed doors of the institution this morning were several Polish women, frantically demanding their money. Two policemen were required eventually to clear the corridor.
Newcomb's Bond Continues The present directors of the Trust Company as elected last include prominent men and farmers from various towns in the county. They are: Victor D. Bardwell, Whately Robert Belding, NorthCharles E. Clark, Leeds; William M: Curran, Northampton: William Finn, Northampton; Ralph W. Hemenway, Northampton; Charles H. Johnson, Easthampton: John W. Mason. Michael E. Manning, Peter P. North Hadley Joseph N. Pelissier, Karl S. Putnam, Northampton: John C. Ryan, Hatfield: Roger Warner, Sunderland: Arthur B. Witherell, Northampton. Harold R. "Dick" Newcomb, whose defalcations are blamed by the bank commissioner for the $285,000 shortage, is the Hampshire County Jail, under $30,000 ball, for the June sitting of Superior Court. Neither he nor his counsel, attorney Thomas R. Hickey, had any comment to make on the closof the bank. It became known this week that the orchestra had not been making as much fit as its members had believed, since Newcomb had been accustomed to under bid other orchestras for various large contracts and paying the expenses himself. Howev just how Newcomb managed to spend $285,000, even after fitting out his orchestra in lavish style, and living in a luxuriously appointed was question which baffied his friends here tonight.
