1.
January 5, 1906
Daily Kennebec Journal
Augusta, ME
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Alleged to Be Unable to Meet Its Many Obligations. an Temporary Injunction Is Issued and Investigation Will Be Made. Boston. Jan. 4.-An injunction Securities re- & straining the Provident doing business was afternoon further Banking Co. in of this the city, petitioned Massachusetts from Savings for this court by the State issued supreme Bank commissioners. The court hearing temporary injunction and a question a will be held tomorrow on the The comof of appointing a receiver. the laws is organized under authorized pany South Dakota and it has an S900 decapital of $1,500,000. had about from with an average deposit commispositors of $20. The savings bank comsioner each alleges that the banking obligations. I pany was unable to meet its Banking The Provident Securities & banking has engaged in the general of business, Co. but has made a speciality In con`soliciting small deposits. distributed nection the institution has habit of banks to encourage :he Bank small on the part of the people. these saving books have been substituted for the conbanks upon presentation at folpany's affairs and an investigation lowed. According to the evidence of the tocommissioners in the supreme court the comthe money deposited with $182,000 had which aggregated pany invested. At a have day. been poorly couid given mement not more than $1800 for the been realized by the company obligations. of meeting any the opinpurpo The commissioners were of the comthat the best interests of were conien munity and of the depositors the suspencerned by bringing about and by sion of the company's business charge the naming of a receiver to take of its affairs. The bank was organized in 1902 and year be business in this city the same the gan Adj. Gen. Samuel Dalton. on The with of Gev. Crane, as president. W. secretary staff and treasurer was Lerenzo Columformerly cashier of the The diBurlen. National Bank of this city. Hedges. bian Col. Sidney M. rectors prominently were identified with the Ancient and Honorable Artillery Company this city: well-known and insurance man in Inspector General William H. Brigham Crane. of Hudson, also on the staff of Gov. Brookline. Charles D. Gurley of Brigham and Col. Hedges and Gen. comsevered Mass. their connections with the last April. pany During the past few months Gen. sanata- Dalton under treatment at a has has been Roxbury. Mass. The business Burrium been in conducted principally by Mr. the company Ien. Although organized under the has laws been of South Dakota. recent act of the Legislature under through a a partial supervision of this the state. savbank commissioners of the ings S. Otis of Malden. one of tonight savJames bank commissioners. stated found th: ings commissioners had Co. in a Provident that the Securities and Banking deplorable state. the "We found." said Mr. Otis. had "that deposits institution on Dec. 31 assets which value. amounting to $182.000 with The cash were problematical that date in amounted to about on hand The on principal assets of Shenandoah the com110,000 shares in the the was Colorado. pany $2006. Co. of While value Irrigation did not know the were commissioners we understand that there west last this steck. this city from the the stock people who in desired to purchase A further month the banking company. dividends. salfrom showed that had examination and expenses of the company aries been paid out of deposits. MI banking company. continued the super "The "was not strictly under commission Massachusetts the com ers Otis. vision of of the savings bank Under 1902. an act of Legislature passed in visit foreign but missioners the had authority to sort. institutions of this requirements : banking not make any order or the insti could the manner in which of regarding conducted business Because the first tutien made to us during Henry \ complaint meath. we sent Mr. account pare of last of this city. an expert made Wyman the bank and his report Attorney ant. to ago was submitted to reportfew General days Parket. Mr. Wyman was being also conduct ed that the company Burlen and Gurley and that other injunction ed by directors. Messrs. Employes A temporary of the institution justice of were asked and granted by a and towas this ternoon. court the supreme court will take up the quescom tion morrow of an the appointment of a receiver bank "The Massachuse its savings will recom said Mr. Otis. that missioners." the prese ut Legislature relating to mend to be made in the laws I personally change banking companies passed for foreign a law should be busibelieve that companies from doing bidding in such this state. There law. are. one of course. of the many ness . piections to such might a injure such principal being that it the Bank of Noreputable institution as other hand. the law to should savings bank they achusetts va Scotia. make If. it en compulsory the commissioners companies for the Massforeign banking that the charexamine face the problem them to have to companies permit while in ters in all sorts of companies the investments the are of invest case of such of Massachusetts designated." securities. the after the granting of the bank with injunction A few officials. hours by including the court Treasurer a their number counsel. Burlen, this Bartlett took place in Messrs. had a conference conference and Anderson of state. a was given out nor local city. hotel. The but at the conclusion would the no counsel
2.
January 5, 1906
The Daily Morning Journal and Courier
New Haven, CT
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BOSTON BANKING HOUSE CLOSED BY INJUNCTION PROVIDENT SECURITIES AND BANKING CO. TEMPORARILY RESTRAINED. Savings Bank Commissioners Claim It is Unable to Meet Its ObligationsHearing To-day on Question of Appointing a Receiver-Has Authorized Capital of $1,500,000 and Has Nearly Nine Thousand DepositorsDeposited Money Poorly Invested. Boston, Jan. 4.-An injunction restraining the Provident Securities & Banking Co., of this city, from doing further business was petitioned for this afternoon in the Massachusetts supreme court by the state savings bank commissioners. The court issued a temporary injunction, and a hearing will be held to-morrow on the question of appointing a receiver The company organized under the laws of South Dakota and has an authorized capital of $1,500,000. It has about 8,900 depositors, with an average deposit from each of about $20. The commissioners allege that the company was unableto meet its obligations. The Provident Securities and Banking company has been engaged in the general banking business, but has made a specialty of soliciting small deposits. Several weeks ago the attention of the savings bank commissioners was called to the company's affairs, and an investigation followed. According to the evidence of the commissioners in the supreme court to-day the money deposited with the company, which aggregated $182,000, had been poorly invested. At a given moment the commissioners allege not more than $1,800 could have been realized by the company for the purpose of meeting any obligations. The commissioners were of the opinion that the best interests of the community and of the depositors were concerned by bringing about the suspension of the company's business, and by the naming of a rieceiver to take charge of its affairs. Samuel Dalton, for many years adjutan't general for Massachusetts, is president of the bank; Lorenzo W. Burlen, is secretary and treasurer, and the other directors are William H. Brig-. ham, Charles D. Gurley.
3.
January 12, 1906
Daily Kennebec Journal
Augusta, ME
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MORAN ACTS. Asks Removal of Savings Bank Commissioners As Result of Investigation of Provident Securities. Charges Them With Wilful Neglect in This and Other Cases. Boston, Jan. 11.-As the result of an investigation today by District Attorney John B. Moran, of the recent suspension of the Provident Securities & Banking Co., the district attorney tonight sent a letter to Gov. Curtis Guild, Jr., asking that the Massachusetts Savings Bank Commissioners be removed. In his letter Mr. Moran charges that the commissioners, James O. Otis of Malden, Frederic B. Washburn of Wellesley Hills, and Warren E. Locke (chairman), of Norwood, were grossly careless and wilfully negligent in connection with the affairs of the Provident and many similar foreign banking institutions. Mr. Moran states that the savings bank commissioners had full power under the law of 1902 to examine into the affairs of the company; that if they had done SO they would have uncovered the condition of affairs that has been revealed by the suspension and thus have prevented the closing which has affected over 8000 depositors, the majority of whom are laboring men and women and children. It was after an absence of nearly a week on account of sickness, that District Attorney Moran returned to his duties this morning. He began at once a thorough investigation of the Provident Bank suspension, calling first upon Col. Sidney M. Hedges, formerly of the Ancient and Honorable Artillery Co. of Boston, and formerly vice president of the Provident Co. and questioned the latter regarding his connection with the banking company. Col. Hedges, however, upon advice of his counsel, objected to the line of inquiry. Chairman Locke of the commissioners was later a visitor at the office of the district attorney. He was questioned at considerable length. Later in the afternoon Mr. Moran prepared a letter to Gov. Guild and mailed it tonight. In it he stated his reasons as summarized above for asking for the removal of the state bank commissioners. Yesterday about 150 depositors of the bank waited upon Gov. Guild at the State House and asked him to assist them. The chief executive, however, stated that the matter was with the courts and it was not for him to interfere.
4.
January 17, 1906
Daily Kennebec Journal
Augusta, ME
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BURLEN LEAVES BOSTON. Said to Be on Trip to Sell AssetsProvident Books Taken Away. Boston, Jan. 16.-District Attorney John B. Moran today, failed to make the progress desired by him in his investigation of the affairs of the Provident Securities & Banking Co., whose business was suspended several days ago by order of the courts. Mr. Moran had sent word to Lorenzo W. Burlen of Brookline, secretary and treasurer of the bank, to appear at the district attorney's office today for the purpose of assisting the district attorney in his investigation. Mr. Burien did not appear, but later a communication was received from his attorney in which it was stated that, acting under his counsel's advice, Mr. Burlen declined to accede to Mr. Moran's summons. This evening it was learned that Mr. Burlen left this city for Montreal this morning. Samuel K. Hamilton, Mr. Burlen's attorney, declared tonight that the treasurer of the banking company left Boston at his suggestion to endeavor to negotiate the sale of some of the company's assets. Counsel asserted that Mr. Burlen's destination was not Montreal but some Western city in this country, presumably Chicago, and that he is passing through Canada on the way. Mr. Hamilton said that Mr. Burlen would return to Boston, as soon as he ascertained whether or not he could find a purchaser for the company's assets. An alleged removal of boxes from the bank of the Provident Securities & Banking Co., by Lorenzo W. Burlen on the night of the day when an injunetion against the institution was requested of the courts by the savings bank commissioners, was investigated today by District Attorney Moran. The banking company is now in the hands of custodians. According to information which has reached the district attorney. Burlen called at the police station near the bank and asked for an officer to accompany him to the institution where he said. he wished to obtain some private papers. He stated that he feared to go in alone test he might be assaulted by depositors. Burlen went to the bank. it is alleged, with 2 patroliman and while the officer waited outside Burlen went in and brought our some books which he took away with him.
5.
January 18, 1906
Daily Kennebec Journal
Augusta, ME
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RECEIVER ASKED By Moran for the Provident Securities Co. Police to Investigate Removal of Company's Boxes. Burlen Comfortably Located in Montreal Under Name George Smith. Boston, Jan. 17.-As a consequence of the alleged visit by Treasurer Loren20 W. Burlen to the Provident Securilies & Banking Co., and the removal of everal boxes, Assistant Attorney Gencral DeGoosh today petitioned that a receiver be appointed for the institution.. The company was placed in the hands of custodians about 10 days ago by the state supreme court, under the belief that the assets were such that considerable return might be made to the 9000 depositors who had entrusted to the institution deposits aggregating $182,000. The motion made today was opposed by counsel, for the bank on the ground that there is still hope that offers will be made for the securities as assets by the Provident Co. The hearing on the motion was postponed until Friday upon request of the bank's attorney. Assistant General DeGoosh said that he had received information from the police that Treasurer Burlen had left the city and gone to Montreal. Counsel for the bank explained that the absence of the treasurer was for the purpose of trying to secure buyers for the securities. The police alleged that when Burlen visited the bank he removed papers and books. "Of the $182,000 which was deposited with the company," said Mr. DeGoosh in court, "there remains now, the custodians inform me but $450 in actual cash. I am of the opinion that the company is hopelessly insolvent and I ask this court to appoint permanent receivers for the company." After reciting the story of Treasurer Burlen's visit to the bank. Mr. DeGoosh said, "This visit by night was made a few hours after the savings bank commissioners had given public notice that on the following day, Jan. 5. they intended to ask the court for an injunction, closing the doors of the institution. Treasurer Burlen has left the state and is now in Montreal." Counsel for the company predicted that Treasurer Burlen would be back in Boston by Friday. "I told Mr. Burlen to go to Montreal," he said. "in connection with the securities, and if he obeys he will return by Friday forenoon." In postponing the matter until Friday Justice Braley, before whom the petition was brought. declared that the case was one in which many people were interested. "All that the receiver can put his hands on." he said, "was already in charge of the custodians appointed by the court. I suggest a conference among the various counsel and will postpone the hearing until Friday morning." The board of police has ordered a thor-
6.
January 22, 1906
Daily Kennebec Journal
Augusta, ME
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$364.31 IN CASH In Provident Securities Safe to Pay the 9000 Depositors' $182,000. Boston. Jan. 20.-The receivers of the Provident Securtities & Banking Co. took charge of the office today and found that the total amount of cash in the office was $364.31. In addition the company holds notes of a gelatine company amounting to $22.606. and 142,500 shares of the stock of a Colorado Irrigation Co. The amount of cash turned in to the conpany by the 9000 depositors is said to amount to about $182,000. The receivers, A. S. Hall and C. F. Weed, qualified today by giving bonds of $5000 each and will have ten days in which to examine the bank and file their report of its condition.
7.
January 23, 1906
Daily Kennebec Journal
Augusta, ME
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PROVIDENT SECURITIES SMASH. Expert Accountants at Work-A Missing Letter-Doubtful Assets. Boston. Jan. 22. - The receivers of the Provident Securities & Banking Co., about 9000 of whose depositors lose money by its failure, put expert accountants at work on the books of the company today in an endeavor to get at a true statement of the bank's liabilities and assets. An attempt is also being made to find the original letter sent by Savings Bank Commissioners Locke and Otis to Gen. Samuel A. Dalton sanctioning the use of the small steel banks but warning him that the company must not use the words "savings bank" or "savings department" in conducting their business. The copybook of the savings bank commission is said to show this letter but the original has not been discovered at the bank. D.C. Willoughby of London, who was reported as negotiating for an English syndicate for the purchase of the Shenandoah Irrigation and Land Co., many shares of which are held by the Provident Co., was in conference today with the receivers of the embarrassed institution. Later Receiver Wood said that Mr. Willoughby had given a great deal of information of value to the receivers concerning the Shenandoah property but whether there was any prospect of raising cash on the stock for the benefit of the depositors, he would not say.
8.
January 31, 1906
Daily Kennebec Journal
Augusta, ME
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WILL NOT PAY EXPENSES. The 9000 Provident Securities Depositors Will Get But Little. Boston, Jan. 30.-Alfred S. Hall and Charles F. Wood, receivers of the Provident Securities & Banking Co., which owes about $193,000 to about 9000 depositors, filed their schedule of assets of the company with the supreme court today. Their report is similar to that which they filed recently in their capacity as custodians and shows that the cash on hand is $364, and that the other assets include three notes of the France-American Gelatine Co. of a face value of $22,606, certificates for 142,500 shares of the Shennandoah Irrigation & Land Co. and 4500 steel banks of the type which the bank distributed to depositors to encourage savings. The notes and shares of stock are considered of doubtful value. The receivers are in receipt of a proposition from Charles D. Gurley of the Shenandoah Co. with reference to taking over the assets of the company. One feature of the proposition includes the paying over of 10 per cent. of the liabilities to the depositors.
9.
February 5, 1906
Daily Kennebec Journal
Augusta, ME
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WILL SAVE SOMETHING. Part of Provident Co's. Securities Will Pay a Percentage. Boston, Feb. 4.-Negotiations between the receivers of the Provident Securities & Banking Co. and Charles D. Gurley, one of the directors of the defunct company, with a view of realizing on the securities held by the company having been broken off by the former, it is expected that some other method will be used toward obtaining a return to the 9000 depositors of the $182,000 which they placed in the company's hands. A. S. Hall, one of the receivers, statcd today that there was a good prospect of realizing at least 50 per cent. on the notes of a New Jersey company amounting to $43,000 held by the Provident Co. The receivers are also hopeful of the shares in the Colorado Irrigation Co. The company holds 142,500 shares, which is 95 per cent. of the stock of the Colorado company and Mr. Hall said that with such a controlling interest the receivers would not consider any offer of an exchange for any other form of indebtedness. The receivers believe that the irrigation shares have an intrinsic value. The receivers were also satisfied with the result of their investigations during the past week, but Mr. Hall admitted that the work of realizing on the assets would necessarily be slow.
10.
February 9, 1906
Daily Kennebec Journal
Augusta, ME
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MAY SAVE SOMETHING. Provident Securities Receivers Will Look Into Colorado Irrigation Co. Boston, Feb. -The receivers of the defunct Provident Securities & Banking Co. announced today that one of them would go to Denver next week and make an investigation of the Shenandoah Irrigation Co. of Denver, of which 142,500 shares or 35 per cent. of the stock represents the principal asset of the Boston banking company. It is expected that a meeting will be called and a reorganization of the company with the election of a new board of directors favorable to the Provident Co. will be attempted. So far as the receivers can learn. the bank obtained the irrigation stock through C. D. Gurley, a director in both companies. Mr. Gurley has during the past two weeks made several offers to the receivers for the bank's stock. He stated that an English syndicate was expected to become interested in the Irrigation Co. and offered an amount in cash and the balance in debenture bonds in order to obtain control of the Colorado company. The offers were declined by the receivers and after a further investigation of the books of the company they decided it was for the bank's interests and those of the S000 depositors for it to gain full control of the Irrigation Co. The receivers admitted today that they were not familiar with the situation in Colorado and that no definite plans could be made as to the reorganization until one of them had reached Denver.
11.
February 10, 1906
Daily Kennebec Journal
Augusta, ME
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MAY SAVE SOMETHING. Provident Securities Receivers Will Look Into Colorado Irrigation Co. Boston, Feb. The receivers of the defunct Provident Securities & Banking Co., Thursday, that one of them would go to Denver next week and make an investigation of the Shenandoah Irrigation Co. of Denver, of which 142,500 shares or 95 per cent. of the stock represents the principal asset of the Boston banking company. It is expected that a meeting will be called and a reorganization of the company with the election of a new board of directors favorable to the Provident Co. will be attempted. So far as the receivers can learn. the bank obtained the irrigation stock through C. D. Gurley, a director in both companies. Mr. Gurley has during the past two weeks made several offers to the receivers for the bank's stock. He stated that an English syndicate was expected to become interested in the Irrigation Co. and offered an amount in cash and the balance in debenture bonds in order to obtain control of the Colorado company. The offers were declined by the receivers and after a further investigation of the books of the company they decided it was for the bank's interests and those of the 8000 depositors for it to gain full control of the Irrigation Co. The receivers admitted today that they were not familiar with the situation in Colorado and that no definite plans could be made as to the reorganization until one of them had reached Denver.
12.
February 21, 1906
Daily Kennebec Journal
Augusta, ME
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Alfred S. Hall, one of the receivers of the Provident Securities & Banking Co. of Boston, will test the validity of the transfer of property of the Shenandoah Irrigation and Land Co. made to the Naturita Canal & Reservoir Co. at Denver, Col., Saturday. Mr. Hall met C. D. Gurley of the Naturita Irrigation Co. Tuesday but no terms of agreement were discussed. Mr. Hall says that he does not know just what action he will take but intimates that he will appeal to the federal court for relief.