7994. Provident Securities and Banking Company (Boston, MA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1906*
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
1ced297e

Response Measures

None

Description

The articles consistently report the company failed in January, 1906 and has been in receivers' hands since; receivers allege directors squandered deposits. No newspaper describes depositor runs or temporary suspensions/reopenings — this is a failure with receivership and permanent closure.

Events (3)
1. January 1, 1906* Receivership
Newspaper Excerpt
Receivers of the failed Provident Securities and Banking Company ... have reported ... the cash assets ... less than $5,000, while the liabilities amount to $268,831. (multiple articles reporting receivers' filings and reports).
Source
newspapers
2. January 1, 1906* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Receivers allege directors 'wasted, squandered and lost' over $200,000 of deposits and assets dwindled to only a few thousand dollars, causing failure/suspension.
Newspaper Excerpt
The company failed in January, 1906.
Source
newspapers
3. June 12, 1908 Other
Newspaper Excerpt
There is no possibility of paying a dividend to the seventeen thousand creditors of the Provident Securities and Banking Company ... only $3,500 left and that no distribution can be made, because the expenses ... would consume the entire assets. (New-York Tribune, 1908-06-13).
Source
newspapers

Newspaper Articles (10)
1. April 11, 1907 New-York Tribune New York, NY
Article from New-York Tribune, April 11, 1907

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SAY DIRECTORS SQUANDERED FUNDS. Receivers of Defunct Boston Banking Company Make Startling Charges. Boston, April 10.-That more than $200,000 paid into the defunct Provident Securities and Banking Company was wilfully squandered by the directors of the company, and that less than $5,000 remains, is the allegation of the receivers of the company who filed a report in the Supreme Judicial Court to-day. The company failed in January, 1906. The receivers ask the court to approve a bill in equity against six Massachusetts directors of the company to recover the amount of the losses sustained by the depositors. Of the six other directors five are beyond the jurisdiction of the state, while one of them. Samuel Dalton, ex-Adjutant General of Massachusetts, is dead. The bill in equity is against Sidney M. Hedges, William M. Brigham. George W. Saul, George H. Swazey. C. Burton Cotting and Henry F. Mayer. Brigham Is a resident of Hudson. Mass., while the others live in this city. Brigham is an inspector general of militia on the staff of Governor Curtis Guild. Hedges is an ex-commander of the Ancient and Honorable Artillery Company.

2. April 11, 1907 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, April 11, 1907

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(Continued on Eighth Page.) WILFULLY SQUANDERED. Directors of Defunct Boston Financial Institution Denounced. Boston, April 10.- - That more than $200,000 paid into the defunct Provident Securities and Banking company was wilfully squandered by the directors of the company and that less than $5,000 remains, is the allegation of the receivers of the company, who filed a report in the supreme judicial court to-day, In connection with their report, the first which they have subJanuary, 1906, the receivers, Alfred S. Hall and Charles F. Weed, ask the court to approve a bill in equity against six Massachusetts directors of the company to recover the amount of the losses sustained by the depositors. Of the six other directors, five are beyond the jurisdiction of the state, while one of them, Samuel Dalton, formally adjutant general of Massachusetts, is dead. The bill in equity is against Sidney M. Hedges, William M. Briggam, George W. Saul, George H. Swaszey, C. Burton Cotting and Henry F. Mayer. Brigham is president of Hudson, Mass., while the others live in this city.

3. April 12, 1907 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, April 12, 1907

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SQUANDERED AND LOST. Receivers' Report on Assets of Boston Institution. Boston, April 12.-That more than $200,000 paid into - the defunct Provident Securities and Banking company was squandered by the directors of the company and less than $5,000 remains is the allegation of the receivers of the company, who have filed a report in the supreme judicial court. The receivers ask the court to approve a bill in equity against six Massachusetts directors of the company to recover losses sustained by the depositors. Of the six other directors five are living beyond the jurisdiction of the state and one of them is dead. The bill in equity is against Sidney M. Heges, William M. Brigham, George W. Saul, George H. Swizzey, C. Burton Cotting and Henry F. Mayer. The receivers charge that $243,462, of which $186,765 was paid in by depositors, was "wasted, squandered and lost" by the directors. The receivers state that the assets are less than $5,000 and that the liabilities amount to $268,851.

4. April 12, 1907 The Washington Times Washington, DC
Article from The Washington Times, April 12, 1907

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ALLEGE DIRECTORS SQUANDERED FUNDS Receivers for Boston Banking Company Fix Amount at $200,000. BOSTON, April 12.-Receivers Hill and Wood, of the failed Provident Securities and Banking Company, have reported in the supreme court that more than $200,000 of the deposits had been squandered by the directors. The court was asked to approve a bill in equity brought against six Massachusetts directors, seeking to recover the losses sustained by the depositors. Damages of $250,000 are asked. The request was also made that five others of the directors, who are not within the jurisdiction of the State, be named in the equity suit. The receivers say that the cash assets of the concern amount to less than $5,000, while the liabilities amount to $268,831. The report shows that of the $750,000 of stock issued the company received but $23,000 in cash. The directors bought $50,000 of the stock of the Franco-American Gelatine Company of New Jersey, receiving $166,666 in stock. This concern failed. Soon after the organization of the Provident concern, $500,000 of its stock was exchanged for $1,425,000 of the stock of the Shenandoah Irrigation and Land Company of Colorado. C. D. Curley, of Denver, is alleged to have been given a fictitious credit of $67,000.

5. April 18, 1907 The Clio Messenger Clio, MI
Article from The Clio Messenger, April 18, 1907

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# Robert H. Crowe Ameri billiar player, who recently ran a billiard school there. Robert H. Crowe, of Pittsburg, who shot himself while in a theater, died of his wound. Train wreckers derailed a train at Cheneyville, La., and three men were killed. The town of Westwego, La., was practically destroyed by fire. Mrs. William Norris, of Denver, Col., committed suicide in Berea, O., because of domestic trouble and illness. Policemen George M. Sechler and Alfred Sellech and Charles Vincenzo vore shot and mortally wounded in New York by Salvatore Gavornale in a running fight. George Shambacher, a wealthy real estate dealer of New York, was shot and mortally wounded while in the Mining-room of his home, presumably by a burglar. James Addison Quarles, D. D. LL. D., for the past 21 years professor of moral philosophy at Washington and Lee university, died at Lexington, Va. He was 70 years old. David Billington, a professional swimmer, at Sydney, N. S. W., swam three-quarters of a mile in 17 minutes 36 2-5 seconds, thereby creating new world's record. After being out for 86 hours, the jury in the case of former State Senator Covington, of Arkansas, charged with accepting a bribe, reported a disagreement and was discharged. The new cathedral of St. John the Baptist and St. Finbar at Charleston, S. C., was consecrated by Cardinal Gibbons. Clay Thomas is locked up at Beattyville, Ky., for the murder of Jesse Abner, the killing being a result of the Hargis-Cockrell feud. Secretary of War Taft landed at San Juan, Porto Rico, and was received by the officials and leading citizens. Police of Winnipeg, Manitoba, raided the offices of the Canadian Stock Grain company and arrested every one in them on charges of running and frequenting a bucket shop. William H. Buesking, a farmer near Fort Wayne, Ind., was blown to pieces by dynamite. The Chicago, St. Paul, Minneapolis and Omaha railroad and H. M. Pearce, acting freight agent, were found guilty of granting rebates by a jury at Minneapolis. Four trainmen were killed on the Southern Pacific in California by the explosion of two locomotives. The crew of naval barge No. 1 which went adrift in a storm, were rescued by the steamer Professor Woermann. Directors of the Provident Securities and Banking company of Boston are accused by the receivers of having squandered $200,000 of its money.

6. April 19, 1907 The Yale Expositor Yale, MI
Article from The Yale Expositor, April 19, 1907

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BRIEF REVIEW OF A WEEK'S EVENTS RECORD OF THE MOST IMPOR. TANT happenings IN ITEMIZED FORM. HOME AND FOREIGN NEWS Information Gathered from All Quarters of the Civilized World Prepared for the Perusal of and the Busy Man. Hopelessly divided-seven for a . diet of guilty of murder in the first ver- degree and five for acquittal on ground since of insanity jury which the been the 23d of last January had after trying Harry K. Thaw, reported 47 hours and eight minutes deliberation. biy that it could not of agree upon a verdict and possijail discharged. Thaw was remanded were not to await his second trial, which to is likely to begin before autumn. Twelve jurors in the United States district court at Chicago found Standard Oil company of Indiana the guilty the of accepting illegal rates from Chicago & Alton railroad, charged in 1,462 counts of the indict- as ment. Landis Should the verdict stand Judge can impose aggregate fines $29,240,000, If or $20,000 on each count. of only the minimum penalty $1,000 each count be assessed. the total on would ever reach $1,462,000, the largest fine entered against a person or courts. poration in the history of federal corJames H. Eckels, president of Commercial and National bank of Chicago the was one of Chicago's leading citizens, due found dead in bed. Death to heart disease. Mr. Eckels was comptroller Grover of the currency during was tration. Cleveland's second adminisAn earthquake lasting 4½ minutes terrified Mexico. the people of the City many There were no fatalities, but of cracked. walls and pavements were A lone bandit held up a stage 000. Montana and escaped with about $28, in The Ripley building, one of largest at and most important structures the Baker University, Kan., was mated stroyed by fire. The loss is esti- deThe at $60,000: insurance, $15,000. police of Paris issued an pulsion order under the prevention ex of the gambling law against George Sutton, cently American billiar player. who reran a billiard school there. Robert H. Crowe, of Pittsburg, shot of himself while in a theater, died who his wound. Train wreckers derailed a train Cheneyville, killed. La., and three men were at The town of Westwego, La., was practically destroyed by fire. Mrs. William Norris, of Denver Col., because committed suicide in Berea, ness. of domestic trouble and O ill Policemen George M. Sechler Alfred were Sellech and Charles Vincenzo and New shot and mortally wounded a York by Salvatore Gavornale in in running fight. George Shambacher, a wealthy and estate dealer of New York, was sho rea mortally wounded while in dining-room of his home, presumable th by a burglar. D., James Addison Quarles, D. D. moral for the past 21 years professor LI Lee philosophy at Washington o He university, died at Lexington, an Va was 70 years old. David Billington, a professiona swimmer, at Sydney, N. S. W., swar three-quarters utes of a mile in 17 a 36 2-5 seconds, thereby creatin mir new world's record. After being out for 36 hours. jury tor in the case of former State th with Covington, of Arkansas, charge Sen accepting a bribe, reported a di agreement and was discharged. The new cathedral of St. John Baptist S. and St. Finbar at Charlesto th Gibbons. C., was consecrated by Cardin Clay Thomas is locked up at tyville, Ky., for the murder of Bea Abner, the killing being a result of Jes tl Hargis-Cockrell feud. Secretary of War Taft landed ceived San Juan, Porto Rico, and was zens. by the officials and leading ci Police of Winnipeg, Manitoba, ed Grain the offices of the Canadian Sto rai one company and arrested eve and in them on charges of runni frequenting a bucket shop. William H. Buesking, a farm near Fort Wayne, Ind., was blown pieces by dynamite. The Chicago, St. Paul, Minneapo and Omaha railroad and H. M. Pear acting ty freight agent, were found Minneapolis. of granting rebates by a jury g Four trainmen were killed Southern Pacific in California on by explosion of two locomotives. The crew of naval barge No. which went adrift in a storm. We Woermann. rescued by the steamer Profess Directors of the Provident Secu ties and Banking company of Bost are accused by the receivers of h Ing squandered $200,000 of its mon Annie Adair of Triumph, m., dead from swallowing muriatic medicine. which she mistook for a sleep a

7. April 25, 1907 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, April 25, 1907

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Sparks from the Wires. Susan Rooney, a nurse, is suing Henry Bergh of New York, former president of the Society for the Prevention of Cruelty to Animals, for $30,000 damages, alleging he dragged her downstairs and choked her. The flag rush is to be abolished at the University of Cincinnati. A special committee has been appointed from the university faculty to devise a suitable substitute for this strenuous annual struggle between the freshman and the sophomore classes. The Arctic brotherhood has raised $5,000 to send the crack Nome (Alaska) basket ball team on a tour of the United States. The Gananoque inn, one of the best known summer hotels in Canada, was completely destroyed by fire. The loss is $90,000. Three men were instantly killed at Hillsville, Pa., by the explosion of a ton of powder at the plant of the Burton Powder Company. Preceding the close of the Indiana conference of the Evangelical Association Rev. F. Stedkey of Celina, Ohio, was again received into the conference. Albert E. Thornton, president of the Atlanta (Ga.) National bank, and well known throughout the South, died, aged 65 years. Receivers of the Provident Securities and Banking Company reported to the Supreme Judicial Court in Boston that the directors of the company had squandered $200,000 of the concern's money. Frederick G. Bourne has sold the plot at the northeast corner of Fifth avenue and Fifty-second street, New York, to Edward H. Harriman, who at present occupies the residence at 11 East Sixtysecond street, just off Fifth avenue. The plot will be improved with a fine dwelling.

8. June 13, 1908 New-York Tribune New York, NY
Article from New-York Tribune, June 13, 1908

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NO MONEY FOR 17,000 CREDITORS. Boston, June 12.-There is no possibility of paying a dividend to the seventeen thousand creditors of the Provident Securities and Banking Company, which failed in 1906. according to the report made to the Supreme Court to-day by the receivers, C. E. Weed and Alfred S. Hall. The receivers state that there is only $3,500 left and that no distribution can be made, because the expenses of formal notification to the numerous creditors would consume the entire assets. The company did a large business for a time by distributing small steel savings banks for deposits.

9. June 13, 1908 The Sun New York, NY
Article from The Sun, June 13, 1908

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NOTHING LEFT FOR CREDITORS Smash of Provident Securities and Banking Company Is Complete. BOSTON, June 12.-There is only $3,500 for the 17,000 creditors of the Provident Securities and Banking Company, which went to amash in the winter of 1908 and which has since been in the hands of receivers. To-day they made their report to the Supreme Court, concluding with an expression of regret that there is no possibility of a dividend to the creditors. The company in its day sent out agents to induce people to take small steel savings banks for their savings, which the company accepted as deposits. A great number of poor people did SO and were caught when the company went under. The assets have dwindled to almost nothing and the directors could not be sued, as the courts said they had simply erred in judgment in directing the affairs of the company. As to the $3,500 the receivers say if an attempt is made to distribute the sum it means a formal notification to each of the 17,000 creditors to prove his claim, which would cost at least 25 cents each, and there would not remain a sum sufficient to send each creditor a postage stamp.

10. August 1, 1908 New-York Tribune New York, NY
Article from New-York Tribune, August 1, 1908

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CALLS COMPANY ALMOST A SWINDLE. Boston, July 31.-The Provident Securities and Banking Company was termed "almost a legalized swindle" by Justice Braley, in the Supreme Court, to-day. when he reserved decision on the petition for the allowance of the final account of the receivers. The debts of the concern, it was stated in court, amount to $274,000. of which amount $199,000 is due to depositors, while there is only $3,500 with which to meet these claims.