1.
August 17, 1906
The Daily Morning Journal and Courier
New 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.
2.
August 17, 1906
Santa Fe New Mexican
Santa Fe., Santa Fe, NM
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ANOTHER BANK CLOSES ITS DOORS By Order of Examiner Ewer-Excessive Loans to Officers and Directors the Cause. Washington, D. C., Aug. 17.-The comptroller of currency has received a telegram from National Bank Examiner Ewer that the First National Bank of Chelsea, Massachusetts, has been closed by the action of the directors. Examiner Ewer appointed a receiver. The failure is reported to be due to large excessive loans to officers and directors of the bank. A statement of the resources and the liabilities of the bank on June 18, 1906, shows the loans and discounts to be $1,118,586; cash on hand $57, 379; capital stock $300,000; deposits $679,729. 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 of their ready money in the bank but it is expected that relief-will be afforded by the Winnisimet National Bank of Chelsea, which has offered to pay the depositors of the First National Bank fifty per cent on their accounts. It is said that the difficulties at the bank were brought about by the steady transfer of the large accounts of the Boston banks. It is learned also that the First National Bank was involved in real estate to the extent of about $500,000.
3.
August 17, 1906
The Evening Times
Grand 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.
4.
August 17, 1906
The Barre Daily Times
Barre, 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.
5.
August 17, 1906
Waterbury Evening Democrat
Waterbury, CT
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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.
6.
August 18, 1906
The Daily Morning Journal and Courier
New 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,
7.
August 18, 1906
Arizona Republican
Phoenix, 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."
8.
August 18, 1906
The Montgomery Advertiser
Montgomery, 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.
9.
August 18, 1906
The Cairo Bulletin
Cairo, 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 hank as collateral are accounts for the ciosing.
10.
August 18, 1906
Omaha Daily Bee
Omaha, 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."
11.
August 18, 1906
The Times Dispatch
Richmond, 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.
12.
August 18, 1906
The Salt Lake Herald
Salt Lake City, UT
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LARGE LOANS TO THE DIRECTORS First National Bank of Chelsea, Mass., Closed by Order of Examiner. Washington, Aug. 17.-The comptroller of the currency has received advices by telegraph 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 the bank is reported by the examiner to be due to large, excessive loans to officers and directors of the bank. A statement of the resources and liabilities of the bank at the date of its last report of condition was made to the comptroller June 18, 1906. This shows loans and discounts to be $1,118,586: cash on hand, $57,379; capital stock, $300,000, and deposits, $679,729.
13.
August 18, 1906
The Salt Lake Herald
Salt 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."
14.
August 18, 1906
Evening Star
Washington, DC
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MAY OWE HALF MILLION. Revelations in Probe of Chelsea National Bank Crash. Following the official information given by Bank Examiner Ewer to the controller of the currency in this city that the failure of the First National Bank of Chelsea, Mass., the doors of which were closed Thursday night, was due to excessive loans made to officers and directors of the bank, it became understood yesterday that the principle 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 yesterday 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. Yesterday's developments indicated that Mr. Hinckley was involved in extensive real estate transactions, from which he is expected to realize splendid profits for the bank as well as for himself. The fallure of hls 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.
15.
August 18, 1906
Albuquerque Morning Journal
Albuquerque, NM
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BANK CRASHES, PRESIDENT IS FATALLY ILL CHELSEA INSTITUTION RUINED BY LOANS Sylvester Hinckley Owes First National Bank Half a Million and Receiver Is Appointed by Comptroller. 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 If the bank indicate that President Hinckley has transferred to the institution his equity in large real estare 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 Backbay and Brighton held by 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 ficticious names, Mr. Martin said: "There are some papers there that are very doubtful."
16.
August 21, 1906
Daily Kennebec Journal
Augusta, 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,
17.
August 21, 1906
The Morris County Chronicle
Morristown, NJ
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CHELSEA, MASS., BANK SHUT The First National Wrecked by Favors to Officers. Big Loans to Officers Caused Failure, According to Report of Examiner Ewer to the Comptroller. Washington, D. C.-T. P. Kane, acting Comptroller of the Currency, received advices by wire from National Bank Examiner Ewer at Boston that the First National Bank, of Chelsea, Mass., had been closed by action of the directors. Examiner Ewer ARS been appointed receiver. The failure of this bank is due to large, excessive loans to officers and directors of the bank.
18.
August 21, 1906
New-York Tribune
New York, NY
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CHELSEA DEPOSITORS GET $50,000. Director Says "No Misappropriation" and Dollar for Dollar for Depositors. Chelsea, Mass., Aug. 0.-There were no developments to-day in the investigation which is being conducted at the First National Bank by Bank Examiner Ewer. The bank opened its doors at the usual hour to-day, and a large number of depositors availed themselves of the opportunity of having their bankbooks verified in order that they might realize 50 per cent of their deposits at the Winnimisset Bank. The Winnimisset has already paid out more than $50,000 to more than two hundred patrons of the First National, taking their bankbooks as security. Thomas J. Martin, a director of the bank, through whose efforts a receiver for the institution was appointed, said to-day that the financial dimculties 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 misappropriation of funds. He expressed an opinion that depositors would be paid dollar for dollar.
19.
August 24, 1906
Shoshone Journal
Shoshone, ID
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LARGE LOANS TO DIRECTORS. Massachusetts Bank Closed By Order of National Bank Examiner. Washington.-The comptroller of the currency has received advices by telegraph 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 the bank is reported by the examiner to be due to large, excessive loans to officers and directors of the bank.
20.
August 30, 1906
Northern Wisconsin Advertiser
Wabeno, WI
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POLITICAL. Ohio democrats in state convention passed strong Bryan resolutions. Tammany came out for Hearst and Jerome made a bitter reply to Murphy. M. Zaimis, who was prime minister of Greece in 1901, has been appointed governor of Crete. Nebraska republicans nominated Norris Brown to succeed Millard in the United States senate. Hoke Smith carried Georgia primaries in a bitter contest for the democratic gubernatorial nomination. Santo Domingo revolutionists started a general uprising in an effort to restore President Jimines to power. The socialists nominated a state ticket and adopted resolutions denouncing the Hearst Independence league. Congressman Garber proved himself master of the Ohio democracy, easily defeating Mayor Tom Johnson of Cleveland. M. Clemenceau, French minister of interior, says the pope's latest encyclical is a challenge to the government and necessitates a new law. The crop report of the ministry of agriculture estimates that this year's Hungarian harvest will exceed those of the last twenty-five years. Mr. Bryan confided to a Paris writer that his New Zealand trip is planned to avoid entangling alliances with democratic factions at home. Prince Mohammed Ibrahim of Egypt was seriously injured in an automobile accident at a level crossing at Bernay, Normandy. His chauffeur was killed. District Attorney Jerome of New York issued a statement to the effect that he will accept the democratic nomination for governor if given without pledges. Acting Comptroller of the Currency Kane appointed Albert S. Aspey, an at. torney of Cambridge, Mass., receiver of the failed First National bank of Chelsea, Mass. Forest fires are raging in the Canadian provinces of New Brunswick and Quebec. St. Charles de Caplan and another small village in Qcebec have been destroyed. General James A. Buchanan, retired. recommends to the government that it
21.
September 19, 1906
The Abbeville Press and Banner
Abbeville, SC
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CHELSEA, MASS., BANK SHUT The First National Wrecked by Favors to Officers. Big Loans to Officers Caused Failure, According to Report of Examiner Ewer to the Comptroller. Washington, D. C.-T. P. Kane, acting Comptroller of the Currency, received advices by wire from National Bank Examiner Ewer at Boston that the First National Bank, of Chelsea, Mass., had been closed by action of the directors. Examiner Ewer .19S been appointed receiver. The failure cf this bank is due to large, excessive loans to officers and directors of the bank. 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.
22.
October 2, 1906
The News-Democrat
Providence, 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.
23.
October 8, 1906
Evening Times-Republican
Marshalltown, 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.
24.
November 29, 1906
The Daily Morning Journal and Courier
New 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.