8088. Framingham Savings Bank (Framingham, MA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
August 22, 1885
Location
Framingham, Massachusetts (42.279, -71.416)

Metadata

Model
gpt-5-mini
Short Digest
fee3227a

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Description

Depositors pressed to withdraw (light run) in late Aug 1885; soon after the treasurer's suicide and discovery of large defalcations the bank was closed/suspended by the bank commissioner and an injunction sought. Articles later report a large deficit ($228,000) and hearings about injunction/receiver; no reopening is reported, and permanent closure/receivership is implied but not explicitly confirmed in these pieces.

Events (2)
1. August 22, 1885 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors attempted withdrawals after emergence of irregularities and investigation of the treasurer's accounts; loss of confidence following allegations and later suicide of treasurer.
Measures
Bank opened for business and officials stated they were ready to meet any run; many depositors who could obtain money left satisfied and left deposits.
Newspaper Excerpt
the bank was opened for business at the usual hour this morning. and a steady stream of depositors pressed forward all day anxious to withdraw their deposits.
Source
newspapers
2. August 25, 1885 Suspension
Cause
Government Action
Cause Details
Bank commissioner/examiner ordered the bank closed and later sought an injunction after finding irregularities and large deficit.
Newspaper Excerpt
After the announcement of the suicide the bank was immediately closed by order of the commissioner, and business will remain suspended until after the accounts have been fully investigated.
Source
newspapers

Newspaper Articles (10)
1. August 23, 1885 Savannah Morning News Savannah, GA
Article from Savannah Morning News, August 23, 1885

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COMMERCIAL CLOUDS. The Framingham Savings Bank Pays Its Depositors and Revives Confidence. SOUTH FRAMINGHAM, MASS., Aug. 22. -There are no new developments in the affairs of the Framingham Savings Bank, The bank was opened for business at the usual hour this morning. and a steady stream of depositors pressed forward all day anxious to withdraw their deposits. Many of them, however, on finding that tbey could have their money went away satisfied to leave It still in the hands of the bank. The bank officials express themselves as certain of the stability of the bank, and are ready to meet any run which may be made. THE GALVESTON CRASH. GALVESTON, TEX., Aug. 22.-There are no new developments in the affairs of the City National Bank. A telegram from Washington to-day stated that a bank examiner would arrive there on Monday next. FAILURE OF A SPINNER. LONDON, Aug. 19.-Henry Bottomcy, a spinner of Bradford, has failed.

2. August 25, 1885 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, August 25, 1885

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CUT HIS THROAT. Ex-Treasurer Adams of the Framingham (Mass.) Savings Bank Unable to Stand the Disgrace of an Exposure of His Defalcation, Puts an End to His Life By Cutting His Throat from Ear to Ear-The Bank Closed in Consequence. SOUTH FRAMINGHAM, MASS., August ...Ex-Treasurer Adams of the Framingham Savings Bank, whose accounts were, last week, made the subject of a special investigation by Bank Commissioner Gatchell, and whose resignation was requested, committed suicide at the bank this afternoon by cutting his throat. When found a revolver lay beside him, which, it is supposed, he intended to use, provided the razor did not accomplish the work. This forenoon the ex-treasurer, who all through the trouble which the bank has been experiencing for the past few days has appeared to be very cool and collected came to South Framingham from his Framingham Center home, and went to one of the lawyers' offices in Nobscott block, where the savings bank is located. Here, during the forenoon, he remained, and for some time assisted in accounts the interest of the figuring depositors up who came to-day to draw their money. Shortly after 2 o'clock Mr. Gatchell arrived at the lawyer's office and began to look over Adams's ledger. Adams then went to the bank and killed himself. He leaves a widow, a daughter and two sons. Adams held a prominent position in the community, socially and financially. MR. GATCHELL has made a statement, in which he says that there are many irregularities in the accounts of Mr. Adams. The check books are, he says, in a very unsatisfactory condition. The stubs are improperly filled out-in some cases blindly, in some cases blank. He and his son drew unknown sums for use in other private business, and Adams drew over $2000 in the last two months for personal expenses. He was very lax in attending to the bank's business. The interest on $172,000, loaned on mortgages and due last April, had not yet been collected, while much of it was far more in arrears. A part of the bank dividend had not yet been paid for a year and a half. The books are being examined by an expert. THE BANK CLOSED. After the announcement of the suicide the bank was immediately closed by order of the commissioner, and business will remain suspended until after the accounts have been fully investigated.

3. August 25, 1885 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, August 25, 1885

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SUICIDE OF AN EX-BANK OFFICER. Ex-Treasurer Adams, of the Framingbam Savings Bank, Cuts His Throat. SOUTH FRAMINGHAM, Aug. 24.-Ex Treasurer Adams, of the Framingham Savings Bank, whose accounts were last week made the subject of a special investigation by Bank Examiner Gatchell, and whose resignation was requested, committed suicide at the bank this afternoon by cutting his throat. When found, a revolver lay beside him, which, it is supposed, he intended to use provided the razor did not accomplish the work. This forenoon the ex-treasurer, who, all through the trouble which the bank has been experiencing for the past few days, has appeared to be very cool and collected, came to South Framingham from his Framingham Centre home. and went to one of the lawyers' offices, in the block where the bank is located. Here, during the forenoon, he remained, and for some time assisted in figuring up the interest accounts of the depositors, who came to-day to draw their money. Shortly after 2 o'clock Mr. Gatchell arrived at the lawyer's office, and began to look over Adams's ledger. Adams then went to the bank and killed himself. He leaves a widow, a daughter and two sons. Adams held a prominent position in the community, socially and financially. Mr. Gatchell has made a statement, in which he says that there are many irregularities in the accounts of Mr. Adams. The check-books are, he says, in a very unsatisfactory condition. The stubs are improperly filled out, in some cases blindly, in some cases blank. Adams and his son drew unknown sums for use in their private business, and Adams drew over $2,000 in the last two months for personal expenses. He was very lax in attending to the bank's business. The interest on $172,000 loaned on mortgages, and due last April, had not been collected. A part of the bank's dividends had not been paid for a year and a half. The books are being examined by an expert. After the announcement of the suicide the bank was immediately closed, by order of the examiner, and business will remain suspended until after the accounts have been fully investigated.

4. August 25, 1885 Evening Star Washington, DC
Article from Evening Star, August 25, 1885

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Suicide of a Bank Treasurer. Last Friday Chas. S. Adams, treasurer of the Framingham (Mass.) Savings bank, which has deposits of more than a million and a half, was notified by the bank commissioners that his private accounts had been found to be so confased with those of the bank that he must resign. He did so unwillingly, protesting that everything was right, and that the affair was simply a matter of bookkeeping. He was one of the oldest, most respected and wealthiest citizens of the place, and SO much confidence was felt in him that the run on the bank was very slight. Yesterday atternoon while preparations were making for a thorough examination of the books by an expert, Adams went into another room and in a few minutes was found dead with his thront eut. The razor with which he had killed himself was in his hand, and beside him was a loaded revolver. This act leads the commissioners to believe that affairs are in a worse condition than at first supposed.

5. August 25, 1885 Seattle Daily Post-Intelligencer Seattle, WA
Article from Seattle Daily Post-Intelligencer, August 25, 1885

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here today. The Wabash Committee of the Knights of Laber say they do not apprehend a general strike, at least for the present. Members of the Knights of Labor in the Bridge Company's yard here informed the superintendent this morning that they would not bandle Wabash engines. The answer was that they need not do so, and that extra men would be employed for that work. KANSAS CITY, Aug. 24.-The situation regarding Wabash difficulties is not ma terially changed. Some of the Knights of Labor are reported to have refused to bandle Wabash cars, but officials state that business was not affected. Hungry Indians. WASHINGTON, Ang. 24.-Adjutant General Drom to day received a dispateh from the officer commanding in New Mexico saying that the Southern Utes in that Territory were starving; that they bad no supplies, and were unable to procure any, and that unless food was immediately secured for them they would go on the war patb. These are the Indians that 8 few weeks age were reported to be without food and in a starving condition. Temporary relief was afforded them by drawing on the military stores. An Indignant President. WASHINGTON, Aug. 24.-Admiral Am men today received the following diepateh from President Cardenas, of Nioaragua: Estrella de Guatamala publishes today alleged documents asserting that the directors of the Panama Canal have purchased the President of Nicaragua in order to prevent the construction of the Nicaraguan Canal. This in & vile oslumny which I repel with indignation 1 have directed the efficials of Gusta mala to deny it emphatically and to prosecutd the perpetrators before the proper tribunal. Be good enough to publish this in Washington. The Court of Alabama Claims in Dif. ficulty. WASHINGTON, Aug. 24.-First Comp troller Durham and Solicitor McHogh had a conference with Acting Secretary Fairehild this evening in regard to the settlement of the expense accounts of the Court of Commissioners of Alabama claims, which. it is alleged, indicate very loose and extravagant business methods on the part of the Court. The result of the conference is net positive. ly known, but it is understood that the First Comptroller was advised to disal low a large number of items in the aocounts, aggregating many thousand dollars, including large claims for several special attorneys, the necessity for whose employment is questioned by the accounting officers. The official statement in regard to the matter will be sent to the Treasury Department to morrow. Two Official Heads off. WASHINGTON, Aug. 24.-In view of the fact that the appropriation of $5000 for expenses incurred in executing the provisions of the Ohinese Restriction act is exhausted, it has been found necessary to dispense with the services of a Chi nese interpreter at San Francisco and a Deputy Collector at Port Townsend, both of whom were paid out of that appropriation. No embarrassment will result from this action, as the duties of the two suspended officers can be performed by other officers in the customs service. An Arrangement Suspended. The publicity given to the fact that United States Treasurer Hall had resumed the transfer of gold coin from San Francisco to New York by registered mail has again caused the suspeasion of that mode of transportation. It is not expected any mere gold will be sent through the mails for some time. Suicide of a Defaniter. SOUTH FRAMINGHAM, Mass., Aug. 24.Ex Treasurer Adams of the Framingham Savings Bank. whose accounts were last week made the subject of 8 special investigation by Bank Commissioner Gatchell, and whose resignation was requested, committed suiside at the bank this afternoon by outting bis throat. When he was found a revolver lay beside him which, it is supposed. he intended to use provided the razor did not accomplish its work. This forenoon the ex-Treasurer, who all through the tronble which the bank bas been experiencing for the past four days, appeared to be very cool and collected, came to Seuth Framingham from his Framingham Center home and went to a lawyer's residence in the Nobscot blook where the Savings Bank IN located. Here during the foreneon be remained for some time. and assisted in figuring up the interest accounts of depositors who came today to draw their money. Shortly after 2 o'clock Mr. Gatebell arrived at the lawyer's office and began to look over Adams' ledger. Adams then went down into the bank and killed himself. He leaves a widow, and a daughter and two sons. Adams held a prominent position in the community socially and financially. Court Records Bust be Accepted. WASHINGTON, Aug. 24.-The Solicitor of the Treasury bas given an opinion that disbursing officers, in the payment of interest on United States coupon bonds, must accept court records of administration. execution. etc., when they are verified according to the law of the State where the records are filed. The Civil Service Examinations. Judge Thoman, of the Civil Service Commission. will conduct examina. tions for Department service at Helena on September 15th Portland, on September 19th Seattle, en September 22d. and San Francisco, Ostober 1st. Baseball. PITTSBURG, August 24.-Pittsburg, 9; Lonisville, 5. New YORK, August 24.-New York, 10; Providence, 5. PHILADELPHIA, August 24.-Athletic, 13; Baltimore, 2. NEW York, August 24.-Brooklyns 7, Metropolitans 3. PHILADELPHIA, August 24.-Bostons 2, Philadeiphias 0.

6. September 29, 1885 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, September 29, 1885

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THE FRAMINGHAM SAVINGS Bank Investigation Discloses a Deficiency of $228,000, and Not Yet Finished. BOSTON, Sept. 28. Savings Bank Commissioner Carry today made application before Justice Chas. Allen for a temporary injunction in case of the Framingham Savings Bank. Order of notice issued returnable Oct. 27 next, for the officers of the bank to show cause why this injunction should not issue. It is stated that recent developments show there will probably be a deficiency of about $228,000; that the examination of the deposit books bring to light many financial irregularities, and tends to show that the late treasurer of the bank, Coleman Adams, was a defaulter and had approprited the funds of the bank. The appropriation was made by not giving full credit in the deposit books for the rull amount deposited, and in falsifying dividend accounts. Its thought by placing the bank under injunetion it may be able to tide over the present financial embarrassment. The amount due depositors is about $150,000. He states that the $228,000 deficit referred to has come from the failure of Cashier Adams to enter part of the dividends declared in the deposit account of his ledger, and the rest of it consists of deposits received which have not been accounted for, and also of drafts which have been entered as paid in excess of what actually had been paid. These leaks extend over a period from 1879 until a recent date. The investigation is far from complete. and no final statement can be expected for several weeks. A Framingham special says the bank officials refuse to say anything in relation to the matter, as the affairs of the bank are in the hands of the commissioner, and any statement of its condition should come from him. Such was the confidence reposed in late Treasurer Adams that many find it difficult to believe that the experts revelations can be true. The mystery is how he has disposed of the large sum of money. He was never known to engage in stock speculations, and the only theory is it may have been used to support losing investments, or to help outside parties. The bank's surplus was estimated at about $100,000 and the treasurer's bond was $20,000. The suspension of the bank will entail much suffering upon many of the depositors who are poor people whose all was in the hands of this bank. At the time of Adam's suspension the directors assured the depositors that the bank was perfectly sound, and some feeling is manifested against them now on this account. It should be said, however, that none of the officers, as far as known, withdrew their own deposits at that time.

7. September 29, 1885 New-York Tribune New York, NY
Article from New-York Tribune, September 29, 1885

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and left Quebec on September 18. She has 500 officers and men and carries twenty-seven guns. COLEMAN S. ADAMS 4 DEFAULTER. HIS SUICIDE DUE TO THE KNOWLEDGE OF A HEAVY DEFICIT. BOSTON, Sept. 28 (Special).-A few weeks ago a sensation was created in the neighboring town of Framingbam by the compulsory resignation a for who of S. Coleman Adams, of treasurer been had time long the savings bank. Mr. Adams was held in the highest estimation by the people of that village and surrounding country. He had been trusted implicitly for years and the depositors were unwilling to believe that he was guilty of wrong-doing. The first charge against him was simply irregular financial management, but the books were in such a condition that he must resign, pending an investigation. A few days later, while the bank commissioner was overhauling the books, Mr. Adams suddenly took his life in the bank. The people of the town did not even then lose faith in his rectitude, but said that he was highly sensitive and that his nerves had received a shock, and Commissioner Gatchell was censured for his hasty course. Meanwhile the investigation was continued and a feeling of security pervaded the depositors. To-day a bombshell was dropped in the midst of them. The investigation had progressed sufficiently to show that Mr. Adams was a defaulter to the extent of $228,000. This afternoon an application was made by the bank examiners to the Supreme Court for an injunction to restrain the bank from further carrying on business until its exact condition is ascertained, and the matter will be brought to the attention of Judge Charles Allen in the equity session to-morrow. The injunction was asked for on the statement that a deficit of $228,000 was found in the deposit account, the deposits being that much in excess of what Treasurer Adams stated on the day of the examination. That deficit was brought about by omitting to credit dividends declared to the depositors and by altering the footings and omitting to carry forward items of deposit. Bank Commissioner Gatchell made a careful analysis of the treasurer's cash books, the only documents in the form of cash books which could be found, and in those was discovered the deficit. In the draft books errors were found on both sides to the debit and credit of the treasurer, but the former were small in comparison. Drafts were carried forward as, twice paid, and footings larger than the proper amount were also carried forward, In the depo-itors' books there was a large deficit, entire pages not being carried forward, the footings of which ranged even up to $10,000. It is possible that that the shortage may reach a larger amount when the bank depositors' books are fully examined.

8. September 30, 1885 Savannah Morning News Savannah, GA
Article from Savannah Morning News, September 30, 1885

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FAILURES OF THE YEAR. Dun & Co.'s Good Showing for the Three Quarters. NEW YORK, Sept. 29. - The well-known banking and brokerage house of Soutter & Co. has made an assignment to Morris S. Miller, with preferences amounting to $69,000. W. K. Soutter also makes a personal assignment. The general impression is that the assignment grows out of a legal contest over the will of Mr. Sout. ter's father, but this is denied at the office of the firm, where it is stated that the firm has no outstanding contracts on exchange. A statement has been prepared and given for publication. It is probable that the suspension will be only temporary. THE FIRM'S STATEMENT. The following is the statement given out by Soutter & Co.: "Our assignment is simply caused by the failure of our customers to deposit margins as called. Our business has been a large one, and the amount due us in the aggregate is large. When collected we shall have a large surplus. We have no unsettled accounts and none of our stocks will be closed under the rules. We shall undoubtedly resume." THE FRAMINGHAM MUDDLE. BOSTON, Sept. 29.-The Supreme Judicial Court has ordered that an injunction be issued restraining the Framingham savings bank from further proceeding with the business of the corporation, except so far as may be necessary to maintain and continue the organization of the savings bank, and collecting and receiving money due until after a full hearing has been given. The question of a permanent injunction will be considered Tuesday, Oct. 27. THE RECORD FOR 1885. The mercantile failures in the United States for the quarter ending Sept. 30, being the third quarter of the year, as reported by R.G. Dun & Co.'s mercantile agency, number 2,173, as against 2,346 in the corresponding quarter of 1884. The liabilities show a remarkable decline, amounting during the last quarter to $23,800,000. as compared with $56,600,000 in the third quarter of 1884. For the nine months ending with September the failures show a slight increase in number over those of last year. but a very marked decline in the liabilities. For the nine months of 1885 the failures toot in number 8,167, as compared with 7.856 for the first nine months of 1884 increase of 311. The liabilities. however, for the first nine months of 1885 were only $97,000,000, as compared with $181.000,000 of liabilities in the first nine months of 1884. THE RECORD IN CANADA. The failures throughout the dominion of Canada, for the quarter ending Sept. 30, amount in number to 254, as compared with 227 for the corresponding quarter of 1884. The liabilities, however, show a marked decline. For the third quarter of 1885 the liabilities are $1,911,000, while the liabilities for the corresponding quarter in 1884 were $4,112,000. For the first nine months of 1885 the total failures number 944, as compared with 979 for the first nine months in 1884, but the liabilities show a remarkable decline, amounting for the first niae months of 1885 to a trifle over $7,000,000, while in 1884 for the first nine months the liabilities amounted to $14,855,000. A GLASS COMPANY BROKEN. LOUISVILLE, KY., Sept. 29.-Tee Jeffersignment sonville Plate to-day, Glass and Works 150 employes made an were asnotified that the works would be shut down immediately. The liabilities are said to be largely in excess of the assets. The failure is said to be due to inability to compete with manufacturers who use gas instead of coal for fuel for manufaoturing purposes.

9. September 30, 1885 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, September 30, 1885

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GENERAL NEWS. A Lowell despatch says that ex-Gov. Talbot is improving and his recovery is now assured. Orange Washington, his wife, known as Gertie Vance, Patsey Gibson and Lucinda Boddy, servants in the family of M. B. Dunham, editor of the Texas Court Reporter, were all killed Monday night except one woman at Austin, Texas, while asleep by a negro named Doc Wood, who was armed with an axe. He has been captured. Monday night four negroes, Jerry Finch, his wife, Lee, Lison and John Pottishill were lynched one mile from Pittsboro, Chatham county, N. C. They were |taken from the jail and their bodies were found this morning suspended to a tree. This is the sequel to a triple murder of the Finch family last July, and of the murder of the Gunter family near the same spot. The supreme judicial court in Boston has ordered that an injunction be issued restraining the Framingham savings bank from further proceedings with the business of the corporation except so far as may be necessary to maintain and continue the organization of the savings bank and the collecting and receiving of money due until after a full hearing. The question of a permanent injunction will be considered Tuesday, Oct. 27th.

10. October 2, 1885 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, October 2, 1885

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A BROKEN AVINGS BANK, Investigation Discloses Crookedness and Depositors Lose $228,000. BOSTON, Sept. 28.-The Savings bank commissioner to-day made an application before Charles Allen for a temporary injunction in the case of the Framingham Savings bank. It is stated that recent developments show that there will probably be a deficit of about $228,000 and that there have been many financial errors extending over the period between 1879 to the present. The question of a receiver will be heard October 27.