8098. First National Bank (Grafton, MA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
188
Charter Number
188
Start Date
April 20, 1892
Location
Grafton, Massachusetts (42.207, -71.686)

Metadata

Model
gpt-5-mini
Short Digest
11deab07

Response Measures

None

Description

Bank was closed by the National Bank Examiner and placed in charge of the examiner/receiver for liquidation. Articles consistently cite investments in questionable/poor business paper and allegations against President C. T. Linley. No run is described in the sources provided; a receiver/examiner was appointed, indicating permanent closure.

Events (6)

1. January 7, 1864 Chartered
Source
historical_nic
2. April 20, 1892 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Investments in questionable/poor business paper and alleged mismanagement by President C. T. Linley; shareholders had largely sold out and the bank was effectively insolvent or being liquidated.
Newspaper Excerpt
National Bank Examiner Jeremiah Getchell visited the town of Grafton this afternoon, and affixed on the door of the First National Bank a notice declaring the institution closed and in charge of himself as bank examiner.
Source
newspapers
3. April 21, 1892 Other
Newspaper Excerpt
The bank has a capital of $100,000 and a line of deposits of only $3,000 or $4,000. The cause of the suspension is supposed in Grafton to be due to investments in business paper which were not acceptable to the bank examiner. The bank is in the hands of a receiver / bank examiner affixed notice declaring the institution closed and in charge of himself as bank examiner.
Source
newspapers
4. April 21, 1892 Receivership
Newspaper Excerpt
IN HANDS OF RECEIVER. Grafton, Mass., First National Bank Has Its Doors Closed to Business. National Bank Examiner Jeremiah Getchell ... affixed on the door ... declaring the institution closed and in charge of himself as bank examiner.
Source
newspapers
5. April 26, 1892 Other
Newspaper Excerpt
President C. T. Linley of the First National Bank of Grafton, which suspended payments last week, was arraigned ... bail being fixed at $15,000 (charged with appropriating $15,000 of the bank's money).
Source
newspapers
6. June 21, 1892 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (8)

Article from Daily Kennebec Journal, April 21, 1892

Click image to open full size in new tab

Article Text

IN HANDS OF RECEIVER. Grafton. Mass.. First National Bank Has Its Doors Closed to Business. WORD ESTER, Mass., April 20.-National Bank Examiner Jeremiah Getchell visited the town of Grafton this afternoon. and affixed on the door of the First National Bank a notice declaring the institution closed and in charge of himself as bank examiner. The bank has a capital of $100.000. with a line of deposits of 83000 or $4000. None of the local business men had dealings with it. The local stockholders sold out. almost to a man. about two years ago and since then then bank has been under the control of Chester Linley, formerly bank cashier in Spencer, lately of Boston. The cause of suspension is supposed in Grafton to be due to investments in business paper not acceptable to the bank examiner. Some say it may have been cansed by a desire on the part of the owners to liquidate.


Article from Wheeling Register, April 22, 1892

Click image to open full size in new tab

Article Text

Another Bank Closed. WORCESTER, MASS., April 31.-National Bank Examiner Getchell visited the town of Grafton yesterday and affixed on the door of the First National Bank a notice declaring the institution closed and in charge of himself as bank examiner. The hank has a capital of $100,000 and a line of deposits of only $3,000 or $4,000. The cause of the suspension is supposed in Grafton to be due to investments in poor paper.


Article from Pittsburg Dispatch, April 22, 1892

Click image to open full size in new tab

Article Text

BUSINESS BREVITIES. NEW YORK State canais will be opened May 1. CINCINNATI carpenters and their employers have concluded a treaty of peace. FIFTEEN hundred quarrymen at Stony Creek, Conn., threaten to strike for higher wages. THE depositors of the suspended Muncy (Pa.) National Bank have at last been paid in full. BRITISH copper companies have declined the proposal of American delegates to curtail the product. THE burned-out Omaha Hardware Company has applied for a receiver. Estimated assets, $200,000; debts, $225,000. THE Union silk mill at Catasauqua closed yesterday because 51 weavers struck for higher wages; 170 employes are affected. A CHARTER has been taken out for the First United States Excelsior Building Association of Greensburg, with a capital of $500,000. THE First NationalBank of Grafton, Mass, has been closed by the bank examiner. The cause of this action is said to be investments in questionable paper. The bank's capital is $150,000, but it carries deposits of only $3,000 or $4,000.


Article from The Providence News, April 23, 1892

Click image to open full size in new tab

Article Text

LINLEY HAD THE CASH, But He Couldn't Manage the Bank at Grafton, Mass, ONLY FIFTEEN DEPOSITORS. The Young President Calls it a Case of Dry Rot-He Says He Has Been Trying to Liquidate for Some Time-The Downs Case Begun, GRAFTON, Mass., April 23.-C. T. LinSey, president of Grafton's First National Lank, which is in the hands of a receiver, lives down on Commonwealth avenue, Boston. Before he went to take charge of the Grafton Bank he was cashier of the national bank at Spencer in Worcester county. He was thought to be and was one of the brightest young men that the Worcester County town ever harbored within its borders. He was looked upon as a Napoleon of finance and put a great deal of ginger into the bank. He made money, he had married money, and he thought the world was waiting for him. After his first outside speculations proved successful, he dropped the bank cashiership at Spencer and looking around alighted upon the Grafton bank as a promising field. He got a number of Spencer people to help him and then he took hold of the bank, whose stock he purchased at $122 a share. Of the $100,000 of capital stock as much as $70,000 or 7000 shares is owned in Spencer or by Spencer people. The list of directors included Emerson Stone, a Spencer man, and Linley himself, while "Judge" Hill of Spencer did a good deal of the legal work attaching to the transfer. Some of the paper of the Grafton Bank is thought to be practically worthless, and various accusations are made against Linley in his conduct of the bank. Only three directors have acted-two of them being simply figure heads-and this is of course contrary to law. Mr. Linley himself says that the directors have been trying to liquidate for some time, as the bank at Grafton did not pay. He thinks the shareholders will get par at least for the $122 a share they put in, and perhaps more. "Outside the deposits" said he, "there are a few notes which have been rediscounted, amounting to $25,000, for which the bank will be liable until they become due, but these notes are of such a character that there cannot possibly be any loss to the bank on them., "The comptrolling department was invited by myself to go out to Grafton and take the action which has been taken." "All the deposits," continued Mr. Linley, "will be paid off within 10 days. The depositors number about 15." "I have held a controlling interest in the bank for three years past, being owner of seven-tenths of the stock, and for the past year I was convinced it was a case of dry rot, and wished to close up the business." A curious illustration of the reckless way in which the wrecked bank has been run is found in the declaration of a semiannual dividend of 21-2 per cent. payable April 10.


Article from Pawtucket Tribune, April 26, 1892

Click image to open full size in new tab

Article Text

Linley Held in $15,000. BOSTON, April 26.-President C. T. Linley of the First National Bank of Grafton, which suspended payments last week, was arraigned before Commissioner Hallett yesterday, but the case was continued till May 6, the bail being fixed at $15,000. Erastus Jones of Spencer furnished bonds.


Article from The Enterprise, April 27, 1892

Click image to open full size in new tab

Article Text

-TIRT &a 1JUU AIDRO SBM usur euo 010 ing walls. Others were more or less injured. THE most interesting wedding of the year took place on the 21st in New York City at the home of Mme. De Barrios, widow of the late president of Guatemala. Mme. De Barrios was the bride and Senor De Roda, of Spain, the groom. The bride is worth $10,000,000. AT St. Cloud, Minn., on the 21st thieves stole a mail pouch containing $50,000 in checks, drafts and other papersfrom the wagon which conveys the mail to passenger train No. 8, eastbound, on the Northern Pacific road. The funds were principally remittances to eastern banks. JAMES A. PALMER, manufacturer of gas fixtures, was arrested at New York on the 21st charged with robbing Tiffany & Co. of $50,000 by means of forged and fraudulent bills. Palmer has confessed his guilt. THE breach of promise suit for $50,000, instituted by Miss Georgine Wolters against her faithless lover, Louis Schultz, the inventor. whose wealth estimated at $250,000. was concluded New York on the 21st by a jury verdict awarding $25,000, and $1,000 extra counsel fees for the plaintiff. THE First National bank of Grafton, Mass., was closed by National Bank Examiner Jeremiah Getchel on the 21st. The bank has a capital of $100,000 and a line of deposits of only $3,000 or $4,000. The cause of the suspension is supposed to be due to investments in business paper which were not acceptable to the bank examiner. BRIEN, the bunco steerer, who being taken to the penitentiary from Albany, N. Y., to serve ten years swindling a citizen of Albany out of $10,000, escaped from officers on the way. FIRE broke out on the 21st in machinery hall of the Georgia Technological school at Atlanta, and the building burned to the ground. Loss, $50,000; insured for $30.000. SHIPPING interests at Chicago are fering on account of the 'longshoremen's strike, which seems as far settlement as ever. Fights between the strikers and non-union men are of daily occurrence, and the strikers are growing more and more desperate. AT Sioux City, Ia., Judge Foley deci led the test case involving the of the Rapid Transit Company to street cars on Sunday. The judge holds that street cars are a necessity. The decision disposesof the 500 arrests of rapid transit employes and will stop the sade against the street cars. THE proposition to open the Colville Indian reservation in Washington created a great deal of excitement Spokane. A rush will now be made for the reservation and it is likely that 2,000 claims will be filed in a few days. It is held by good lawyers that the dians are merely tenants on the vation by suffrance and that the whites have a perfect right to the land. THREE lives were lost and three fatally injured on the 22d at Jonesboro Tenn. Repairs were being made in the county court house and the walls of the vaults had just been completed. These walls reached to the top of the building, forty feet in height. The temporary arches were taken out, and the walls collapsed. Five brickmasons were work under them and all were buried under a great quantity of brick mortar. R. T. GUPTILL, a prominent glass manufacturer, claims to have discovered the lost art of casting glass tubes, which is known to have been practiced by the Egyptians. He has erected factory at Pendleton, Ind., and has his first cast with success. The tubes are suitable for sewer, gas water mains and are joined by a glass cement. THE business failures during the week ended April 22 number for the United States 178, Canada 23, total 201, as pared with 226 the previous week and 247 for the corresponding week of year. ONE of the most important conces sions yet granted by the directors of the world's fair was made on the 22d to the Lehigh Valley Transportation Company The contract awards a monopoly of steamboat business to the world's between all points on Lake Michigan from Kenosha, Wis., on the north, Michigan City, Ind., on the south, cluding Chicago. The company will begin business with enough vessels carry 75,000 passengers a day. Two brothers, George and Henry Kelly, of Salem, O., have fallen heirs property valued at $40,000,000 in the high Valley coal regions. H. H. ANDERSON, who is wanted Lincoln, Neb., to answer the charge forgeries to the amount of $40,000, been arrested at Chester, Pa. ON the 22d three fishermen were found in their cabin at Hope Creek, suffocated by coal gas. When taken out they in a dying condition. The men all sided at Hancock Bridge, six miles T N Salem By the collision of two trains on Baltimore & Ohiorailroad near Salisbury Junction, Pa., on the 22d eight grants were injured, three of them


Article from The Russellville Democrat, April 28, 1892

Click image to open full size in new tab

Article Text

Bank Closed. WORCESTER, MASS., April 21.National Bank Examiner Jeremiah Getchel visited the town of Grafton yesterday and affixed on the door of the First National Bank a notice, declaring the institution closed and in charge of himself as bank examiner. The bank has a capital of $100,000, and the line of deposites was only $3000 or $4000. The cause of the suspension is supposed in Grafton to be due to investments in business paper which were not acceptable to the bank examiner.


Article from Waterbury Evening Democrat, May 14, 1892

Click image to open full size in new tab

Article Text

# Held for the Grand Jury. BOSTON, May 14.-President Linley of the First National bank of Grafton, which recently suspended payment, when arraigned on the charge of appropriating $15,000 of the bank's money, was ordered by the Commissioner to be held in $15,000 for the Circuit Court grand jury