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Filed by Massachusetts Bank Commissioner Against Finance Com. Members of Greenfield Savings Bank. Also Causes $350,000 Attachment --Alleges Neglect of Law. Greenfield, Mass, March 24.-Claiming that the respondents, all of whom were members of the finance committee of the Greenfield Savings Bank at the time of its suspension in February. 1909 were guilty of neglect to perform their duties properly, Arthur B. Chapin. savings bank commissioner of Massachusetts, filed a bill of complaint in the supreme court todav and caused an attachment to be made of $350.000 against Robert Abercrombie, Levi .1. Gum, Charles R. Lowell, William A. Borbes and S. B Slate. The bill is 11 voluminous document of about 50 typewritten pages and was filed by C. E. Choate Jr., a Boston attorney, in behalf of Bank Commissioner Chapin, who in turn represents the Greenfield Savings Bank The bill alleges that the respondents failed to observe the statutes and requirements of the banking laws relative to making loans. The bill also asks that the respondents be forced to repay to the bank the money which it is allleged the bank lost as a result of their official negligence. When the bank was enjoined from doing business in February, 1909 it had property valued at about $4,000,000. Since that time the sum of $288,000 nas been charged off as the lossess on poor loans made by the respondents of their predecessors. It is alleged that these losses will aggregate half a million dollars. The bill of complaint declares that Messrs. Abercrombie and Gunn received from George N. Rich of North Adams inducements and gifts offered by Rich for the purpose of getting an improper loan. The bill also states that this fact did not become known to the complainant until recently and that the Greenfield Savings Bank is not informed of the character and amount of such loans. According to the specifications in the bill of complaint the banks losses were sustained on loans made to North Adams pàrties. One specification alleges that a loan of $153,000 was made to the Berkshire Hotel of North Adams and that this property brought only $35,000 at a sale, causing a loss to the bank of $118,000. Some thirty or forty other unprofitable loans are cited in the bill. In conclusion the bill charges that the respondents not only exceeded the legal loan rate of 60 per cent. of the property value, but in some cases loaned more than the total value of the property. The present officials of the bank were not consulted by Mr. Chapin in the present litigation it is understood. The present board of officers expect that by July, 1912. the bank will resume business and pay dollar for dollar.
