8129. Lancaster Savings Bank (Lancaster, MA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
January 3, 1886
Location
Lancaster, Massachusetts (42.456, -71.673)

Metadata

Model
gpt-5-mini
Short Digest
1c627a27

Response Measures

None

Description

The Lancaster Savings Bank was already in receivership and being wound up; its final closing/dividend distribution was delayed by the absconding and alleged embezzlement by W. H. McNeil, president of the Lancaster National Bank and one of the savings bank's receivers. There is no report of a depositor run on the savings bank in these articles — the problem is bank-specific malfeasance and receivership causing delay in closing. Dates derived from January–February 1886 newspaper reports.

Events (2)
1. January 3, 1886 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Absconding of W. H. McNeil (a receiver of the savings bank) after alleged misappropriation of funds deposited with Lancaster National Bank, delaying final closing/dividends.
Newspaper Excerpt
The closing of the Lancaster Bank is delayed by the absconding of President McNeil of the Lancaster National Bank, who was a receiver of the savings bank.
Source
newspapers
2. * Receivership
Newspaper Excerpt
Mr. McNeil was one of the three receivers of the Lancaster savings bank. The affairs of that institution were about ready to be settled up, and it is thought that the near approach to the time when a final dividend was to be paid the depositors compelled McNeil to go ... because he had tangled up the receiver's deposits with his schemes ... .
Source
newspapers

Newspaper Articles (4)
1. January 3, 1886 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, January 3, 1886

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Article Text

Another Crooked Banker. CLINTON, Mass., January 1.-Lancaster National Bank closed its doors last night, after an examination of the books by the directors. President W. H. McNeil is missing, and has not been heard from since Tuesday, when he was in Lowell, whence he started ostensibly for Boston. He is charged with having used the bank's money for speculative purposes in which he was interested, and which do not furnish sufficient security. The directors, Messrs. Batehelder, Hosmer, Gardner, Russell and Page, together with Bank Examiner Mitchell, who came to Olinton to-day, have been hard at work on the books all day. The directors seem depressed and are exceedingly reticent, Cashier Farren Forester expresses himself very plainly and his condemnation of President McNeil's financiering is unmistakable. He says the latter, since his elevation to the presidency of the bank last January, has invested the bank's funds, according to his own inclinations. His operations have at times been far from straight. At the present the bank has a surplus of $3,500. The bank holds paper of the Low Cattle Company, of Wyoming, to the amount of $30,000. So far as can be learned the deposits amount to over $200,000, and according to statements from a quarter which is supposed to be authentic, President McNiel has appropriated this amount. The belief prevails that the examination of the books of the bank will develop new and startling features. McNeil has not been heard from since Tuesday last. It is said that a resident of Clinton saw him in Nebraska, N. H., last Wednesday. Nothing further regarding the real condition of the banks' finances will le known for a day or two, and possibly not then. One of the directors of the Lancaster National Bank, at Canton. is authority for the statement that McNeil, the missing president, was at the bank on Monday night, when he took from the vaults $600 in bank notes and $1,000 in gold, and a large amount of stock in the Ruthland (Vt.) Marble Company. supposed to be about $30,000 worth. There was in the vault considerable money belonging to the defunct Lancaster Savings Bank, of which McNiel was one the receivers, a good portion of which is said to be missing.

2. January 6, 1886 New-York Tribune New York, NY
Article from New-York Tribune, January 6, 1886

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Article Text

PRESIDENT M'NEIL STILL IN HIDING. BOSTON, Jan. 5 (Special).-No news has been received of the absconding bank president, W. H. McNeil, of Clinton. Depositors in the Lancaster Savings Bank have decided to bring suit against the receivers of the bank for their proportion of the funds of that bank deposited with the Lancaster National Bank. They have employed as counsel General B. F. Butler, and a petition has been filed with the Probate Court of Worcester County, praying that W. H. McNeil be removed as administrator of the estate of Rufus Childs, of Lancaster.

3. January 8, 1886 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, January 8, 1886

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Article Text

PRESIDENT M'NEIL FLED. Decamped with $7000 in Gold, and Some Rutland Marble Stock. CLINTON, Mass., Jan. 3.-There is now but little doubt that W. H. McNeil, president of the Lancaster National Bank, is a defaulter. An honored man, universally regarded as above reproach. has gone off, and so has a goodly amount of other people's money. The investment committee of one of the Lowell banks called upon him the first of the week relative to some of its money, but he talked in such a suave manner and made affairs appear in so safe a light that all suspicion was swept aside. Early Tuesday morning he took a train for Boston. What he did there is not known. His arrival here was not long after the bank closed and he went to that institution soon after Cashier Forrester had gone to his home. That official had, during the day, been looking into the bank's affairs, and left with the intention of returning later to prosecute his labors, and in view of this intent he did not put on the time-lock. The theory is that President McNeil profited by the nonusage of that safeguard and secured the money. Just how much he is alleged to to have secured is not given out, but it is authoritatively affirmed that he took $6000 in bills, $1000 in gold, and about $35,000 worth of stock in a marble quarry at Rutland, Vermont. Then he went out unseen, reached the station, and from there was driven to Lancaster by a hackman. Mr. McNeil was accompanied by a person unknown to the driver of the hack, but possibly known to the directors, who claim to be able to guess quite well upon the identity of the stranger. The companion of the fleeing bank president went to the latter's house and got his bag, which was handed to him for that gentleman, who did not leave the team. He then took a hurried drive to Fitchburg, from which point he went no one knows just where. While waiting at the station in that city he was accosted by an intimate acquaintaince, but he ignored his friend. Since that moment he has not been heard from. Mr. McNeil was one of the three receivers of the Lancaster Savings bank. The affairs of that institution were about ready to be settled up, and it is thought that the near approach to the time when a final dividend was to be paid the depositors compelled McNeil to go by a fast express, as he had tangled up the receiver's deposits with his schemes in such a manner that they could not secure their funds and close up the business of the bank, SO long partially defunct.

4. February 18, 1886 New-York Tribune New York, NY
Article from New-York Tribune, February 18, 1886

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Article Text

MASSACHUSETTS SAVINGS BANKS. THEIR PROSPEROUS CONDITION-NEW LAWS SUGGESTED BY THE COMMISSIONERS. BOSTON. Feb. 17 (Special).--The Savings Bank Commissioners have pablished their annual report. It shows that there are 171 savings banks, or three more than there were last year, in Massachusetts. Five new banks were authorized by the last Legislature, of which the Somerville, North Middlesex, of Ayer, and Peoples'. of Holyoke, have begun business, while the Reading and the Belmont have not begun business. The Emigrant Savings Bank has been wound up, paying 991g per cent. The Groveland Savings Bank is closing up and the depositors will receive a dividend above thefr principal. The bank is being closed because it is not needed. The Scituate Savings Bank has paid a final dividend, making a total of 85 per cent. The receivers of the Barnstable and Needham banks have deposited the books and papers with the Commissioners, as required. The closing of the Lancaster Bank is delayed by the absconding of President McNeil of the Lancaster National Bank, who WAS a receiver of the savings bank. The closing up of the Reading Bank is delayed by the slow progress in terminating suits to recover securities. The Framingham bank, the treasurer of which committed Auicide a few months age when his wrong-doing had been discovered, will probably not show a deficiency, when it is finally settled, the property of the treasurer, his bondsmen and his son having been surrendered to the bank. The Commissioners recommend that the deposits by a savings bank in any one National bank or loan and trust company be limited to 5 per cent of its deposita and 25 per cent of the capital stock of the National bank or trust company. The Commissioners also recommend an amendment to the lav so that personal loans cannot run over a year, also that the bonds of all treasurers should run for a uniform time, not to exceed five years. It 18 suggested that all savings banks verity their accounts by a trial balance of individ ual accounts and total deposits. The latter could then by examining a portion of the books of the depositors jud accuratoly the reliability of the accounts. The receipts of the savings banks for sixty-nine years have been $1,275,000,000, of which about $1,882,000, or threetweatieths of one per cent has been lost by failures. The co-operative banks number thirty, against twentysix in 1884, and they are growing rapidly and are prosperous.