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Reports of Shortage Cause Heavy Withdrawals From Town Savings Institution County National Transfers $400,000 to vide Funds to Meet Demands of Depositors, Including Scores of Mill Workers; State Commissioner Says Bank Fundamentally Sound; Treasurer Was Asked to Resign WORCESTER, July 16 entire police force of the town of Millbury was called out today when depositors of the Millbury bank started a run on the institution as a result of reports of a shortage that follow an audit of the bank's accounts. Although state banking officials expressed behef the bank was sound, the heavy withdrawals caused transfer of $400,000 from the Worcester County National bank in Worcester to provide funds to meet the demands of the frightened depositors, who included scores of workers from the Millbury factories. An audit of dered last week by State Bank Commissioner Roy E. Hovey, the commissioner announced in Boston He pressed the opinion the bank fundamentally but admitted there were differences in the accounts and that he had that one office in the bank should be placed the hands someone other than the person occupied the position Although most of the withdrawals from the bank today in small amounts, one of reported and it was estimated that during the forenoon more than 300 accounts had been closed The finally came so great that Chief of Police Thomas Dolan for from state police Smith was treasurer of the bank and Fred W Moore, member the bank board investment said today, We asked Mr Smith resign, but he declined do He serving as treasurer of the bank now Clarence Evans of the County National bank, went to the Millbury bank assist the officials there in handling the situation The latest report of the bank's financial condition showed deposits $5,050,750 and at present, according officials, there surplus about $400 000 and securities of more than $1,000,000 in value
