Rockland Savings Bank - Rockland, MA

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: July 1, 1886
Location: Rockland, Massachusetts (42.131, -70.916)

Metadata

Model: gpt-5-mini
Short Digest: 442b8d59

Response Measures

Accommodated withdrawals, Books examined

Description

Article (New-York Tribune, 1886-07-02) reports arrest of president Richmond J. Lane for misappropriation; a small run occurred at Rockland Savings Bank but all demands were promptly met and the bank did not suspend. Abington Savings Bank did suspend, but Rockland only experienced withdrawals.

Events (1)

1. July 1, 1886 Run

Cause: Bank Specific Adverse Info
Cause Details: Public announcement of alleged misappropriation by president Richmond J. Lane; arrest and testimony that funds were fraudulently obtained.
Measures: Cashier paid depositors; all demands were promptly met; no suspension for Rockland.
Newspaper Excerpt: There is, however, a small run on the Abington and Rockland savings banks, chiefly by women. All demands were promptly met.
Source: newspapers

Newspaper Articles (1)

1. July 2, 1886 New-York Tribune New York, NY

Article from New-York Tribune, July 2, 1886

Click image to open full size in new tab

Article Text

THE ARREST OF RICHMOND J. LANE. EXTENT OF HIS ALLEGED DEFALCATIONS-MELD TO BAIL-THE BANKS INTERESTED. BOSTON, July 1 (Special).--The announcement this morning of the misappropriation of funds by Richmond J. Lane, president of the Abington National Bankand the Rockland Savings Bank, has created a big sensation, especially in Boston and Plymouth County. Mr. Lane was regarded as a model man in his own town and county. Men and women of small means who wished to invest their savings were accustomed iq defer to Mr. Lane's judgment, and in not a few cases money was intrusted to his care. Lane was much surprised when arrested at Portland last night. He went to Portland. it is alleged. to investigate the leather board euterprise from which he still hoped to realize something. He arrived in Boston this morning in charge of Pinkerton's detectives, and on the opening of the United States Commissioners' Court was arraigned before Commissioner Hallett. The Goverument was represented by United States DistrictAttorney Stearns, the defendant by B. F. Brooks, Asa French appeared for the Abington National Bank. The question to be considered was as to the amount of bail, and Jeremiah Gatehell, National bank examiner, was called to testify on that point. He spoke of the examination which he was making into the condition of the bank and said that the complaint against Mr. Lane had been brought at this time because his departure from Boston was regarded as a direct indtcation of his intention to leave the country. The examination of the bank was not completed, but the examiner was of the opinion that the funds fraudulently obtained would amount to $135,000. Of this sum $40,000 is represented by notes in different names to cover drafts on the redemption agent of the bank, and about $9,000 represents overdrafts. The District-Attorney asked that bail be fixed at $75,000. The Commissioner decided to Hx the bail at $50,000, and Mr. Lane's two brothers, Everett and Alonzo, became his bondsmen in the sum required. At the office of the Savings Bank Commissioners this afternoon It was learned that Mr. Curry, the member of the Commission who visits the savings banks in the eastern part of the State had made a thorough examination of the affairs of the Abington Savings Bank on May 9, and It is understood that no found nothing to prove unsoundness, eiteer in the deposits or the investments made by that institution. The extent to which the Rockland Savings Bank is in. volved by the action of Mr. Lane as its president is still in doubt, but it was clear that Commissioner Curry did not find ground for warning at the time of his visit in the middle of May. A8 to other savings banks in Norfoik and Plymouth Counties. which presumably were most associated with the National bank, the state ments of the commissioners show that there was little tendency to invest in its stock. There 18, however, a a large investment in the 0880 of the Hingham Institution for Savings, which holds at par $1,500 in this stock, rated in value at $1,800. President Lane to-day dented emphatically the charges of dishonesty, and said the most that the bank would 1040 was $60,000. This amount he had expended with the knowledge and consent of the directors. If he had not been interfered with, he could within a few weeks have satisfactorily adjusted the whole affair without loss to the bank. He refused to talk about the trust funds held by him in the Washtugton Reed estate The news of President Lane's disgrace spread rapidly through the town of Abington this morning, and before the hour of opening the National Bank, a crowd of depositors had gathered in the square opposite the bullding. As soon as the bank was opened there was a rush and Cashier Farrar was kept busy paying the depositors. Farmers turned from the cashier's window with both hands full of gold coin and left the building with a puzzied air, as if they did not know what to do with their money now that it was once more in their possession. An illustration of the confidence which many realdenta of the town entertained this morning in Lane's rectitude was shown by the fact that several large manufacturers who were obliged to draw from their deposits to pay their help did not take out more than was necessary to meet present demands. They still withheld their consure of Lane until they could hear his side of the case, out at about 10:30 a. III., when the bank stopped payment for lack 01 runds. those who were left in the background, unable to get their money. began to take a different view ot the case. It was announced that payment would be resumed later, as soon as funds were received from Boston, but the funds were not forthcoming and confidence in Mr. Lane fell. The bank will not reopen at present. There was a email run on the Abing. ton and Rockland savings banks, chiefly by women. All demands were promptly met.