Peoples Savings Bank (Pawcatuck, CT)

Episode Information

Episode UID
1115544591251
Episode Type
Run → Suspension → Closure
Bank Type
savings
Bank ID
111554459 hash
Start Date
March 29, 1904
Location
Pawcatuck, Connecticut (41.377, -71.834)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
de5ef6b250498fcf

Response Measures

None

Description

The bank initially suspended for 60 days to prevent a run due to poor securities, but during that period a defalcation was discovered, leading to permanent closure.

Events (4)
1. March 29, 1904 Run
Cause Details
Anticipated run due to poor quality of securities and general lack of confidence.
Measures
The bank invoked a 60-day suspension of payments to prevent the run.
Newspaper Excerpt
investigation showed that the bank's securities were not of the best and that it would be impossible to meet a heavy run by depositors
Source
newspapers
2. March 29, 1904 Suspension
Cause
Government Action
Cause Details
Ordered by Bank Commissioners to prevent a run and facilitate liquidation.
Newspaper Excerpt
The Savings Bank Commissioners of Rhode Island ordered the People's Savings Bank of Pawcatuck, in Stonington, to pay no deposits for sixty days.
Source
newspapers
3. May 27, 1904 Other
Newspaper Excerpt
Treasurer J. A. Brown of the People's Savings Bank Confesses He is a Defaulter to the Extent of $20,000-Says He Gave the Money to Friends and Refuses Positively to Reveal Their Identity. Norwich, May 27.-At the request of representatives of the People's Savings bank, of Paweatuck, Judge Gager, of the superior court, to-day granted an injunction restraining the bank from paying out any money. Dr. E. H. Knowles, president of the bank, gave evidence that the treasurer, J. A. Brown, who is very sick at his home in Westerly, R. I., had confessed that he was a defaulter to the extent of $20,000. Dr. Knowles said he called at Mr. Brown's house one day this week and that at that time the treasurer made the alleged confession. Mr. Brown said he had not wasted the money in speculation or in extravagant living, but had given it to friends. He refused positively to reveal the identity of those friends, sayin gthat he meant to take the secret to his grave. Dr. Knowles added that Mr. Brown admitted that he had not added up his deposit book for several years, and that he was afraid to do so. Bank Commissioner Noble favored the application for stopping payments at the bank. President Knowles and other bank representatives asked for the appointment of a receiver and suggested that H. B. Agard, of Westerly, an attorney, be appointed to that position. The state attorney thought that it would be better o appoint some person outside of Westerly as receiver, and Judge Gager agreed with him, saying that while there was no individual objection to Mr. Agard, a receiver resident in Westerly might be embarrassed by friendships. Judge Gager therefore decided to postpone the appointment of a receiver until next week. The bank had deposits on January 1, 1904, of $109,956.36, with a surplus of $3,900. The institution is located in Pawcatuck, which is just across the Pawcatuck river from Westerly, and most of the depositors are Westerly men, one man having a deposit of $20,000.
Source
newspapers
4. June 1, 1904* Receivership
Newspaper Excerpt
The receiver of the People's Savings bank of Pawcatuck has paid during the year a final dividend of 22 3-10 per cent.
Source
newspapers

Newspaper Articles (7)
1. April 1, 1904 Middlebury Register Middlebury, VT
Article from Middlebury Register, April 1, 1904

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Article Text

CONDENSED DISPATCHES. Notable Events of the Week Briefly Chronicled. Rear Admiral Robley D. Evans has sailed from Hongkong on his way home. The bubonic plague caused 40,527 deaths in India in the week ending March 19. The Vatican authorities ridicule the report of a threat against the life of Pope Pius X. A trolley car was burned up in a New York suburb before the firemen could reach it. It is reported in Alexandria, Egypt, that the khedive may visit the St. Louis exposition. The People's Savings bank of Pawcatuck, Conn., has suspended payment and will go into liquidation. The soldiers on Governors island, New York, may appeal to Secretary of War Taft because of severe discipline. Dowager Queen Margherita of Italy met Emperor William at sea off Gaeta and had lunch with him on his yacht, the Hohenzollern. The United States district court at St. Louis did not pass sentence upon Senator Burton of Kansas, convicted of having made improper use of his influence as a senator. Motion for arrest of judgment filed. Tuesday, March 29. The ameer of Afghanistan, reported poisoned, is alive and well at Kabul. Four workmen were killed in a tunnel near Brownsville, Pa., by a dynamite explosion. The Smoot case will reopen April 12 at Washington, with Mormon church officials as witnesses. The Passion play was given in Chicago for the first time by members of the Roman Catholic church. The Macedonian situation is better, and the sultan is believed to be about to accept Austro-Russian reforms. Governor Murphy has signed the child labor bill, which passed both houses of the New Jersey legislature. Charles M. Schwab at New York swore off an assessment of $100,000 on his personalty, but agreed to pay on $5,000. Parker Dexter, aged eleven, mysteriously shot at his home. Randolph, Mass., died without regaining consciousness. The Jones & Laughlin Steel company has been enjoined from SO operating its Pittsburg plant as to injure surrounding property by ore dust. The steamer Alliance, which has arrived at Marshfield, Ore., reports picking up a large boat belonging to the British ship La Morna of Greenock which is supposed to have foundered during a recent storm. Bankers and business men of Baltimore control a company incorporated in Massachusetts for the unique pur pose of furnishing classic and ragtime music to New England homes just as gas and water are supplied. The mu sic will be sent over wires by the tele phone method. The manuscript of Milton's "Para dise Lost," which was offered for sale at public auction in London, but which was withdrawn because the reserve d price of £5,000 was not offered, has now been sold to an American collect or whose name and the amount paid are not disclosed. The president has granted a ful ir pardon to Servillano Aquino, the brig adier general in the Philippine insur il gent army who was sentenced by : n military commission to a long term o of imprisonment for having ordered the summary execution of five America prisoners during the insurrection in the Philippines. at Monday, March 28. A cyclone in the island of Mauritiu has killed ninetri and dene

2. April 20, 1904 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, April 20, 1904

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Article Text

Savings Bank Closes. The Savings Bank Commissioners of Rhode Island ordered the People's Savings Bank of Pawcatuck, in Stonington, to pay no deposits for sixty days. The bank accordingly suspended payment and its affairs will be placed in liquidation.

3. May 28, 1904 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, May 28, 1904

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Article Text

PAWCATUCK BANK ENJOINED RESTRAINED FROM PAYING OUT ANY MONEY. Treasurer J. A. Brown of the People's Savings Bank Confesses He is a Defaulter to the Extent of $20,000-Says He Gave the Money to Friends and Refuses Positively to Reveal Their Identity. Norwich, May 27.-At the request of repr..esentatives of the People's Savings bank, of Paweatuck, Judge Gager, of the superior court, to-day granted an injunction restraining the bank from paying out any money. Dr. E. H. Knowles, president of the bank, gave evidence that the treasurer, J. A. Brown, who is very sick at his home in Westerly, R. I., had confessed that he was a defaulter to the extent of $20,000. Dr. Knowles said he called at Mr. Brown's house one day this week and that at that time the treasurer made the alleged confession. Mr. Brown said he had not wasted the money in speculation or in extravagant living, but had given it to friends. He refused positively to reveal the identity of those friends, sayin gthat he meant to take the secret to his grave. Dr. Knowles added that Mr. Brown admitted that he had not added up his deposit book for several years, and that he was afraid to do so. Bank Commissioner Noble favored the application for stopping payments at the bank. President Knowles and other bank representatives asked for the appointment of a receiver and suggested that H. B. Agard, of Westerly, an attorney, be appointed to that position. The state attorney thought that it would be better o appoint some person outside of Westerly as receiver, and Judge Gager agreed with him, saying that while there was no individual objection to Mr. Agard, a receiver resident in Westerly might be embarrassed by friendships. Judge Gager therefore decided to postpone the appointment of a receiver until next week. The bank had deposits on January 1, 1904, of $109,956.36, with a surplus of $3,900. The institution is located in Pawcatuck, which is just across the Pawcatuck river from Westerly, and most of the depositors are Westerly men, one man having a deposit of $20,000.

4. May 28, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, May 28, 1904

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Article Text

Westerly, R. I., May 27.-The Peoples Savings Bank of Paweatuck near this city suspended by order of the Savings Bank Commissioner of Connecticut on March 29, last. At that time an investigation showed that the bank's securities were not of the best and that it would be impossible to meet a heavy run by depositors. No shortage in the accounts of the treasurer has been found. Today's proceedings at Norwich followed the expiration of the 60 days period. The institution has deposits of slightly less than $100,000. The bank is the third savings institution in this vicinity which has gone out of business within three years.

5. May 28, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, May 28, 1904

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Article Text

BANK'S DIFFICULTIES. Injunction Served Against One at Pawcatuck, Conn. Norwich, Conn., May 27.-At a hearing in Chambers, today, before Judge Gager, of the superior court, an injunction was asked for to restrain the Peoples Savings Bank at Pawcatuck, Conn., from paying out any money. President E. H. Knowles, of the Bank appeared and testified that Treasurer J. A. Brown. who is now ill, had confessed to him that he was a defaulter to the extent of about $20,000 and asked that H. B. Gard of Westerly, R. I., be appointed receiver. Judge Gager is. sued the injunction. The matter of a receiver was taken under consideration.

6. May 28, 1904 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, May 28, 1904

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Article Text

NUTMEG GRATINGS. Interesting Items Boiled Down For the Benefit of our Busy Readers. At a hearing in chambers yesterday, before Judge Gager of the superior court, an injunction was asked for by Attorney Sweeney of Wetserly, R. I., to restrain the People's Savings bank of Pawcatuck from paying out any money. President EL H. Knowles of the bank appeared and testified that Treasurer J. A. Brown, who is now ill, had confessed to him that he was a defaulter to the extent of about $20,000. Mr Knowles asked that H. B. Agard of Westerly, R. I., be appointed receiver. Judge Gager issued the i injunction. The matter of a receiver was taken under consideration.

7. January 22, 1908 The Morning Journal-Courier New Haven, CT
Article from The Morning Journal-Courier, January 22, 1908

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Article Text

Upon the expiration of the restraining order, February 28. 1907. the Thompson Savings bank of Putnam commenced to pay its depositors in full and in July, 1907, deposits not called for were deposited with the treasurer of the state and the charter annulled, as provided by special act, approved March 19. 1907. There were 174d eposits uncalled for, amounting to $519.69. The restraining order to the Stonington Savings bank expires January 3. 1908. On December 28, 1907. a further order was issued. restraining payments to October 3. 1908. The Watertown Savings bank is still in the hands of Mrs. S. McLean Buckingham, receiver. The receiver of the People's Savings bank of Pawcatuck has paid during the year a final dividend of 22 3-10 per cent., which. with a previous dividend paid, makes a total of 72 3-10 per cent. The defalcation if the treasurer of New Britain was the Savings Bank excellency at the fully reported to ye rther examinatime it occurred. ar ers and investion by the commi have proved tigation by the