gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8117e27a5699e7a3
Response Measures
None
Receivership Details
Depositor recovery rate
70.0%
Date receivership started
1895-04-23
Date receivership terminated
1906-10-01
OCC cause of failure
Excessive lending
Share of assets assessed as good
33.4%
Share of assets assessed as doubtful
37.6%
Share of assets assessed as worthless
29.0%
Description
Bank was closed by the national bank examiner and placed in receivership after discovery of forgery/embezzlement by the cashier.
Events (4)
1.June 20, 1878Chartered
Source
historical_nic
2.April 23, 1895Receivership
Source
historical_nic
3.April 23, 1895Receivership
Newspaper Excerpt
Comptroller Eckels has received a preliminary report ... and because of the statement Comptroller Eckels decided to place the bank in the hands of a permanent receiver.
Source
newspapers
4.April 23, 1895Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed after examiner found impaired capital and evidence of cashier Risley's forgery and embezzlement; books and assets deeply involved.
Newspaper Excerpt
Camptroller Eckels has closed up the First National Bank of Williamantic, Conn., and placed Bank Examiner Dooley in charge.
Source
newspapers
Newspaper Articles (22)
1.April 23, 1895The TimesRichmond, VA
Click image to open full size in new tab
Article Text
Telegraphic Brevities. Count Gorolamo Nazelli has been recognized by the State Department as acting Consul of Italy, at New Orleans, pending the appointment of a successor to Chevalier Ricarrdo Mottda. The Tacoma schooner Behring Sea, reported lost, with all on board. has been spoken by Captain Foote, of the steamer Mischief, safe in Clayo Que Sound, where she has been detained by rough weather for the past week. Camptroller Eckels has closed up the First National Bank of Williamantic, Conn., and placed Bank Examiner Dooley in charge. The capital of the bank is $100,000, and it has become impaired, it is said, through the carelessness or otherwise of the cashier, who recently died. In addition to the well-founded reports of contemplated extensive additions to the Laurel Lake and Tecumseh Mills, it has become known that a movement is on foot to establish a new corporation at Fall River for the manufacture of med-um-count cottons. At Walland Webber's saw-mill, at Saginaw. Mich., yesterday morning Frank J. Mavelle, head sawyer, fell upon a c:rcular saw, and was cut through the shoulder, across the spinal column and into the lungs. He lived an hour and a half in full consciousness. According to agreement, the increase in wages from 5 to 10 per cent. went in effect at the United States Cotton Company's big mill at Central Fall, R. I., yesterday, in all the departments. The mills are running at their full capacity, and 1,630 looms are now in daily operation.
2.April 23, 1895The Daily Morning Journal and CourierNew Haven, CT
Click image to open full size in new tab
Article Text
LATER-A SMALL PANIC, Great Excitement Prevailing-The Savings Bank Suspends. Willimantic, April 22.-Great excitement prevails in this city to-night over the closing of the First National bank of this city by Bank Examiner Dooley. A crowd of anxious depositors whose money is tied up in the bank gathered about the bank this evening and discussed the troubles of the bank. bank, which had large deposits in the Late this afternoon the Dime Savings First National bank, suspended payment to their depositors. Many of those who had their money deposited at the Dime Savings bank called at that institution this afternoon and tried to withdraw their money. A run on the bank followed and the bank directors decided to suspend payment until the panic was over. A statement could not be secured from any of the bank officials or the bank examiner this evening. It is stated that the Merchants' Loan and Trust company, a concern in this city, with which the late Cashier Risley was connected, and which is now defunct, held 560 shares of the stock of the First National bank. Risley was believed to be worth several thousand dollars, but an investigation leads to the discovery that at the time of his death he was practically insolvent. I Cashier John L. Waldon of the Dime Savings bank to-night was asked for a statement concerning the Dime Savings bank's relations with the closed bank, but he declined to say anything.
3.April 24, 1895The TimesRichmond, VA
Click image to open full size in new tab
Article Text
Disgrace After Daath. HARTFORD, CONN.. April 23.-Excitement continues to-day in Williamantic over the closing of the First National Bank by National Bank Examiner Dooley. There are ugly rumors to-day about O. H. K. Risley, the cashier, who died a few weeks ago, and it is said that he forged the names of some of the directors, including John M. Hall, of the Consol:dated road. The bank was the corrospondent of the Dime Savings Bank and some of the latter's funds are *tied up. There was a run on the Savings Bank to-day, but business was suspended when it was feared that there would be a rush.
4.April 24, 1895The Morning NewsSavannah, GA
Click image to open full size in new tab
Article Text
WILLIMANTIC'S BANK FAILURE. Ugly Rumors Afloat About the Cashier Who Recently Died. Hartford, Conn., April 23.-Excitement continues to-day in Williamantic over the closing of the First National Bank by National Bank Examiner Dooley. There are ugly rumors to-day about O. H. K. Risley, the cashier, who died a few weeks ago, and it is said that he forged the names of some of the directors, including John M. Hall, of the consolidated road. The bank was the correspondent of the Dime Savings Bank, and some of the latter's funds are tied up. There was a run on the savings bank to-day, but business was suspended, as it was feared that there would be a rush.
5.April 24, 1895New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
ANOTHER WILLIMANTIC BANK CLOSED. Hartford, April 23.-Excitement continues in Willimantic over the closing of the First National Bank by National Bank Examiner Dooley. The bank was the correspondent of the Dime Savings Bank, and some of the latter's funds are tied up. There was a run on the savings bank to-day, and business was suspended.
6.April 24, 1895The Daily Morning Journal and CourierNew Haven, CT
Click image to open full size in new tab
Article Text
WILLIMANTIC'S BANK TROUBLES. Still Much Excitement-The Affairs of the Bank Being Investigated-The Dime Savings Bank and Its Funds Believed to be All Right. Willimantic, April 23.-The excitement in this city over the examination of the affairs of the First National bank in this city continued to-day. The announcement of the closing of the bank by the bank examiner pending an investigation has brought to the city today many farmers from the surrounding towns, who have endeavored to draw their deposits from the bank. The uneasiness among the business men in this city regarding the troubles of the bank is increasing, and it is feared that the troubles of the First National bank may precipitate several of the business men of the city into serious difficulties. The bank held the deposits of the principal merchants in the city, and in consequence of the action of Bank Examiner Dooley in closing the bank those business men whose funds are tied up in it find themselves crippled seriously. The examination of the bank's books has been in progress all day, being conducted by the Bank examiner and Cashier Culverhouse. The latter official said to a Connecticut Associated Press reporter to-night that no definite statement regarding the condition of affairs could be given out. In the investigation it has been found that the accounts of the late Cashier Risley, which were under his own direct control, were badly mixed p and it will take several days to straighten them out. President Walden of the Dime Saving bank could offer no information regarding the bank's affairs to-night. He said that there was no occasion for alarm among the depositors of the bank with which he was connected. The bank, he explained, was compelled to suspend payment because of the panic, and the action was taken by the Dime Savings bank as a measure to save the other depositors. President Walden said that as soon as the bank examiner could complete his examination of the First National bank's accounts that the Dime Savings bank would resume business. The Dime Savings bank to-day issued an order to its depositors announcing that no money would be paid out to any of its depositors until sixty days. Mr. Dooley was seen to-night at the Hooker house, but he refused to talk j regarding his investigation. He said that he would probably finish his examination in two or three weeks, when he would inform the comptroller of the currency of the result. Considerable comment has been OCcasioned in this city in the delay of the government officials in discovering the condition of the First National's affairs. The fact that the Merchants' I Loan and Trust company, which was I the old Risley and Preston organization, P I held 500 shares of the stock of the First National bank, is a matter which it is thought needed an investigation before this. The organization has been defunct some time. Congressman E. Stevens Henry, who is one of the directors of the First National bank, said to-night he could give no statement regarding the amount lost by the bank through the late cashier. d
7.April 25, 1895The Portland Daily PressPortland, ME
Click image to open full size in new tab
Article Text
IN BAD CONDITION. The Affairs of the First National Bank of Willimantic Terribly Involved. Washington, April 4.-Comptroller Eckels has received a preliminary report from Bank Examiner Dooley on the condition of the closed First National bank of Willimanic, Conn., and because of the state ment Comptroller Eckels decided to place the bank in the hands of a permanent roceiver. Examiner Dooley reports the assets as about $440,000, due depositors and other banks $300,000, and from these figures the comptioller thinks all creditors will be finally paid in full. Loans and discounts are placed at $344,000, the greater part in the bank, and part is rediscounted. The books' statement of $44,000 is incorrect. and the bank's paper to the extent of $509,000 IS forged. most of which is in the books, and part of these notes have been rediscounted. If the estimate as to the missing paper and forged paper is found to be correct, the bank's capital of $100,000 and surplus of $25,000 will be wiped out.
8.April 25, 1895New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
THE WILLIMANTIC BANK'S LOSSES. Washington, April 24.-Controller Eckels has recelved a preliminary report from Bank Examiner Dooley on the condition of the closed First National Bank of Willimantic, Conn. From It he has decided to place the bank in the hands of a permanent receiver. Examiner Dooley reports that the assets are about $440,000, and there is due depositors and other banks $300,000. Cortroller Eckels thinks all the creditors will be paid in full. The loans and discounts are placed at $344,000, the greater part in the bank, but part of them rediscounted. The book statement is $44,000 incorrect. The bank's paper to the extent of $59,000 is forged, most of which is in the books, but part of these notes have been rediscounted. If the estimate as to missing paper and forged paper is found to be correct, the bank's capital of $100,000 and surplus of $25,000 is wiped out.
9.June 8, 1895The Daily Morning Journal and CourierNew Haven, CT
Click image to open full size in new tab
Article Text
Stockholders Assessed. Willimantic, June 7.-Receiver Doodey of the wrecked First National bank has sent out notices to the stockholders of an. assessment of 100 per cent.
10.June 15, 1895Spirit of the AgeWoodstock, VT
Click image to open full size in new tab
Article Text
Willimantic Bank Wreck. The report of James E. Hayden, receiver of the Natchaug Silk Company of Willimantic,Conn was submitted to court at Hartford, Conn. The report is the sensational wrecking of the First National Bank of Williman tie by its cashier, the late O. H. K. Risley. The report shows that Risley sank more than $300,000 in the Natchaug Silk Company, stealing the bank's assets and capital stock to do it, and covering up his tracks with forgery and misrepresentation. As a matter of fact, it had been stripped of every available asset, to the extent of nearly $300,000, and there is nothing to show whither the money had gone.
11.June 20, 1895The PressStafford Springs, CT
Click image to open full size in new tab
Article Text
MANSFIELD. (Correspondence.) -The funeral of Mrs. Cynthia Reynolds last Friday was largely attended, and the floral display was bountiful and beautiful, contributed by friends in and out of town. The family plot was profusely adorned with flowers, tastefully arranged by friends who held her in high esteem. She was lineally descended from the pilgrims of the Mayflower, was 75 years old, and leaves a husband and one daughter. -The failure of the Natchaug Silk Co. of Willimantic, and consequent wrecking of First National and Merchants' Loan and Trust banks of that city, is most of anything talked about just now, many parties in town holding stock and having deposits in the wrecked banks. That officers of any bank should trust the entire capital of the banks to one company is surprising. These failures have caused heavy loss to the Dime Savings Bank, but with the surplus on hand could have borne the loss and continued business without interruption but for other bad or worthless paper held against other parties, with insufficient security. It is intimated that some notes held by the bank were taken on securities the directors had no right to take, and that they are thus personally liable for the loss. However that may be, it is a foregone conclusion that the depositors will sustain a loss. The bank, as reported last October, had in deposits $626,591, and only $7,302 of non-productive loans, but it is feared that the bank holds a considerable amount of worthless paper. Probably one-half the depositors have given notice to withdraw their deposits, and the directors would scale the deposits if they could find any law to warrant them in doing it. If all the depositors would agree to submit to a scale it would be legal, otherwise the bank would have to go into the hands of a trustee or it could pass its dividends, hoping in time to make up the bank's loss. Our correspondent is evidently mistaken as to the power of the directors to scale down the deposits. If the assets have shrunken, as they probably have, they would be remiss in duty to pay out its assets to those who came first, leaving nothing for the last comers.
Willimantic Bank Dividend. WILLIMANTIC, August 27 - The receiver of the First National bank to-day declared a dividend of fifteen per cent on all deposits.
13.August 29, 1895The Salt Lake HeraldSalt Lake City, UT
Click image to open full size in new tab
Article Text
WILLIMANTIC, Conn.-Receiver Dooley of the defunct First National bank has given out the information that Comptroller Eckels has ordered a first dividend of 15 per cent to be paid to the depositors. This payment will amount to nearly $50,000.
14.September 12, 1895New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
THE WILLIMANTIC SCANDALS. STATE ATTORNEY HUNTER TO EXAMINE THE NATCHAUG SILK COMPANY'S BOOKS. Willimantic, Conn., Sept. 11.-State Attorney John L. Hunter made application to the Superior Court in Windham County to-day for an order to examine the books and papers of the Natchaug Silk Company. His application contained the assertion that the stockholders of the company had reason to believe that certain crimes had been committed by the officers and employes of the company, which the books would disclose. Judge Wheeler ordered James E. Hayden, receiver of the company, to allow Mr. Hunter and his agents to have full access to all books and papers of the company, and also to disclose to the State-Attorney any information he might have as to the commission of any crime by the officers and employes of the company. When the expert accountant finished his examination of the books of this company some time ago, it is alleged, he gave the receiver to understand that he had found evidence which would incriminate persons connected with the office. Fred Barrows was bookkeeper for the concern and J. D. Chaffee president. After the death of O. H. P. Risley, and when the affairs of the First National Bank were found in such a condition as to warrant the closing of its doors, the prevailing opinion was that a great deal of the bank's money had gone into the Natchaug Silk Company.
15.November 14, 1895The PressStafford Springs, CT
Click image to open full size in new tab
Article Text
Receiver Dooley of the First National Bank of Willimantic has settled with the estate of the late Stephen C. Risley of Rockville, father of Cashier Risley, the deceased defaulter of the First National Bank, Mr. Risley, with Messrs. Fowler and Walden of Willimantic, both of whom are now insolvent, were on the cashier's bonds. The bank receives $5,000 in settlement of Risley's liability on the bond.
16.November 26, 1895The Evening HeraldShenandoah, PA
Click image to open full size in new tab
Article Text
Embezzler's Bondsman Settles Up. WILLIMANTIC, Conn., Nov. 26.-The affairs of the late Cashier O. H. K. Risley, of the First National bank, were brought into public notice again yesterday by the settlement made by Major A. T. Fowler with Receiver Dooley. He paid $6,000, of which $5,000 was his security on the bond of $20,000 of the late cashier, and $1,000 as his entire assessment on the bank stock. The proceedings against him will now be withdrawn.
17.November 30, 1895Spirit of the AgeWoodstock, VT
Click image to open full size in new tab
Article Text
Mr. Fowler Paid Over The $6,000. WILLIMANTIC, Ct., Nov. 29-A. F. Fowler this morning paid receiver Michael F Dooley $6 000 in sett.ement of his account with the First National bank. $5.000 as a bondsman for the late cashier Risley, and $1,000 as assessment on the bank's stock held by him. Mr. Dooley had previously been unable to effect a settlement, and the proceedings will now be quashed.
18.December 19, 1895The PressStafford Springs, CT
Click image to open full size in new tab
Article Text
Receiver Dooley, acting under the instructions of the comptroller of the currency, has declared a dividend of 10 per cent. to the creditors of the First National Bank of Willimantic. The dividend will be paid as soon as the schedule can be prepared and the checks made out. This is the second dividend declared since the failure of the bank, making 25 per cent. in all, the previous dividend having been 15 per cent.
19.April 9, 1896Freeland TribuneFreeland, PA
Click image to open full size in new tab
Article Text
Willimantic National Bank Claims. Willimantic, Conn., April 7.-Receiver Dooley of the First National bank has filed the bank's claim against the insolvent Natchaug Silk company claims for money had and received, $327,926, less notes assigned to Pangburn, New York, $67,594, making a total of $260,332, with interest. The bank claims $44,500 on Natchaug stock and notes in the bank. John A. Pangburn claims. $67, 594 on notes. Claims close to-day.
20.April 9, 1896Freeland TribuneFreeland, PA
Click image to open full size in new tab
Article Text
Willimantic National Bank Claims. Willimantic, Conn., April 7.-Receiver Dooley of the First National bank has filed the bank's claim against the insolvent Natchaug Silk company claims for money had and received, $327,926, less notes assigned to Pangburn, New York, $67,594, making a total of $260,332, with interest. The bank claims $44,500 on Natchaug stock and notes in the bank. John A. Pangburn claims. $67, 594 on notes. Claims close to-day.
21.May 14, 1896New-York TribuneNew York, NY
Click image to open full size in new tab
Article Text
INJUNCTION AGAINST A SILK COMPANY. A SEQUEL TO THE FAILURE OF THE WILLIMANTIC BANK. The Natchoug Silk Company, a Connecticut corporation, became insolvent in April, 1895, and, falling to pay $300,000 to the First National Bank of Willimantic, caused the suspension of that institution. Michael F. Dooley, of Brooklyn, was appointed receiver of the bank. On April 23, 1895, J. D. Chaffee. president of the silk company, sold to the bank, as part payment of Its claim, 107 cases of silk, valued at about $20,000. and subsequently Dooley caused the goods to be attached; but this attachment was afterward dissolved by the court. On May 30, 1895, Dooley sold to John A. Pangborn notes of the silk company to the amount of $67,000 for the nominal sum of $200, and then Pangborn brought suit and got judgment for the full amount. The Sheriff levied upon the cases of silk, but their sale was stopped by an injunction, which was subsequently revoked. On June 6, 1895, Harold S. Hadden and others brought a joint suit against the silk company for $22,000, and obtained an injunction restraining further action on the part of Dooley, Pangborn and the silk company, alleging their acts to have been fraudulent. The matter was taken to the United States Circuit Court of Appeals, which has affirmed the second injunction pending final settlement of the case. "The goods," says the decision, "should be sold under the execution. and the proceeds placed in the registry of the court, to await final decision. Injunction continued."
22.January 30, 1900The Daily Morning Journal and CourierNew Haven, CT
Click image to open full size in new tab
Article Text
Another Dividend for Depositors. Willimantic, Jan. 29.-The depositors in the defunct First National bank of Willimantic are to receive another dividend of fifteen per cent.. payable February 1. Notice was given this afternoon to that effect by J. Frank Aldrich of Washington, D. C., receiver of the bank.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
