Framingham Savings Bank (Framingham, MA)

Episode Information

Episode UID
5002046891169
Episode Type
Run → Suspension → Closure
Bank Type
savings
Bank ID
500204689 hash
Start Date
May 17, 1897
Location
Framingham, Massachusetts (42.279, -71.416)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
262bbfd2e076b20b

Response Measures

None

Description

The bank experienced a run in May 1897 triggered by a dividend reduction; it survived by invoking the 60-day rule but was later closed and placed in receivership in February 1898 following the discovery of embezzlement by a former cashier.

Events (3)
1. May 17, 1897 Run
Cause Details
Reduction of semi-annual dividend from 3 per cent to 1.5 per cent caused uneasiness.
Measures
The bank invoked the 60-day notice rule and limited withdrawals to $100 per depositor.
Newspaper Excerpt
A run on the Framingham Savings bank... was precipitated here to-day by the action of about two dozen depositors, mostly women
Source
newspapers
2. February 3, 1898 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of a $24,000 shortage and the arrest of former cashier William H. Bird for misappropriation of funds.
Newspaper Excerpt
The Massachusetts Savings Bank Commissioners to-day placed the Framingham Savings Bank under an injunction to prevent it from doing business
Source
newspapers
3. March 8, 1898 Receivership
Newspaper Excerpt
Judge Barker was asked by a representative of the attorney general's office, to appoint Arthur V. Harrington of Framingham receiver.
Source
newspapers

Newspaper Articles (22)
1. May 18, 1897 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, May 18, 1897

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Article Text

RUN ON A BANK. Depositors Scared Because Usual Dividend Was Not Paid. South Framingham, Mass., May 17.A run on the Framingham Savings bank, which caused some uneasiness among business men, was precipitated here to-day by the action of about two dozen depositors, mostly women, who presented themselves at the bank and demanded the amounts due them. All such calls were promptly paid. It appears that the fact of the May dividend, a semi-annual one, which has recently been declared, being one of only 1 1/2 per cent. instead of 3 per cent., caused some uneasiness. Up to the closing hour of the bank, 2 o'clock, $25,000 had been paid over the counter to the depositors. The trustees state that the bank is in very good condition, and no serious trouble is expected as the result of the excitement of the day.

2. May 18, 1897 The Providence News Providence, RI
Article from The Providence News, May 18, 1897

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A RUN STOPPED. Framingham Bank Takes Advantage of the Sixty-Day Limit. Will Pay Only $100 to Each of Its Depositors on Demand. South Framingham, Mass., May 18.When the doors of the Framingham Savings Bank were opened this morning over 100 persons entered the office prepared to draw out their deposits in the institution. They were confronted by a notice, signed by the trustees of the bank, announcing that at the meeting of the trustees last evening it had been decided that, until the present excitement subsided, depositors would be allowed to withdraw only $100 each, and that the bank would take advantage of the 60-day limit, allowed by law, on all sums above the amount mentioned. It was also annonnced this morning that at the trustees' meeting the resignation of Treasurer Morrill, which had been in the hands of the board for six months, had been accepted, and that Cashier Harrington of Westporo National Bank, had been chosen to fill the vacancy. A resolution of confidence was adopted and will be presented to Mr. Morrill on his retirement. The announcements of the trustees appear to have had a good effect upon the depositors, and there is thought to be no probability of further trouble. The officers claim that they have plenty of money on hand and that the bank is in good condition. The depositors left the bank after reading the notices posted by the trustees.

3. May 18, 1897 Evening Journal Wilmington, DE
Article from Evening Journal, May 18, 1897

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Women Cause a Bank Scare. South Framingham, Mass., May 18.A run on the Framingham Savings bank, which caused some uneasiness among business men, was precipitated here by the action of about two dozen depositors, mostly women, who presented themselves at the bank and demanded the amounts due them. All such calls were promptly paid. It appears that the fact of the May dividend, a semiannual one, which has recently been declared, being one of only 1 1/2 per cent instead of 3 per cent, caused some uneasiness.

4. May 18, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, May 18, 1897

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RUN ON A BANK. A Massachusetts Bank Won't Let Depositors Have More than $100 Apiece. South Framingham, Mass., May 18.A serious run on the Framingham Savings bank was averted today by the directors who refused to honor checks for more than $100 from each depositor, taking advantage of the 60 day statute in larger amountts.

5. May 19, 1897 The Brunswick Times Brunswick, GA
Article from The Brunswick Times, May 19, 1897

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Run on a Bank. South Framingham, Mass., May 18 -A serious run on the Framingban Savings bank was averted today by the directors, who refused to houor checks for more than $100 from eac' depositor, taking advantage of th sixty day statute in larger amounts There 18 little probability of further trouble.

6. May 19, 1897 The Providence News Providence, RI
Article from The Providence News, May 19, 1897

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COTTON MARKET. Yesterday's last. Open. Close. 6 85 6 86 6 89 January 6 89 6 93 February 6 93 6 95 6 97 March .... .... .... April 7 30 7 35 May 7 31 7 30b 7 35 June 7 34 7 34 7 39 July 7 28 7 29 7 33 August 6 98 6 99 7 03 September 679 6 81 681 October 678 6 83 6 79 November 681 6 86 6 83 December Total sales 61,600; market closed quiet. Business Going on as Usual. South Framingham, Mass., May 19.-The run which began on the Framingham Savings Bank last Monday could hardly be said to have been continued today, although there were several depositors who demanded their money this morning. The affairs at the bank are proceeding as usual, and any who desire to withdraw more than the $100 are pacified by the notice posted by the trustees enforcing the 60-day notice rule.

7. May 21, 1897 The Citizen Frederick, MD
Article from The Citizen, May 21, 1897

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Bank Run Caused by Women. South Framingham, Mass., May 18.A run on the Framingham Savings bank, which caused some uneasiness among business men, was precipitated here by the action of about two dozen depositors, mostly women, who presented themselves at the bank and demanded the amounts due them. All such calls were promptly paid. It appears that the fact of the May dividend, a semiannual one, which has recently been declared, being one of only 1½ per cent instead of 3 per cent, caused some uneasiness.

8. February 4, 1898 New-York Tribune New York, NY
Article from New-York Tribune, February 4, 1898

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WRECKED BY ITS AGED CASHIER. SUSPENSION OF A SAVINGS BANK AT FRAMINGHAM. MASS. Boston, Feb. 3.-The Massachusetts Savings Bank Commissioners to-day placed the Framingham Savings Bank under an injunction to prevent it from doing business until further action can be taken. The action followed the arrest of William H. Bird, former cashier of the bank, who, in the Framingham Court to-day, was held under $20,000 for the Grand Jury on a charge of misappropriating $9,000 of the bank's funds. Mr. Bird is about seventy years old, and for many years was one of its most trusted employes. He resigned January 1. Experis of the State Bank Examiners who were put at work on the books discovered a shortage of $24,000. but the charge against the cashier named only part of this amount. The bank has had trouble before, and last summer there was a heavy run on it, owing to rumors as to its condition.

9. February 4, 1898 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, February 4, 1898

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Business Embarrassments. BOSTON. Mass., Feb. 3.-The Massachusetts saving banks commissioners to-day placed the Framingham Savings Bank under an injunction to prevent it from doing business until further action can be taken. The action followed the arrest of William H. Bird, former cashier of the bank, who, in the Framingham court to-day was held in $20,000 for the grand jury on a charge of misappropriating $9,000 of the bank's funds. LONDON. Ont., Feb. 3.-A receiver has been placed in charge of the department store of Runyans & Butler. of this city. The liabilities are estimated at $100,000. The stock carried is estimated at about the same figure.

10. February 4, 1898 Worcester Morning Daily Spy Worcester, MA
Article from Worcester Morning Daily Spy, February 4, 1898

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A HEAVY BANK LOSS / W.H.Bird of Framingham Short $10,000. Was Arrested in Allston and Later Held in $20,000 Bonds-Statement of Bank's Condition-Bird in Jail. (Special Dispatch to the Spy.) South Framingham, Feb. S.--William H. Bird of Allston, a former bcokkeeper for the Framingham Savings Bank, was arrested Wednesday night at his home at Allston, on a charge of em- the bezzling $10,000 of the funds of bank. The arrest was made by State Detective J. H. Whitney of Medford. Bird was brought here by Officer Whitney, Thursday morning, and was arin the first district court, with the offense. the and was bound over raigned charged examination He waived in of $20,000 to await the action the In default of to jail at grand was sum of committed jury. East bail, Cam- Bird bridge A temporary injunction has been served on the bank officials restraining the institution from receiving deposits and paying out any money to depositors, until such time as the experts made now at work the books shall have the a full investigation of the effairs of institution. So far as is known, Bird's peculations it date back for at least six years, and is alleged that he has been abstracting a the bank's funds at the rate of $100 $200 month. and sometimes as much as for the same period. Bird's methods have been to make so falsifications in the general ledger that amounts due depositors on the than general ledger appeared to be less amount which appeared to be due on depositors ledger Arthur V. Harrington, who has July, been treasurer of the bank since last in making up his balance sheet for the in November, discovered some- he so year thing wrong about the books, and notified the trustees of the bank. Some time ago the bank commission- Bank and the Framingham Savings the ers experts at work on the books of the put bank. and they found in making up trial balances a discrepancy of about the $24,000. Bird left the employ develop- of bank about Jan. 1, and these time. ments have occurred since that When Bird was at the state house worn. this morning, he looked very old and He is in fact 70 years old. The story of the case is not a long after one. Bird left the bank about Jan. 1, for a been connected with it been having number of years, and having who a trusted servant. It is felt by those in a position to know, that the bank an are has been ruined, but there will be immediate step taken to put the insti- who tution under injunction, so that all have deposits there will be served ex- be actly alike. B.rd did not seem to unmuch surprised when he was placed der arrest by Detective Whitney. The bank has had trouble before. In it was closed by the bank commissioners, 1885 under injunction, by reason of of bad investments and for the security depositors. For nearly five years it the kept closed, and on May 15, 1890, date it was again opened. At the latter been was the affairs of the institution had so looked after as to warrant its going had again. The poor investments along been made to yield as much as possible with the most careful management, and bethere was apparently a good future fore the institution. Today the hands probability is that it will go into the of a receiver, never to be reopened. The bank has a lot of foreclosed real estate which will entail a loss. This after is the result of bad loans made soon the bank reopened. Last May there was a run on the bank which started from injudicious In and went on for some time. talk, there has been a continual drain fact, the bank ever since, many having been lost on confidence in it. It had stopped in the last few weeks, however, to be and some of the people seemed regaining confidence in its solidity. short time ago the bank commis- the A sent a recommendation to sioners that it have the books audited. the This bank was done, in connection with expert of the savings bank commission. was It was discovered that something for, when the trial balance was made wrong, up, it showed a shortage, appar- savent. of $24,000 that day, which, the liable ings bank commissioners say, is in to be reduced somewhat by errors figures. The bank has a guaranty fund of $4442.19; an interest account of $2000 1897. and account of $3144 on Oct. 31, $850,627. open The deposits at that time were The cause of Bird's downfall is a known mysas it was not generally tery, he was addicted to any extrava- his that habits, but lived quietly with and wife gant at Allston. He is 69 years old, the employed as bookkeeper in bebank was since 1887. He was regarded as trusting a good accountant and a worthy The future servant. of the bank is a matter the of it being entirely in sioners. province conjecture, of the savings bank commis-

11. February 5, 1898 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, February 5, 1898

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ROBBED BY ITS CASHIER. Framingham Savings Bank Closed by Order of State Officials. Boston. Feb. I.-The Massachusetts Savings' Bank commissioners to day placed the Framingham Savings Bank under an injunction to prevent it from doing business until further action can be taken. The action followed the arrest of William H. Bird, former cashier of the bank, who. in the Framingham court to day, was held in $20,000 for the grand jury on a charge of misappropriating $9,000 of the bank's funds. Mr. Bird is about 70 years of age, and for mapy years was one of its most trusted employes. He resigned January 1. Experts of the State bank examiners, who were put at work on the books dis covered a shortage of $24,000, but the charge against the cashier named only part of this amount. The bank has had trouble before, and last summer there was a heavy run on it, owing to ominous ru. mors as to its condition.

12. March 9, 1898 Worcester Morning Daily Spy Worcester, MA
Article from Worcester Morning Daily Spy, March 9, 1898

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FRAMINGHAM BANK. Boston, March 8.-A statement was submitted to the supreme court today as the result of an examination of the affairs of the Framingham Savings Bank. The liabilities are $815,627. and while the nominal assets are $857,501, the report shows that they are likely to fall short of that amount by perhaps $100,000 or more. Judge Barker was asked by a representative of the attorney general's office, to appoint Arthur V. Harrington of Framingham receiver. All parties interested agree to his appointment. The court will decide the matter later.

13. March 9, 1898 Evening Journal Wilmington, DE
Article from Evening Journal, March 9, 1898

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There Will Be a Deficit. BOSTON, March 9.-A statement was submitted to the supreme court as the result of an examination of the affairs of the Framingham Savings bank. The liabilities are $815,627, and while the nominal assets are $857,501 the report shows that they are likely to fall short of that amount by perhaps $100,000 or more. Judge Barker was asked to appoint Arthur V. Harrington of Framingham receiver.

14. March 9, 1898 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, March 9, 1898

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A Savings Bank in Trouble. BOSTON, March 8.-A statement was submitted to the Supreme Court to-day as the result of an examination of the affairs of the Framingham Savings Bank. The liabilities are $815,627, and while the nominal assets are $857,501, the report shows that they are likely to fall short of that amount by $100,000 or more. Judge Barker was asked by a representative of the attorney general's office to appoint Arthur V. Harrington, of Framingham, receiver. All parties interested agree to his appointment. The court will decide the matter later.

15. November 12, 1898 The Worcester Spy Worcester, MA
Article from The Worcester Spy, November 12, 1898

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FRAMINGHAM SAVINGS BANK. Receivers Granted Leave to Return Contingent Deposits. Boston, Nov. 11.-The receivers of the Framingham Savings Bank today were granted leave to return conting< ent deposits amounting to $1084, which were made by various persons between January 26 and February 2 last, when the bank was under the control of the savings bank commissioners, who were then making an examination of the books, with a view of winding up the bank. the depositors bein imporant of the bank's precarious condition.

16. November 13, 1898 The Worcester Spy Worcester, MA
Article from The Worcester Spy, November 13, 1898

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DIVIDEND OF FIFTY PER CENT. Boston, Nov. 12.-The depositors of the defunct Framingham Savings Bank will soon receive a first dividend of 50 per cent. The receivers filed a report of their stewardship in the supreme court today, and asked leave to pay a dividend of 50 per cent.

17. November 16, 1898 The Worcester Spy Worcester, MA
Article from The Worcester Spy, November 16, 1898

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FRAMINGHAM SAVINGS BANK. Boston, Nov. 15.-The report of P. H. Cooney and A. V. Harrington, receivers of the Framingham Savings Bank, which was filed and the substance of it reported last Saturday, was brought up before Judge Knowlton in the supreme court today, and an order of notice ordered to be published to the parties interested in it. The order will be returned in about a month.

18. December 14, 1898 The Worcester Spy Worcester, MA
Article from The Worcester Spy, December 14, 1898

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a REPORT OF RECEIVERS MADE. Boston, Dec. 13.-The report of Messrs. P. H. Cooney and A. V. Harrington, receivers of the Framingham Savings Bank, was brought up before Judge Knowlton in the supreme court today, this being the return day of the order of notice, which the court issued to parties interested to appear and show cause why the report should not be allowed. There was no objection. The receivers ask leave to pay a dividend of 50 per cent to the depositors. Their report closes with October 17 last, when it appeared that they had sold enough assets to realize $425,567 net. The liabilities to depositions are $829,197.25. The court took the papers.

19. December 15, 1898 The Worcester Spy Worcester, MA
Article from The Worcester Spy, December 15, 1898

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A DIVIDEND ORDERED. Boston, Dec. 14.-Judge Knowlton in the supreme court today approved the report of Messrs. P. H. Cooney and A. V. Harrington, receivers of the Framingham Savings Bank, and they are authorized to pay a dividend of 50 per cent to the depositors. The dividend will be paid out of $425,576. which is the cash that the receivers had realized from sales of certain securities.

20. December 17, 1898 The Worcester Spy Worcester, MA
Article from The Worcester Spy, December 17, 1898

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DEPOSITORS MUST WAIT. South Framingham, Dec. 16.-It is stated on reliable authority that the receivers of the Framingham Savings Bank, Messrs. Patrick H. Cooney of Natick and Arthur V. Harrington of South Framingham will not pay the 50 per cent dividend on hand to the depositors until the 30 days' limit, giving the right to depositors to appeal to the full bench of the supreme court from allowing the report of the receivers, will have elapsed. This means that the depositors will have to wait for the payment of the first dividend until at least January 16.

21. January 14, 1899 The Worcester Spy Worcester, MA
Article from The Worcester Spy, January 14, 1899

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WILL PAY CASH. Dividend of Fifty Per Cent. to be Ready Monday. South Framingham, Jan. 13. .No appeal having been entered before the full bench of the supreme court against allowing the report of the receivers of the Framingham savings bank, which was decreed a month ago in the equity session of the court, the receivers, Messrs. Patrick H. Cooney and Arthur V. Harrington, today decided to begin Monday morning paying out the dividend of 50 per cent which has accumulated since the bank closed its doors Feb. 2, 1898. The receivers have now an hand about $450,000, and a month ago they applied to the equity session for permission to pay out that amount. The report of the receivers was allowed by that bench, but as the law gave the right to depositors to appeal to the full bench of the court, any time within 30 days from the decree of the equity bench, the receivers deemed it prudent to not pay any money until the 30 days' limit had expired. This was the last day, and no one entering an appeal, the coast is clear for the receivers to begin the payment of the first dividend. There are in all about 2800 depositors, scattered all over the United States, England, Ireland, France, Germany and Sweden. It is expected that the work will take up several weeks' time.

22. January 17, 1899 The Worcester Spy Worcester, MA
Article from The Worcester Spy, January 17, 1899

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WERE ON HAND. Framingham Bank Pays Depositors Nearly $50,000. South Framingham, Jan. 16. -The Framingham Savings Bank, which went into the hands of receivers last March, following the discovery of the defalcation of a number of thousands of dollars by a dishonest bookkeeper, reopened its doors this morning for the purpose of paying out the first dividend to its depositors. Long before the doors were opened in the banking rooms in the Manson building, a large crowd of depositors had assembled in the corridors of the big building, and at 9 o'clock, the appointed time for the resumption of business, the commodious quarters were filled with a throng of anxious men, women and children. The receivers, Messrs. Patrick H. Cooney of Natick and Arthur V. Harrington and Frank D. Oliver and assistant, G. F. Gale, were on hand, ready to care for the depositors. The first person to present himself at the wicket was Hugh Callaghan of 223 Waverly street, South Framingham, who received the first check signed by the receivers on a national bank, in which the funds of the savings bank are on deposit. During the day 210 depositors received their share of the dividend, the aggregate amount paid out being $49,500. As the dividend amounts to about $413,000, it will take about two months to pay the 2800 depositors, who are scattered all over the United States, Canada, England, Ireland, Germany and Sweden.