Willimantic Savings Institute (Willimantic, CT)

Episode Information

Episode UID
51017471059
Episode Type
Suspension β†’ Reopening
Bank Type
savings
Bank ID
5101747 routing
Routing Number
51-0174
Start Date
March 23, 1888
Location
Willimantic, Connecticut (41.711, -72.208)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
90e9c3cd01cfd17f

Response Measures

None

Description

Initial suspension followed discovery of major misappropriation by Treasurer H. F. Royce; a later court injunction restricted payments before eventual removal.

Events (5)

1. March 23, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of $150,000 shortage/misappropriation by Treasurer H. F. Royce leading the institute to refuse payments and close.
Newspaper Excerpt
The institution has taken advantage of the law requiring four months' notice of the withdrawal of deposits, and to-day refused payment and closed its doors to business.
Source
newspapers
2. March 24, 1888 Other
Newspaper Excerpt
The Willimantic Savings Institute Badly Fleeced...a shortage or misappropriation of the bank's funds to the amount of $150,000 is found owing...Frank F. Webb, assistant treasurer, has been made acting treasurer.
Source
newspapers
3. December 18, 1888 Other
Newspaper Excerpt
The trial of Henry F. Royce, ex-treasurer of the Willimantic Savings Institute, which suspended last March, and who was indicted for falsification of his accounts...Royce admits the false entries.
Source
newspapers
4. February 23, 1889 Suspension
Cause
Government Action
Cause Details
Court injunction at request of Bank Commissioners forbidding withdrawals for one year to prevent run and preserve assets.
Newspaper Excerpt
the Supreme Court...has issued an injunction forbidding the officers and directors of the institute from paying out any more money to depositors, except dividends, for one year
Source
newspapers
5. February 26, 1890 Reopening
Newspaper Excerpt
The injunction placed on the Willimantic Savings institute...is now removed. Yet the depositors do not seem disposed to withdraw their funds...the full confidence is restored in the old institution, which is now in a sound financial condition.
Source
newspapers

Newspaper Articles (13)

Article from The Morning News, March 24, 1888

Click image to open full size in new tab

Article Text

TRICKS OF A TREASURER. The Willimantic Savings Institute Badly Fleeced. WILLIMANTIC, CONN., March 23.-The financial climax that has for a long time been pending was reached to-day in the affairs of the Willimantic Savings Institute. A shortage or misappropriation of the bank's funds to the amount of $150,000 is found owing, it is said, to a series of transactions by Treasurer H. F. Royce, without the knowledge or consent of the directors. It is alleged that the transactions of Royce are tantamount to a defalcation. Royce has been floating large amounts of accommodation paper. When t e directors discovered this they ordered the practice stopped and the paper cancelled as soon as it matured. Recently they discovered that Royce had rather increased than diminished his forbidden transactions, and that when a loan on real estate had been authorized to the amount of 1000-Royce had loaned $70,000 and had not recorded the mortgage. CAN'T DRAW THEIR MONEY. The institution has taken advantage of the law requiring four months' notice of the withdrawal of deposits, and to-day refused payment and closed its doors to business. Its affairs will probably be straightened out in a few days. There was a slight run on the Dime Savings Bank this afternoon by some nervous persons, but all claims were met promptly and the excitement soon subsided. The deposits of the Willimantic Savingsi institute aggregate about $900,000. Frank F. Webb, assistant treasurer, has been made acting treasurer.


Article from Morning Journal and Courier, March 26, 1888

Click image to open full size in new tab

Article Text

ROYCE AND THE INGERSOLLS. The New York End of the Willimantic Savings Bank Loans. NEW YORK, March 25.-The irregularities of Cashier H. R. Royce of the Willimantic Savings Institute were known to a few men in this city months ago. A gentleman who met Royce in this city four months ago said he told him then that he had discounted notes for the Ingersolls to the amount of $200,000 and that he was nearly crazy about it. The Ingersolls referred to are Lorin Ingersoll, who a few years ago was supposed to be a millionaire, and his sons, John E. and James H., who were the proprietors of the United States Stamping company. The dispatches from Willimantic say that Cashier Royce lent $70,000 on the property of the United States Stamping company at Portland, Conn., the security for which was very slender. In July last Mrs. Rebecca Ingersoll, wife of Lorin, obtained a judgment against the company for $98,591. The property at Portland, it is said, was sold out by the sheriff on execution of this judgment, and was bought in by Mrs. Ingersoll for her claim, and the Portland Stamping Works was the style used to continue the business. Lorin Ingersoll, it is said, managed the business by power of attorney from Mrs. Ingersoll. A week before Mrs. Ingersoll entered judgment against the company the company gave two chattel mortgages on machinery, stock, etc., one in favor of the Pottier & Stymus Manufacturing company for $39,702, and the other in favor of August Pottier for $59,620. Numerous judgments have since been entered against the company by various creditors and it is said the claims against the company aggregate ever $300,000. Last December Henry W. Bates was appointed receiver of the company. At the county clerk's office the judgment record shows upward of seventy-five judgments against Messrs. Lorin, John E. and James H. Ingersoll, aggregating about $300,000, principally on notes and endorsements. Among the banks which have entered judg ments against them are the Columbia, Oriental, North River, East River National, St. Nicholas and Germania of New York, the Grand National and Spring Garden of Philadelphia, the National Bank of Commerce, Third National and Farmers' and Mechanics' of Buffalo, the Farmers' and Manufacturers' of Poughkeepsie, the Old National bank of Whitehall, N. Y., the Bank of Attica, the Rhode Island National bank and Winnebago National bank of Rockford, Ill. WILLIMANTIC, March 24.-The report that H. F. Royce, treasurer of the Willimantic Savings Institute, had fled to Canada is no doubt untrue. Inquiry at the institute elicits the information that Royco went to New York last night to see about securing a settlement with parties there whose paper is held by the institute. This looks as if the directors were trying to save as much for the depositors as possible before taking steps to arrest Royce. The savings institute is crowded to-day with depositors demanding certificates on which to withdraw deposits four months hence. They are all accommodated and assured that they will not lose more than fifteen per cent. and perhaps only part of that. The chief credit for unearthing the Royce nest and rescuing the bank from wreck belongs to ex-State Treasurer Edwin A. Buck, who accepted the position of president in June, 1886, soon after which Royce's transactions began to be discovered.


Article from The Emporia Weekly News, March 29, 1888

Click image to open full size in new tab

Article Text

Refused Payment. WILLIMANTIC, Con., March 23.-A shortage of $150,000 in the affairs of the Willimantic savings institute was discovered to-day. The deficit is attributed to unauthorized transferres of Treasurer H. F. Royce. The institute has taken advantage of the law requiring four months notice before withdrawal of deposits, and to-day refused payment and has closed its doors to business. Affairs will be probably straightened out in a few days. There was a slight run on the Dime saving bank this afternoon by some nervous persons, but all claims were promptly met and the excitement soon subsided. Deposits of the Willimantic savings institute aggregate $900,000. Royce has not been arrested.


Article from Fisherman & Farmer, April 6, 1888

Click image to open full size in new tab

Article Text

THE NEWS EPITOM DDD. Eastern and Middle States. URIAH H. BRADNER, the Danville (N. Y.) banker, sentenced last November to five years' imprisonment for larceny, has died in Auburn State Prison of pneumonia. FOUR men were killed and four boys injured in a railroad accident at Barree, Penn. JAY GOULD and family have returned to their home in New York City. Mr. Gould is greatly improved in health by his long cruise. TREASURER ROYCE, of the Willimantic (Conn.) Savings Institute, misappropriated $150,000 of the bank's funds, and it has been compelled to suspend. THE legal effort to break the wills of two prominent people-Samuel J. Tilden and Mrs. A. T. Stewart-is being made simultaneously in the Metropolis. A FRIGHTFUL collision occurred between passenger trains at Wampum, Penn., in which two men were killed and nine severely injured. THE remains of General Jose Antonio Paez, the Venezuelan patriot, were escorted to the dock in New York city by an imposing military escort and placed on board the United States steamer Pensacola, which will convey them to his native land for burial. THE State Committee has decided to hold the New York Republican State Convention in Buffalo on May 16. JOSEPH W. DREXEL, the eminent banker, of the firm of Drexel, Morgan & Co., died at his residence in New York city, after a lingering illness. MISSES MARGARET and Annie O'Reilly, sisters of a prominent politician, were run over and killed on a railway crossing at Woonsocket, R. I.


Article from New-York Tribune, December 19, 1888

Click image to open full size in new tab

Article Text

THE TRIAL OF EX-TREASURER ROYCE. Willimantic, Conn., Dec. 18 (Special).-The trial of Henry F. Royce, ex-treasurer of the Willimantic SavIngs Institute, which suspended last March, and who was indicted for falsification of his accounts to cover defalcations, has been going on in the Superior Court of Windham County for the past week. Royce admits the false entries, but says that they were made solely to deceive the Bank Commissioners in order to conceal from them certain overdue paper of J. H. & M. E. Ingersoll, of New-York, regarded as worthless by the Commissioners and directors, but claimed to be good by Royce. He denies that the bank or any one had been defrauded, or that he has defaulted at all. He says he feels himself in a measure responsible for the large amount of Ingersoll paper in the bank, and has therefore withdrawn bverdue Ingersoll notes from the bank at times and substituted fictitious entries to deceive the Commissioners while he was trying to get the Ingersolls to pay the overdue notes. The State claims that not only did Royce let the Ingersolls have large amounts on worthless security, but he has abstracted bank moneys for his own benefit.


Article from New-York Tribune, December 20, 1888

Click image to open full size in new tab

Article Text

CLOSING TESTIMONY IN THE ROYCE CASE. Willimantic, Conn., Dec. 19 (Special).-The testimony in the case against ex-Treasurer H. F. Royce for alleged embezzlement and false entries in the Willimantic Savings Institute was closed late this afternoon. John M. Hall will open argument for the State to-morrow and William C. Case will close for the defendant. The testimony to-day was interesting The defence claimed that there were no false entries except those specified by Royce himself in his testimony. Bank Examiner H. C. Noble took the stand in rebuttal and pointed out suppressed or partial entries aggregating $106,793 27. which Noble thought was plainly intended to cover a shortage of $20,000. The expert accountant, Charles F. Brown, of Hartford, corroborated Noble's statement. Royce claimed that the shortage was accounted for by four new notes received from Ingersoll in New-York after suspension, and that false entries were made to cover old Ingersoll paper which was protested. President E. A. Buck, Treasurer F. F. Webb and Directors J. M. Alpaugh and G. C. Martin, of the institute, testified that the four Ingersoll notes were never accepted by the bank nor held as assets. N. D. Webster, teller of the institute, testified that the two notes for $3,150 and $1,850, said by Royce to be unpaid and taken by him to New-York, were, in fact, entered on the books as paid and had never left the bank files


Article from New-York Tribune, February 24, 1889

Click image to open full size in new tab

Article Text

THE WILLIMANTIC SAVINGS INSTITUTE. Willimantic, Feb. 23 (Specal).-The troubles of the Willimantic Savings Institute reached a climax to-day. Upon the petition of Bank Commissioners George M. Landers and H. C. Noble, the Supreme Court. by Judge Elisha Carpenter, has issued an injunction forbidding the officers and directors of the institute from paying out any more money to depositors, except dividends, for one year, or until February 22, 1890. Sheriff Pomeroy served the injunction on the bank officials early this afternoon. The Bank Commissioners in the application for the injunction declare that the institute is now thoroughly sound, but that the efforts of certain persons," meaning ex-Treasurer Royce and his friends, are plainly designed to induce depositors to draw out heavy deposits suddenly before loans can be called in and thus, if possible, to force the bank into the hands of a receiver and to prevent the retrial of Royce, prepara tions for which are now in progress. The bank has been drawn upon heavily since the end of the first trial. when the jury stood 6 to 6.


Article from Evening Journal, February 25, 1889

Click image to open full size in new tab

Article Text

The Willimantic Bank Case. WILLIMANTIC, Conn., Feb. 25.-When Treasurer Boyce, of the Willimantic Savings institute, was tried last December for falsification of the books, etc., the jury disagreed, although Boyce made admissions which render him liable under the banking laws. Since then he and his friends have labored systematically to scare depositors and embarrass the bank, in the hope of preventing a zetrial. Judge Carpenter, at the request of the state bank commissioners, has enjoined the institute from paying back any deposits for one year. This is done to prevent a run and a sacrifice of securities, as the bank is perfectly sound. Poyce will soon be brought to trial.


Article from Waterbury Evening Democrat, February 25, 1889

Click image to open full size in new tab

Article Text

The Willimantic Bank Case. WILLIMANTIC, Conn., Feb. 25.-When Treasurer Boyce, of the Willimantic Savings institute, was tried last December for falsification of the books, etc., the jury disagreed, although Boyce made admissions which render him liable under the banking laws. Since then he and his friends have labored systematically to scare depositors and embarrass the bank, in the hope of preventing retrial. Judge Carpenter, at the request of the state bank commissioners, has enjoined the institute from paying back any deposits for one year. This is done to prevent a run and a sacrifice of securities, as the bank is perfectly sound. Boyce will soon be brought to trial.


Article from The Press, February 28, 1889

Click image to open full size in new tab

Article Text

cause some one to be heard from. -Charles S: Tyler, of Gilead, a neighbor of John H. Buell, sheriff of Tolland county, was arrested Thursday morning and brought before a justice charged with burning the sheriff's barn, on W eduesday morning. He pleaded guilty, and gave detailed information regarding the crime. He said that he set it on fire to revenge himself on the sheriff for serving papers on him in a recent prosecution. He was bound over to the superior court. Hartford Times Judge Carpenter, of the supreme court, has granted the injnnction sought by the bank commissioners, forbidding any deposits now in the Willimantic Savings Institute to be withdrawn for one year, or, until such time as the court may issue a special charter. Any dividends, however, that may be declared during the period will be paid to depositors. One year since when the commission. ers examined the bank and the worthless Ingersoll paper was discovered, the 15 per cent, scaling ordered placed the institute on a sound basis. During the twelve months passed $130,000 of deposits have been drawn out through, it is said, the efforts of Ex-Treasurer Royce and his friends. A short time since, notice was served on the bank that $100,000 further would be withdrawn. It is to stop this "panicky" disposition that the injunction was served. Two weeks ago the Bank Commissioners examined the affairs of the institute, and they found the assets in a sound condition. If, they say, all the quick assets are taken up, those who have great confidence in the bank will begin to lose faith. In the opinion of the commissioners, Roy ce and his friends are hard at work to prevent the prosecution of a second case against the ex-'reasurer.


Article from Waterbury Evening Democrat, February 28, 1889

Click image to open full size in new tab

Article Text

THE BANK IS SOUND. Official Statement Concerning Royce's Crookedness at Willimantic. WILLIMANTIC, Conn., Feb. 28.-The directors of the Willimantic Savings institute issued a statement to depositors of facts in the case of ex-Treasurer Royce, saying that from 1844 to 1888 he discounted $1,046,521 of Ingersoll paper unknown to the directors, and that during the same time a process which they term "kiting of checks" took place between Royce and Ingersoll to the amount of over four and a half millions of dollars. This the present board stopped in 1887, after a loss of $70,000 had been sustained. Details are given of other cases wherein several thousands of dollars were lost. The directors assert that the 15 per cent. scale of deposits last March and last week's injunction were necessary to prevent a run and the appointment of a rej ceiver, but that the bank is now sound, and will probably pay April dividends.


Article from Morning Journal and Courier, June 13, 1889

Click image to open full size in new tab

Article Text

$ THE ANSONIA LIST. 1 The Ansonia list is arranged alphabetically 9 below: : A. B. & C. Co $ $581,500 Ansonia Hall Co 15,000 $ Ansonia L. & W. P. Co. 58,050 Ansonia Lumber Co 12,000 ) Ansonia Water Co 16,300 ) 14,510 Rartholomew, Dana ) 12,390 Bristel, Frances E , 15,240 Bristol, W. B Colburn, Elizabeth 21,340 Cowles, Anna and Gertrude 12,930 11,000 Dermody, James (heirs) 11,950 Dwyer, Michael 17,000 Electrical Supply Co Electrolytic Copper Co 21,400 Farrel F. & M. Co 294,710 Gardner, John B 80,789 19,490 Hotchkiss, George 13,000 Hotchkiss, Mary A Jackson, C. C 11,325 Lewis & Wolfe, 14,300 Osborne & Cheesman Co 40,000 10,000 Savings Bank of Ansonia Smith, H. J 12,500 10,350 Sperry, Hobart 14,605 Terry, T. P. 166,800 Wallace & Sons Thomas 20,630 William 15,610 ) 14,855 Wooster, W. B McMahon & Wren 12,600 1 General State News. IN CHESHIRE. 1 The thunder storm in Cheshire Tuesday was the severest known in years. Two valuable steers owned by E. P. Brooks and three 9 cows owned by W. S. Baldwin were struck by lightning and killed. 9 WILLIMANTIC SAVINGS BANK. be The injunction placed on the Willimantic 1 Savings bank remains in force. It is to pre, vent depositors withdrawing their deposits and thus crippling the bank and putting it into the hands of a receiver. Next Monday 1 directors will be chosen. A petition is out asking that none but large depositors in the e bank be chosen as directors. The present president, Edwin A. Bush, ex-treasurer of t the State, is not a depositor. a


Article from Morning Journal and Courier, February 26, 1890

Click image to open full size in new tab

Article Text

General State News. HIS EIGHTY-SECOND. Henry Warren, the Ansonia newsdealer, will soon celebrate his eighty-second birthday. He is very spry and active yet. GETS TWO AND A HALF YEARS. William McNamee of Bridgeport, found guilty of setting fire to Dorman's livery stable here several weeks ago, was sentenced to two and a half years in state prison. GETS FIFTEEN YEARS IN STATE PRISON. BRIDGEPORT, Conn., Feb. 25.β€”Charles Green, the young colored man found guilty of committing rape on Rachel Wilson, eighty years of age, residing near Stamford, was to-day sentenced by Judge Sanford, of the superior court, to fifteen years in state prison. JUDGE STORR'S FUNERAL. The bearers at the funeral of Judge Storrs in Hartford yesterday were Messrs. Roland Mather, H. K. Morgan, John C. Parsons, Leverett Brainard, Rodney Dennis, Ward W. Jacobs, Ambrose Spencer, A. E. Hart, C. T. Millard, F. I. Prentice, G. W. Chapin and Charles D. Allen. These gentlemen have been connected with Judge Storrs in business at the Pratt Street Savings bank. FIFTEENTH WEDDING ANNIVERSARY. Charles L. Case and wife of Ansonia, who are fifteen years wedded, were visited by a large party of friends Monday night. All the visitors came laden with baskets of choice eatables and gifts for the occasion. Two of the party brought in a rocker for Charlie. This was the last straw. It was presented by J. E. Bristol in a very comical speech, which excited roars of laughter. THE DEPOSITORS NOT UNEASY. The injunction placed on the Willimantic Savings institute, in February, 1889, forbidding the withdrawal of deposits for one year, is now removed. Yet the depositors do not seem disposed to withdraw their funds, except in cases of actual necessity, which shows plainly that the full confidence is restored in the old institution, which is now in a sound financial condition, owing to its judicial management. MR. TUCKER MISSING. Mr. Talcott M. Tucker of Hartford, aged forty, has not been seen by his relatives since February 10. He is a machinist and works at the Pratt & Whitney company. The contractor has not been able to trace him and told his friends that he would have to employ a new man if Tucker did not put in an appearance. Tuckers relatives think that he may be sick and with friends out of town. When last seen by them he complained of being sick. A PLAN OF ACTION. At the meeting of the creditors of W. R. Hurd, of Bristol, Monday afternoon, a plan was agreed to for the formation of a joint stock corporation with a capital stock of $5,000, in which all the creditors of the estate might enter, at 25 per cent. on the value of their claims. An assessment of 20 per cent. is proposed to be made on this stock, to cover immediate expenses, and it is hoped that a favorite sale can be made of the property by keeping the business running and preserving the good will. WASHINGTON, CONN., ETC. Be careful how you address your letters to Washington. Washington is a state. Washington is a town in this Nutmeg state. Washington is a city in the District of Columbia. Washington is the name of nearly forty towns in different states, and besides all these there are a Washington Bar, a Washington Borough, a Washington Court House, a Washington Center, a Washington College, a Washington Depot, a Washington Gulch, a Washington Harbor, a Washington Heights, a Washington Hollow, a Washington Mills, a Washington Prairie, and a Washingtonvilleβ€”all postoffices. IN WALLINGFORD. WALLINGFORD, Feb. 25.β€”There were four funerals in town to-day, Miss Hennessey, who died at the house of Henry Jones, and a sister of Mrs. Patrick McKenna, funeral from the Holy Trinity church at 9 o'clock this morning; Mrs. John Hodgett's from her late home at 2 o'clock this afternoon, also at the same hour the funeral of Hubbard Barnes from his late home in Quinnipiac, buried in the Center street cemetery, and Dennis Hollern from the Holy Trinity church at 3 o'clock this afternoon. The wedding of Willis A. Trask and Miss Mary Thomson is announced for two weeks from to-day at 5 p.m. Mrs. Skinner, mother of Mrs. W. Burr Hall is very low with pneumonia. Dr. McGaughey attends and Dr. Sanford of New Haven has been called in consultation in the case. The Simpson, Hall, Miller & Co. Aid society have elected John Norton president, H. E. Owens vice president, B. F. Williams and Thomas Kennedy trustees, Henry Forster and Charles McLean auditing committee. A TERRIBLE ACCIDENT. Nellie Drea, who was killed by switch engine 10 of the N. Y. B. and P. railroad at New London Saturday evening, was walking on the track and was with a friend, Mary Connors, who was walking just outside the rails. They had plenty of room to stand clear of the approaching engine, and Miss Connor called to lookout but the unfortunate girl became confused and stepped directly into danger. A stretcher was brought from the station and the mangled body of the young girl taken to Jerome Keeney's residence, corner of Douglas street. Drs. Nelson and Braman came to the aid of the poor girl but she was beyond help as she had sustained a compound fracture of the right leg below the knee, her left arm was crushed to the shoulder and her left leg, from the knee to the hip, was mangled into a shapeless mass. Rev. Father McGowan administered the last right of the church to the dying girl and at about 10 o'clock she passed away. The remains were consigned to the charge of Pendleton & Parlow, the undertakers, and on Sunday were carried to the home of the mother of the deceased in Groton.