Mechanics Savings Bank (Westerly, RI)

Episode Information

Episode UID
7151472991216
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
715147299 hash
Start Date
April 28, 1901
Location
Westerly, Rhode Island (41.378, -71.827)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
df63722f524b5b57

Response Measures

None

Description

Trustees voluntarily placed the bank in liquidation; no run was reported.

Events (3)
1. April 28, 1901 Suspension
Cause
Voluntary Liquidation
Cause Details
Trustees decided to wind up and liquidate the bank because of doubtful value of assets and western investments that had depreciated.
Newspaper Excerpt
The trustees of the Mechanics Savings Bank, owing to the doubtful value of some of the bank's assets, have decided that it is for the best interests of the depositors that the bank go into liquidation... Pending the granting of the authority no money will be received or paid out.
Source
newspapers
2. May 15, 1901 Other
Newspaper Excerpt
By a decree entered ... the officers of the corporation are enjoined from proceeding further with the bank's business ... the trustees are ordered to collect the debts dispose of the property of said bank and from time to time dispose of the proceeds ... among the depositors
Source
newspapers
3. December 28, 1901 Receivership
Newspaper Excerpt
After the death of his brother ... the bank went into liquidation, and Edward Foster, as representing the trustees, has been looking after the bank's interests. It is anticipated now that the bank will go into a receiver's hands to hasten the closing up of the affairs.
Source
newspapers

Newspaper Articles (12)
1. April 29, 1901 Evening Star Washington, DC
Article from Evening Star, April 29, 1901

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Savings Bank Suspends. A dispatch from Westerly, R. I., last night says: The Mechanics' Savings Bank of this town will not open for business tomorrow morning. Late this afternoon the following notice was issued: "The trustees of the Mechanics' Savings Bank, owing to the doubtful value of some of the bank's assets, have decided that it is for the best interests of the depositors that the bank go into liquidation, and action has already been taken looking to this result. Pending the granting of the authority. no money will be received or paid out." This action came as a great surprise to the town, and great excitement prevails among small depositors. The estimated amount of deposits is something less than a million. the securities on their face values something less than one million one hundred thousand, and the number of depositors about 2,000. Many of the securities are western investments, which are understood to have decreased in value year by year.

2. April 29, 1901 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, April 29, 1901

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A SAVINGS BANK SUSPENDS. Trustees at Westerly, R. I., Act Honestly With Depositors. Westerly, R. I., April 28.-The Mechanics Savings Bank of this town will not open for business to-morrow morning. Late this afternoon the following notice was issued: "The trustees of the Mechanics Savings Bank, owing to the doubtful value of some of the bank's assets, have decided that it is for the best interests of the depositors that the bank go into liquidation, and action already has been taken looking to this result. Pending the granting of the authority no money will be received or paid out." This action came as a great surprise to the town and great excitement prevails among small depositors. The est!mated amount of deposits is something less than a million, the securities on their face values, something less than one million, one hundred thousand, and the number of depositors about 2,000. Many of the securities are Western investments, which are understood to have decreased in value year by year.

3. April 29, 1901 The Providence News Providence, RI
Article from The Providence News, April 29, 1901

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bank, owing to the doubtful value of some of the bank's assets, have decided that it is for the best interests of the depositors that the bank go into liquidation, and action has already been taken looking to this result. Pending the granting of the authority, no money will be recelved or paid out." CAUSED EXCITEMENT. This action came as a great surprise to the town, and naturally excitement prevails among many small depositers. The estimated amount of deposits is something less than $1,000,000. The number of depositors about 2000 and the largest amount due any one depositor about $12,000. Because of the recent death of J. B. Foster, no one has a comprehensive knowledge of the condition of the bank, and even among trustees there is a marked difference of opinion except on one point, which is that the bank should close. E. B. Foster, a brother of J. B. Foster, succeeded him as trustee. None of the trustees can give an idea of the length of time which will be required to wind up business. The depositors may receive 80 per cent., possibly more, possibly less. The bank was established in 1870, in connection with the national Phoenix bank. The latter is not affected by this liquidation nor is any other bank in town involved. A prominent Westerly citizen said today that the Western securities held by the bank were not really very bad and it might have been possible to have carried on the business of the bank had not those in charge of its affairs been very conservative in their ideas. NO RUN ON THE BANK. The closing of the Mechanics Savings bank did not create any visible commotion in financial circles at Westerly this morning. It was thought that the action of the directors might have the effect of starting a run on some of the local institutions, but during the forenoon withdrawals were apparently no more extensive than usual. All the banks were prepared to meet any sudden demand. one it is stated having $300,000 cash in its vaults.

4. May 1, 1901 News and Citizen Morrisville, Hyde Park, VT
Article from News and Citizen, May 1, 1901

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The Paoting expedition is declared off, and the French troops return to their station-A Brazilian invents a steerable balloon--Australian troops wrecl: the office of the South African News. SUNDAY, APRIL 28. Fire in the Fitchburg freight sheds at Boston causes a loss of perhaps $65, 000-Sheriff Pearson of Portland. Me., delivers a sensational address before the Methodist conference at Yarmouth -Lieutenant Frank E. Edwards discharged from the volunteer army; hi name erased from list of new appointments, where the president had placed it-The Independence, Constitution and Columbia to race off Newport July 2, 4 and 6-Harvard wins the two and four-mile relay races at University of Pennsylvania meet, Yale taking the one mile--Still a chance for living victims of Brainerd's shooting at Portland, Me-Thomas Lawson captures 13 blue ribbons in the Brooklyn horse show-Gunner Morgan must defend divore suit-Boston policemen ordered not to gossip while on duty-Archbishop Williams of Boston observes his 79th birthday. MONDAY, APRIL 29. Jury finds Callahan guiltless in Cuda. hy kidnapping case-Kitchener continues process of wearing down Boers Boston hear -Colored Baptists eulogies on "Brother Jasper"--Bos ton building trades prepare for trouble; 25,000 men interested in various' demands for better conditions-Germans have four fights with Chinese and drive them beyond great wall with heavy loss -Fred Dixon, theatrical man, hangs himself at Quiney, Mass-Signs of approaching death of Storti, awaiting execution in Massachusetts state. prison -Joseph McBrien falls from platform of a house at Lewiston, Me., and is instantly killed-Henry Watterson says Bryan should "cease nursing illusions" -Storm embargo on Massachusetts coast is raised-Notorious Filipino general, Cailles. chased and almost captured by Americans-Mechanies' Sav. ings bank of Westerly, R. 1., to go into liquidation; depositors will get in neigh. borhood of 80 percent--James D. Reid, "father of telegraphers," died at New York. TUESDAY, APRIL 30. The soliciting of bribes admitted by a witness in the trial of Captain Reed in commissary frauds at Manila-British capture Transvaal documents and bank notes at Rossenkai-Mrs. Rathbun. on trial at New Haven on murder charge, a nervous wreck-Parker gets decision over Roeber in wrestling match for championship of world at Boston -Vice President Roosevelt arrives in Boston as the guest of the Home Mar-

5. May 3, 1901 Perrysburg Journal Perrysburg, OH
Article from Perrysburg Journal, May 3, 1901

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or Baetke & at Co. Brighton, Mich., was robbed of $4,000. Thomas Cole was hanged at Clinton, Ky., for the murder of Emma Cara Rice, his sweetheart. Dun's review of trade notes brisk business everywhere. Consolidation of all labor unions into one big organization is the aim of labor men. The percentages of the baseball clubs in the National league for the week ended on the 28th were: Cincinnati, .800; St. Louis, .667; Brooklyn, .600; Boston, .500; Pittsburgh, .500; Philadelphia, .500; New York, .333; Chicago, .143. More than $100,000,000 has been taken out of the Cripple Creek (Col.) gold mines since 1889. The seventy-ninth anniversary of the birth of Gen. Grant was celebrated at Galena, III. One million feet of hemlock logs were burned near Mellen, Wis., in a forest fire. Toribio Huerta was hanged at Las Cruces, N. Mex., for the murder of a companion to obtain $45. Six miners and 39 mules perished in a fire at Latrobe, Pa. James Callahan was acquitted at Omaha of complicity in the Cudahy kidnaping The jurors were given a bitter scoring from the bench. The national debts of the world at the close of the nineteenth century aggregate $31,000,000,000, largely due to wars. The condition of labor in Porto Rico is much improved since the island came under American control. The governor of Kansas repents of his offer of silver mugs to all triplets born during his second term. He has given 15 already. Job Copping, a florist, and his wife and three children lost their lives in a fire at Houston, Tex. A Cincinnati woman calcimined her husband and the saloon keeper who sold him liquor. The Cuban delegates started for home after asking the president to do all he could to give the island reciprocal trade relations. He assured them political questions must be disposed of before economic questions were considered. The Pan-American exposition in Buffalo will be open from one p. m. until 11 p. m. on Sundays. President McKinley and members of his party started on a trip across the continent. The journey will be 15,000 miles long and will take in 25 states. Twenty persons were killed by a snowslide at Sunrise City, Alaska. Two men, a woman and a boy committed suicide in Chicago in one day. Government Chemist Wiley says that a small proportion of the food sold in American markets is adulterated. The Mechanics' savings bank at Westerly, R. I., went into liquidation with assets of $1,100,000 and liabilities of $1,000,000. The National Women's Christian Temperance union will make an impartial investigation of the effects of the anti-canteen law. George Morrison, 16 years old, shot and killed three desperadoes at a dance near Watseka, Ill. The Building Trades league, a new labor body in Chicago, organized on a basis of arbitration of all disputes and opposition to sympathetic strikes. The longest transmission of electrical power in the world was tested at Oakland, Cal., where street cars were "

6. May 15, 1901 The Providence News Providence, RI
Article from The Providence News, May 15, 1901

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Defendant's petition for re-argument in the case of Hartwell & Richards company vs. James Moss has been denied by the appellate division. An Oineyville special car jumped the rails, when in front of No. 217 Washington street, at 7:30 this morning and bumped into a trolley pole. No damage was done. Joseph Chassie, 11 years old, of Seekonk, was riding his bicycle across Market square, yesterday afternoon. and came into collision with a horse driven by Edward Brooks. The boy's chest was injured and he was sent to his aunt's residence, No. 192 North Main street. The men In the Harrison street fire station were aroused at 10:30 last night not by an alarm, but by a delegation from the Pilgrim Congregational church, who came armed with ice cream and cake. The firemen accepted the challenge and did justice to the good things. The musical clubs of Brown University gave their second open air concert on the steps of Sayles Memorial hall last evening and over 200 hundred people enjoyed a rare program for several hours. The concerts will be held every Tuesday evening during the remainder of the term. A fire originating from some unknown cause in a feather bed in a tenement of the house owned by Lawrence McCain at 8 Tyler street was responsible for the alarm rung from box 362 at the corner of Burrington and Calhoun streets at 9 o'clock last night. The blaze was extinguished. In a rescript handed down by the appellate court in the case of Miles McYeon vs. H. O. Sturgess, et al. this language is used: "It is not necessary to discuss the question of the defendant's negligence when contributory negligence on the part of the plaintiff sufficiently appears to warrant a verdict against him. Petition for re-argument is denied and case remitted." By a decree entered in the appellate division of the supreme court today in the case of Mechanics Savings Bank of Westerly the officers of the corporation are enjoined from proceeding further with the bank's business until the order of the court. and the trustees are endered to collect the debts dispose of the property of said bank and from time to time dispose of time proceeds above the delite of the corporation and nopenses of winding up Ste affairs among the depositors in propertion to their respective interests therefn.

7. December 28, 1901 The Providence News Providence, RI
Article from The Providence News, December 28, 1901

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Edward B. Foster, treasurer of the Mechanics Savings bank, of Westerly, died yesterday afternoon, after an illness of some weeks. After the death of his brother, J. Barclay Foster. who was president, in April last, the bank went into liquidation, and Edward Foster. as representing the trustees, has been looking after the bank's interests. It is anticipated now that the bank will go into R receiver's hands to hasten the closing up of the affairs. Mr. Foster leaves a widow and two daughters.

8. February 13, 1903 The Providence News Providence, RI
Article from The Providence News, February 13, 1903

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TRYING TO TO COLLECT $70,000 Mechanics Savings Bank of Westerly Loaned That Sum to Indian Territory Oil Co. A despatch from Guthrie, Okla., says: In the case of the Mechanics Savings Bank, Westerly, R. L, and others against the Indian Territory Illuminating Oil company, wherein a receiver is asked for, the latter company a New Jersey corporation, the attorneys agreed upon a 10 days truce pending the settlement of matters in dispute. The plaintiffs asked a receiver for the settlement of an alleged debt of $70,000. The case was called before Chief Justice Burford of Oklahoma, but action was postponed. The Mechanics' Savings bank of Westerly. which made an assignment two years ago, took the initiative in the suit commenced at Guthrie, Okla., against the Indian Territory Illuminating Oil company, for an accounting. The bank had at various times advanced money to the oil company until $70,000 had been paid out. The trustees who are at work settling up the affairs of the crippled bank hope by this action to learn the exact state of affairs. with the object of realizing on their investment. The bank has already paid one dividepd of 23 per cent on $1,000,000 of deposits.

9. March 30, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 30, 1904

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BANK SUSPENDS. Savings Institution in Rhode Island in Difficulty. Westerly, R. I., March 29. - -The Peoples Savings Bank of Stonington, situated in the village of Westerly on the Connecticut side of the river, has been ordered by the bank commissioners of Connecticut to enforce the order that 60 days' notice be required before a depositor can withdraw his money as a preliminary to the liquidating of the bank. The order went into effect, today. The total amount of deposits in the bank is about $95,000 and the assets will be sufficient to pay the depositors in full if the securities can be realized. The bank is the third savings institution in this vicinity which has suspended payment within three years. The Stonington Savings Bank, which had deposits of $728,529, is under injunction from the courts restricting the payment of deposits and the bank, it is understood, will be wound up as soon as its affairs are straightened out. The Mechanics Savings Bank of Westerly closed its doors on April 30. 1901, with deposits of $1.000,000 and it is in liquidation. The difficulties of the three banks are attributed to depreciation in securities.

10. March 1, 1915 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, March 1, 1915

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sible. The first battalion. Major Johnson, composed of the First, Sev- enth, Ninth and Sixteenth companies, of Providence, will drill Monday nights The second battalion, commanded by Major Nolan, consisting of the Second, Third, Tenth and Thirteenth com- panies, of Providence, will drill Wed- nesday nights. There are but three Providence companies in the fourth battalion, the Fourth, Fourteenth and Seventeenth. This battalion under the command of Major Arthur N. Nash, of Westerly, will drill on Tuesday nights. The other companies, not lo- cated in Providence will drill as here- tofore. In connection with the new order the major commanding have issued special orders calculated to make the drills of the utmost vauue and take advantage of every minute of the al- lotted time of an hour and a half. ### Arguments of counsel on bill and answer in the case of Isaac Ellis against Horace Swan were heard by Judge Barrows in the superior court for Providence county, Saturday. The counsel are Harry B. Agard for re- pondent and Harry P. Cross for plain- tiff. This is a case that was heard at a session of the court in Westerly and relates to a lease of some grainte property in the village of Bradford held by Horace Swan of Westerly, which Mr. Swan seeks to annul, claiming that the grainte quarry had not been worked by Mr. Swan al- though he claims to have legal lease of the property for a long term of years. Mr. Ellis claims that the ex- istence of this alleged lease inter- feres with the sale of the property. Assigned for trial on Tuesday in the same court are the old suits of Al- bert B. Crafts against the Mechanic Savings bank of Westerly, in process of liquidation, and also in a case against Ira B. Crandall, of Westerly, a director of the bank. White Rock is a blindless village, as of the many well kept houses, all own- ed by the mill company operating in the place, not one is supplied with window blinds except the cottage occu- pied by the superintendent. The houses are practically of the same style of architecture, are all painted white and are in good repair. But the sanitary conditions of the village are inade- quate, causing much complaint of the residents thereof. There is no system of water supply, and therefore no sew- erage system or anything pertaining thereto, and the water used for drinking and domestic purposes is taken from the wells that are all too near to cesspools and the like. For years the residents have been appeal- ing in vain for the extension of the Westerly water system to the White Rock section of the town, but the mill company is silent on the very impor- tant subject. The system has been extended to Watch Hill, Pleasant View and Week- apaug, all within the town of Wester- ly, and even to Pawcatuck, in the town of Stonington and state of Connecticut. The mill company, which practically owns the village of White Rock, has made no application for the service, which, to be effective, would carry with it guarantee of sufficient patron- age and financial encouragement to warrant the expenditure of construc- tien and maintenance.

11. August 6, 1919 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, August 6, 1919

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of handling egg lobsters in the case in question. The morning accommodation train, eastbound, which leaves New London at 7 'clock, was 20 minutes late in arrival at Westerly Tuesday. The delay was explained by a trainman thusly: "Just before getting to the railroad bridge at New London we were. held up by a red flag. as a freight train ahead had pulled out a lung and the brakebeam rigging dropped. We backed down to John street, took the westbound track to Midway and then came along on our own iron. What's a lung? It's what you commuters call a draw head, a drawbar, a coupling. or something like that. But in railroad vernacular it's a lung. Say. had that freight been going at speed and the lung and brakebeam trouble came, believe me, some cars would be piled up and traffic held up. Then instead of complaining in a whisper over this delay, you'd be shouting your head off and be telling us fellows just the way a railroad should be operated whereby there would be no accidents or inconvenience to the public. Westerly!" Depositors of the Mechanics' bank were in line Tuesday receiving a dividend of 10 per cent. on their deposits, making 95 since the bank went into liquidation. The other 5 per cent. will soon be paid and depositors are assured of a bonus that will go quite a way in making good the loss in interest on deposits. James Coleman was the first depositor to call for his dividend and was handed check No. 1. convertible into cash. There was no rush for the dividends on Tuesday, presumably heed being taken of the suggestion in Monday's Bulletin that there be no run on the bank the first day, so that the business might be transacted in an orderly and more satisfactory way to all concerned. Local Laconics. After an absence of 15 years, Ralph Macloud, formerly of Westerly, now of Athol, Mass., is here on a visit to old acquaintances. A young man on vacation from Phil adelphia, and making calls upon his best girl, employed at a Watch Hill cottage, was being shadowed by detectives on special duty in connection with the recent robberies. lle knew the sleuths were trailing him and finally informed them, voluntarily, of his identity and the cause of his presence at the hill. The Seventh Coast Artillery band will give concerts in Wilcox park this afternoon and evening in the interest of recruiting for the' coast artillery service. Miss Eileen Agnes Fowler. daughter of Mr. and Mrs. R. M. Fowler of Pawcatuck, and Charles Gregory Meytum of Bristel were married Tuesday at a nuptial mass in St. Michael's church by Rev. Walter J. Lyddy. They were attended by Miss Marie Meytum of Bristol and Walter Gordon of New Bedford.

12. December 10, 1926 The Albert Lea Tribune Albert Lea, MN
Article from The Albert Lea Tribune, December 10, 1926

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Bank Closed in 1901 Paying Depositors Westerly, R. L., Dec. (AP) A bank which was closed by the courts in 1901 for "unwise investments" will begin payments today to its depositors which will raise the total they have received to 140 per cent with more to come. Back in 1901 when this little town had fewer than 8,000 residents it was shocked when the doors of the Mechanics Savings bank, founded in 1840 were closed. There were 1,900 savings accounts, one to every fourth person of the population, and the leading business men of the community were the directors.