gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bdd06d694ae3155d
Response Measures
None
Description
Company was organized under South Dakota law though operating in Boston; injunction closed the office and depositors besieged it before receivership.
Events (3)
1.January 4, 1906Suspension
Cause
Government Action
Cause Details
Temporary injunction filed by Massachusetts savings bank commissioners restraining the company from doing business
Newspaper Excerpt
an injunction restraining the Provident Securities and Banking company ... from doing further business was petitioned for ... The court issued a temporary injunction
Source
newspapers
2.January 5, 1906Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors reacted to news of the company's insolvency/poorly invested deposits and the court injunction; many attempted withdrawals when office was closed
Newspaper Excerpt
The office of the bank on Franklin street was closed to-day...depositors who were in the corridors at the bank's usual opening hour. The doors were locked. After waiting a while most of the depositors withdrew, though some remained for nearly an hour.
Source
newspapers
3.January 19, 1906Receivership
Newspaper Excerpt
Judge Braley ... appointed Messrs. Wade and Hall receivers for the Provident Securities and Banking Co., recently closed by the temporary injunction of court.
ACTION DEFERRED. Petition for Receiver for Boston Banking Concern Goes Over Until Next Week. Boston, Jan. 5-Action upon the receivership petition brought by the savings bank examiners against the Provident Securities & Banking Co of this city, which was filed yesterday, was deferred until next Wednesday by Judge Braley of the Massachusetts supreme court to-day. The case came up. but on representations of S. E. Hamilton, counsel for the bank, said that the right of the examiners to close the institution was doubtful. the case was permitted to go over until January 10. A temporary injunction restraining the company from dong business, pending a hearing. granted by the court yesterday. remained in force. In connection with the case, Assistant Attorney General Degoosh for the state informed the court that the company had total assets of a par value of $609,709. of which about $2,000 or $3,000 was in cash and the remainder securities of doubtful value. The company had between 8,000 and 9,000 depositors, he staid. who had placed with the company cash to the amount of about $162.000. The office of the bank on Franklin street was closed to-day. There was no note or announcement in sight to satisfy the anxiety of a score or more of depositors who were in the corridors at the bank's usual opening hour. The doors were locked. After waiting a while most of the depositors withdrew. though some remained for nearly an hour.
2.January 5, 1906The Cairo BulletinCairo, IL
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Article Text
OUT OF BUSINESS State Savings Bank Up Against Snag - It's Deposits Are Poorly Invested. Boston, January 4.-An injunction restraining the Provident Securities and Banking company of this city from doing further business was petitioned for this afternoon in the Massachusetts supreme court by the state savings bank commissioners. The court issued a temporary injunction and a hearing is to be held tomorrow on the question of appointing a receiver. The company is organized under the laws of South Dakota and has an authorized capital of $1,500,000. It has about 8,900 depositors, with an average deposit from each of about $20. The commissioners alleged that the company was unable to meet its obligations, that the $182,000 deposits were so poorly invested that not more than $1,800 could have been realized by the company for the purpose of meeting any obligation.
3.January 5, 1906The Providence NewsProvidence, RI
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ONLY $3000 OF ASSETS IS CASH Boston, Jan. 5.-Action upon the receivership petition brought by the Savings bank examiners against the Provident Securities and Banking company of this city, which was filed yesterday and referred until next Wednesday by Judge Braley of the Massachusetts supreme court today. The case came up, but on representations of S. K. Hamilton, representing the bank, that the right of the examiners to close the institution was in doubt, the case was permitted to go over until Jan. 10. A temporary injunction restraining the company from doing business, pending a hearing granted by the court yesterday, remained in force. The question raised by Attorney Hamilton was whether the power legally conferred upon the savings bank examiners extended beyond that of making examina. tion and his request for a postponement was based on his desire to consult authorities on this point. The office of the bank on Franklin street was closed today. There was no note or announcement in sight to satisfy the anxiety of a score or more of depositors who were in the corridors nc the bank's usual opening (hour. *The doors were locked. After waiting a while most of the depositors withdrew, though some remained for nearly an hour. In connection with the case before Judge Braley, Assistant District Attorney De Goosh, presented the information that the company had assets of a par value of $609,707. of which about $2000 or $3000 was in cash, and the remainder of securities of a doubtful value. The company had between 6000 and 9000 depositors, he said, who had placed with the company cash to the amount of about $182,000. MANY LYNN FOLK AFFECTED. Lynn, Mass., Jan. 5.-Although the extent of the business done in this city, by the Provident Securities and Banking company of Boston is not known, it was learned today that hundreds of factory employes had deposited money in the bank. The company rented an office at 16 Central avenue, but this office was only opened on Saturday of each week, at which time an officer of the bank came here from Boston, and collected the savings from the small banks, with which each customer of the bank was provided. These small banks were distributed by several local factory employes. 40 cents of the first dollar deposited being paid as the commission by the company. Many depositors, it was learned today. withdrew their savingfis from the bank during the Christmas holidays.
4.January 5, 1906Omaha Daily BeeOmaha, NE
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Article Text
BOSTON BANK CLOSES DOORS State Commission Say Concern Chartered in South Dakota Is Insolvent. BOSTON, Jan. 4.-An injunction restraining the Provident Securities & Banking company of this city from doing further business was petitioned for this afternoon in the Massachusetts supreme court by the state savings bank commissioners. The court issued a temporary injunction and a hearing will be held tomorrow on the question of appointing a receiver. The company is organized under the laws of South Dakota and has an authorized capital of $1,500,000. It has about 8,900 depositors with an average deposit from each of about $20. The commissioners alleged that the company was unable to meet its obligations. According to the evidence of the commissioners in the supreme court today the money deposited with the company, which aggregated $182,000, had been poorly invested. At a given moment the commissioners allege that no more than $1,800 could have been realized by the company for the purpose of meeting any obligations. Samuel Dalton, for many years, adjutant general for Massachusetts, is president of the bank.
5.January 8, 1906Vilas County NewsEagle River, WI
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ALLEGED BANK INSOLVENT. Bay State Officials Petition for a Receiver. Boston, Jan. 5.-An injunction restraining the Provident Securities and Banking company of this city from doing further business was petitioned for yesterday afternoon in the Massachusetts supreme court by the state savings bank commissioners. The court issued a temporary injunction and a hearing will be held today on the question of appointing a receiver. The company is organized under the laws of South Dakota and has authorized copital of $1,500,000. It has about 8,900 depositors, with an average deposit from each of about $20. The commissioners alleged that the company was unoble to meet its obligations and that the $182,000 deposits
6.January 12, 1906The Birmingham Age-HeraldBirmingham, AL
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BAD STATE OF AFFAIRS. Massachusetts Governor Asked to Remove Savings Bank Commissioners. Boston, January 11.-As the result of his investigation today of the recent suspension of the Provident Securities and Banking company of this city, District Attorney John B. Moran tonight sent a letter to Governor Curtis Guild, Jr., asking that the Massachusetts Savings Bank commissioners be removed from office. In his letter Mr. Moran charges that the commissioners, James O. Otis of Maldin; Frederick B. Washburn of Wellesly Hills, and Warren E. Lock of Norwood, were "grossly careless and wilfully negligent" in connection with the affairs of the Provident company, and other institutions. Mr. Moran maintains that the savings bank commissioners had full power under the law of 1902 to inquire into the affairs of the company, and that if they had done this they would have uncovered the condition of affairs which has been revealed by the suspension, and thus have prevented possible losses affecting over 8000 depositors, the majority of whom are laboring men, women and children.
7.January 12, 1906The Barre Daily TimesBarre, VT
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PEREMPTORY DEMAND FOR THEIR REMOVAL District Attorney Moran Charges Massachusetts Savings Bank Commission With Being Grossly Careless and Wilfully Negligent. Boston, Jan. 12.-As the result of his investigation yesterday of the recent suspension of the Provident Securities & Banking company of this city, District Attorney John B. Moran last night sent a letter to Governor Guild asking that the Massachusetts sayings bank commissioners be removed from office. in his letter Mr. Moran charges that the commissioners were "grossly careless and wilfully negligent" in connection with the affairs of the Provident company and other institutions. Mr. Moran maintains that the savings bank commissioners had full power under the law of 1902 to enquire into the affairs of the company and that if they had done so they would have uncovered the condition of affairs which has been revealed by the suspension and thus have prevented possible losses, at. feeting over 8.000 depositors, the majority of whom are laboring men and women and children.
8.January 12, 1906The Montgomery AdvertiserMontgomery, AL
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ATTACK ON OFFICIALS. Moran Asks Removal of Massachusetts Bank Commissioner. Boston, Jan. 11.-As the result of his investigation today of the recent suspension of the Provident Securities and Banking Company of this city, District Attorney John B. Moran tonight sent a letter to Governor Curtis Guild, Jr., asking that the Massachusetts Savings Bank Commissioners be removed from office. In his letter Mr. Moran charges that the Commissioners, James O. Otis of Maldin, Frederick B. Washburn of Wellesley Hills and Warren E. B. Lock of Norwood, were "grossly careless and wilfully negligent" in connection with the affairs of the Provident company and other institutions. Mr. Moran maintains that the Savings Bank Commissioners had full power under the law of 1902 to Inquire into the affairs of the company and that if they had done this they would have uncovered the condition of affairs which has been revealed by the suspension, and thus have prevented possible losses affecting over 8,000 depositors, the majority of whom are laboring men and women and children.
9.January 12, 1906New-York TribuneNew York, NY
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ATTACKS BANK COMMISSIONERS. Moran, Boston's Jerome, Demands Their Removal for Incompetence. Boston, Jan. 11.-As a result of his investigation to-day of the recent suspension of the Provident Securities and Banking Company, of this city, District Attorney John B. Moran to-night sent a letter to Governor Curtis Guild, jr., asking that the Massachusetts Savings Bank Commissioners be removed from office. In his letter Mr. Moran charges that the Commissioners, James O. Otis, of Malden; Frederick B. Washburn, of Wellesley Hills, and Warren E. Lock, of Norwood, were "grossly careless and wilfully negligent" in connection with the affairs of the Provident company and other institutions.
10.January 12, 1906Vermont PhลnixBrattleboro, Bellows Falls, Ludlow, VT
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Asks for Removal of Savings Bank Commissioners.
As a result of his investigation yesterday of the recent suspension of the Provident securities and banking company of Boston, District Attorney John B. Moran last night sent a letter to Gov. Curtis Guild, asking that the Massachusetts savings bank commissioners be removed from office. In his letter Mr. Moran charges that the commissioners, James O. Otis of Malden, Frederick B. Washburn of Wellesley Hills and Warren E. Locke of Norwood, were "grossly careless and wilfully negligent" in connection with the affairs of the Provident company and other institutions.
Special Correspondence of The Journal. OSTON, Mass., Jan. 11.-The savings banks commissioners of this B state are under fire because of their failure to have proper supervision over a concern known as the Provident Securities and Banking company, thru the failure of which over 9,000 depositors have lost about $200,000. The company had been doing business since 1902, among the officers being some of the most prominent men in Boston, including former Adjutant General Samuel Dalton and Colonel 'Sidney M. Hedges, all of whom got out of the concorn before the crash came. The company did business by distributing metal banks, which depositors took home, and in which they placed their loose change until they had enough of it to deposit. The names of the. directors seemed to be sufficient guarantee of the stability of the concern, and the number of small depositors grew rapidly. Under the laws of the state the company could not use the word savings, but it seems to have got along famously without it. The savings bank commissioners paid very little attention to it, and when the end was reached it was found that the company was largely in the hands of office boys; that it had been formed to finance schemes of the Shenandoah Irrigation company, and that all sorts of complications had resulted. The offices of the company have been besieged with depositors, many of whom have gone to the statehouse to make personal appeals to Governor Guild. The public has become so much stirred over the matter that the savings banks commissioners have been placed in an unpleasant position, and preparations are being made to guard against companies of the kind doing business in the state in future. Its name was so like that of the Provident Institution for Savings, one of the very oldest and soundest of the savings banks, that there came near being a run on that institution. Mayor Fitzgerald has begun his agitation for a busier Boston in a most energetic manner, and has already turned his attenBeston's Mayor tion to the New York, New Haven Stirs & Hartford railroad, which he declares does not Things Up give Boston proper representation in its management. This road has practically a monopoly of the business in the east, but its headquarters are in New Haven, and business men have been complaining for years about the service between this city and New York. The mayor has also created a sensation by refusing to allow a religious sect called the Holy Jumpers" to have meetings in Boston. While it is ad mitted that the meetings held by these were as as most remen women it people ligious going thru exercises, all not kinds the orderly of contortions, and was not until the mayor refused to allow them to meet that much attention was paid to them. Then clergymen of differ ent denominations set up a protest about
12.January 18, 1906New-York TribuneNew York, NY
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BANK RECEIVER ASKED. Insolvency of Provident, of Boston, Alleged. Boston, Jan. 17. --Assistant Attorney General De Goosh to-day petitioned that a receiver be appointed for the Provident Securities and Banking Company, which was placed in the hands of custodians about ten days ago by the State Supreme Court. The petition was offered because of an alleged visit by Lorenzo W. Burlen, the treasurer, to the company's offices, and the alleged removal of property on the evening of January 4, application for an injunction to restrain the company from doing business having been filed by the State Savings Bank Commissioners on the afternoon of that day. The appointment of custodians was made by Judge Holmes after application by the bank commissioners for a receiver, on representations by counsel for the bank that a considerable return might be made to the nine thousand depositors who had intrusted to the institution deposits aggregating $182,000 by a sale of securities. The motion made to-day was opposed by counsel for the bank on the same ground. Assistant Attorney General De Goosh told the court that of the $182,000 which was deposited with the company there remains now, the custodians say, but $450 in actual cash. Counsel for the company stated that Burlen would be back in Boston by Friday. and a hearing was set for that day. Counsel for Burlen and the custodians of the bank held a conference, and one custodian sala that, so far as he and his fellow custodians could tell from the books, nothing of value belonging to the company was removed by Burlen on January 4. After the conference it was stated that counsel for the bank had said that there was a possibility of raising $50,000 to distribute to depositors. Montreal, Jan. 17.-L. W. Burlen arrived here last night. He said he came to Canada on the advice of his attorney in search of rest and to avoid embarrassment.
Receiver Asked For Provident. BOSTON, Jan. 18.-Assistant Attorney General De Goosh petitioned that a receiver be appointed for the Provident Securities and Banking company, which was placed in the hands of custodians about ten days ago by the state supreme court. The petition was offered as a consequence of an alleged visit by Treasurer Lorenzo W. Burlen to the company's offices and the alleged removal of property on the evening of Jan. 4.
14.January 19, 1906The Fargo Forum and Daily RepublicanFargo, ND
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RECEIVER NAMED FOR DEFUNCT BANKING CO. Boston, Jan. 19.-Judge Bradley of the Massachusetts supreme court today appointed Messrs. Wade and Hall receivers for the Provident Securities and Banking Co., recently closed by the temporary injunction of court.
RECEIVERS APPOINTED FOR BANKING COMPANY Boston, Jan. 19.-Judge Braley of the Massachusetts supreme court today appointed Messrs. Wade and Hall receivers for the Provident Securities & Banking company, which was recently closed by a temporary injunction of the court.
RECEIVER ORDERED To Look After Boston Bank Clos ed by Temporary Injuction Recently. Boston, Jan 19.-Judge Braley of the Massachusetts supreme court today ordered that a receiver be appointed for the Provident Securities and Banking Co, recently closed by a temporary injunction of the court. The judge was informed by the custodian of the bank, Charles F. Weed, and Alfred F. Hall, that the affairs of the institution were hopelessly insolvent. S. K. Hamilton, counsel for the bank, informed the court that certain plans by which it was hoped to realize funds for the payment of depositors had not been realized, whereupon the judge directed that counsel for the state and for the bank should agree upon one of the present custodians to become receiver of hthe instiution.
17.January 20, 1906Americus Times-RecorderAmericus, GA
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Orders Receiver Appointed. Boston, Jan. 19.-Judge Braley, of the Massachusetts supreme court, has ordered that a receiver be appointed for the Provident Securities and Banking company, recently closed by a temporary injunction of the court. The judge was informed by the custodians of the bauk that the affairs of the institution were hopelessly insolvent.
Receiver Asked For Provident. BOSTON, Jan. 18. -Assistant Attorney General De Goosh petitioned that a receiver be appointed for the Provident Securities and Banking company, which was placed in the hands of custodians about ten days ago by the state supreme court. The petition was offered as a consequence of an alleged visit by Treasurer Lorenzo W. Burlen to the company's offices and the alleged removal of property on the evening of Jan. 4.
19.February 6, 1906The Barre Daily TimesBarre, VT
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Grand Jury on Bank Tangle. Boston, Feb. 6.-The Suffolk County grand jury for February is expected to take up the case of the Provident Securities and Banking Company, which is now in the hands of receivers.
20.February 21, 1906Daily Kennebec JournalAugusta, ME
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Alfred S. Hall, one of the receivers of the Provident Securities & Banking Co. of Boston, will test the validity of the transfer of property of the Shenandoah Irrigation and Land Co. made to the Naturita Canal & Reservoir Co. at Denver, Col., Saturday. Mr. Hall met C. D. Gurley of the Naturita Irrigation Co. Tuesday but no terms of agreement were discussed. Mr. Hall says that he does not know just what action he will take but intimates that he will appeal to the federal court for relief.
21.April 11, 1907The Marion Daily MirrorMarion, OH
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Was $200,000 of a Boston Bank's Funds. BY ITS DIRECTORS. Receivers of the Concern File a Sensational Report in Court-Men Accused are Prominent. Boston, April 11.-That more than $200,000 paid into the defunct Provident Securities and Banking Co. was squandered by the directors of the company and that less than $5,000 remains, is the allegation of the receivers of the company who filed a report Wednesday in the supreme court. In connection with their report, the first which they have submitted since the company failed in January, 1906, the receivers, Alfred Hall and Charles F. Weed, ask the court to approve a bill in equity against six Massachusetts directors of the company to recover the amount of the losses sustained by. the depositors. Of the six other directors five are beyond the jurisdiction of the state, while one of them, Samuel Dalton, formerly adjutant general of Massachusetts, is dead. The bill in equity is against Sidney M. Hedges, William M. Brigham, George W. Saul, George H. Swazey, Burton Colling and Henry F. Mayer. Brigham is a resident of Hudson, Mass., while the others live in this city. Brigham is an inspector general of militia on the staff of Gov. Guild. Hedges is a former commander of the Ancient and Honorable Artillery Company. The receivers charge that $243,462, of which $186,765 was paid in by depositors, was "wasted, squandered and lost" by the directors. The receivers state that the assets are less than $5,000 and that the liabilities amount to $268,831. The receivers ask the court to allow them to name in the suit directors Charles G. Curley, of Denver, Col; Milford Steele, of Chicago, and others who live outside of the state. The receivers charge that Curley received a credit of $67,000, alleged to be fictitious, from the bank.
22.June 13, 1908Daily Kennebec JournalAugusta, ME
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There is no possibility of paying a dividend to the 17,000 creditors of the Provident Securities and Banking Co. of Boston, which failed in 1906, according to the report made to the supreme court Friday by the receivers, C. E. Wood and Alfred S. Hall. The receivers state that there is only $3500 left and that no distribution can be made, because the expense of formal notification to the numerous creditors would consume the entire assets. The company did a large business for a time by distributing small steel savings banks for deposits.
23.August 1, 1908New-York TribuneNew York, NY
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CALLS COMPANY ALMOST A SWINDLE. Boston, July 31.-The Provident Securities and Banking Company was termed "almost a legalized swindle" by Justice Braley, in the Supreme Court, to-day. when he reserved decision on the petition for the allowance of the final account of the receivers. The debts of the concern, it was stated in court, amount to $274,000. of which amount $199,000 is due to depositors, while there is only $3,500 with which to meet these claims.
"A LEGALIZED SWINDLE" Phrase Applied by Supreme Court Justice to Provident Company. Boston, July 31.-The Provident Securities and Banking company was termed "Almost a legalized swindle" by Justice Braley in the supreme court to-day, when he reserved decision on the petition for the allowance of the final account of the receivers. The debts of the concern amount to $274,000, it was stated in court, of which amount $199,000 is due to depositors, while there is but $3,700 with which to meet these claims.
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.
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Provident Securities & Banking Company · UID 9452415491273
