New-York tribune., 1888-03-24
A SAVINGS BANK CLOSED.
PEOPLE OF wILLIMANTIC DISTURBED.
TIE TREASURER, II. r. ROYCE. sUsPENDED-LEND-
ING MONEY WITHOUT SECURITY IN SPITE
OF TIE DIREcTORs-HIs IRREGU-
LAEITIEs SUFFICIENT FOR
A CRIMINAL CHARGE.
A CRIMINAL CHARGE.
fBY TEIrGR Pr tn rur rprpr,~r


A CRIMINAL CHARGE.
lBr TELEGRAPH TO THE TRrBUYEI
WrLLIMASTrc. Conn. March 23.-For the second
time in the history of Willmantc banking in
stitution has closed its doors The first case was
in 1880, when the Willimantic Trust Company
was wrecked by certain stockholders, in spite of
the Efforts Of the president and others to save it,
The cashier Of this Trust Company was Henry F.
Royce, whose methods Of financial management
were thought by many at that time to be the main
cause OF its wreck. Now comes another financial
disaster in which Royce is the central figure but
this time, owing to the care OF the directors,
there is no wreck but rescue. The Willamantic
Savings Institute to-day closed its doors to busi
ness The directors met this morning and voted
to suspend the treasurer II. +. Royce, and to
scale the deposits 3 per cent and an advantage
was taken of the law allowing four months
notice to depositors to close the bank and begin
the work of Strengthening matters out The
principal Irregularities of the treasurer are held
by lawyers to be Of the nature of defalcations
The present directors took charge Of the bank
in June, 1886 Upon their first examination they
found that Royce was carrying about $4,000
in accommodation paper for certain men in New
York: They at once voted that this paper should
be discontinued as fast as IL matured and so in
structed the treasurer. In few months. the
amount was reduced to about 500. 900. Mean
while, presumably as an offset to this curtailment
OF his operations, it was found by the directors
that Royce was floating between 81 100000 and
$1,000 in checks between New-York and Will
mantle each month"; and measures were at once
taken to stop this practice. IL was done, 1t Is
said, for the accommodation Of men who were not
doing deposit business at the Institute
Application was made at the bank for a loan
Of $4,000 upon the property Of the United % States
committee of the directors after examining
the Portland property. reported that it was not
safe to lend more than $4,000 on it and the
of accounts by the directors it was found that
Royce without the knowledge of the directors,
had lent the Portland Company the 10000, ac-
the company's property. committee of the
directors promptly investigated the case and found
upon the Portland town records no evidence OF
hs alleged leg to the nste
erty was fully cCyerd b. membranes placed
prior to the date of the $4,000 loan, thus leav-
ing entirely unsecured the claims Of the Savings wings
something on this claim without success, but
it is expected that the NewYOrlS paper will prove
of some value. These transactions show the
net discrepancy in Royce's accounts to be about
s15O.0OO. Finding it impossible to check his
irregularities the directors placed the case before
the Bank Commissioners. George N Landers,, OF
New-Britain; and II. G. Noble Of Milford; M They They
of to-day was the result The Commissioners
pronounced the bank sound. after the 1 per cent
scale bad been made The management that
has taken hold of the bank r. rescue il from
Royce rosscss the confidence of the community,
and will undoubtedly succeed in a short time
in putting it on sound and safe basis. There
was slight run on the Dime Savings Bank, but
this was promptly met and soon subsidcd.
Royce has not yet been arrested, but it Is
stated that he will probably be proceeded against
I'm criminal action. Any depositor can cause the
arrest Of Rovce The deposits Of the hank are
nearly 100000, Frank N, Webb. assistant
treasurer, has been made acting-treasurer