New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-30
WILLIMANTIC HAPPENINGS.
CASHIER RIsLEY's ASTOUNDING TRANS
ACTIONS.
THE N,rcu,r-G SILK COMPANY IN COURT AGAIN
COLOSSAL CRIMES TO AVOID EAfoS'"
BEFORE DEATH-PERsoNAL NOTES.

BEFORE DEATH-PERsoNAL NOTES
w,,,imanuc Conn. June % (SpeciaD-The Dime
Savings Bank has finally announced a scale OF 10
per cent on its $4,000 OF deposits, which a houn'
| 10 500 Ooo charged off as worthless of tNls S-'
about $50 is said be due 70 the first Natlo"ai
| Bank failure and about $4,000 TO worth'esS coi'"'
eral in connection with the Morrison Machine 'o''-
nany and the balance in small loans counted uncoi-
lectble President James Walden says that the scale
IL amply sufficient TO cover al, losses. ana ne h'P'
enough may be realized eventually from 'he paper
charged off TO warrant an extra dividend Oh Al
least ! per cent. 1t Is announced that the regular
semi annual dividend Of per cent VIII be decare'
IN October The bank is not yet paying out any
money and will require ninety days notice AT pres
emit The first nnety-day notices VIII expire inc
latter part OF July. and by that time fres'ueh'
! Walden hopes TO have plenty OF money on 'he
| counters Every effort Will he made TO restore con-
Gdence and II is believed that the bank Is now on
sound footing again. ~
! Next Tuesday the contest the Natchaug SIX
! Companv will be renewed in the courts Receiver
James Hayden Is to present detailed report Oh 'ne
condition OF the company, as 1t was when he TOOK
IL and as II now Is. as shown by the examination Vi
| the expert bookkeeper who has been employed on
tho hook. the past three weeks. The contest over
the receyersh.p Is likely TO be renewed next Iues-
day also. 1t Is said that hnder Mr. Hayden : "fh-
agement the business of the Natchaug 'oihPh'!
has gone into a decline and 1t is fact that pract-
eighty hands in the weaving-room Both the Hecohi
| National Bank of Norwich and the First National
| Bank Of this city are opposed to Mr. hayuen anu
they together represent bont siX-scvenths OF inc
Natchaug creditors and claim the right 10 determine
the rece,vership II Is reported here that the banks
vii present two names for the reccivership' either
one of whom would be acceptable TO them namely
| Bank Commissioner z. A. Buck and George IL
Mason a local lumber dealer.
| Receiver Dooey of the First National Bank mas
| brought suit against James Walden ana Amos l.
| Fowler who were jointly and severaly bondsmen
for the late Cashier Risley in the sum OF >9V'' 10
| recover the amount OF the bond. When Sheriff
! Pomeroy went to attach the property OF M"ssrs'
| Walden and Fowler. he found II so heavily encum-
hered by mortgages that there was prac''ca'N 10
equity TO satisfy the bond. Further examination
showed that while the Risley bank was closed Apri
90 the mortgages on the property OF Messrs walden
and Fowler were executed respectively April N ana
e. This fact adds new complication 10 the Hi''"-
muddled Risey affair. II II can ne SHOWN 'hi' 'he
| nar,,.s who hold the mortgages took them in good
faith and with no knowledge that they were exc
cuted 10 escape liability for the $4,000 BOND. the
mortgages will stand and the bank cannot recover
hu, IL /, shall appear that the mortgages knew OF
the bank failure and OF the liability OF Messrs Wal
den and Fowler, 1t is probable that the mortgages
cannot stand. 1900
Another peculiar transaction has come 10 hsH'
within two or three days. II appears that last NO
yember when in straits for collateral 10 noat some OF
the Natchaug SIX Company paper the late cashier
Risley cool,y forged the name OF the Seectmch OF
| Windham to alleged town order for S'"" ana
| used II II was returned to the bank with some Of
the Natchaug paper that was taken up. ana III
April. jus; after Rsley's death. when Ivan A. Gull
| verhouse succeeded Risey cashier Cuiverhouse
in order 10 funds to meet the demands OF cur
rent business upon the nearly stranded First Ma
| t,onal sent that $500 town order 10 hochSHe
| National bank and had 1t cashed only few days
|
rsce,ver The IS 90 loss thus falls upon 'he ROCK
VIII. bank which sent the order here for collection
this week but the Secctmen declared 1t a forgery
| and declined TO pay 1t.
The straits Of Cashier Ri.ley in the last days OF
his life were such that he resored TO the most de'
perate means TO keep his bank afloat until he by
| death from B-eht's disease could be beyond the
personal disgrace Of earthly exposure II Is one "i
! the most remarkable cases on record lie had De"n
| floating nearly $4,000 OF the Na'chaug SIX com
pany's paper. and using the good assets 0. INC
| bank as collateral by which TO float the Natchaus
| But his failing health greatly handcapPei MN a,, n
good collateral was getting scare IA. pny 'rrt t
June He had before this time issued some iors. .
notes but in february ne fer Four 70 months Zach
thus Deliberately planning 70 mo@, ave nrer h. own
srsve liz succeeded. Few men IN finance have ever
possessed the fun confidence of the bn-'m's, 'Vi'hu
| forged notes were accepted withon, question by
banks in many Eastern ciiies KlSiey u'r' a'i' rs
! in June all the forged notes have come due anu
appeared FOR payment. They show that ne used INC
names OF John NJ Hall, vice-pres'deht "l ,hr on Oh,
| soliiated Road in two notes OF $3.50 each; OF
f. s Bosh. agent of the .llimaniie Linen COM n,
Ansel Arnold president OF the FIRST Natonai ah'
A. T. Fowler. one OF The drecioIs; Jonn l.. " a.
! Ross OF the Eaglcve Manufacturing Company
George X Mason. local unper dracr ,r a"d ua ,ne
ford all for Of 5000 or 500 more or less,
lie called into use coaiera! 5000 Of ceg,aIn
! Will.mantc Gas Company bond. that had suppose lily
trgerins seeregatei no; less thar $500 More may
has Been now discovered But with isogo loaned
10 the Natchaug SIX company; ne $4,000 capital
sonai fortune OF about $1,000 ana forged paper as-
Can be imagined. And the curious feature Of
1t all Is that Risley not especially an chraVa.
CANT man personally, and no sufficient mo'Ve ye,
| appears for all these transactions. which did no,
inirc 10 his benefit but We're chem Tor me
he loaned the bulk Of the banks money. National
Bank Examiner Lynch. who was here ms week
from Washington. representing ne Coniro.i.f re-
marked upon the absence of a sufficient motive toI
R-ey's transactions and said that to nun m,
feature the most astonishing IN me cas- !ia s
Developments may show what sort OF "a noln 'h's nee
friends had on Esley that he would let 'ne" nave
Professor John y, Welch; formerly princip;al Of
Caledonia, W. was visiting friends In town the past
week He has lately purchased "A controlling inter
near fs N sedaa. Mo and viii r,nove family there
in the early autumn. lie will become principal an1
vile. and now dean Of the medical faculty In Tho
Ss..pns at the old Coventry homestead with hi.
family. DR. Royal came East to attend the annua
| convention OF the Homeopaihsts at Newport, X J..
Professor +. H. Beede for seven years principal Of
TO high order of efficiency has accepted the posi-
ton OF sub-mastcr In the new high school at Somcr
| VILE. Mass for the ensuing year