Worcester morning daily spy. (Worcester, Mass.) 1888-1898, 1898-02-04
A HEAVY BANK LOSS
w. H. Bird of Framingham Short
$4,000.
Was Arrested in AlIston and Later Held in
$4,000 Bonds Statement of Banks
Condition Bird in Jail.

Especial Dispatch to the Spyl
South birmingham, Feb. S.-William
H. Bird of Allston, former beokkeeper
for the Framingham Savings Bank,
was arrested Wednesday night at his
home at Allston. on charge OF en-
bezzling $4,000 of the finds of the
bank. The arrest was made by State
Detective ]. II. Whitney Of Medford.
Bird was brought here by officer Whit
ney, Thursday morning, and was ar
raigned in the first district court,
charged with the offense. He waived
examination and was bound over IN the
sum of $4,000 to await the action of the
grand Jury. In default of bail, Blrd
was committed to Jail at East Cam
bridge.
A temporary injunction has been
served on the bank officials restraining
the institution from recei9ipg deposits
and paying out any money to oeposl-
tors, until such time as the experts now
at work ION the books shall nave made
full investigation of the sttdlrs OF the
institution.
So far as is known, Birds populations
date back for at least six years, aad II
is alleged that he has been abstracCng
The banks funds at the rate of 500
month, and sometimes as much as SzoJ
=. for the same period.
Birds methods have been to make
falsifications in the general ledger so
that amounts due depos.tors on the gen
eral ledger appeared to be less than
amount which appeared 10 be due on
depositols ledger
Arthur V. Harrington. who mas been
treasurer of the bank since last July,
in making up his balance sheet for the
year in November, discovered some
thing wrong about the books, and ne so
notified the trustees of the bank.
Some time ago the bank commission
ers and the birmingham Savings Bank
put experts at work on the books OF lhe
bank. and they found in making up the
trial balances a discrepancy OF about
$4,000 Bird left the employ OF the
bank about Jan. l, and these develop
ments have occurred since that time.
When Bird was at the state house this
morning. he looked very old and worn.
He is in fact 20 years old.
The story of the case is not long one.
Bird left the bank about Jan. l, after
having been connected with it for
number of years. and having been a
trusted servant 1t is felt by those who
are in position TO know, that the bank
has been ruined. but there will be an
immediate step taken to put the instl-
tuition under injunction, so that all who
have deposits there will be served eX-
actly alike Bird did not seem to be
much surprised when ne was placed UNI
der arrest by Detective Whitney
The bank has had trouble before. In
1885 it was closed by the bank commits
sioners, under injunction, by reason of
bad investments and for the security Of
the depositors. For nearly five years it
was kept closed, and on May Is, 1890, it
was again opened. AT the latter date
the affairs of the institution had been
so slooked after as to warrant ats gong
along again. The poor investments had
been made to yield as much as possible
with the most careful management, and
there was apparently a good future be-
fore the institution. Today the prob
ability is that it will go into the hands
of a receiver, never to be reopened.
The bank has a lot of foreclosed real
estate which will entail loss. This is
the result of bad loans made soon after
the bank reopened. ~
Last May there was run on the
bank which started from injudicious
talk, and went on for some time. In
fact, there has been a continual drain
on the bank ever since, many having
lost confidence in it. 1t had been
stopped in the last few weeks, however,
and some of the people seemed to be
regaining confidence in its solidity
a snort llllS dSO tl1S bttllf- Solliiilo-
sioners sent a recommendation to the
bank that it have the books audited
This was done. in connection with the
expert of the savings bank commission.
1t was discovered that something was
wrong, for, when the trial balance was
made up, it showed a shortage, appar-
ent, of $4,000 that day, which, the saw
ings bank commissioners say, is liable
to be reduced somewhat by errors in
figures.
The bank has a guaranty fund of
S4442. 10; an interest account of $4,000 and
open account of $S144 on Oct. 81, 1897.
The deposits at that time were $S50,627.
The cause of Birds downfall is a mys-
terry, as it was not generally known
that he was addicted to any eXtrava-
CANT habits. but lived quietly with his
wife at Allston He is SO years old, and
was employed as bookkeeper in the
hank since 1887. He was regarded as be-
ing a good accountant and trust
worthy servant.
The future Of the bank is a matter Of
conjecture, it being entirely in the
province of the savings bank commits