Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-06-06
BANKS CLOSED.
Two More Dover, N. H., Banks
Are in Trouble.
Treasurer Hough Of Cocheco Savings
Bank Short About $500.
Cochec0 National Bank Also Involved ard
Both institutions Are Closed.

| Dover, n. H., June 5.-The financia
community in this section of the state
| received another shock today through
| the closing of the doors Of two of the
best known banks in this city. The
Cocheco Savings Bank was enjoineC
from paying out or receiving monel
and warrant was issued for the ar
rest Of its treasurer, Harry Hough. who
| is charged with shortage of $500 The
doors of the Cocheco National Bank
We're also closed and National Bank
Examiner Carol is temporarily in
charge.
While Hough was not an official of
the National Bank, he acted as assist
ant cashier, did all the bookkeeping of
the institution, and had free access to
the documents. 1t is believed that
Treasurer Hough left the city for Bos-
ton, on an early train, yesterday morn
ing, but up TO late hour tonight. the
officials of STAFFORD county have been
unable to locate him.
While the warrant was sworn out for
HOugh on the charge of a shortage Of
$500 of the funds Of the Savings Bank.
that amount was drawn from the STRAIT
ford Savings Bank, this morning, by
Treasurer Hough's wife, and paid to
Trustee Mason. who turned it over to
the CochccO Savings Bank to settle the
shortage. This will not deter the
county officials as well as the officials
Of both banks from securing the arrest
Of Hough. as he is charged with a
shortage Of the National Bank funds.
The closing Of the banks caused con-
siderable excitement in the city, but
the depnsitors recognized the fact that
they could do nothing until the books
are examined, and action is taken by
the courts.
II was learned. today. when notices
We're posted on the bank doors. thar
State Bank Commissioners Hatch. Parker
and Cummings were in this city, last Sat-
books Of the Savings Bank. They learned
that the accounts were not straight. and
after holding a brief conference, Commits
sioner Cummings applied for a warrant
for the arrest Of Treasurer Hough. \
shortage of $500 was found. National
Bank Examiner Carroll says ne is una bic
to say what the shortage Of the National
Rank will be until after full examina-
ton has been made. Everything that has
50 far come TO light places it at about
$1,000.
Mr.. Carroll made the discovery over a
week ago that there was something
irregular in the accounts and he has been
working on the case since that time.
Last Saturday, he discovered a shortage
of $500 in the Savings Dank and $4,000 in
the National Bank accounts. HOugn was
confronted with the situation and paid
back $4,000 He further agreed to pay the
remaining $1,000 to the National Bank
Monday morning. This promise is the
reason why he was not placed under ar
rest nat time. The treasurers father,
Ralph HOugh. who is one Of the directors
Of the National Bank, says his son went
to Boston for the purpose of raising
money from brokers to pay the shortage.
and he expected him to return. today.
The directors claim they knew nothing of
the shortage until Saturday night, wnen
they We're informed by the examiners.
Cashier Harrison Haley of inc National
Bank, said, tonight that HouSh had full
all times. as he acted as assistant cash
Ter, vet he was not an official Of the bank.
Mr.. Haley says he knew Hough had
been specializing and was also aware
checks in the bank with no collateral be
hind them. He called Hough's attention
to the matter few days ago. and he
said he would mahe il all right. as his
friends believe that he will return.
The suspension of the two banks leaves
cept the STAFFORD National Bank and
Savings Bank, the Dover Ma
tional Bank and Dover Savings Bank
having collapsed several years ago. fol-
lowing the discovery of a heavy shortage
in the accounts Of Cashier Isaac AuDo,,,
who afterwards committed suicide.
The capital IF the cocheco National
president ana the directors are as fol-
lows: a. L. Pinkham. Amos W. Downing
Of Haverhill. Ralph Hough, Timothy
Smell and J. +. Lothrop.
1t was late last Saturday night. when
Bank Commissioner Cummings received
an order from Judge Pike of the supreme
court, enjoning the Savings Bank from
paying or receiving any money, pending
an examination.
Bank are Capt NJ. 5. Hanscom. Eben G.
Burley, John II. Henderson. B. +. Ten
lant. VIM. #. Mason and A. 7. Pinkham.
1t is alleged that HOugn Irregularities
We're discovered through the sale Of
property ana the failure to make a re
urn of the money received. The Cocheco
Savings Bank held a mortgage on the /
German estate in this city and proceeded |
% fOreclose the purchaser paying Hough |
$500 in a check on the STAFFORD Savings |
Bank, which, 1t is claimed, was NOT |
urned over to the Cocheco Savings Bank. |
This $500 was the amount made good ny /
Mrs. Hough, this morning. II was dis |
covered, last Saturday, that the payment |
Tor the property had not been made |
through the proper channel
1T is claimed that HOugh's method was /
q take money from the bank and put in /
worthless checks and notes, with no col |
pank Mr.. Hough is highly respected in
his community and has fanny com
eosed Of a wife and three sons He is
,bout As years of age