The news-democrat. (Providence, R.I.) 1906-1909, 1906-08-17
FIRST NATIONAL
BANK Of CHELSEA
HAS SUSPENDED

Boston. Aug. 1.-THE First National
hank f-ehefsea WIS not opened for
business today. orders having been is
sued by the comptroller or the currency
t. close the institution.
National Bank Examiner Alfred Ever
has been making an inspection OF the
bank recently and last msht at tn, re-
quest OF the directors. lie visited the In
stitution and counted the cash on hand.
The bank examiner stated thar ne found
no discrepancy between the books ana
funds on hand, but that from super
ncial examination he had decided TO rec
ommend TO the authorities at Washing
ton that the doors Of the bank be closed
today.
lie said that he had had no oppCrtu-
nifty TO make a thorough inspection OF
the books. but from what he had oD-
served from statements OF some OF the
officials that IL was dOubttul III the pdnh
wiJ ever be reopened for business. be-
yond this statement the bank examiner
had nothing TO say for publication last
uight
At o late hour last hight MI. Ever
no.ifleC the officers at police headqnat'
'ers II Chelsea that ne required the =.
ces Of a pau olman - guard the bdhk
during the night, and that I'm the morn
ing ne probably should need the assist
ance OF several policemen AT the lhsu-
tuition. as Il was probable that a run
would be started by the depositors whsn
they hedrd that the doors would not be
The police accordingly assigned a pa
trolman to stand at the bank doors dur,
ing the night. A squad will be on hand
MIR Ever arrived at the bank at 9
O'Clock last night and made superhicial
examination OF the cash books and some
OF the accounts. Several of the dlrec-
tors aud cnuloypg assisted him In his
work.
The First National bank is one OF the
oldest institutions In Chelsea, having
been incorporated as national bank In
1864. IL has a capital Of 100000 and car
ries deposits of several million dollars.
The president is Sylvester B. lIinckley
of the Chestnut IIill district of Newton,
formerly a resident OF Chelsea. The
cashier is Walter Whittlosey Neither or
these men were at the bank last nlght,
and when President HinCkley was called
up on the telephone at his home he de-
Clined To make t++a4iie+ft- ~fftttever
regarding the situation. He admitted that
he had heard OF the action Of Bank EX-
aminer Ever. but refused to discuss the
The First National bank was for years
regarded as one OF the soundcst tUSr1tu=
tions in the state and so far as can be
learned there was little suspicion among
Chelsea business men that the bank
would be closed.
Last night Officers Of other banks I'm
Chelsea were notified or the develop
local banks will not be directly affected
by the trouble. as they have but $500 al
together i'm the First National.
II is understood that the other banks
are willing to advance SO per cent. of the
money on deposit at the closed institu-
tion i'm order to prevent business being
seriously Handicapped 10y the tying up Of
"a large amount OF money II a. said that
many business men have all their ready
cash I'M the bank over night 10 Is eX-
pocted that the other banks Will demand
that the remaining 80 per cent on deposit
al the First National bank be held as
security for tho money advanced.
The cause of the banks trouble is not
definitely known. but II is intimated that
improbable investments and unwise
speculation are responsible for the diff
Guilty II Is said that a receiver OF the
bank will be appointed today.