Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-08-18
REAL ESTATE.
CONTINUED from Page One.)

1t is said that the difficulty at the
bank was brought about by a steady
transfer of large accounts to Boston
banks and the Chelsea bank was there
by hamperei FOR ready money. EXenl-
incr Ever said today that he was un-
able to state how serious the failure
was. Two years ago the bank had de-
posts Of $500, 900 and surplus OF $780,
900.
IN addition to the withdrawal Ct
large accounts il has been learned that
the First National Bank was heavily
involved in real estate which tied up
their money 10 the extent of about $780,
600
Thomas Martin Of Wakefield. one of
inc directors of the bank, is responsible
Tor an application for 4 government eX
animation Of the banks affairs. Some
time ago he began an investigation OF
the condition of the finances of the in
stitution with which he is connected.
and as Il result Of this vcstigati0n.
Bank Examiner Ever was summoned.
During the morning there We're small
runs on the Chelsea Savings and the
Cooperative Provident Banks. but as
soon as the depostors realized that
there was a plentiful amount Of cash
en- hand tn rlect their demands the run
ceased ana no further trouble was an
ticipated by the bank officials.
President Ilinkley of the bank is
seriously i'll at his home in BrOoklinc
and it is said he cannot recover. Bank
Examiner Ever refused to discuss the
banks affairs or to make any state
ment regarding the dispatch from
Washington saying that the bank s
failure was reported due to excessive
loans to its officers and directors. Any
reports on his discoveries at the insti-
tuition, he said, would be made to
headquarters at Washington.
Director Martin. who is said to be
| responsible for the investigation, which
closed thc bank, formerly was its pres
i.Irnt. IN an interview today, he said
Il discovered things recently which did
not please me as a director. 1 made an
| inve stiGation as result Of which I OBJ
| tanned from President Hinkley the title
for the bank in certain real estate held
| in the Back BAY and Brighton by Mr.
Hincklcy. The publication of the trans
fer of this property caused the with
| ''faWttI on lnufSu4y OF more tnGn SlUU,-
! geo in deposits. This showed how
things were going and caused the ac-
! ton Of the directors in closing the doors
Of the institution.
When pressed for a statement OF
! what in particular attracted his mo-
tive, Mr.. Martin said that paper which
| he lid not consider genuine CONNER
ell paper was being handled. Whef
asked if this paper was signed by fic-
titious names. Mr.. Martin said that he
| III not say that. There are some pa
Icrs there that arc Very doubtful" was
II that he wanted to say. Mr. Martin
says that the bank has now sufficiently
equity in the Hinckley property to pay
all of the de.rositors Of the First Ma
tional Bank in full. President Hinck.
| Icy is suffering from liver trouble.
1t is understood that last Saturday
! when the real estate transfer was made
to the bank he was 50 i'll that he coult
not even gather strength sufficient t.
allow him to sign his own name t
the papers and that he had to be con
tent with making his mark. Mrs
Hircklcy and one of her sons witness
cd tic marks" Of the bank president