Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-02-07
Doors Of Hanover Bank Of
Boston Are Closed.
Savings Bank Commissioners
Make the Complaint
Alleging That Continuance Would Be Hazard.
Gus to Public and Deposinrs.

Boston, Feb. 6.-The savings bank
tinuancc OF the institution would be
hazardous to the public and to those
having funds in its custody, Judge
Bradley, of the supreme judicial court,
today issued a temporary injunction
against the Hanover Bank, West Vir-
Sinia corporation, which has its main
otilce at 1873 Hanover street, this city,
ard branches in the towns Of Norwood
and Stoughton, Mass.
All the officers and directors Of this
bank are residents of New York. One
of the directors, Robert G.. Ruxton, was
arrested yesterday in New York with
john 5. White, president of the Impe-
rial Trustees Co. of Jersey City, and
Clyde Colt. New York broker, by
United States authorities on indict-
nentS charging them with using the
mails to dcfraud.
Foster Hooper. who has been known
as the vice president of the Hanover
Bank. was also arrested yesterday,
having been taken into custody in this
city on q bench warrant issued by TIE
Cnitcd States district court of New
Jersey and charging Hooper with using
the mails 10 further a conspiracy to
dtfraud.
The records of the state commission
CT Of corporations indicate that NJ. S.
Roseuig. Of the firm of McJilton &; Co.
corner Of Washington and CORTLAND
streets. New York, is president of the
Hanover Bank: that Z. w. Jacobs of
81 Broadway, New York, is secretary
n1 r,.nD MI lnt f1,n ~ tnr..
include Robert G. Buxton, II. Z. Mahn.
- broadway, New York. and w. z.
Holmes. Fifth avenue and 23d street,
New York.
The savings bank commissioners de-
cline to disclose the exact condition of
affairs of the bank. having turned the
entire matter over to Attorney Gener-
81 Dana Malone. The question of max
ing The injunction against the bank
permanent and the question of appoint
ing receivers Will be heard tomorrow
in the supreme court and until that
time mad arrived the attorney general
preferred not TO make public the de-
tails of the commissioners report. Mr.
Mr.. Malone stated, however, that the
liabilities of the institution represent
ing the amount due depositors was
So ,535.
The Hanover Bank occupies unique
position in banking circles. as II is
rated neither as Il savings nor ma
tional bank. 1t is foreign corporation,
having received its charter in West
Virginia i'll June, 1905. Its capital stock
is $250.D00. In the year of its incorpora-
ton the Hanover Bank took over the
State Banking and Safe Deposit Co, al
Arizona corporation with a capital of
81 900, 600 and with its main Offices at
Hanover street, this city. The president
was Charles X. Amidon and the treas
urer Albert II. Eastman. The directors
included Edward X. Amidon. Foster
Hooper, WHO was arrested yesterday,
and Edgar r. Power.
In their bill of information to the
court the bank commissioners declare
that on examination into the companys
affairs it appeared that its condition
was such as to render the continuance
Of its business hazardous to the pub
lie and to those having funds in its
custody.
1t is understood that if losses are to
be sustained by depositors they will
not be as heavy as they woull have
been several months ago. because of
the recent closing of the Provident Sc
curities and Banking Co.. which now
owes over 1892, 600 to over 5000 deposit
tors. The embarrassment of the Prov
idcnt institution induced many per-
sons having money on deposit with the
Hanover Bank, both at its main Office
here and in its branchc offices at
Stoughton and Norwood, to withdraw
their deposits.
1t is alleged that Hooper. the vice
president, and President White of the
Imperial Trustees Co. were concerned
in a conspiracy to defraud the Scran-
tor. Factoryvilc & Tunkhannock Rail-
read Co. made 4 business of investi-
eating and guaranteeing certain stocks
Those that upon investigation proved
a satisfactory investment We're, it is
claimed, divided among banks connect
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