The Barre daily times. (Barre, Vt.) 1897-1959, 1906-01-15
Prompt Action by Governor
Curtis Guild.
LOCKE AND OTIS AT FAULT
Admit That They Neglected to Inspect
Such Institutions as the Provident
Securities and Banking
Company.

Boston, Jan. 49, Two Of the three
savings bauk commissioners Of this
state, WARREN r. Locke and James o.
Otis, after conference with Gov. Curtis
Child, Jill, sent their designations to
the chief executive iste SATURDAY. Gov
Guild accepted them in i letter, in
which he said that the two commission
ers had frankly admitted that until last
September they had neglected to inspect
such corporatiaps as the Prevalent se-
Icurities and banking compsny Of Bos.
ton, through their misconstruotion Of
the LAW.
The letter Of Commissioners Locke
and Otis is as follows:
Believing that the action which we
now take is for the general welfare, and
that the restoration Of public confidence
AT time like this is paramount TO our
individual fortunes or misfortunes, and
also To relieve you from conditions
which must be embarrassing, we hereby
tender our designations as members Of
the board of commissioners of savings
banks, to take effect at your pleasure
We feel it is due TO Mr.. Dorr, urlr associ.
ate on the board, and who was but re-.
Gently appointed thereto, 10 state our
belief that he is ia no way responsible
/ for the present situation 81 affairs.
Before the announcement from the
state house Of the resignation Of two OF
the savings bank commissioners meet
ing ofathe depositors Of the Proyident
securities and banking company was
I held The depositoTs adopted a resoln-
ton calling upon Gov Guild to remove
the commissioners The depositors also
decided to engage counsel to act for
them in court.
At the request of the commissioners
The state supreme court granted a tenn
porary injunction against the company
on the Sd, and the banks doors were
closed. Branches in Lynn and Brockton
also suspended business A statement
showed that that bank Owed depositors
S1s2, 900 and that its assets were mainly
/ in a Colorado irrigation company. Little
cash was found in the vault. The bank
which was a South Dakota corporation.
was started in 1902 with prominent
Massachusetts men, including former
/ Adit-Gen. Samuel Dalton, Inspector
Gen. William II. Brigham and Col. Sid
ney Hedges, former captain Of the An.
4 Gent and Honorable artillery company.
as officers and directors A savings de-.
ipartment was Instituted and many small
metal banks were sold to dapositors.
Nearly 10000 of these banks had been
sold when the institution was closed,
and a meeting Of the dcpositors showed
that they were people Of comparative
/ little means.
In the meantime their cause had been
! taken up by the new Suffolk county
prosecutor. District Attorney John r.
Moran, who had a BRET conference with
Col Hedges and Chairman Locke Of the
savings bank commissioners As the re-
suit OF this conference, which was cut
short in the case Of Cot Hedges BY the
sudden retirement Of that gentleman
from the district attorneys Office, Mr.
Moran sent a letter to the governor on
/ Thursday night in which he called for
the immediate removal Of the savings
bank commissioners delegation Of the
depositors also called upon the governor
and asked him to take some action in
the matter Of recovering their savings.
4 Another episode in connection with the
matter was the resignation Of Inspector
General William II. Brigham OF the gov
errors staff Brigham was formerly q
/ director Of the company