The news-democrat. (Providence, R.I.) 1906-1909, 1906-08-17
800 DEPOs|TORs
GATHER AROUT
SUSPENDED BANK

Boston. Aug. 17.-At an early hour this
morning Bank Examiner Ever notified
the police department that he would
probably need the services of officers in
front of the First National bank this
forenoon. which was closed by order of
the comptroller Of the currency.
During the morning throngs OF depos-
itors put I'm their appearance at the bank
and at 10 o'clock more than 500 people
were assembled there. There was no dis
order. however the police authorities
having taken precautions 10 send dozen
patromen 10 the scene TO maintain or
der
The employees OF the pank reported for
work at the usual hour today and Bank
Examiner Ever used them I'm assisting
him 10 learn the condition OF the embar-
assed institution. Mr.. Ever decided that
holders OF safe deposit vaults had a right
TO visit these vaults and examine their
property there, but only persons who
were able 10 prove conclusively that they
rented such deposit boxes were admitted
TO the bank
1t was learned during the morning that
the closing Of the bank will embarass
hundreds OF yersons' in addition TO those
who placed their savings I'm the institu
tion. A number OF business houses In
the city kept sufficient cash on hand in
the First National bank 10 make up their
weekly payroll and II was apparent to-
day that number Of snop and store en-
ployes might be compelled to wait until
next week for their wages.
II is said that the difficulty at the bank
was a steady transfer OF large accounts
To Boston banks and the Chelsea bank
was thereby hamrered for ready money.
Examiner Ever said today that he was
unable TO state how serious the failure
was Two years ago the bank had depos-
it's Of $500, 900 and a surplus Of 100000.
In addition 10 the withdrawal of large
cash accounts IL has been learned that
the First National bank was heavily in
volved i'm real estate which tied up their
money TO the extent Of about 100000
Thomas Martin Of Wakefield. one OF
the directors of the bank, is responsible
for an application for a government ex-
animation of the banks affairs. Some
time ago he began an estigation OF the
condition Of the finances Of the institution
with which he is connected and as a res
suit Of this Investigation Bank Examiner
Ever was summoned.
During the morning there were small
runs of the Chelsea Savings and the
Cooperative Provident banks, but as
soon as the depositors realized that
there was a plentiful amount of cash
on hand To meet their demands the
run ceased. and no further trouble
was anticipated by the bank officials.
EXCESSIVE LOANS TO OFFICERS.
Washington, Aug. l7.--The comptrol-
ler OF the currency has received ad-
vices by telegram from National Bank
Xaminer Ever that the First National
bank OF Chelsea, Mass, has been closed
by action of the directors.
Examiner Ever has been appointed
receiver.
The failure of this bank is reported
by the examiner TO he due to large
excessive loans TO officers and directors
of the bank.
The following is a statement Of the
resources and liabilities of the bank
at the date OF it's last report of con-
I'ditions made TO the comptroller OF the
currency, June Is. 1906:
RESOURCES:
Loans and discounts, $1,114.5S6.
United States bonds TO secure circu-
lation. $4,000; premium on United
states bonds, s2250; banking house and
other rail estate. s50.77s; due from
banks. s22,356; cash and cash items,
s57,379; redemption fund. s2.500; total,
81, ,309.S49.
LIABILITIES:
Capital stock 100000; surplus and
profits, s139.344 circulating notes,
$4,000; due to banks. S1O.733: dividends
unpaid, s543; deposits, $670,729; bills
payable $4,000; total $l,309,S49.