Norwich bulletin., 1912-08-08
Especial to The Bulletin)

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 Danielson, Aug. 7.-Reports that the board of directors had voted to liqui- date were denied Wednesday by John A. Paine, president of the Windham County Savings bank MT. Paine said that no such action had been taken at the meeting of the board on Tuesday and no meeting had been held Wed ! nesday up to that hour.
 While official action as to liquida- ton has not been taken, 1t became evident Wednesday from some things that were said by members of the board of directors that some of them are of the opinion that this course should be taken.
 Claim Bank is Solvent.
 It is evident, however, that the off cials of the bank do not concur with the view of Bank Commissioner Holt, quoted in a Hartford paper of We'd nesday as saying in that city Tuesday evening that the bank is insolvent. | They express confidence that the bank will be able to fully discharge all of it's obligations and where liquidation is being favorably considered by mem bers of the board of directors, it is on the ground that the present diff culty in which the institution finds it. self may result in injuring confidence in the bank to such an extent as to make it inadvisable and unprofitable to continue business.
 President Paine's Statement.
 President Paine said Wednesday that an official statement from the bank relative to it's condition would be issued as soon as it can be com piled, but this will take some time, as ! f l.~ 4aI f 1ao l taken from the records.
 Had Been Doing Fine Business.
 The restraining order issued against ! the institution by the superior court l on Tuesday had come. Mr. Paine 1ndi- cated, as a surprise and with very | depressing effect upon the bank off l. cials. The bank, he said for the past l five or ten years had been making a showing that was highly creditable to the management The gain in depos- its had been steady and the invest ment of them to greater advantage than had been the case in the earlier | history of the institution.
 The greater part of the banks de- | posits are represented in superior se- | curities. In further considering the | investment end of the business, MT. Paine said that such bonds as the bank has held were being gradually i disposed of and the money for them reinyested in excellent securities that were showing larger returns than was 1 being received from the bonds, which class of securities have, in many in- | stances, shown a tendency to depreci- ate slightly during the past few years. Splendid Returns from Real Estate
 Holdings.
 Mir Paine spoke in particular of l one of the banks holdings which for the past year has been showing very i large returns, this holding consisting | of real estate in New Haven, which | before the present management came | into control was regarded as an ut terly poor investment and had been practically charged off the books and regarded as near total loss. Re- | cently however real estate in the sec ton of New Haven, where the bank owns, has enjoyed a boom and the ! lots held by the local institution have been selling at record figures, this in- come being regarded as practically all profit, as the original cost of the lots seven acres of which are near where the new Yale stadium is to be erect ed, had been charged off the banks books.
 Directors Amazed at Injunction.
 The success which the bank was meeting and by which 1t was stead. fly growing stronger was highly en- couraging to the officials, who were I in several instances dumbfoundeC when it was announced to them thai a discrepancy had been found in the accounts of the institution and tha an injunction suspending the business of the bank had been put in force Every man of them was of the opin. lon that the bank was solvent ant growing stronger all the time ant they are holding to that opinion.
 No man connected with the bank 1. | willing to even attempt to account fol the shortage by placing the blame O a possible dedication on any one O. the several treasurers that have serv. ed the bank since it was incorporated in 1864, though Commiesloner Holt {, quoted as being of the opinion tha the present discrepancy is not due t, a clerical error or to a series of such