Norwich bulletin., 1913-08-16
CHARGES AGAINST BANK.
Bank Commissioners File Their Specific
 Statement.

Charges that the Windham county Savings bank of Danielson has made false and fraudulent reports, has paid l unearned dividends and has used it's funds for speculative purposes and H. legal investments through loans to certain of it's officers are contained In l a more specific statement filed with the clerk of the Windham county su- perior court Friday by State Bank 1 Commissioners Norris s. Lippitt and Fred F. Holt.
 The more specific statement follows: In reply to the defendants motion for a more specific statement and the order of the court issued in accordance herewith, the petitioners in the above 1 entitled action submit the following 1 statement of the manner in which, in 1 their opinion, the public is in danger l of being defrauded by said bank, the
 reasons why the public is in danger of 1 being defrauded, and the facts or cir ! cumstances that cause the public to be in danger of being defrauded by 1 said bank; this is:
 l The bank manifests no intention or
 desire to change it's management or 1 modify it's past policies,
 1 It's past policy has resulted In de- i frauding the public in the following
 manner and by the following means: | It has consistently rendered false re- 1 ports i'll that it has continuously and I stated it's assets and understated it's 1 actual liabilities, thereby holding out to 1 the public and causing the public to ! believe that it was a sound and safe ] depository for savings. when. in fact, l 1t was not a sound and safe depository 1 for savings.
 1 It has consistently, repeatedly and | knowingly paid dividends to it's depos- l itors in excess of the amount permit ted by sections 3440 and 3441 of the 1 general statutes and in some instances 1 in excess of the net earnings for the preceding six months, without charg- l ing off the losses heretofore incurred, 1 thereby holding out to the public and causing the public to believe that it was earning per cent per annum up- 1 on its deposits in addition to the amount necessary to offset all losses l and to carry to reserve the sum re- 1 ouired by the general statutes. when, | in fact, said bank was earning a much l less amount and had insufficient aceru- 1 ed income to pay the dividend cred 1 ited to it's depositors.
 | It has persistently concealed the l fact that it has knowingly and repeat 1 edly permitted certain of it's officers to 1 become, and to long remain, borrowers 1 of it's funds through loans ostensibly l made to third persons, but in fact made 1 for the benefit of safC officers, and 1t l has also concealed the fact that 1t has
 used it's funds for speculative purposes 1 and illegal investments through like ] loans. ostensibly made to third persons, ! xut in fact made for the benefit of said bank or certain officers thereof.
 By all of said acts said bank has in l 6uced several thousand individual
 members of the public to make depos- 1 it's therein in reliance upon the appar .
 ert safety and earning capacity of said 1 bnk, ard has twice become seriously
 insolvent resulting on the former oc- casion in the scaling of all the then ! deposits in said bank. and In the pres ! ent occasion in depriving all it's deros- i itors of the use of tf1e:r money on de- l posit fn said bank, without interest, for more than a year thus far. and said
 bank is still seriously fnsolvent: by reason thereof said depositors will be 1 deprived of the use of their said mon l ev. without interest, fer a period of at least another year unless said deposits l are again scaled or receivers appoint 1 ed for said bank.
 By reason of the aforesaid false and 1 fraudulent reports. payment of unearn- l ed dividends, etc, several thousand in- diyiduafs have been defrauded by said bank: and all of said fraudulent acts are still being done and continued by said bank, except SC far as restrained ! by order of this court: and there IS no apparent intention to alter said policies 1 or to cease from said fraudulent acts 1 in the future.
 1 wherefore your petitioners are of the opinion that the public is now in dan ger of being further defrauded by said l bank in the future in the same man l ner as herethofore unless appropriate
 action is taken by this court to pre- vent the same
 Norris s. Lppit and Fred P. Holt bank commissioners: by Stewart N Dunning and Perkins, Wells and Scott
 their attornevs.
 The bank has until August 22 In ! which to file an answer, and on Friday
 August 2s, the matter will come up be- fore Judge Marcus H Holconab at a i short calendar session of the court in l Putnam for assignment for trial.