Putnam patriot., 1913-08-22
Bank Commissioners File Statement


 Bank Commissioners Lippitt and Holt have complied with the order Of Judge Tuttie by filing . more specific statement iu their proceedings against the Windham County Savings bank of Danieison.
 ChArees that the Nindham county gagInRs Bank of UauielsDn has made false and fraudulent reports. has paid unearned dividends and has used is finds for speculative purposes and IL legal investments through loans to certain Of its officers are contained In more specific statement filed Nith the clerk of the Windham county su- perior court Friday by State Bank Commissioners Norris s. Lippitt and Fred r. Holt.
 The more specific statement fol lows.
 In reply 10 the defendants motion for a more specifc statement and the order ef the court issued in accord ance herewith. The petitioners in the above entitled action submit the fol 1 lowing statement of the manner in which. in their opinion, the public Is l in danger of being defrauded by said 1 bank. the reasons why the public # i ia danger of being defrauded. and the 1 facts or cfrcumsza ances that cause the public to be in danger of being de 1 frauded by said bank, this is The bank mauiiests no intention or | desire To change It's management or modify is past policies
 i It's past policy has resulted in de fraudug the public ia fhe following manner and bs tue following means ft has persistently rendered false re ports ia that il has continuously and kun8 inglv grossly overYaiued and mis-staTed fts assets aud unoerstated its actual liabilities. thereby holding ouf to the public and causing the pub- llic 10 believe thas | was a sound and safe depository for savings. when, Tn fact it was not sound and sale de. pository for savings
 II has persisteutly, repeatedly and knowingly paid dividends io it's de pogftors in excess of the amount per
 nitted by sections $40 and 34tl oi the general statutes. and in some iii stances in excess of the net earnings for the preceding six months. without charging of the losses heretofore in- cured. thereby holding out to the pub. Ilic and causing the public to believe
 that IL was earning per cent per an nam upon it's deposits in addition tc
 the amount necessary 10 offset all
 losses and to carry 10 reserve the sun
 required by the, general statutes lwhen. in fact. said bank was earning
 A much less amount and had insufii cient accrued income 10 pay the diFi I taA
 l. has persistently concealed th'
 fact that it has knowingly and repeat
 edly permitted certain Of It's ofiieeri
 to become. and 10 long remain, Dor
 rowers of Us funds through loans os
 tensibly made 10 third persons but II
 fact made for the benett of said oi
 hcers. and 1t has also concealed th' fact that t has used its funds Tor spec
 ulatiye purposes and Illegal invest
 ments through like loans, ostensiei,
 made to third persons, but in lac
 made for the benefit of said bank O
 certain officers thereof
 By all of said acts said bank has in lduced several thousand indiyidua members Of the public to make depos l it's therein in reliance upon the appar
 eut safety and earning capacity ot sals lbank. and has twice become serious Ily insolyent. resulting on the formel occasion in the scaling of all the thei
 deposits in said bank. and in the pres
 ent occasion in depriying all it's depos litors Of the use of their money on de
 posit in said bank, without interest for more than a year thus far. ana
 said bank is still seriously iRsolvent by reason thereof said depositors VII be deprived of the use Of their sai' lmoney, without interest for perios of at least another year unless sai' Ideposits are again scaled or receiver lappointed for said bank
 By reason Of the aforesaid false an' , fraudulent reports. payment Of un earned dividends. etc, several thous and individuals have been defraude' by said bank; and aE Of said fraud