New Britain herald., 1924-08-15
Putnam Bank Opens This Morning, But Only To Receive Ac- counts Which Are Due Institution, Not To Pay Others.
Peculations Traced Back 17 Months-Hospital Takes Precautions Against An- other Attempt at Suicide.
By Tho Assoelatsd Pra...

By The Associated Frees Putnam. Aug. 15.--The doors of the First National Bank of Putnam, closed several days ago after a run which followed at the attempt at suicide by the cashier. State Treas urer c. Harold Gilpatric. were opened today by the receiver, George w. Coffin. but only for the receipt of payments due the bank. The receiv- CT stood by the statement previously given out that he knew nothing con- corning the word of National Bank Examiner N. s. Bean that the banks resources were so badly impaired that its business was wrecked.
 S1,5O0,000 In Deposits.
 The receiver was busy familiariz- ing himself with the conditions, which involve a loss of more than s262.o00 in negotiable securities and in funds advanced on straw loans. Just as soon as possible depositors who had approximately s1.5o0,0oo in the bank. In addition to those who had entrust- ed their funds to the bank for safe keeping, will be called upon to file proof of their claims. Until this is done there can be no complete check of the amount of money represented by the cashiers irregularities, as proofs are expected to develop addi- tional losses and Bank Examiner Bean has said that additional liabili- ties are developing from day to day.
 Five Lines of Inquiry.
 The federal officials have been working on five general lines of ir- quiry In rounding out the facts that will be made the basis of prosecution as well as the basis of the winding up of the banks affairs. The ques- tions involved are CD how much money is missing?; @ how was it taken?; (S) why did Gilpatric. citi- zen of solid standing in the commu- nifty embezzle the funds of his bank and his friends?; (4) what did he do with the quarter of a million dollars pr more, of which comparatively lit- tle trace has been found?: (5) when did the peculations begin?
 Answers U to Date
 These questions answered briefly so lar as the answers are known stand his way: CD Gilpatric's admission of probably covers s262,- 100 already established and other osses on straw loans and negotiable securities the amount of which is till to be determined; with the ;tatus of trust funds in his charge till in doubt: CD he was able to ake the money because he robbed he bank of which he was cashier. a me man institution, a condition pos- ible because of his high standing as ! banker and a man; (3) why he ook the money is a mystery; (D what he did with it similarly is mystery unless it was lost in some f his several speculations, rumors of in his private life being to date; (5) develop nents have indicated that irregular ties were being practiced by Gill; atric IF months ago; how much be- ond that no one knows.
 Resignation Not Signed.
 Gilpatric, still between life and cath and partly blinded, was stir ollilidlly lllt Sldlt lTtdSuTtT OI NOn- ecticut and cashier of the First Tational Bank and free man today, lis resignation from the state office as been prepared but not signed be- ause of his condition, His brother, 'alter Gilpatric, said today that lere seemed no need for him to re- gn as cashier because he was ''prac. aIIxy Ant e. mt charging embezzlement of s100.- DO has not been served because of Is condition and it is believed by 'deral authorities that hospital pres autions are sufficient to prevent an- ther attempt at suicide.
 S6t 200 Subscribed.
 The townspeople who as a matter local pride and necessity stepped ito the breach caused by the clos g of Putnam's only commercial ank have obtained subscriptions to- ay of s6I,20o towards the capital nd surplus Of the new s15o.o0 in- tuition for which they hope to have national banking charter within w days.
 
 e turnover Is quick have been run ng low for lack of funds to obtain w supplies in some instances, but r the most part business has been l credit 10 date without serious in- nvenience. The mails. however. we contained many returned checks avn on the First National Bank th the request to senders whose nds are tied up at inc bank to pay cash.
 Designations Not Signed Gilpatric has not yet signed the signation as state treasurer, which s prepared for his signature by 'mbers of his family and which one his brothers. Raymond. declared sterday. would be presented 10 Gov TOT Tempieton within a day or so, hough at the Day Kimball hospital was stated that his condition was