Putnam patriot., 1924-09-12
SalUage May Reduce Bank
 Loss To BelOtU 5000 900
asd from Page onel

ses that felil examine ths Hapfrs ei the old bank
 At Ae el6se af tae meeting. ths two committee and M Mckee adjourned te .ae C1Enmu -e Naam ef fhe Fat- aau s4EHns Bank. where thCg went nla executive sas taa tC aisruss tae banking situation and eec f there was aot s1ne 4eitk and safe way out e4 ta afaaaai fHcultles AT the close f the laH. Mr Mckee declined G make anS statement ae co the nature e3 the rfoBasifion be offered as a 800 lati0a of the problem CT of the stti- tada or action taken bg the commit tees
 Before Mr. Mckee vent to the ex- ecatige session uf the twO committees. be was q4estioHed by newspaper men who sought information for the pub- lie iu addition % what De had aiFalFsd iH his talk.
 He vas asked f he believed that the sTG1 000 shortage was az high as the amount would 70: f additional liabil- ities were anticipated He replied that he had every reason to believe that the S700.000 was the 'top figure"
 Four Sources of Revenue
 Mr Mckee, in reply to a que tion. said tha. Mr. Gilpatric was able Co make his wh8lesale exffaetioBs from thH bank through the eleverness of his operations and his extreme ability to hide his manipulations. These dis honest activities were confined. chief P te four classes taking negotiable securities left at the bank for safe keeping. arpfepriating for his own use. money taken in by himself in receiving deposits for the bank. credit ing the sums ou pass books and fix ing things at the bank so that the act would not be discOvered forging notes and also taking money given to him at the bank to pay notes, not giving the persons their cancelled notes because they did not demand them. and pattiDg the note back with the banks papers. making if appear es f the note had never been pail md was ii in force. \ fourth wag fe caused the bank to lose, was by making notes without proper safe guards to protect fhe bank against ane pasl3le l8ss Tn this instance his aets ere cla lied as instances of "bad judgment
 Aetasf Thefts s3so.0O0
 | is reported uH good authority thIt he aggregate 1f the notes under tais latter classification. to gether Wtb his f4sea paper. totals s350,e ,e01 8f half of lhe banks losses. h other words. only haif of Che shortage, t would aarear went into GIipatTic's aRH pocket Mest of the other half If Che S70D.D poo went to people who use3ed money. and though they daa hardly more than a shoestriug Co of e secure the loan, were able 10 0b- tain the cash they had to have from their bi1 hearted but cfring friend and counsellor The loss was ths bank's but Gilpatfie gained nothing financially.
 Thougn the shortage at the bank may be s3B0. 801 through Gilpatrle'a vretched judgement iH making loans iu amounts te people Incapable ot paying them out of their own assets, it k believed that much of the so- called worthless paper is not exactly of this ralihre. but rather daubtful paper Tn other words if is believed that Mir Coffin. using his wealth of experience in the banking business. will be able Co salvage a lot of money fro mthis so-ealled worthless paper.
 One man in authority k Of the opinion that Mr Gofiip may be able in a comparatively shert time. to re- cover as much as Si00. .0O. l. is known that Mir. Coffin IS bending every effort possible ia this direction. Should he be successful, and should his labors net Sl00.090 s1lvage the hank's shortage and loss would be reduced to sG4o.e09 instead of S700 00O
 Mir Mckee does not excuse the di- eeetars from their moral share of the responsibility Of the banks affairs. He asserts that they were eXtereme- F. lHx iu their duties and far too ovrfcanddent in the honesty and in te2fitY of the man they employed az cashier Cinatrie. t Is stated shoulI never have been allowed to continue in uHice and ut the same time hold as maav positions as he di outside of Che bank and be identified in tinan- eial way with SO many manufactur- ug and business enterprises.
 Grand Jury Selected
 Ifaifed States Marshal Jacob D Waltnra of Cheshire. who arrested Ar Giiratrie an the charge uf embedding from the bank. received yesterday the names If She men who were drawn on " ttttAssFftHf JUL HfFN NaAE Rtt ktiN eral Grand Jury, which will be ask ed to return an indictment against Mr. Gilpatric The jury will convene n Che United States District Court at New Haven on Tuesday Sent. 23. The grand jury will be asked to return an indictment charging em- besHlement by Gilpatrie of $500. .00o. mstead of the sfO0, poo originally charged The advantages of an in- dictmeut for larger amount is that che government will he able Co iu- elude q greater number of separate counts. ea any ore of which. if the i government were successful in its ease. Gipatuc could be sentenced to from five Go ten years. This means thet f the government were success ful or more than one. the penalty would be increased in proportion to the number of counts on which com viction was obtained.
 Funds Tied Up
 | One of the funds tied up hv the closing of Che First National Bank Is that from which many people in this section were to receive compensation for taking New York City fresh air children for two weeks vacation. This year over S2nQ was donated by