New Britain herald., 1924-08-13
Other Funds Are Involved

Other Funds Are Involved The $2b,00o said to have been given
 to him by James Donahue. a local
 druggist, in return for a mortgage
 deed, the signatures on which cannot | by substantiated, aud the S35,000 of
 the $4o,o00 trust established by the
 Cutler estate were supposed to have
 been invested in first mortgages, both
 on the same property in Trumbull
 street, Hartford. Other reported
 mortgages on property said to have
 been placed by MT. Gilpatric are the subject of inquiry. Tn addition MT. Gilpatric had handled the income of a number of persons, including several widows, from life insurance policiesL These persons are calling on counsel for advice.
 Friends Also Are Worried
 Friends who had entrusted the state treasurer with funds in one case to the amount of $65,O0O, are also mak- ing anxious inquiries.
 The Howe-Merot school for girls at Thompson entrusted to MT. Gilpatric sometime ago sum, said to be about $16,000 taking note from the bank. It is stated that some months ago inquiry developed the fact that no sums had been deposited on the &C., count and that when questioned Mir. Gilpatric said it was an oversight and advanced funds to cover the transaction.
 All Bad Loans Unknown
 The amount of unsound loans in the bank will not be known for some time it was stated today. Some loans to the A. Vito Construction Co. of Thompson which has handled a large number of state highway contracts are the subject of Inquiry. Charles H. Brown, president of the bank said today that Mir. Gilpatric had assured the bank directors that sums repre- senting from IS to 20 per cent of the amount involved in state contracts were withheld by the state and that the bank was safe in advancing funds to construction companies to cover such accounts, and in this way the loans to the Vito Go. were made. President Brown declined to talk fur ther concerning the banks affairs but did say that the bank during his in- as president, as in the time of his predecessors covering a period of more than 60 years had been run almost entirely by the cashier.
 Report to Washington
 The bank examiners, who are ccn- inuing their investigations reached a point yesterday where they forward ed report to the comptroller of the currency in Washington 1t was learned 1ere today. No inkling of the nature ,f this report was available here
 States Attorney Charles E. Searles. of Windham county, who would take ,harge of any court proceedings in- ,tituted by the state as result of the revelations left his summer home in Nantucket today, it was learned here tnd is hastening home. Mir. Searles is llso counsel for the bank.
 Refuse to Meet Citizens
 The directors. following a sugges- ion of the bank examiners that noth- ng was to be gained thereby. refused oday to meet the citizens committee ppointed yesterday to confer with hem regarding the financial crisis as affects the community. It was e1- lained that the suggestion of the ank examiner that a new bank be rganized would take care of this hase of the situation. The sugges- on of the bank examiner carried he further advice that the capital of he new bank be s1oo.ooo and . sur- Jus of s5o,ooo. Following his state ient a meeting was called for clock this afternoon to take the ecessary steps towards establishing le rev bank.
 Gilpatric Gives No Aid.
 Waiter Gilpatric of New York city.