Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-08-13
CONFIRM $225,OOO
SHORTAGE PUTNAM
BANK NOW CLOSED

Putnam. Conn. Aug. 12-Staggered
by the closing of the First National
Bank this morning following a sui
eide attempt by the cashier. G. Har-
old G -patric, state treasurer, and the
confirmed report of a s225,00 short
age in the instit ms funds, 400
merchants and manufacturers took
cognizance of the situation today at a
meeting which named a committee OF
IL to meet the banks directors, OBJ
tain a statement of conditions and
cooperate with it in an attempt to
save the business. The conference
Will be tomorrow morning at nine
o'clock
That the financial situation is acute
was admitted by prominent men who
attended the meeting. Payrolls will
become due at the end of the week
merchants are at loss to know what
to do with the daily receipts and
many have pressing bills that must
be met.
Action of the directors followed an
all-night session. Members of the
Gilpatric family remain silent. Mr.
Gilpatric's condition is unchanged
hA1 I'D %ciAsoSAOdo anu COIlN ctSt Will
hs relatives and doctors. He will be
permanently blind.
The banks losses are largely in
negotiable securities given to the
bank for safe keeping. it was said by
an official of the institution.
The further extent of the short
ages in the cashiers accounts. it was
indiacted by one of the directors, will
depend upon completion of the in
VestiSation into the banks loans. 1t
was known that many of these were
made by Mr.. Gilpatric largely upon
his own responsibility. EXamina-
ton is now being made of these Sc
curities.
1t was determined definitely, ac-
cording to an announcement by Gov
ernor Templeton today that Mr.. Gill
patric'S accounts as state treasurer
are correct to the last penny. State
funds of approximately 100000 are
involved, however, through deposits
in the commercial department of the
Putnam bank and the state must take
It's loss if there is to be loss to the
depositors, on the same terms as all
others.
National Bank Examiner N. S
Bean refused any information today
about other activities in which Mr.
Gilpatric was involved, but it is I'M
derstood that a careful check is be-
ing made on large number of loans
made by Mr.. Gi1patric. Inquiries also
are being made as to the status OF
several companies with which he was
connected.
Bank Examiner Beams action in
taking over the banks affairs today
is the result of vote taken by the
directors to place the banks affairs
in his hands pending further inves-
tigation." Up until today the direct
ors had insisted that the bank was
solvent.
1t was indicated that receiver
probably would be appointed within
day or two and that this might be
Bank Examiner Bean or one of sew
eral officials from Washington.
According to the last report or
June the bank had resources which
Cashier Gilpatric swore amounted tc
S2,330,370. This includes $9S6,96S in
deposits subject to checks and an ag-
gregate OF $604,S69 in time deposits
The capital stock paid in was $780,
600. The band has surplus funds OF
100000 and net undivided profits OF
$5i $50. 1t was understood that Gill
patric's bond aggregated only $4,000
Mr.. Gilpatric in u letter left for
his wife when he shot himself at his
home last Thursday. admitted short :
ages, and the letter included the
statement that my affairs are hope
lessly involved"