New Britain herald., 1924-08-14
Since Govt. Is To Pros- ecute, States Attor- ney Has No Intention Of Bringing Separate Action At Present, He Says.
Question of Losses to In- dividuals Being Probed- Dr. Overlook Said to Have Entrusted Cashier With S55,OOO.
HOPE TO CUT DOWN
 LOSSES AT THE BANK
BY GEORGE H. MANNING.


 LOSSES AT THE BANK BY GEORGE H. MANNING. twashlngton Bureau of N. B. Heraid)
 Washington. Aug. 14.--W. J.
 currency stated today that no re-
 port has been received from
 Chief Bank Examiner Bean or
 from the special receiver ap-
 pointed indicating what the total
 losess will be from the failure of
 the First National Bank of Put
 nam through the speculations of
 State Treasurer Gilpatric.
 Bean has indicated in his re-
 ports to the treasury department
 that a reorganization of the bank
 may be affected which will en-
 tirely prevent or reduce to nom-
 inal amount the losses to the de-
 positors through the irregulari-
 ties practiced by Gilpatric, Mir. 1
 Fowler asserted. It will take some
 time for Bean to completely go
 over the bank books and make a ]
 report that will indicate what the {.
 losses will be, Fowler added. By The Associated Press
 Putnam, Aug. 14.--State's Attorney Charles F. Searies of Windham county, who ended his vacation at Nantucket and came back to take up the possible prosecution of G. Harold Gilpatric. state treasurer. and cashier of the wrecked First National Bank of Putnam, for any violation of the state laws in connection with his of the funds of the local was seen at his office here today.
 Although the statutes of Connecti- cut provide that such cases may be prosecuted in the state courts al- .hough officials of national banks. Mir. Searles said that as the federal attorney at Hartford has already is- sued warrant for Gilpatric's arrest le would not at present multiply the 
 Have Ample Evidence.
 "The federal authorities have though evidence available to account or the rest of the natural life of Mir. Mir. Searles said, adding hat as he saw the situation now he would not act unless on a special re- Iuest from some one for wrongs done jim and then only if he decided that was in the public policy to start tate prosecution at the same time as he federal authorities are acting. Mir. Searles has a duel interest in he matter officially. being counsel or the bank as we'll as states at- orney. But he said he regarded his etainer as counsel for the bank as nlikely now to have any standing ecause the bank bad been taken yer by Receiver Coffin appointed esterday by the comptroller of the urrency at Washington. He said hat he was also depositor .and a of the bank.
 State vs. Fuller.
 Mir. Searles cited the case of the tate vs. Fuller in which the Con- ecticut supreme court of errors laid own the following ruling governing ases apparently exactly similar to le charge that Gilpatric as cashier national bank. embedded funds ,trusted to him for safe keeping: "The statutes of Connecticut co. s. tile 12. section 19) relating to em- azzlement by the officers of a bank, oplies to inc officers of national ank, who take or purloin special sposit made by one of its custom- s but it Is imperative with respect the embezzlement of property of bank by it's agent. for which the act congress provides penalty. "A special deposit of bonds made y customer, done up in a package, within the purview and prohibition [ the statute"
 Describes These Conditions. The latter paragraph describes ex- ,tly the condition under which many srsons gave Liberty bonds and other egotiable securities to Gilpatric and le statement Of officers of the bank IS been that the embezzlement larged against Gilpatrlc amounts to e larger part of s262,t00 which Is e loss to the baik established to lte.
 The question of further losses to dividuals who had entrusted their nds to Gilpatrlc was still under inc liry today. pr. s. B Overlook. sus of the Mansfield state aiming School and Hospital, who me from Maine several years ago. IS said to havs placed s55,000 ,rth of bonds in Gih1atric's hands r safe keeping. the repsrt being that Is was done at Gilpatric's own re- est. Whether this lot of bonds is ,luded in the s2s2.oeo missing from g bank was not known today. pr. -erlock. who is i'll. and Mrs. Over- K refused to comment on the mat today. saying they would neither