New Britain herald., 1925-10-21
S33O,OOO In Liberty
Bonds Returned To
State Treasury Feb
ruary IS, 1921, Au-
ditors Disclose.
Just Where All This Money
Came From Has Not
Yet Been Determined
Transfer Verified by
Govt.

Hartford. Oct. Il Up - Liberty
bonds TO the amount of s330,O00
we're returned TO the state treas
ury February Is, 1921, by former
State Treasurer G. Harold Gilpatric.
II vas learned today.
They we're in one package and
consisted of three bonds OF $780,
coo each and three of $1,000 each,
and were TO replace in the state
treasury bonds amounting TO $780,
0o0taken out by the treasurer in
October. 1920, nearly five months
before.
Explained Transfer
II has been learned that the ex-
PLANTATION made by the treasurer at
the time the bonds were taken from
the treasury was that they were to
be turned over to the federal gov
ernment for transfer. That meant
that many bonds OF small denom-
sral reserve bank in exchange for
bonds of large denomination.
Tracing SS3O,0OO
What is now claimed is that the
state treasurer. after withdrawing
the bonds, did not Immediately send
them to the federal reserve bank,
but instead obtained the bonds of
the large denomination by paying
cash What became of the original
S330,000 in bonds has not definitely
been determined but they are being
traced in an effort to learn to what
uses they were put and through
whose hands T.. ! passed,
Funds From Bank
It has been established that OF
the total amount of $330,000 paid
by Gilpatric for bonds to replace
those taken from the state treas
ury s1S5,000 vas represented by a
check drawn on the First National
bank of Putnam. of which Gil
patric was cashier. This amount
has been computed to the last cent
and includes the funds taken from
the Cutler estate amounting to s42.
O7S, funds OF the bank amounting
10 something over 100000, and
funds of other trusts handled by
Gilpatric for the remainder.
Transaction Verified
The transaction involving the to-
tai of $S30,000 In which Gilpatric
obtain the bonds from the federal
reserve bank has been certified by
the bank In q communication to
Receiver George NJ. Coffin OF the
First National. Against this is the
cancelled check for $1S5,O00 now In
the hands Of the receiver. Where
Gnpatric obtained the remaining
sl45,000 to complete the s330,O00
transaction has not yet been ascer-
tanned.
It is known that Gilpatric was
preparing for at least two months
to make good the shortage in the
state bonds before the transaction
fnally was consummated. The
Cutler estate funds had been de-
posted In six savings banks, and
early in January. 1921, Gilpatrc
withdrew the accounts from these
banks and deposited the total in his
bank so that on February "A. 1921.
he was able TO draw a draft against
the total amount Of $42,07S to he
applied towards the check Of $685.
600 sent 3, Boston.
The work OF the investigators in
checking over the Gilpatrtc mani
pulation of funds is made more diff
ficult by the fact that funds taken
from one source 10 make good
fhortages in others, we're later re-
placed by other manipulations and
Juggling of accounts. II has been
learned that funds OF the Putnam
Cemetery association amounting TO
$40. 900, had been taken in this way.
but later the money was returned
and the association will stand no
loss.
John r. Carpenter OF Putnam,
who represents most Of the credi-
tors, said that there is nothing 10
show that the state ever paid the
First National bank of Putnam for
the bonds to the amount of $685.
onN which the bank ordered and
paid for. or that the state had ever
paid any sum to the hank, in re-
turn for which the state might
have claimed the bonds.