New Britain herald., 1925-10-22
Painstaking Search
Thus Far Fails to Re-
veal Whereabouts Of
All Money Involved
In Vaccinations.
Formal Demand Made on
Putnam Bank Directors
To Make Good s125,OOO
on Bad Loans Advanced.

Hartford, Oct, 20 R-The assist
ance of G. Harold Gilpatric, former
state treasurer and former cashier
of the First National bank of Put
nam, may be sought In an effort to
straighten out the tangled affairs of
the bank and other funds which be-
came involved through Gilpatric's
manipulations.
Gilpatric's Aid Needed
While the check-up of the banks
funds is still progressing and will be
sometime before the final report is
made, more rapid progress could be
made If Gilpatric would aid In the
investigation. Counsel for the va
rious claimants against the state OF
Connecticut in the action now being
considered for the return of bonds
claimed wrongfully held In the state
treasury are considering means of
obtaining information from Gilpat-
ric which will serve as short cut
in the checkup. ...
1t Is possible committee consist
Ing of counsel and an accountant
Will go to Atlanta, Ga, where Gill
patric is now serving term of is
years for embezzlement, and 60
over the entire situation with him,
If he Is willing to aid in any way
in the check-up. Thus far the only
light obtained by the bank and 9TH
er creditors has been through a
painstaking search through maize
of traasactions, which has taken
months to reveal.
Tracing Libesty Bonds
The accountants are endeavoring
at this time to trace the course of
$SSO,0oo In Liberty bonds alleged 10
have been taken from the state
treasury In October, 1920 and re-
placed by other bonds In February.
1921. They are also endeavorfns 10
ascertain where the funds were OBJ
tanned, amounting to s145,OOU. which
added to the s1S5,O00 of which they
now have information, was used 10
purchase the replacement bonds. IL
1t could be readily ascertained to
what use Gilpatric put the original
bonds when they were taken from
the treasury, many other transac-
tions which have not vet been dis
covered may be brought to light.
The creditors are not informed, of
course, whether Gilpatric Is COM
petent to give the information they
seek.
Possibility OF Suit
II the suit threatened against the
State of Connecticut Is brought for
the recovery of money claimed to
have been stolen to replace the
states bonds the action will un.
doubtedly be In the federal court,
as will also the action against the
directors OF the First National bank
IL they fail to come to an agreement
with the receiver for the adjustment
of the demands made on them TO
make good some Of Gilpatrics shady
bank enterprise.
Attorney Ernest c. Morse of Put
nam, counsel for the Gilpatric fam
lily, said today that while Gilpatric
answered freely all the questions put
TO him, he undoubtedly did not see
the legal necessity of supplying the
information now desired. He said
the former state treasurer's menu
ory is very good and he could un-
doubtedly give the desired informa.
ton, and would probably do so il
requested. He suggested that per-
haps deposition could be taken as
Is customary in civil actions, and
this might we'll be dene through his
brother, Attorney Walter G. Gilpat-
ric of New York.
Directors Held Responsible
Demand has been made upon the
directors OF the First National bank
of Putnam to pay $4,000 to Re-
ceiver George NJ. Coffin to cover
four bad loans made by G. Harold
Gilpatric as cashier OF the bank
wrecked by his defalcations.
Acting under instructions from
Comptroller of the Currency ]. w.
Mcintosh at Washington, Receiver
Coffin has notified the directors that
they were negligent in sanctioning
these loans when presented by Gill
patric for their approval, as inves-
tigation would have shown that the
borrowers lacked the finu ncial
standing to secure the notes. Seven
directors and the estate of an eighth
In addition to Gilpatric are held TO
be liable TO the receiver OF the bank
for the aggregate of the loar 5.
They have been notified that suit
will be instituted by the government
TO recover the s125,o00 unless set
tlement is made.
Directors Involved.
The directors involved are c. II.
Brown, who was president OF the
bank; Silas NJ. wheelock, r, II,
Brady, Oscar Dugas, John Q. Fox,
Edward Mullan and L. E. Smith.
Similar steps have been taken
against the estate OF the late John
A. Dady. and the bankrupt estate
Of Gilpatrlc. both OF whom were
also members of the board OF dlrec-
tors. All OF the directors are resi-
dents Of Putnam or immediate vi
cinity.
The bad loans for which the a.
rectors are held responsible ere an
follows:
$4,000 to the A. vito Construcs