Putnam patriot., 1925-12-25

treasurer Of Connecticut iH care oi The First National Bank of Putnam under the date of September %, 1919 The bonds delivered were all in ecu pon form. Purchase consisted of prin . cipal Sls6. .640.00. interest S3.683.3i total St90. .323.3f."
 The denominations of the coupor bonds delivered by The National City l Company under date of September 25, 1919, were 200 O S1 900 each and the numbers were No. 253.673 to No 253 TIP inclusive, and No. s59,69 C No. s59, ,997 inclusive.
 i Record Manipulated
 I The records within the State I Treasury department show that th- bonds received in connection with the purchase of $200. 900 Fourth Liberty Loan Ids as of August 9, 1919 were received on January 1, 1920, | and were two registered bonds in the amount of $I00,0O0 each and the numbers were No. 4,74l and No. A. |742 These bonds were not recorded as on hand as of October i9, 1925.
 The records of The Federal Re serve Bank of Boston show that un- der the date of January 2, 1921. they delivered to c. II. Gilpatric, treasur- CT of the State of Connecticut two $1O0, GOO Fourth Liberty Loan 1 l-4 per cent bonds. No. 4.741 and No I4,742, registered in the name of State of Connecticut. Teachers Pension Fund. The Federal Reserve Bank s records further show that the bonds received by them on December i6 IHVn ia for the fsaFp tered bonds No. 4,74l and No. 4.742 Messrs K. l.. Day and Company of Boston and Messrs. Roy T. H. Barnes and Company of Hartford. under date of November l5, 1920, with funds for the sinking fund account and hereinafter further described i1 the transaction relating to $330.000 par value Fourth Liberty Loan bonds delivered to the State Treasury de pertinent by The Federal Reserve Bank of Boston in exchange for bonds received by them on February f5, I192t
 Gilpatrie Showed Bonds
 Our prior investigation of the re- cords of the First National Bank of Putnam has determined that thirty of the coupon bonds received from the National City Company were shown by Cashier Gilpatrie Co an accountant in January 1920 on day after Janu- ary f. 1920, the date the registered bonds were enormously recorded as received with the state treasury de pertinent The bonds as shown by Cashier Gilpatrie were represented by him to be the property of corpora ton located in Putnam. which was under examination by the account i ant and the numbers of the bonds recorded by the accountant as seen ! by him at that time are identified with thirty of the bonds received at the I bank from the National City Com lpany. IL has been further deter mined that on June 2s, 1920, forty seven bonds of this group of 200 cou- l pon bonds, were set up on the gem eral ledger of the bank by fictitious entry. The bank was visited by the l National Bank examiner on or about | that date and the fictitious entry WIS | evidently made for the purpose of de ceivinr the examiner of the true con dition of the banks account in rela- i ton to subscription to the fifth Vic tory loan. The subscription to the | fifth issue by the state in the amount i of S720. 900 was made through the | bank and the instaiiment payments were made by the state to the bank during the period from May 9. 1919 to and including November S, 1919. The ! fictitious entry made on June 2s, 1920 effected reduction of fifth issue sub scription account and increased se- eurities held for investment account thereby placing the subscription ae- count in condition to avoid the eN- Iamincr's close investigation.
 Irregularities Suspected
 An analysis of the accounts relat- ing to the fifth issue both in the state treasury department and at the bank had not been made a feature ot any of our engagements. In our opln- ion such an analysis will disclose IT. repularities
 The forty-seven coupon bonds here. Iinhefore described and set up as held for investment on the banks general ledger on June 2S. 1920. were in part, fifteen of the thirty bonds shown to the accountant in January, l920, as belonging to a certain corporation. This group of forty-seven coupon bonds were sold Co the First Nationa. al Bank of Boston under date of Sep temher 27. 1920 Groups of twenty coupon bonds and forty-two coupon bonds were also sold to the First Ma ltional Bank of Boston on October l5 1920 and October l9, 1920 respee- lively.
 In each instance the numbers of the coupon bonds were identical with those purchased under date of Sep. tember l9, 1919. from the Natlona Citv Company of New York, and the bank received the benefit of the funds received from the First National Bank of Boston.
 In this manner. the disposition Of iOg of the group of 200 coupon bonds has been determined. A further in- vestiration will disclose the disposi' ton of the remaining ninety-one bonds.
 Connection Traced
 During our investigation of the re, cords of the First National Bank oi Putnam. insofar as they related te transactions with pr. Selden R. Over lloek it was determined that a charge lmade to nr. Overloek's deposit ae' count in tho amount of SS,s4 .bf
 fe Eaa la